Texas Electricity Rates and Energy Plans

Texas Electricity Rates and Energy Plans

June 1, 2023
by
Shawn Cornett

Are you hoping for affordable energy in Texas this summer? You're not the only one.

Research shows that Texas in the spring and summer of 2022 experienced skyrocketing electric bills, with many paying 50% or more compared with 2021.

Fortunately, if you live in the state of Texas, you have options when it comes to energy. Let's explore your options for Texas energy plans, which include no-contract electricity.

Fixed-Rate Plan

A fixed-rate plan is one of the best types of Texas electricity plans. With this plan, your rate won't ever change regardless of market volatility, weather, or natural events.

In many cases, a fixed-rate plan has a contract term lasting 12 months, 24 months, or 36 months.

This plan option is ideal for homeowners who value stability. Fluctuating prices in the market won't affect them.

However, since these plans come with contracts, homeowners must pay early termination fees if they cancel the plans before their expiration dates. These fees may be around $199.

You might also be able to choose a fixed-rate plan specifically for high-energy-usage customers. This type of plan may help homeowners who use more than 1,000 kilowatt hours each month save more money as they use more electricity.

Variable-Rate Plan (No-Contract Electricity)

This type of plan, also called a no-contract electricity plan, might change monthly based on energy market factors. It presents more pricing volatility, which might affect your electricity bill each month. However, it also provides more flexibility.

Your plan's instability or stability will ultimately depend on the plan's rate structure (more on this later). However, you can expect your bill to change with time.

Still, you can usually cancel this type of plan anytime without having to pay a fee. This is a major benefit if you plan to move in the future.

In addition, let's say you don't care for your current variable-rate energy plan. You can switch it anytime without having to pay a fee to cancel your current plan.

Variable plans make the most sense for homeowners who need the flexibility of month-to-month plans. Otherwise, they should choose a fixed plan.

For instance, you might want to choose a variable-rate plan if you're a property manager fixing up your property for several months before renting it out.

These types of Texas electricity plans come with unique perks depending on the season.

For instance, you may choose a 12-month fixed-rate plan that comes with a 50% discount on your energy rate from June to September, the highest energy usage months.

This can help you avoid high bills during the hot summer months. You can also enjoy not having to worry about fluctuating energy prices. It may come with an early termination fee, though.

In addition, you could take advantage of a plan offering free and clear nights. This may be the best plan if you don't mind shifting your high-energy-usage activities to the nighttime hours. These activities may include washing dishes and laundry.

This type of plan may be a fixed plan lasting 12 months. Since it's a fixed plan, it will come with an early termination fee.

You could also take advantage of a 12-month fixed-rate plan that will give you perks if you pay your energy bill. For instance, you could earn reward dollars each month for your favorite entertainment destinations, travel, restaurants, and your favorite retailers.

As part of this type of plan, you might even be eligible for grocery coupons and giveaways. With the best plans, your reward dollars won't ever expire, which means you can easily save up these dollars for larger purchases.

Since this type of plan has a fixed rate, it would come with an early termination fee.

Texas Electricity Rates

Multiple electricity rates are available for you to choose from in Texas. Let's go over your major rate options.

Fixed Energy Rate

With the fixed-rate energy structure, which is available for fixed and featured plans, you can enjoy a stable energy rate. This means every kilowatt hour you use will be the same cost every time. This is a simple rate structure.

For instance, let's say you use 1,000 kilowatt hours and the fixed rate is 7.4 centers per kilowatt hour. Your supply charge will be $74.

Variable Energy Rate

With this variable plan rate option, the amount you pay will change based on energy demand. In high-demand periods, the rate will be high. In low-demand periods, the rate will be low.

The rate typically fluctuates each month based on how the energy provider calculates it. Fortunately, because a variable plan with a variable energy rate won't charge you for early termination, you may switch plans if a price spike is imminent. This means you can hop from one low rate to another low rate.

Let's say you use 1,000 kilowatt hours. The variable rate is 7.4 cents per kilowatt hour in June followed by 9.5 cents per kilowatt hour in July.

Your June supply charge will be $74, and your July charge will be $95.

How We Can Help With Your Energy Needs

Popular Texas energy plans include fixed-rate plans and variable-rate plans, also called no-contract electricity plans. Some homeowners also use indexed plans. In addition, the most common Texas electricity rates include fixed rates, flat rates, variable rates, and tiered rates.

At Ambit Energy, we take pride in offering the best energy plans, including our popular no-contract electricity plan, Lone Star Flex. This flexible month-to-month plan comes with a variable rate and comes with no early termination fee.

Get in touch with us to learn more about this energy plan option, and start enjoying affordable energy today!

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