Given the wide selection of electricity plans available, how do renters choose the best electricity plan? The key to finding the best plan is to have an idea about how much electricity you use and select the contract length that is close to your rental contract term. Typical apartment electricity plans are best for 500 – 1000 kWh usage per month and 1 – 12 month contract term lengths. Enter your zip code above to search and compare apartment electricity plans with this criteria.
As a result, 85% of Texas power consumers (those served by a company not owned by a municipality or a utility cooperative) can choose their electricity service from a variety of retail electric providers (REPs), including the incumbent utility. The incumbent utility in the area still owns and maintains the local power lines (and is the company to call in the event of a power outage) and is not subject to deregulation. Customers served by cooperatives or municipal utilities can choose an alternate REP only if the utility has "opted in" to deregulation; to date, only the area served by the Nueces Electric Cooperative has chosen to opt in.
Recently, several retail electricity suppliers and brokers have begun incorporating the words “power to choose” in online advertising, web URLs, and web content that is indexed by search engines. This could skew the search results for consumers entering the term “power to choose,” directing them to websites run by brokers and suppliers rather than by the PUCT.
As they’re advertised, the Digital Discount plan appears to save you $4 — but only if you use 32 percent of your energy on the weekends, which is the stat Reliant used to create the average price it advertises. Say you often travel for business during the week, and are only home cranking the air conditioner on weekends. If your energy use skews to 55 percent weekend use (for Reliant, that means 8 pm on Friday through 12 am Monday), suddenly Truly Free Weekends becomes a much better deal.
The price to beat seemed to accomplish its goal of attracting competitors to the market during the period through January 1, 2007. It allowed competitors to enter the market without allowing the incumbents to undercut them in price. It has also given energy consumers the ability to compare energy rates offered by different providers. The less-regulated providers undercut the price to beat by only a small margin given that they must balance lower prices (to attract customers and build market share) with higher prices (needed to reinvest in new power plants). Due to the small difference in competing prices and slow (yearly or so) "buying" process, price decrease due to competition was very slow, and it took a few years to offset the original increase by "traditional" electric providers and move to lower rates.
One of the biggest benefits of deregulation is your right to choose an energy company that offers renewable power. Essentially, you can choose an energy supply that includes up to 100 percent green energy, which is generated with clean resources such as sun or wind. If supporting Texas is important to you, you can even choose your electric provider based on where it gets its green energy. Many providers offer renewable electricity that comes from Texas wind farms.
The vast majority of Texas residential consumers on fixed-rate contracts pay anywhere from 6 to 13 cents per kWh for electricity. However, searches for service in most major metropolitan zip codes on PowertoChoose.org reveal a long list of offers seemingly too good to be true, with several starting at 1 cent per kWh. These offers may appear to be a great deal on the surface, but they are often accompanied by confusing minimum usage requirements, monthly fees, and conditional bill credits. Those conditions can be easily overlooked by eager consumers wanting a bargain on their utility bills.
One desired effect of the competition is lower electricity rates. In the first few years after the deregulation in 2002, the residential rate for electricity increased seven times, with the price to beat at around 15 cents per kilowatt hour (as of July 26, 2006, www.powertochoose.org) in 2006. However, while prices to customers increased 43% from 2002 to 2004, the costs of inputs rose faster, by 63%, showing that not all increases have been borne by consumers. (See Competition and entry of new firms above for discussion on the relationship between retail prices, inputs, and investment.)
At the end of the day, Texas electric companies should be accountable to their customers – and we believe honest pricing is the best way to achieve that. By being open, truthful, and transparent about costs, we make sure consumers can budget confidently, with any “unknowns” kept to an absolute minimum. For more information on Think Energy plans and pricing, contact a sales associate today at 888.252.0078.
Oncor, the state’s largest distribution utility which covers Dallas, Fort Worth and much of North Texas, has already agreed to pass all of the millions of dollars of expected tax savings along to consumers. Oncor agreed to pass the savings along to customers as part of a rate review which is a formal process in which the PUC reviews the appropriateness of rates being charged by the utility. No exact details have been determined with respect to how the savings will be passed along. The rate review was actually completed before the tax reform bill was passed but there was a commitment in principle to passing along the savings. It’s not yet know exactly how much Oncor will save from the lower corporate tax rates but with a $245 million tax bill in 2017 future saving are likely to be in the tens of millions of dollars.
According to the U.S. Energy Information Administration, the average household in Texas uses about 15,000 kWh of electricity per year — 26 percent more than the national average, “but similar to the amount used in neighboring states.” That said, the only way to know your personal average energy consumption is by looking at your electricity bills over the course of a year (you want to accommodate all weather conditions) and understanding both your overall usage, as well as if you use more or less during certain months.
Electricity rates in Texas are not fixed. Your rate can vary greatly depending on your usage and your electric plan. Some plans have relatively flat rates, while others can be all over the place. This means that you could end up paying 7¢ for 999 kWhs and 8.5¢ for 1001 kWhs. That would be a 16% increase because you microwaved a few potatoes. Learn more on the different plan types here.