When picking a rate plan for a residential home or apartment you need to understand how energy providers choose to market.

Every electric provider will have a few good deals on certain plans. It may be a 3 month rate or a 15 month rate but what you will see is a slightly cheaper price for that term than a typical contract term.

Compare Electricity Company Rates

It will not always be the 3 month and 15 month fixed rate plan that offers the best electricity price but this serves as an example so I can explain what is going on here.

Many times a standard 12 month fixed rate will offer the best deal but a provider can steer you to a different rate plan by making look better.

Even if certain things about an electricity company rate plan are bad for the customer an electricity provider will market it in such a way that you may see the bad aspects as positive.

These energy suppliers are simply featuring the bad parts of their plan and making you pay more for it. Don’t fall for these tricks as you end up losing in the end.

Below are some points to consider when choosing an electricity company and one of their rate plans.

• Choose a standard electricity rate plan such as 6 months, 12 months, 24, or 36 months.
• Don’t always go with the cheapest plan especially if it is a short term 1 – 3 month deal. That price will go up.
• Lock in to a fixed rate and skip going with the cheaper variable price. Variable rates are always subject to change.
• If a company leaves off TDSP charges, surcharges, and other hidden fees in their rate don’t trust that they have your best interests in mind. Go with a different provider.
• Stay away from electricity rate plans that say they are fixed but also have a fuel surcharge that can adjust with the commodities market. This is a trick and it simply means your electricity company rate is not truly locked in as fixed.

Today is August 14 2009 and we have gone out to the power to choose website to check on electricity rates from companies like Champion, Startex, Green Mountain Energy, Spark Energy, TXU, Ambit, Stream, Bounce, Texas Power and Reliant Energy.  We checked on some other Texas electricity providers but these energy companies provide a good overall comparison of rates. We have sorted the electricity rates  in order from cheapest to most expensive using the pricing available on the Power to Choose website.

Startex Power, Champion, and Green Mountain Energy, are some of the more popular electricity companies we recommend and Startex and Champion are currently offering some of the cheapest available electricity plans in the Dallas Texas area. There are no hidden fees or charges with Startex or Champion. If you use below 500 kWh per month than a $4.95 monthly service fee will kick in with Startex Power but other than that you are going to be good with the top two cheapest Dallas electricity plans in the chart.

This chart above is a historical snapshot of what Dallas residential electricity rates looked like for the month and day of August 14 2009. These charts sometimes help in determining the track record of a Texas electricity companies overall consistent performance in delivering a low cost electricity price to Texas energy consumers. To see a current comparison of our recommended electricity companies in Dallas Texas please click on our Dallas electricity comparison link by clicking here.

Picking The Right Houston Electricity Company, Rate and Plan

What to Know Before Signing up With Just Anyone

We have compiled a list of some of the more popular residential Texas electricity companies and rate plans. If there is a known issue with one of the residential electricity companies we list that concern next to the provider. There are some providers that have blatantly obvious tricks we know of that shows one rate on their website but when receiving your first electricity bill the rate is much higher due to the TDSP charges not being clearly apparent. A note should be made that these Texas electricity providers are usually involved in leaving off the TDSP charge on their advertised rate. We are not sure exactly how many energy companies participate in this practice as well as they change their practices depending on how much heat they are receiving from PUCT complaints. You can read Consumer Energy complaints from some of these providers customers who can explain what exactly can occur when switching to a gimmicky energy company better than we can.

August 7 2009 Residential Houston Electricity Company Comparison, Cheapest to Most Expensive

Understanding Your Houston Residential Electricity Rate

Most electric providers in Texas will bundle the TDSP charges into the energy only rate giving you an all-in rate that can be compared against other Texas electricity companies like TXU Energy and Reliant Energy. We have listed both TXU and Reliant in our comparison chart in order to compare their electricity prices with other Texas electric providers. You will notice that the two largest energy providers in Texas have much higher electricity prices than some of the smaller but good electric companies. Right now Champion Energy and Startex Power are two reputable electricity providers in Texas offering very cheap fixed electricity rate offers. All fees and charges are disclosed with these two companies. With Startex if a customer uses less then 500 kWh hours a month there will be a $4.95 monthly service fee although most Texas electricity consumers use more then this so it shouldn’t be an issue for most customers. A monthly service fee is simply an additional charge many electricity providers have in addition to their electricity price. It is important that a provider disclose this fee upfront rather than hide it in the contract details. We have made these fees obvious in our rate chart so you can make a clear apples to apples comparison of electricity prices in Texas.

Historical Houston Electricity Rate Snapshot for August 7 2009

Since this Houston electricity comparison chart is an update for August 7 2009 it only represents a historical snapshot of what Texas electricity providers were charging on this date. An updated and daily refreshed electricity rate chart is also provided below with some of the cheapest Houston electricity companies. We hope this historical list of Houston energy providers in prices above will keep you informed of how prices move over the course of several months. If you have any questions or comments about one of these Houston electricity companies please feel free to leave a comment below. If you are interested in a no deposit Houston electricity choice please visit our no deposit electricity page.

Current Houston Electricity Rates, Companies, and Plans

Compare Electric Rates Below

The last few months energy has come down quite a bit a long with the stock market, the economy, and consumer confidence. Even our dollar isn’t doing so good but it has started a climb up. Residential electric rates in Dallas have come down some but not as much as some were anticipating. The problem is when fuel prices drop quickly it doesn’t necessrily have the same effect on the conversion over to electricity. There is a cost associated with converting natural gas and coal to electric power. This cost is called a heat factor cost. When natural gas comes down quickly you will usually see the heat factor go up. This makes it a little difficult to anticipate exactly what electric rates will do when fuel and energy comes down. Below is a comparison list of some of the cheapest electric companies in Dallas Texas.

These rates are subject to change as the month progresses but are accurate as of the date this article was written. To see an updated comparison list go to : Dallas Electric Rate Comparison

Dec 2008 Dallas Electric Rate Chart

What to do When Locking in Dallas Residential Electric Rates for November 2008?

The energy markets have been steadily declining and have started to hit some historical short term lows. If this trend continues we could see some very good residential electric rates but trying to pick the bottom of a trend is an impossible task. If you are waiting to do something I would recommend making your hunch and going ahead and signing up on a term even if just for a few months. The reason you should lock into something is due to the high price of a month to month rate. Residential electric providers in Dallas will generally offer a low first month rate on a month to month type of electric service plan but will then raise the rate dramatically after that first month. To avoid a high rate hike you should lock into some type of monthly term. If you are risk averse I would go with atleast a 1 year plan and if you are willing to roll the dice and try again in 3 months I would go with a shorter term like a 3 month or 6 month fixed rate.

November 2008 Residential Electric Rates Comparison Chart

The residential Dallas electric rates below serve as a historical marker of where rates have come as of November 2 2008. These rates will most likely change as the month progresses but you will find indicative prices as of Nov 2 2008 to help you in your shopping and comparing process. If you wish to see current Dallas electric rates we recommend checking this page out: Dallas residential electric rates

Dallas Residential Electric Rate Chart

If you are looking for a comparison of Dallas commercial electric service you can find it here: Dallas Commercial Electric Service

If you were looking for Residential Houston Electric Service you will find it on this page: Houston Residential Electricity Comparison
 

If you are confused about electric rates in Dallas and surrounding Oncor utility area we have a great comparison chart below comparing mostly fixed rates with several different electric providers. These electric rates are residential rates. There are a few variable rates in the mix because those companies only offered a variable electric rate so we listed their only option. The rates are designated as to whether they are a fixed electric rate or a variable rate. I recommend to avoid signing up on a variable rate because the month after you sign up on that rate plan the electric rate could do just about anything. A variable electric rate has taken many residential customers by surprise this summer when rates trippled in price. A fixed electric rate is a much safer way to lock into an energy rate because you know exactly what price you will pay the entire term of your contract.

Current October 2008 Residential Electric Rate Comparison

These rates are updated as of October 2 2008. Because residential electric rates change every few weeks these rates will be a little higher or lower as the month continues. This comparison chart will serve as a good indicative comparison of where residential electric rates are at for the month of October 2008. You may click on the links on this comparison chart and sign up online to receive a slightly lower electric rate then calling these providers on the phone. By signing up for electric service online you keep the electric companies costs low for aquiring a new customer and they reward you by giving you a slight discount then if you were to call and speak to a customer service rep over the phone. Signing up online also allows you to take advantage of online discounts that are not promoted when calling the providers on the phone. When you call an electric provider on the phone they expect to close about 70 % of those customers who call in. Because of this most providers will try to sell you a higher electric rate then is available via online discount offers.

The companies offering the cheapest rates for the month of October are Startex Power – Sign up Now

Residential Electricity Close to a 3 Year Historical High

The market is way up right now and a question on a lot of peoples mind is if they should sign up on a 12 month fixed rate contract or a longer term such as a 24 or 36 month fixed rate contract. Right now a 24 month and 36 month fixed rate contract is cheaper then a 12 month fixed rate. The reason you get a cheaper rate as you go longer terms is due to a correlation with the natural gas market. Natural gas futures contracts are cheaper as you go out on a longer term. You can verify this by looking at futures contracts for natural gas on one of many commodity broker quote sites. The key to what you should do is in the contract. The reason they give you a cheaper rate is because they believe rates will come down between now and 24 months or 36 months from now. Because the commodities traders expect rates to come down they have a strategy to sell you on a longer term contract at a cheaper price. Many people fall for this but keep this in mind, you would be locking in at the top of the market.

We recommend signing a 12 month fixed electric rate agreement and trying again next year. We have a comparison chart listed below of multiple electric companies in North Texas, Dallas, Fort Worth, Plano, McKinney and the rest of the Oncor Electric Utility area of Texas. Compare and pick a provider. Some of the links below are discount 12 month rates, cheaper then what the Texas electric companies generally offer. Simply click the provider you want to go with and sign up online. The Texas government will automatically take you off your current electric provider and put you with your new one. You will not need to call your current provider to be taken off as this happens automatically.

July 2008 Texas Electric Rates in North Texas

Find a rate you can be confident about for the next year and try again next year. The market is very high right now so these rates will be much higher then what they looked like last July. The rates are updated as of July 6 2008. Many times the market will go up or down within a few weeks. You may click on the links below and possibly find the company offering a slightly higher or lower electric rate as we move further into the month of July.

What is Electricity Doing Right Now?

As of May 2008 Electric rates are currently close to a 3 year high and because of this Texas residential electric rates do not look so good right now. Many people would like to wait and renew when rates drop down but there is just no way to know when this will happen. Electric rates could hover at historical highs for several months before they drop back down to prices many people are comfortable paying.

Who We Recommend

We recommend signing a 12 month energy agreement and then trying again next year. Notice: Riverway Power recently cancelled their residential electric customers agreements in mid April according to several people who called in and left comments regarding them so we do not recommend using them as their fixed electric rate is subject to change. Our preferred electric providers at this time are Affordable Energy, Startex Energy and Bounce Energy Guaranteed No Deposit. All of these Texas electric companies have accurate billing, good customer service and low rates.

We are now approaching the end of the month of June and since writing this article rates have continued up along with a barrel of oil and natural gas. Oil and natural gas are trading at all time historical highs and the analysis shows that traders are hedging against a falling dollar by buying energy. The rise in prices can best be attributed to investors and traders trading up the price. This price spike will most likely be a bubble we will see fall but we have no idea when that will be. If you are buying Houston electricity you are exeriencing the worst of it. Houston electric rates are higher then they have ever been right now and higher then the rest of the state.

Who are These Energy Providers?

With over 60 different retail electric providers in Texas operating in the state, for the time being you find yourself with a mix of electric companies that many people have never heard of before. Some of these energy providers have not been heard of before because of coming from out of state. An out of state Texas electric provider might be very capable of handling your commercial business or residential homes Texas power needs but the name just has never made it to your state until they came in and began operation. Consider Green Mountain Energy as a good example of an electric company most people have never heard of before. Prior to deregulation there were a few companies like TXU Energy and Centerpoint Energy but other then that most people had no clue of who the energy companies were in other states nor did they have a reason to care. I would guess that quite a few people now have heard of Green Mountain Energy even though they were not even operating in Texas prior to Texas deregulating the retail electricity market.

Prior to Deregulation There Were Many New Companies

Spark Energy is another company that no one had heard of prior to Texas deregulating but they have made a pretty good name for themselves in certain cities. Texas Power is another electric company that has quickly gained ground in name brand recognition in the state of Texas. A common element among these electric companies is a long history in the energy business. Spark Energy’s ownership has always had a very strong past in the natural gas related industry. Spark’s ability to hedge their energy correctly allows them to confidently price products for commercial and residential consumers without worrying that they will at one time have to break the contracts and raise the rates on their customers. Having experience trading commodities and hedging energy by buying natural gas futures contracts is a needed skill in the Texas electricity market. There are several companies that came into Texas with little skill and knowledge about how to properly run a Retail electric company. Because of limited experience or just bad management some of these companies have gone bankrupt or just raised there promised fixed priced electric contracts on their customers. Tara Energy, TriEagle, Texas Commercial Energy, and Riverway Power are a few companies we are aware of that have broken their electric agreements with their customers and raised rates on them despite the fact that they signed a binding agreement for a fixed electric rate.

More About, Tara Energy

Tara Energy has been involved in litigation with multiple electric customers of theirs regarding the hike in their fixed electric rate price. Most of these complaints filed with the PUCT have been settled out of court according to documents on file with the PUCT. The litigation with Tara Energy and their customers generally would go on for 6 months to 1 year before some type of settlement arrangements were made. There is a confidentiality agreement worked out with Tara and the electric customers that settled with them so we were not able to determine what type of settlement was offered to their customers who fought them in court. If you would like to read a sampling of a few of the multiple litigations that were waged against Tara Energy you can read it here: Tara Energy. Here is another from a furniture store against Tara Energy which was also settled for some undisclosed amount. Tara Energy verses Edelstein Better Furniture

Why Do Providers Cancel Their Energy Agreements?

The reason a few electric providers in Texas have renegged on their commercial or residential electric contracts has to do with plain and simple bad business. Best practices for the energy market were not used most likely in the buying and hedging of their energy. Some companies may not have hedged their bought energy at all. When the market went against them they were upside down on a large block of energy as they were in reality just betting on the market just the same as me or you were to buy a stock and hope it goes up.

Recently a new upstart electric company in Texas has broken the energy agreement for their fixed electric rate with their Texas residential electric customers. We have received several comments and phone calls from people that were told they would have to accept a higher Texas Power rate or go shopping for a new provider. It doesn’t do an energy customer any good if they go to lock into a fixed electric rate if the company is only going to break the agreement if the market does not go their intended way. Riverway Power Electric Company is a recent example of an energy company breaking their customers fixed rate energy agreements. We had an overflow of people call in around mid April saying they were not able to get a hold of Riverway Power. Riverway Power was not answering their phone calls as they probably had way to many callers calling to protest the hike in the rate they had thought was locked in all year. For those considering using Riverway Power with their supposed guaranteed lowest electric rate price we would like you to consider their track record. They are new to Texas and it didn’t take them log to break customer contracts. Below we have included their most recent description of their rate and their prices in the 5 different TDSP zones in Texas.

Riverway Power Electric Rates

What Texas Electric Provider Do You Recommend

If you need a low cost electric provider we recommend Startex Power. They are a large discount electric provider offering low cost residential and commercial energy to Texas homes and businesses. You will find a promotional link to their electric rate at the top left of this page. The rate offered from our site is the cheapest rate they offer. If you call them on the phone the rate will be a little higher.

Electricity Rates have come down today from being up yesterday. A 6 month electric rate today is .08111 cents per kwh. A 12 month electricity rate is at .08563 cents kwh today for the Oncor Delivery Area. Energy rates may go lower but right now there is no indication which way they will go in the next few months.

Natural Gas surpluses look good and energy traders are rallying the energy related stocks which could push up Natural Gas but the energy sector in general will not necessarily have a large correlating effect on electricity in Texas.