Do you know
how to find the best Houston
electricity rates? Do you know what benefits each plan offers from a
particular provider? Have you looked at several providers and compared the
plans and rates? Knowing what kind of electricity plan to look for is integral
to getting a low Houston electricity rate. Fixed rate and variable rate plans
work very differently and while one may look more attractive on the surface, it
could end up costing you more.
Fixed Rate Plan
Depending on
the time of year, these plans could have a higher rate than you’d hope. During
the summer and winter, energy rates tend to be higher due to increased
electricity and energy usage for AC and heat, respectively. It’s ideal to get
the best rates during the spring or fall when rates are lower, but you can
still save with these plans.
Locking in
your fixed rate means that your rate won’t change for the duration of your
contract. The contract terms generally last between three months and three
years, depending on the provider and plan. Throughout this time, with the
exception of TDSP changes and new regulations, your rate will not change. No
matter how much the market fluctuates, including as a result of severe storms,
you keep paying the same rate. It’s a safeguard for the future of your energy
use.
Variable Rate Plan
This plan
might look more attractive on the surface compared to a fixed rate plan. They
might be a bit cheaper at the time you sign up, but the rate will change every
month. The good thing is you can switch plans at any time while in a variable
rate plan, as they have no contract. If you’re in the last month or so of
summer and want to get the good fall rates, a variable plan can be beneficial
to get you through those last few weeks before the rates drop without locking you
out of good rates due to a contract.
Check the EFL
Fixed rate
plans lock in your rate, so you pay the same rate throughout your contract.
Since there is a contract, there is almost always an early termination fee if
you decide to switch before your contract expires. Other fees such as meter
reading and base charge are applicable to any plan you get. The electricity
facts label (EFL) for a plan will tell you what fees and other charges are
applicable to your plan and how they are implemented. The overall rate you see
for a plan will usually take into account the charges like meter reading and
base charge, breaking it down so you see overall how much you’re paying for
electricity per kilowatt hour.
Read
your EFL carefully to ensure there are no surprises. Some plans may show a low
rate, but in the EFL that low rate only applies to a specific range of
electricity use. Anything outside that range could be notably higher. Once you
find a few plans you like and compare their EFLs and rates, you’ll be able to pick
the one that gives you the best Houston electricity rate for your home.