Electricity Products

Texas Electricity Products

 

IdeasWith more than 50 active retail electricity providers in Texas, finding the right company and product for your can be an exhausting process. Rates, electricity facts labels and terms can all seem downright overwhelming.

As a good rule of thumb, we suggest a moment to understand the types of plans that are available in Texas, which will help you make better electricity purchasing decisions for your home or business.

In Texas, electricity plans fall into three broad categories Fixed Rate Plans, Variable Rate Plans and Prepaid or Pay As You Go Plans. We will briefly discuss them here.

LockFixed Rate Plan
The fixed rate plan is the most popular plan in the Texas market. A fixed-rate plan has a set rate that will not during the contract term. This plan usually requires a contract for a given term, most commonly 6,12, 24 or 36 months but recently has expanded to 48 and 60 term options with some electricity providers. When you sign up or enroll in a fixed-rate plan, your rate or price per kWh will not change during the term of your electricity contract or agreement. Fixed rate plans usually come with the most aggressive rates and incentives or rewards amongst the product categories because the products are credit scored. In most cases, the retail electricity provider will require a credit check before enrolling you on this plan. If your credit score does not meet the electricity company's minimum credit requirements, a deposit could be required to enroll in the plan.  In Texas, deposits amounts can vary by provider. Typically, deposit amounts range between $100-$500 depending on your credit score and whether you are in a house or apartment, with houses usually requiring larger deposits due to higher usages. This plan may also carry an ETF or Early Termination Fee. This fee is assessed if you cancel your contract before the end of the term you enrolled on and can range from $50-$300 depending on the electricity provider. These plans are considered postpaid plans are meaning you use the power and then receive a bill at the end of your billing period.

Who Should Consider This Plan? 
Homeowners enjoy fixed rate plans because it provides budget certainty.This plan can also work well with apartment residents, but you may want to ensure you match the term of your agreement with the current remaining months you have left on your lease. In the case that you are moving before the end of your electricity contract term, some electricity providers may allow you to transfer your current electricity agreement to your new residence. 

Pro's

  • Can provide budget certainty for your household or business
  • Usually has the lowest rates
  • May include incentives or rewards

Cons

  • Usually requires a credit check
  • May require a deposit if your credit score does not meet the provider's minimum requirements
  • Requires a contract term of usually 6,12,24 or 36 months
  • May come with an Early Termination Fee if cancelled before the end of the contract

Unlock Variable Rate Plan (Month To Month)
Variable rate plans, most commonly called a month to month plans, have no contract term length. The rate you pay per kWh varies from month to month and may be tied to a commodity index or pricing formula. Your rate can go up or down based on the natural gas market, the primary fuel for producing electricity in Texas, and the pricing strategy of the electricity provider. Month to month plans tend to come with aggressive introductory rates, but that rate can increase or decrease each month. Like fixed price plans, variable plans usually require a credit check and may require a deposit if you don't meet the electricity provider's minimum credit standards. These plans do not have an ETF or early termination fee, so you can switch providers or plans at any time without penalty. These plans are also considered postpaid plans meaning you use the electricity and then receive a bill at the end of your billing period.

Who Should Consider This Plan?
This plan can be an excellent option for movers and residents who are planning to move. Because there is no cancellation fee, you can enroll in a month to month plan to have power established until you are settled into you new service address. Many residents also will enroll in this plan type when electricity rates are high, generally peak season (Summer/Winter) and look to switch to a fixed rate plan when rates are historically lower in the off-peak season (Fall/Spring). 

Pro's

  • Can provide flexibility because it doesn't require a contract term
  • May have low intro rate
  • No ETF or early cancellation fee

Cons

  • Usually requires a credit check
  • May require a deposit if your credit score does not meet the provider's minimum requirements
  • Rate can increase or decrease from month to month

UnlockPay As You Go or Prepaid Plans
Pay As You Go plans are the newest of the three plans and are not offered by all electricity providers. Most commonly called prepaid, like variable plans they have no contract or term length. The rate you pay per kWh generally can vary from month to month but as of recently, some electricity providers are fixing the rate of a certain number of months to incent customers to stay on the plan. But like the month to month plans they may come with aggressive introductory rates but that rate may increase or decrease each month. Unlike fixed or variable price plans, prepaid plans require no credit check. Unlike fixed or variable rate plans, which may include a monthly customer charge, prepaid plans include a daily fee. These plans do not have an ETF or early termination fee, so you can switch providers or plans at any time without penalty. Unlike fixed or variable plans, these plans usually require a mobile phone with a text plan as your account balances are texted to you.

Similar to buying gas for your car, you start off your prepaid account with a minimum amount, usually $30, but it's recommended to start with at least $60 in peak seasons. Just as you drive your car, and the amount of gas in your tank goes down, the amount available in your prepaid account reduces as you use it. 

Once your account gets to a certain level, usually $10 remaining in your account, you will receive a text message to your mobile phone alerting you to reload your account. The more you initially load into your account the fewer alerts you will receive depending on your usage.

Who Should Consider This Plan?
A prepaid plan can be a great plan for residents in the process of rebuilding their credit or those who do not have the money available for a deposit. Many prepaid plans allow you to establish service with as little as $30.

Pro's

  • Can provide flexibility because it doesn't require a contract term
  • May have low intro rate
  • No ETF or early cancellation fee
  • Does not require a credit check or deposit
  • May come with aggressive promotional incentive

Cons

  • You must pay for electricity before you use it
  • Rate may not be fixed
  • Rate can increase or decrease from month to month
Click Here And Enter Your Zipcode To See Our Selection Of Fixed Rate, Variable And Pay As You Go plans