What is the recommended Texas electric rate plan to get on?

A fixed rate is basically insurance in case Texas electric rates go up higher. A market rate allows you to not be locked into an energy contract so you can get out at any time without incurring a penalty.

If you think you will be moving soon you should get on a market rate. Be careful which company you go with as some will really stick it to you when on a variable rate. We recommend comparing multiple electric companies using our comparison chart. Startex Power was previously a company we recommended but at this time we do not recommend this energy company to our customers. Bounce Energy has both fixed and variable electric rates. Their variable electricity price goes up and down with the market. This means you take advantage of price dips rather then just being charged a premium for not being on contract. Bounce Energy has the added benefit on their variable electricity price of having a price ceiling. By going with Bounce’s no term commitment variable electricity rate you take advantage of price dips and have a ceiling stop point if prices go up dramatically. You can click here to learn more about Bounce Energy. You can click here to learn more about Startex Power.

Fixed Rate Comparison with multiple companies

If you will be living in the same house or area for some time then you will definitely want to lock in on a term rate. By locking in you are keeping yourself contracted at a low electric rate for an extended period of time. You will pay much less on your Texas electric by locking in then being on a month to month rate. 6 months and 12 month terms are the most popular. The longer you go out the more expensive the electric rate. The reason the electric rate goes higher as you go out is because the electricity rate is based off of natural gas futures which happen to go up as you go out on a longer term or (futures contract).

For shorter electric rate terms such as the 6 month term I would go with: Startex Power - Startex Promotional Sign up

I would recommend signing up with Champion Energy for their 12 month electric rate if you plan on staying in your house or apartment for atleast a year and live in Dallas or North Texas. This will give you the lowest Texas electric rate out there right now and you will be insured the rate does not change during this time. In the Houston area I would sign up with Champion Energy as their kwh rate is in the 10.0 cent per kWh range. Electric rates are usually a little higher in the Houston zone but Champion Energy has kept it the same across the board. Be sure to bookmark this page and sign up with the next low cost electric provider a month before your contract ends.

Houston Promotional Fixed Rate sign up form | Dallas Promotional Fixed Rate sign up form

What electric rate term is better?

As far as what term is better there is really no way to know. It would be like guessing on what the stock market will do. The government seems to think electric rates will go up in the long run atleast that is what Energy.gov believes. If it were me and I was not going anywhere soon I would actually sign up for the 24 month term but no longer then that. The Texas ERCOT Energy council will be implementing the nodal system in the next 2 years in order to try to reduce electric rates. Instead of there being only 5 regions in the managed grid there would be over 200 nodal systems. This would allow it so that smaller cities are not penalized with a higher electric rate because of Houston’s or Dallas’ congestion problems. If your town uses its energy in an efficient manner the Texas government believes you should be rewarded for it and I would have to agree.

What is the difference between a small Retail Electric Provider and a large one like TXU Energy?

The difference between a large electric provider and a small one is that the small one needs to establish itself in the marketplace. There is not a lot of history about how the small guy does business as far as billing and customer service or how honest they are in presenting their electric rates. You will however not need to worry about loss or disconnection of electric service as it is just a paper transaction. You will still receive your electricity through the TDSP pole and wire company you have always used. In Dallas this is (OncorTXU) and in Houston this is (Centerpoint Energy). You may not realize this but Oncor or Centerpoint actually passes through their charges on your electric bill and they are known as TDSP charges. These charges remain the same regardless of the Retail Electric Provider (REP) you choose. If the small electric company were to go bankrupt you would automatically be switched to the Provider Of Last Resort (POLR) and would never be without service. This is a fail safe put into place by the Texas government and the ERCOT Texas grid management team also known as Electric Reliability Council Of Texas. If you are still uncomfortable using a smaller electric company even though they may have a lower electric rate you have other options. There are very large electric companies that are just as old as TXU Energy and Reliant Energy that have come in from other states and started doing business in Texas when the state deregulated back in 2002. Champion Energy offers an electric rate and is a very large electric company comparable to TXU and Reliant but they are not recommended at this time. You cheapest electric rate choice at this time is with Startex Power. Keep in mind the smaller companies recommended on this page all have verified track records in regards to customer service, ethical electric rate disclosures, and accurate billing.

What Is A Texas Electricity Facts Label?

The Texas electricity facts label was put into place by Texas’ ERCOT agency to make a requirement for Texas Retail Electric Providers to provide a clear concise page that shows the electic rate along with important terms and conditions to the energy contract. This makes it easy for a consumer to quickly determine if the electric rate is worth signing up for. This also allows the consumer to do the needed research without spending hours calling providers and reading through fine print in contracts. This is the equivalent to a nutrition label on the back of a can of food. If you wanted to research electric rates on your own be sure to look at the facts label for the product being offered as it will tell you everything you will need to know including, the term, the electric rate, customer service charge, early termination fee, and where the energy is coming from.