Likewise, if you opt for a plan like our StarTex Power example, but in some months only hit 990 kWh of energy use, the $35 discount for cresting $1,000 kWh won't apply — and your bill is going to show it. Picking the right plan for you requires two things: an intimate knowledge of your home’s typical energy use, and a critical eye on any plan’s fine print.
Whether you live in a large city or small town, we can save you money! Where do we provide Texas electricity? We service customers in more than 400 deregulated communities in Texas. We work with principal utilities throughout the state of Texas to provide prepaid electricity. The utilities are: Oncor in the Dallas / Fort Worth Metroplex and various parts of West Texas; CenterPoint Energy in Houston and the surrounding areas; AEP Central in Corpus Christi and surrounding areas; AEP North in Abilene and other North Texas communities.
If your monthly use hovers around the 2,000 kWh mark, you’ll be spending around $2,000 per year on electricity bills no matter which REP you choose. With that level of investment, you may be tempted by an offer to get something extra in return — like rewards. Direct Energy is notable because it’s a part of American Express’s Plenti rewards program. For every dollar you spend on your Direct Energy plan, you earn a “Plenti point,” which you can then redeem on purchases with retail partners like Macy’s, AT&T, and Exxon.
Variable-rate supply plans, as the name suggests, have a rate that varies based on the market price of electricity. Seasonal and market fluctuations can affect supply rates. While variable-rate supply plans can allow you to take advantage of market-price lows, there is the possibility of paying for high supply rates when demand is at its peak. These plans offer great flexibility.
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.
Fixed-Rate Plans: These plans are steady and predictable; the price per kWh you sign up for will remain that same for the entirety of your contract. (The only changes in your bill will be from forces outside of your REP's control, like changes in TDU fees, or changes in federal, state, or local laws.) Often fixed-rate plans will have a slightly higher price per kWh than others, but you're paying for the predictability. They're great if you live by your budget – and even greater if you happen to sign up when rates are low. The fixed-rate plans of our five Texas providers typically started at 12 months, with some extending up to three years, but we spotted a couple from Reliant that offered fixed rates for six month contracts as well.
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.