Whether you’re moving to a new home or needing a new energy provider, one thing is for sure: Texas has a lot of options in the market. With so many companies, it can be overwhelming to find one that fits all of your needs for the right price.
A retail electricity provider, like the Public Utility Commission (PUC) or Energy Bot, offers Texas electricity rates in your area, but it’s important to get familiar with plans, electricity usage, contracts, and more. Here are a few steps you can take to help you decide what type of plan will be the best for your home and your wallet.
First, Check Your Contract
If you already reside in Texas and have a current contract, check your electricity bill or call the company for details. Depending on when your contract ends, you may be faced with an early termination fee.
Your contract expiration date is important if you’re trying to avoid unnecessary fees. According to the Public Utility Commission of Texas, you can switch providers without paying an early termination fee if the switch is no earlier than 14 days before the current plan expires.
Determine Your Average Electricity Usage
Knowing how much energy you use each month will help to estimate how much your new plan will cost you. Look at your last three electricity bills, as well as those from winter, summer, or other times your energy tends to spike up. From there, you can determine what you’re most likely to use and what price point you can expect.
Choose a Plan Type
While shopping for a plan, look for a link labeled Electricity Facts Label (EFL). It will lead you to a document that covers average electricity pay rate, as well as green percentage, base (monthly) charges, and an early termination cancellation fee.
Fixed-Rate
Rain or shine, a fixed-rate plan offers you a flat rate that remains stable throughout your contract. While you may miss out on lower bills, you can rest assured that you can expect the same price any season. If price stability is your preference, you can still save money by keeping an eye out for plans with discounts, reward programs, and free electricity.
Variable-Rate
With a variable-rate plan, your price for electricity will fluctuate. You may pay more or less depending on factors such as weather, seasons, demand, fuel prices, the distribution system, and the market.
The benefit of variable rate plans is that you’re not stuck in a contract, and you have the freedom to shop around. The downside is that they may not disclose the changes, and you don’t have a say on how much you pay.
Compare Prices and Savings
How long you agree to stick to a specific contract can determine how much you pay in electricity bills. On the one hand, knowing that you’ll be around for longer can land you a sweet deal, but can come with additional fees if you decide to break the contract. If you’re not ready to commit, short term contracts will give you more flexibility to renew or switch later down the line.
Final Thoughts
With much freedom comes many choices, and states like Texas are full of them. The best thing you can do is keep it simple. Break the process by knowing what you want out of your energy provider, what your budget is, how long you intend to stay with the contract, and finding a company that checks all of the boxes.