Knowledge Center
The Benefits of Fixed Rate Plans
Does the mere thought of your energy bill stress you out? Do conversations with your friends always begin with you saying, "You'll never guess how much my electric bill went up this month?" If so, then it sounds like you have a variable rate plan and need to look into signing up with a provider that offers fixed rates.
With a fixed rate plan you will pay one price as opposed to a variable rate that changes month-to-month or seasonally to match the energy market wholesale price. Electric companies usually let you lock in a fixed rate for up to a year.
The main benefit of a fixed rate is that no matter how much energy you and your family use, your bill will not fluctuate. Now that sounds perfect for those hot Texas summer months.
Electricity Facts
By knowing how to read the Electricity Facts Label you can easily compare different providers so you can find the best company that fits your energy needs and budget. Below is a list of items you will see on the label.
Electricity Price: The electric company will detail the average price per kWh for 500 kWh, 1000 kWh and 1500 kWh. They will also list their monthly customer service charge and seasonal pricing. This is very important if you are on a tight budget.
Contract Terms: If they have one, the company is required to disclose the minimum term and penalty for early cancellation. If you think you might want to discontinue service after a short period of time then you may want to look for a company that does not have contracts or offers short term contracts. Your rate will not change for the duration of the term.
Sources of Power Generation: The provider will identify the sources used to generate their electricity. Their percentages will be graphed in comparison to average usage for electric generation for the state of Texas. This section is valuable if you are looking for a company that produces 100 percent green energy.
Emissions: The electricity provider will list the types of emissions and waste created per kWh of electricity generated. The chart will identify if the emissions are better than the Texas average or worse than the Texas average. If you are looking to lower your carbon footprint, then pay attention to this section.
Types of Electricity Providers in Texas
Did you know there are different types of electric providers in Texas? Just because you receive a bill from Company X doesn't mean they provide the repairs to the electrical lines and poles in your area. This kind of information is valuable in choosing a provider or knowing who to call during a power outage.
Some electric companies, known as the local wires company, preserve the poles and wires that transmit and distribute electricity to your home. They are responsible for sending out an employee to fix any damages during an emergency outage. You can identify your local wires company by looking on your electricity bill.
An affiliate electricity provider is an electric company that was split from your area's original electric company that produced and sold electricity. The affiliate, also referred to as the incumbent provider, only sells electricity and provides customer service.
The competitive retail electric provider offers lower pricing, alternative energy choices, innovative customer service options and special promotions to gain your business. (example: Reliant Energy™, TXU Energy, Green Mountain Energy, Dynowatt, Direct Energy, MXenergy, Amigo Energy and dPi Energy.)
The Provider of Last Resort is always available in the event your electric company leaves the market for any reason. You will automatically be transferred to this provider so you won't lose power. Afterwards you can choose to stay with them or move on to another electricity company.
The city-owned utility is a non-profit utility that is owned and operated by the city. City-owned utilities do not have to allow competition within a regulated market. (example: Austin Energy)
The municipally-owned utility is a non-profit utility that is owned and operated by the municipality. Utilities owned by the municipality do not have to allow competition within a regulated market. (example: City Public Service in San Antonio)
The pay-as-you-go electricity provider offers a way to pay for your electricity bill upfront with no IDs, deposits or credit checks necessary. For consumers with bruised credit, this is a great way to continue powering your home without the stress of long term contracts. (example: dPi Energy)
Protection for You as a Customer
It is important for to be a well informed consumer so if a problem arises you know what steps to take to protect yourself, so make sure to read all paperwork that you receive from your energy company. The Terms of Service will detail fees, contract terms, billing and payment information, credit and deposit policies and cancellation of services. The Your Rights as a Customer disclosure will outline financial assistance options, slamming, cramming, disconnection and restoration of service, complaint resolution and contact information.
You can find all of these items in the specified hyperlinks on the order page for each provider. Once you have submitted your order, you can find these items in the "My Orders" section of your account. Additionally, your selected provider will mail you hard copies at your request.
Types of Electricity Plans
What makes deregulated energy in Texas so great is that you have many options when it comes to determining your electricity for your home or apartment. This comes not only in the form of what provider you choose, but also in the pricing method and how you pay your monthly bill. There are four types of electricity plans offered through the various providers of ElectricityTexas.
Fixed rate plans are plans that allow you to lock in your electricity rate. This can help protect you against rising or constantly changing prices, but may cause you to miss out on savings if the prices suddenly drop.
Variable rate plans are plans that have changing prices on a month-to-month basis. While you can not lock in a low rate, there is potential to save money on your bills if the prices were to suddenly drop.
Indexed rate plans are tied to an index and vary based on a pre-defined pricing formula that is publicly available, such as the natural gas index.
Pay-as-you-go power, or prepaid electricity, allows you to pay a flat fee up front for your electricity, with no credit checks, deposits or IDs required. Going forward, you will receive your bill in advance of your next billing cycle.
