Your Options for Texas Electricity Plans

There are a lot of perks that come with being a Texas resident. The state has gorgeous weather, incredible food, an array of job opportunities, and no state income tax. Oh, and don’t forget the deregulated energy market that nearly 90% of residents enjoy! When it comes to electricity, Texas gets it right with options for electricity plans.

You have the freedom to choose between Texas electricity providers, which gives you the chance to choose the one that makes the most sense for you. But this can be a challenging decision. There are several retail energy providers (REPs) and countless electricity plans to choose from, so it makes sense that it’s overwhelming to decide. With Power Wizard, you don’t have to do it alone.

Now, you could shop for Texas electricity plans yourself. You’d have to gather a list of REPs that service your area, see what options they offer, and compare them to your energy needs. With everything else you need to do every day, this process could take a while.

Instead, Power Wizard does the work for you. All you need to do is provide some basic information, and the platform’s algorithm will comb through the available plans and show you the ones that best match what you’re looking for.

Before you start shopping for Texas electricity plans, it can be helpful to understand what each option entails. Here, we’ll dig a little deeper into the various plans and go over a few additional things to consider when making your decision.

Texas Electricity Plans: What Should You Expect?

Electricity in Texas — for a majority of residents — is deregulated. That means there aren’t any monopolies on local electric utilities. Instead, you choose your home electricity provider (your REP) and your plan.

An electricity plan is a type of energy contract that Texas electricity providers offer. It typically defines the terms for:

• The plan type
• The contract length
• Special perks or value-added features
• Cancellation/early termination fees (ETFs)

Electricity plans will also show the electricity rate or cost per kilowatt-hour (kWh). Due to Texas’ deregulated market, the rates you see are averages based on usage.

Types of Energy Plans Available in Texas?

There are three types of energy plans in Texas:

• Fixed-rate
• Variable-rate
• Prepaid

You have a lot to consider when choosing an electricity provider, but take the time to learn the differences between each plan option. This will help you determine which one is best for your home and your family’s energy needs.

Fixed-Rate Plans

With a fixed-rate plan, your rate doesn’t change during the length of your contract. Depending on your electricity provider, terms generally last 3 to 36 months. The only variables that will affect your monthly energy costs are your total energy usage and any fee changes beyond your REP’s control. For example, the transmission and delivery utilities periodically adjusts rates. These types of plans are a great option for individuals who like a bit more predictability.

The draw to fixed-rate electricity plans is that your rate won’t increase. No matter what happens to energy prices outside of your plan — such as seasonal jumps — your cost per kWh stays the same. However, that also means that if the price for energy drops, you won’t be able to take advantage of cheaper rates until your contract ends unless you pay the ETF.

With Power Wizard’s VIP member service, we continuously monitor Texas electricity plans on your behalf and notify you if we find anything better than your current plan. If you have an ETF, we’ll factor that cost into your savings so you can decide whether you want to switch or not.

Variable-Rate Energy Plans

Variable-rate plans have neither term requirements nor ETFs. That gives you the freedom to switch to a new REP without penalty if you — or Power Wizard — find more affordable electricity rates elsewhere. If you like flexibility, this could be a good choice for you.

With a variable-rate plan, your rates will fluctuate month to month. You’ll typically pay less per kWh when demand is lower and more when demand is higher. So, during the summer, when more Texans are cranking their air conditioners to stay comfortable and the kids are home from school, you’re going to pay more for your energy.

Prepaid Electric Plans

A prepaid electricity plan works a bit differently than the previous options. Instead of paying at the end of the month for the electricity you used, you deposit funds into an account that pays for your future energy use. You may also hear it called a “pay-as-you-go” plan.

With a prepaid plan, you don’t receive a monthly bill. Instead, you’ll receive a notification when your account balance dips below a set threshold or when it’s approaching your minimum account balance. That helps you avoid getting your power shut off. You can add money to your account — or prepay — whenever it’s most convenient for you.

Prepaid electricity plans don’t require a deposit. However, you will have to maintain a minimum balance. You’ll need to be vigilant about how much money you have in your account. These plans also tend to have higher fees than other plans. But if you want a more budget-friendly option that helps you keep an eye on your energy use, this could be a good option for you.

What Should You Consider When Choosing a Plan?

Once you have a better idea of which electricity plan might make the most sense for you, you’re ready to start comparing your options. There are a few factors you’ll want to keep in mind in the process:

Competitive Rates

The rates each REP charges will likely be one of the first things you note. Keep in mind that the prices each electric provider shows are averages based on usage. You’ll also want to factor in that some companies have additional fees that may impact the overall price you pay for your electricity. So, one electricity provider may appear to be the most affordable initially, but it may end up costing more than a plan that advertises a slightly higher rate.

Electric Providers

There are a lot of REPs in Texas. Take some time to research your potential options. As overwhelming as the process can be, you don’t want to settle on the first one you find just because the rates seem affordable.

Along with investigating each REP’s website, read reviews from their past and current customers. Look for common themes — negative and positive — to help you get a better idea of the service you can expect from them.

Your Average Energy Consumption

You’ll also want to consider your average energy consumption. That figure may affect the price per kWh an electricity provider charges. It will also give you a better idea of how much you can expect to pay with the electricity provider you select.

How You Can Make Sure You Have an Affordable Electricity Plan

Finding the most affordable electricity plan and making sure it makes the most sense for you can be a tedious task. Fortunately, you don’t have to do it alone. Power Wizard is here to help. With your zip code and a few basic details, Power Wizard can quickly sort through hundreds of Texas electricity options and provide you with a list of potential providers customized to your needs.

Once you decide on the plan for you, you can either choose one-time access to Power Wizard’s services or Power Wizard’s VIP service. With VIP service, Power Wizard not only handles your enrollment but continues to monitor electricity prices and plans. If we find something cheaper, we’ll let you know. We’ll also remind you when your current plan is about to end and find your next one for you.

Are you ready to find the best Texas electricity plan? Visit Power Wizard to get started today!