If you have that fight with your teenager about the hairdryer again, you might explode!
Every morning, it’s the same. You’re making coffee, and you hear them in the bathroom, drying their hair for 45 minutes. And this is after an hour-long shower! You might as well be making coffee to the sound of your teen flushing money down the toilet.
But what if you didn’t have to start your day fighting with your kid about the electricity bill? With a better electricity plan, you could find the family harmony you’ve always wanted!
Instead of throwing the hairdryer in the garbage while your kid is at school, use the PowerWizard Shopping Tool to find the perfect electricity plan for you and your family.
This guide will walk you through step-by-step how to find the best electricity plan in Texas based on your needs and your usage.
Do you know that you have a choice in your electricity plan if you reside in Texas?
Because of the deregulation bill passed in Texas in 2002, consumers in some areas of the state can shop and compare electricity plans to find the best electricity rates for their needs.
As a result of this bill, 85% of Texas electricity consumers can compare electricity plans to suit their needs. They’re not stuck using one government-owned or government-regulated electric utility company.
Here is a list of other states that are able to choose their energy plans.
The bill was passed to encourage free-market competition in Texas. This free market gives consumers the power to choose their electricity plans.
Consumers like you can shop around to find the best electricity plan.
Although choosing your own electricity plan sounds great, it might not be:
There are dozens of electricity companies in Texas. Each electricity company has multiple plan options.
The result is hundreds of electricity plans. The average person doesn’t have the time or industry expertise to properly navigate this convoluted market.
The deregulation bill passed in 2002 designated the Electric Reliability Council of Texas (ERCOT) to be the authority to oversee grid reliability and operations to ensure no particular buyer or seller would gain an unfair advantage in the market.
The municipal utility company still owns the infrastructure and is responsible for transmitting energy but not setting the energy rates.
Texas decided to reduce the state’s regulation on electricity resulting in a free market and open competition with electricity plans. This means you have many options for your electricity provider and are not forced to use one or two like many other states.
As a result, there are dozens of REPs offering a combination of hundreds of plans.
Texas produces more electricity than any other state. It generates almost twice the amount as in Florida.
Here are some average rates for residential and commercial electricity rates in Texas:
Average Residential Electricity Rates In Texas:
Average Commercial Electricity Rates In Texas:
However, this may be misleading, depending on who asks about their electric bill.
Why could these rates be misleading, you ask?
Determining the best electricity plan for you depends on many different factors.
Keeping these factors in mind as you talk to family and friends about their rates and plans will play an important role as you compare electricity plans.
Remember, no two homes will be the same. Rates will vary greatly depending on these factors.
Your zip code matters.
The price of your electricity plan may differ from your family member’s plan who lives in a different zip code, even though your homes are the same size and your usage is pretty close.
Your electric bill for a 2,000 sq foot house in Houston may cost you more than a 2,000 sq foot house in Abilene.
Do you need electricity for residential or commercial spaces?
If you are searching for electricity plans for commercial space, you are more than likely looking for square footage than residential. A commercial space may have people coming and going, which will cause your electricity usage to be higher.
Also, there are electricity plans specifically designed for commercial properties in Texas.
The size of your home, apartment, or commercial space can affect your electric usage.
However, the following are a few other things to consider along with the size of your home:
A commercial space size contributes to your electricity rates, but also consider the following:
The age of your home, apartment, or commercial space may be a factor in how much you are paying for your electricity bill every month.
An older home, apartment building, or commercial space may have less effective insulation or may have older appliances that are not as energy-efficient, causing your electric bill to be higher.
There are some basic home improvements you can do to help curve your bill.
Newer homes tend to be built with energy-efficient appliances and have better insulation, usually resulting in lower electric bills.
Therefore, a new home in Houston that’s 2,000 square feet might not benefit from the same electricity plan as an older home in Houston that’s also 2,000 square feet simply because of the home’s age.
There are dozens of electricity companies in Texas.
That can be overwhelming when trying to find a new electricity plan.
Below, we share two different options to help you find the best electricity plan in Texas.
It’s interesting that most people search for electricity incorrectly in Texas:
They shop for electricity using a labor-intensive, inefficient, and incredibly frustrating strategy. Take a look below.
How much time do you have? Remember, there are over 160 electricity companies in Texas. Do you really have that much time to search through dozens of REPs’ sites manually to find a plan that works for you?
It is a gamble. Think about this:
You conduct an online search for the best REPs in Texas, go to each site, and likely walk away with more questions than when you started on top of wasting multiple hours.
Save time by allowing technology to do the work for you.
Power Wizard has a solution to eliminating the endless number of hours spent manually searching for new electricity plans.
Here’s how Power Wizard works:
Cheap electricity plans may sound great! But they can also be misleading.
They may come with:
You think that the rate you see on your electricity plan’s contract is the price you pay. That’s often not the case.
Knowing that the following charges will be included in your bill will help you make a better decision and clarify your bill statement.
Many cheap plans catch consumers off guard. The cheap plans are not always so cheap.
Why?
Don’t be fooled!
Hidden fees make it hard to know which electricity plan is best for you and your family.
And reading through dozens of electricity plans to figure out their hidden fees is stressful, time-consuming, and incredibly frustrating.
Instead of spending hours doing that, you can spend a couple of minutes using Power Wizard’s Shopping Tool.
Features or exclusive perks are things many consumers compare when comparing electricity plans.
A few to look for include:
While receiving a gift card from your electricity company seems great, remember that they’re using this as a marketing strategy.
Just because you get a gift card does not mean you’re getting the best electricity plan.
Free always sounds and looks good! But is a free weekend electricity plan worth it for you? Maybe? It depends on your schedule and a number of other factors.
Life with anything that states FREE in front of it will have trade-offs.
Be sure to ask yourself if your schedule allows you to receive the full benefit of using the free weekend electricity plan you are considering.
Free energy sounds great, but will you be home to benefit from it?
Energy plans offering free or discounted rates during the hours you are sleeping or not at home may not benefit you.
Knowing your schedule and understanding the terms of these plans is important and may save you more by going with another option.
A company’s marketing of their electricity plans has caught your eye. The price looks good, and you are ready to sign.
But first, be sure to know and weigh your home’s needs.
Are you home on the weekends to benefit from the free weekend plan being offered?
Are you home most nights during the hours offered for the free night?
If you answered “NO,” these plans may not be a good fit for you.
Is the offer valid only for long-term plans, and do you move often?
If you answered “YES,” this plan may not be a good fit for you.
Remember to always ensure the perks benefit your home’s needs.
Oftentimes, the cost per kilowatt-hour is much higher during the hours that you still have to pay for electricity than plans that charge you during all hours of the day. For example, your price per kilowatt-hour for a free weekend plan may cost you 16.2¢, whereas your price per kilowatt-hour may range between 6.8¢ to 14.5¢ for other types of plans.
Discounted or free energy plans may work well for you and save you money under the right situations but may not save you as much as you think.
How tech-savvy are you?
Although some have reported savings with electricity plans connected to a smart device, it comes down to personal preference.
When setting up smart devices, a bit of tech knowledge comes to play when connecting devices.
You should also take the cost and installation of the smart device(s) into account when comparing this plan.
With Texas being a deregulated state and the hundreds of electricity plans to choose from, competition is strong. And companies compete with plan offerings making it hard to truly compare.
The following also make it hard to compare Texas energy plans:
There may be two plans that look nearly identical. They have the same price per kWh. But, after reading their Terms of Service, you quickly realize that the two plans are very different.
The “cheapest” electricity plan might not be the best plan for you.
Here’s a story that explains this:
Let’s say you live in Waco.
After some initial research, you find that the cheapest energy provider for your area is selling electricity at 7.9¢ per kWh. Seems really cheap, so you buy it.
After your second month, you look at your electricity bill. It seems really high.
You inspect further.
You see that your rate says 10.1¢ per kWh. What!?
You’re upset. You keep reading the statement.
After 10 more frustrating minutes of searching, you figure it out. This “cheap” electricity plan requires that you use at least 1,500 kWh per month. If you fail to meet the minimum, then they’ll charge you a higher rate of 10.1¢ per kWh.
You go back to the section that explains your electricity usage. It says you used 1,423 kWh.
Because you didn’t use the minimum amount, you were charged a rate over 30% higher than what you signed up for.
This is why the “cheapest” electricity plan likely isn’t the best plan.
Selecting the best electricity plan is about you! This is the time to focus on your home or business needs solely. Not the need of your neighbor, co-worker, or family members.
Everyone’s needs are different. Knowing your needs and having an all-seeing technology system will help you choose the best plan and keep your rates low.
Power Wizard can help you find the best electricity plan for your needs. All you need to do is spend 5 to 10 painless minutes using our Shopping Tool.
Once you find the best plan that fits your needs, start the sign up process and we’ll take care of the rest.
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