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Month To Month Electricity

By Payal B

Have you ever preordered an overhyped video game, like Cyberpunk or No Man’s Sky, and ended up deeply regretting it? 

The graphics aren’t as expected, the gameplay is lacking, and there are so many bugs it’s an infestation!

Ordering month-to-month electricity plans by yourself is a lot like pre-ordering an overhyped game. It’s annoying, disappointing, and once you’ve gotten what you paid for you wish you’d known more about it before purchasing.

Get an electricity plan without the buyer’s regret!

Power Wizard uses an algorithm to help you find the best plan suited for your needs and interests. It’s like receiving a custom, in-depth review of a pre-orderable video game!  

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Then, if it recommends a month-to-month electricity plan, you can come back here to learn more about them.

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Why Are There So Many Electric Companies in Texas?

Electricity deregulation was introduced to Texas on January 1, 2002, when Senate Bill 7 passed.

Residents in over 85% of the state were allowed to select their own electricity provider.

Deregulation was passed to encourage free-market competition and lower electricity rates.

Some areas of Texas were not required to deregulate. The customers in these areas may not have the choice of electric companies.

The Competition is Fierce

With over 160 electricity companies in Texas, competition is fierce!

Each company has a different business model, payment plan options, rates, etc.

It is important to do your research and understand how each company operates, as well as understanding your home’s electricity needs.

Choosing the wrong plan could cost you hundreds of dollars per year in your electricity bills.

Over 160 Electric Companies in Texas

With over 160 REPs in Texas (Retail Electric Providers), companies are fighting for your business with different plan options.

Each REP has different plans and rates.

With so many different plans, it’s nearly impossible for you to choose the best plan.

How can you successfully search through thousands of plans and choose the right one?

Plan Options are Always Changing

Plan options are constantly changing, making it difficult to stay up to date with the many options and savings available to you.

Having a way to know when a new plan option becomes available is a great benefit. Knowing when a new plan enters the market that can save you money.

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Think about this:

You find a great month-to-month electricity plan for your home at 9.9¢ per kWh.

You think you found the best plan for you, so after you purchase this plan, you completely forget about electricity.

Just four months later, a nearly identical month-to-month electricity plan comes on the market in your area. And the rate? Its 9.2¢ per kWh.

Since you are not up to date on the changing plan options in your area, you miss this. As a result, you end up overpaying for your month-to-month electricity plan.

Power Wizard’s technology regularly monitors your usage, and calculates your costs based on your contract. Ensuring you are kept up to date on any new plans entering the market.

Let us find you the best plan in seconds and start saving.

People are Constantly Moving and Switching Plans

People move within the state of Texas for a variety of reasons:

  • A new job.
  • To go to school.
  • For a significant other.
  • Because of family.
  • To experience a different city.
  • And much more.

Understanding and knowing the ins and outs of electrical plans offered by REPs will help you find a good price for electricity in Texas if you move to a new area.

Not all Companies are Available in Every Area

Every electric company is not available in every area.

If you move to a new city, there is a chance that your current REP may not service that area. If you have to search for a new company, then you will have to go through the process of shopping for electricity all over again.

This will likely include frustrating and confusing hours researching for plans online or numerous hours on the phone speaking with customer service agents about your need

But, searching for an electricity plan does not have to be hard. We will explain how to successfully complete this process in one of the sections below.

Top 5 Things to Consider with a New Month-to-Month Electricity Plan:

When selecting your new electricity plan, be sure to take these things into consideration.

  1. YOUR Needs – this is important. Each home has different energy needs. Just because your neighbor selects a plan and saves doesn’t mean that plan will benefit your home’s electrical needs.
  2. Suppliers Reputation – Check the REP’s reviews. You can find these on their social media pages, websites and other review sites.
  3. Plans and Rates Offered – Understand the contract and how your rate will be calculated.
  4. The REP Service Area – Not all providers service all areas. If you have a provider in mind, be sure to confirm they service your area.
  5. Customer Service – Are the methods of communication clear and easy to find? Will you be able to have your questions asked at hours that are convenient to you?

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month to month electricity

1. Are There Hidden Fees With Month To Month Electricity?

Hidden fees?

For many month-to-month electricity plans in Texas, there are hidden fees.

It is always important to research and ask about any additional fees that will be included on your bill.

Knowing and understanding how these fees are calculated will help ensure you are selecting the best electric company for your family’s needs and budget.

  • Customer service fees
  • Minimum usage fees
  • Utility company fees
  • Local taxes
  • State taxes

These are fees you will likely see in many REP’s contracts. Be sure to know each company’s rates and how they are calculated.

2. What Happens if You Have to Cancel or Move If You Have a Month-To-Month Electricity Plan?

Do you need to cancel your month-to-month plan? You may be wondering what happens with your current plan.

The Public Utility Commission of Texas states that if you cancel your month-to-month plan or move to a new address, you may not incur an early termination fee.

Subchapter R §25.475 b. (7)The Public Utility Commission of Texas states: A month-month contract is a contract with a term of 31 days or less. A month-to-month contract may not contain a termination fee or penalty.

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For example, let’s say the Smith family moves to a new home in Houston because they need a bigger home for their growing family. They will not be under any obligation to continue their current contract at the new home. The REP may require proof of residency change and reasonable evidence that they no longer occupy the residence specified in the contract.

You may incur a Device Reclamation Fee – a fee charged if you received a thermostat or similar smart device for your home.

Be sure to weigh if there are still any savings to you if you cancel early. There is a chance that there is still a significant saving.

3. What Are the Perks of a Month-To-Month Electric Plan?

Many monthly plans in Texas offer perks.

Besides plans that do not require a deposit or credit check you may be able to receive:

  • Points
  • FREE Power
  • Bill Credit
  • Referral Programs
  • and so much more depending on the individual company

Will these perks actually save you money? Many REPs in Texas that offer month-to-month electricity plans use marketing campaigns to try to get you to sign up or stay as a client. Be wary of these perks.

4. What are Your Unique Needs? Would a Month-To-Month Plan Match Your Needs?

You may consider signing up for a cheap month-to-month electricity plan. Cheap isn’t always the best option for your unique needs.

The “cheapest” plan might not align with your particular energy needs, and therefore you might incur hefty fees that make this “cheap month-to-month plan” much more expensive.

It is important to know your unique needs before selecting an electricity plan.

  • How many people live in your home
  • Is anyone home during the day
  • How warm or cool do you like your house
  • It may even come down to asking, if you have teenagers who love leaving lights on all day
  • Each individual household will have different needs depending on the size of the home/business, schedule, family size, age of home/building, etc.
  • The question to always ask is, “What plan best suits my home’s need?”
month to month electricity

5. Does Power Cost Less at Night or On the Weekend?

Electricity is often cheaper late at night or early in the morning.

The most expensive rates are usually during the busiest part of the business day between the hours of 1 to 7 p.m. Monday through Friday.

This may vary depending on the demand of usage and the electric company. Peak hours are determined by the individual suppliers.

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Texas Electricity Rates For Month To Month Plans

Rates fluctuate significantly from season to season in Texas. The fluctuation affects the supply and demand tremendously. This also affects how much electricity the utility company will need to transfer to homes.

REPs are not responsible for transmitting electricity across power lines nor distributing it to homes and businesses.

Understanding how to calculate the electricity cost per month and the type of rate you choose can be useful to understand your bill, as well as if it is time to switch.


Electricity rates falling under the fixed-rate plan option will lock your rate in for a specific period of time.

A fixed-rate plan is a promise by an electricity company not to change the price per Kilowatt-hour for your contract term.

The 12-month fixed-rate plan is the most popular plan with many. People like knowing what they will pay over an extended period of time. It provides a consistent rate throughout the year and provides a sense of security for budgeting during the coldest and hottest months of the year.

There are few exceptions, though.

  • Changes in Transmission and Distribution fees
  • Changes in ERCOT or Texas Regional Entity administrative fees
  • Changes resulting from federal, state or local laws that impose fees beyond your REP’s control

Fixed-rate electricity plans are helpful for household budget planning, but if the rate drops, you will need to wait until your next contract renewal date to enjoy the lower rate offered.

Market Rate

The market rate electricity plan, also known as an index rate, changes price per kWh change each month. This change may or may not be substantial. The rate depends on the pricing formula connected to a publicly available index.

When considering a market-rate plan , you would benefit from considering the following:

  • Each REPs pricing formula
  • If the REP will notify you about the changes of the index
  • The method of said notification

There are both benefits and risks to this plan.

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Month-to-Month Electricity Plans Have Gained Popularity

There are several reasons month-to-month electricity plans have gained popularity.

  • Fluctuating rates
  • Bad or no credit – avoid the costly upfront deposit
  • Expecting electricity rates to decrease
  • Your home is on the market with the expectation to be sold in the next couple of months
  • Your lease is almost up, and you are moving soon

Month To Month Plans Might Be a Great Option for People that Move Often

Do you move often with your job? Maybe you live with a roommate and are unsure if you are staying in the same place? Are you wanting to observe what your average electricity usage is before deciding on a long-term plan?

If you have no long-term plans to remain at your current address, you may want to consider one of the month-to-month electricity plans offered in Texas

The month-to-month option is also a great idea for college students who aren’t living in dorms.

Month To Month Plans Might Be a Bad Option for People that are Settled

On the other hand, if you have a family with children in a school system you love and have no desire to move for the next 10 years or so, you may not be interested in a month-to-month plan.

Month-to-month plans can be signed for 12 months at a time.

Depending on the type of month-to-month electricity plan you choose, you may incur an upfront cost. This may be an expensive cost for the convenience of being able to change your plan later.

We will discuss some of these month-to-month plan options below.

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Types of Month-to-Month Electricity Plan Options

With the many electric companies in Texas, it is important to know and understand the many types of month-to-month electricity plan options to best suit your needs.

There are several factors to consider when selecting an electricity plan to ensure your home gets the best electricity rates offered.

Month-to-Month Electricity- Prepaid

Month-to-Month electricity prepaid plans provide service on a pay-as-you-go plan. A contract is not always required, and you may not need to put down a deposit.

This plan option requires close monitoring and a way to receive phone or electronic notifications. If your current account balance falls below the required amount, your service may be disconnected with little notice.

The rates are generally higher than other plan options.

Month-to-Month Electricity – No Deposit

A NO deposit month-to-month electricity plan allows you to forego a deposit upfront. With this plan, there are no:

  • Hidden fees
  • Credit checks
  • Deposits

If you have credit concerns, a NO deposit payment option might be beneficial.

Month-to-Month Electricity – Deposit

Here are a few things to consider when opting for the month-to-month electricity deposit option.

  • Electric companies may require a security deposit for new customers
  • Your electric company may require a security deposit to be paid in full on your first bill
  • Your deposit might be lowered or waived based on your payment history or credit history
  • Some companies may let you pay the deposit over several months
  • The deposit amount is refundable and will be returned to you if you are in good standing when ending your service with your electric provider
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How to Change Electric Companies In Texas

Okay – so you are unhappy with your current electric, what now? How do you change your electric company? Can you change your electric company?

The answer is, yes. You can change electricity companies.

So, you know you want to shop around, but how do you even begin shopping for electricity in Texas?

There are two options when shopping for month-to-month electricity plans in Texas.

month to month electricity

Option 1: You Can Manually Research New Plans from Dozens of Companies

You can start your manual research for new plans by doing a Google search for “best electricity rates near me” or “best electricity rates in (enter your zip code)”.

Once the hundreds of results are returned, you will need to set aside several hours, and set up a spreadsheet to keep track of the information received about the numerous plans you will research.

A manual internet search or calling multiple companies about new electricity plans can take countless numbers of hours.

Let’s use the scenario of Mr. and Mrs. Smith again. The Smiths are a family of five with three children ranging from the ages of newborn to 10 years old. With their growing family, Mr. and Mrs. Smith are moving to a bigger house in Houston.

Knowing they can cancel their current plan with proof of address change, Mr. Smith begins his Google search for “best electricity rates in 77013.”

Hundreds of results come back.

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With these results, the Smiths spend countless hours on the phone and searching REPs’ sites to determine if service is available in their area, research plan options, and try to understand the companies’ fees.

Not only did this manual research take time, but the Smith’s spent time entering data into spreadsheets and found themselves duplicating searches, tired and frustrated.

Doing a manual internet search yourself is nearly impossible.


Analyzing the hundreds of available electric plans is nearly impossible for an individual to do. Not only do you have hundreds of available plans to research, but you must also consider any hidden fees and additional rates that may be applied.

Option 2: Let Technology Do the Research for You

Instead of conducting a manual search for your new month-to-month electricity plan, why not save time and allow technology to do the research for you.

A manual search begins with an online Google search returning hundreds of REPs for you to contact via phone or by visiting their websites. This could be a daunting task.

Instead of taking countless numbers of hours and possibly missing additional fees, and pertinent information about plans.

Why not allow Power Wizard’s technology do the research for you and help you find a good price for electricity in Texas.

Begin your search with these few simple steps. All in under five minutes:

  • Use Power Wizard’s Shopping Tool
  • Enter your zip code
  • Tell Power Wizard if you’re moving or searching for a new plan
  • Share information about your recent electricity bill (amount due, usage)
  • Electric heat or gas

How Power Wizard works:

  • Power Wizard reviews the plans available in your area
  • Connects you with the best electricity plan to match your usage and needs
  • Enrolls you in your new plan
  • Ensures there is no gap in electricity service
  • Continues monitoring your usage
  • Will contact you to recommend better plans if better one becomes available

Power Wizard’s technology will help you save time on your search and help you save money on your electricity bill.

Discover the best electricity rates.

Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.

Learn More in Under 2 Mins

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