Electric Rates By Zip Code

Walking your dog through your neighborhood, you’ve started to wonder: How can my neighbors afford to have so many lights on every night? 

Your electricity bill keeps rising, even though you are trying your hardest to turn off the lights whenever you can.

It’s not you. Your neighbors probably just have a better electricity rate than you. But how can you know how much you should be paying for electricity in your area?

With Power Wizard’s Shopping Tool!

Our innovative shopping tool was designed to make sure you have the best electricity plan on the block. So what are you waiting for? 

 

This guide will explain exactly what you need to do to compare rates and find the one that is best for you by simply entering your zip code.

How Are Electric Rates Determined In My Zip Code?

The electric rates in your zip code are based on four specific factors:

Supply and demand

Supply and demand refer to the fact that electric rates depend on the amount of usage at any given time. During Texas summers, when we are using more power for air conditioning, mini fans, etc., the cost of electricity is going to be higher.

Your REP has to negotiate with generation companies to determine a rate to supply electricity to your zip code. Each company can charge a different rate depending on the current demand. And therefore, kWh cost by zip code could be substantially different depending on where you live in Texas.

Seasonality

Seasonality simply means that electric companies are aware that there are peak times for usage depending on the season. In Texas, usage will likely spike during summer.

Energy companies must account for those highs as well as lows in months like January and February, and this will affect their calculation of rates in your zip code.

Transmission and Distribution

Transmission and Distribution are carried out by a separate entity outside of your REP. Your local utility company carries this responsibility and charges a fee to do so.

You won’t often see this as a separate fee on your monthly electric bill, but it is factored into the electric rates for your zip code provided by your REP.

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Purchasing Processes

It is important to note that electric rates in your zip code could potentially change every 15 minutes.

Energy companies monitor prices every 15 minutes. They base their rates in your zip code on those costs measured in cents per kWh.

Your REP takes all of this into account when determining your rates over a specified contract period.

Electric rates in your zip code are ultimately determined based on how much electricity your REP thinks that you will use, the time of year, and the cost of transmitting that electricity to your home.

Their goal is to be able to provide practical rates to customers like you, all while earning a profit for themselves.

Who Has The Cheapest Electric Rates In My Area?

The cheapest electric rate in your zip code may not be the best rate for you.

There are several factors to consider when searching for the best electric rates by zip code:

• Minimum usage fees
• Rates for renewable energy
• Minimum usage fees
• Home size
• Home age

This list could go on and on.

With the number of electric rates offered in your zip code, it could take weeks to manually find a rate that works best for you.

Power Wizard could reduce your search time from weeks to a matter of minutes.

When you enter your zip code into Power Wizard’s Shopping Tool, we will review the plans and rates available in your zip code and match you with the best plan and rate to meet your needs.

Are All-Electric Rates In My Zip Code Based on kWh?

Your electric rate will not be the same as your neighbors.

It’s not as easy as you think to determine your electric rate by using a simple equation that utilizes cents per kWh.

Although most companies do utilize cents per kWh in their calculation of electric rates by zip code, there are several other factors at play:

• The type of plan that you choose
• Fixed-rate plan
• Variable-rate plan
• Indexed-rate plan
• Prepaid plan
• House size
• House age

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Will My Electric Rate Change?

Electric rates are subject to change every 15 minutes.

Your electric rate may or may not change depending on the type of electricity plan you choose.

If you choose a fixed-rate plan, your rate will remain the same for the length of your contract.

If you choose a variable-rate plan, your rate will vary from month to month.

Power Wizard’s technology works 24/7 to make sure that the rate you pay is always the best rate for you.

If we find a better rate for you after you become a Power Wizard member, we will automatically switch you over.

Here’s how it works:

• Step 1: You will enter your zip code into our Shopping tool.
• Step 2: Power Wizard’s process will ask you for some basic information about your home, electricity usage, and more.
• Step 3: In just seconds, our unbiased algorithm compares your needs to the thousands of plans available. If you are switching plans, Power Wizard has made that process easy as well.
• Step 4: Once you are matched with a plan, we will continue to monitor it and your electric usage 24/7. If we find a plan that’s better for you, we will switch you over. Cancellation fees are taken into account.

What Is A Good Price For Electricity?

There are a number of factors that affect electric rates by zip code:

• Home vs. Business rates
• Weather
• Policies/Regulations
• Fuel costs
• Location

The average price that people pay for electricity in Texas is 11¢ per kWh.

If you are paying less than the average cost of electricity in Texas, that’s probably a good price.

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How Do I Determine The Best Electric Rate By Zip Code?

Determining the best electric rate is not the easiest thing to do.

It can be tedious, confusing, and time-consuming.

The best electric rate would be one that works best for your needs and the needs of your family.

You would need to consider things like:

• Home size
• Electricity usage
• Age of your home
• Location
• Family Size

Have you considered that even if you find the best rate for your zip code, it may not be the best rate for your household?

Your electric rate may not be the same as your neighbor’s, even though you both live in the same zip code.

Your rate is completely dependent on your personal needs.

What Electric Company Has The Best Rates In My Zip Code?

When searching for an electric company that has the best rates, it is important to keep in mind that the seemingly lowest rate may not be the best rate for you.

There are three ways that you can search for a company with the best rates in your zip code:

1. Manually go to each electric company’s website.
2. Utilize an electric company comparison site.
3. Utilize an energy shopping site.

It is completely up to you as to which method you use.

The first two options require an in-depth knowledge of the industry. They also require that you know exactly what type of plan you’re looking for. And, there’s no way to have complete confidence that you choose the right plan.

Power Wizard has your back by doing all of the work for you.

Power Wizard will find the best electric company and plan for you based on your usage.

Even after you are matched with the best company and plan, Power Wizard will continue to search for the best available plans and rates to accommodate your usage and budget.

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Are All Texas Electric Plans Available In My Area?

There are thousands of electric plans available in Texas.

The deregulated regions of Texas are currently the only regions that are allowed to choose their electricity provider.

In each deregulated area, there may be hundreds of REP’s to choose from.

Each REP may offer multiple plans.

This could all result in hundreds of plans to choose from in your area, but not all of the plans offered in Texas are available in your zip code.

How Many Plans Do I Have To Choose From?

The number of plans that you have to choose from is dependent on your zip code.

There could be 50 plans to choose from, or there could be 500.

However, there are only a few different types of plans to choose from.

What Are The Different Types of Plans Available For My Zip Code?

Your zip code determines the plans that are available to you.

It can be extremely challenging to determine the best rate in your zip code based on the plans available.

You want to make sure that you choose a plan that fits your needs best and will save you money in the long run.

There a several types of plans in your zip code to choose from:

• Fixed-Rate plan
• Variable-Rate plan
• Prepaid plan
• Indexed rate plan

Fixed-Rate Plan

When looking for electric rates by zip code, Choosing a fixed-rate plan simply means that your rate will not change for the duration of your contract.

You may, however still be subject to fees due to changes in administrative fees beyond the control of your REP.

If your household is on a budget, this may be the best plan option for you.

It’s important to note that if market prices should fall, you will have to wait until your contract is up to take advantage of a lower rate.

Variable Rate Plan

The rate that you pay with a variable-rate plan can vary from month to month.

The advantage of choosing a variable-rate plan is that there are no contracts or cancellation fees to worry about.

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Your electric rates, by zip code, can fluctuate based on the market value of electricity. Your rate can also change at the discretion of your REP.

With a variable-rate plan, you can always take advantage of lower rates when market value prices fall. On the other hand, when market prices spike due to weather, market conditions, etc., your electric rate will also increase.

Prepaid Plan

Prepaid service allows customers to make electric service purchases in advance.

Service is provided on a “pay-as-you-go” basis, with usage calculated daily.

Prepaid service may be provided as either a fixed, variable, or indexed plan.

Prepaid service may require upfront payment for electricity service.

Free Nights and Weekends

Time-of-Use service or Free Nights and Weekends include incentives to use power during certain periods, such as nights or weekends.

The average price calculations are based on the REP’s estimation of the percentage of energy used during free or discounted hours versus the non-free or non-discounted hours.

These estimates and hours vary from REP to REP and from plan to plan.

The average price you pay will vary depending on your actual usage of energy during the free hours versus the non-free hours.

Shifting your usage to the discounted times will maximize your benefit from this type of plan.

If you do not shift your usage, your bill may increase.

What Do I Consider When Comparing Rates?

Here are just a few things that make searching for electric rates difficult:

1. All plans are not available in every area
2. Contract terms
3. Plan types
4. Hidden fees
5. The cheapest plan is not the best plan
6. Individual usage

With all things considered, here are a couple of things to keep in mind when comparing electric rates by zip code:

1. You should consider switching electric companies every year. The market price is always changing, so you want to make sure that you are always on a plan that fits your needs best and provides you with the best rate for you.
2. Know the type of plan you’re looking for, and make sure that you understand your contract terms.

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Why Are There So Many Rates and Plans To Choose From?

Deregulation of the electricity market in Texas has made it so that now there are thousands of individual electric companies competing for your business.

Each of these companies has a number of plans and rates for you to choose from.

This means that there could be hundreds of plans and rates for you to choose from in your zip code.

What Is Deregulation?

Deregulation means that people who live in specific areas of Texas now have the opportunity to choose from a variety of plans with an assortment of rates, contract terms, and incentives.

As a result of deregulation, over 85% of electricity consumers can choose their REP in Texas.

What is A REP?

A REP is a retail electricity service provider.

A Retail Electric Provider (REP) sells electric energy to retail customers in the areas of Texas where the sale of electricity is open to retail competition.

A REP buys:

• wholesale electricity
• delivery service
• related services
• prices electricity for customers
• seeks customers to buy electricity at retail cost.

Does My Zip Code Have Deregulated Electricity?

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98% of Texans Search For Electric Rates Time By Zip Code Incorrectly

Manually searching for electric rates by zip code can be both frustrating and time-consuming.

If you were to manually search for electric rates by zip code, the process would look something like this:

1. Go to an energy company’s website
2. Look at the rates
3. Spend hours searching through all of the available rates for your zip code.
4. You’re tressed and unsure of what to do
5. You connect your credit card
6. When your contract expires, you are automatically renewed even though there might be cheaper plans out there.

How Can I Save Time Searching For Electric Rates By Zip Code?

You can save lots of time and headaches by becoming a Power Wizard member.

Let Power Wizard take away the stress and anxiety of finding the best electric rates for you.

Here’s how it works:

• Enter your zip code into our Shopping tool
• Our simplified process will ask for some basic information about your home, electricity usage, and more
• Our unbiased algorithm compares the needs of your home to the thousands of plans available. If you are switching plans, Power Wizard has made that process easy as well.
• Once you are matched with a plan and have electricity service for your home, Power Wizard will continue to monitor your plan and electric usage 24/7. If we find a plan that’s better for your usage, we will switch you over. Cancellation fees are always taken into account.