Variable Rate Plans: Designed as month-to-month contracts, these plans are in total control of your energy provider, which can shift the price you pay per kWh at its discretion. This means you, the consumer, are in a better place to reap the benefits when the energy market falls — but it also means you're at risk for hikes in prices, whether as a result of natural disasters or the provider's bottom line. Variable plans always offer a full year of price history to show the average price per kWh so you can get a sense of what you're getting into (like this one from Reliant) and know this: Variable plans don't have cancellation fees. You can cut your service at any time — a huge incentive for REPs to keep their prices reasonable.
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.
With the power to choose a supply plan, shopping competitive Texas electric rates could potentially save you money on your monthly electricity bills. TexasElectricRates.com can help you compare retail energy companies in Texas, finding the supply plan that is right for you. Best of all, there isn’t any risk when you shop Texas electricity. Simple enter your ZIP code to start finding electric supply rates in your area.
Since Texas' electricity market was deregulated in the late nineties, multiple Retail Electric Providers (REP) have either launched in Texas, or providers in other states have begun to extend their reach to Texas residents (e.g., Spark Energy, which was founded in Texas). These electricity providers are providing less expensive and/or greener electricity alternatives to traditional sources of energy, in contrast with the supply consumers previously received by default through their local utility. Customers now have the option to receive their electric supply from providers other than their utility, known as alternative retail electric providers.
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.