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How to Get Best Electricity Rates: A Step-By-Step-Guide to Getting a Rate That Won’t Blow Your Budget

Finding out how to get the best electricity rates in Texas is no easy task. If you were trying to find the best shoes, you wouldn’t just scroll through Nike’s entire online catalog, right? 

Of course not!

You would type in a few parameters like “casual” or “basketball.”

So why are you trying to find the best electricity rate by scrolling through the entire catalog of 130 Texas REPs? You’re probably tired of staring at your screen and you wish you could just search “best electric rate,” right?

If this sounds like you, you’re in luck. Now, you can shop for electricity exactly how you would shop for shoes! All you need to do is enter your information into the

Power Wizard Shopping Tool!

Cheap Energy Rates – What Is “Cheap?”

Cheap Energy Rates – What Is “Cheap?”

Before we get started on how to identify an affordable electricity plan, it is important to review the idea of a “cheap” plan.

When searching for cheap energy rates in Texas, keep in mind “cheap” does not always mean “best.”

Have you heard the French proverb “buy cheaply, pay dearly?”

We won’t say this is always the case with “cheap” electricity plans. But it can be.

If you don’t take the time to…

• Research the electricity company
• Look at customer reviews
• Read the fine print

…you could end up paying dearly.

Why?

When companies advertise “cheap energy rates,” they typically focus solely on price per kWh. This is the cost of your energy usage at the most basic level.

You should not choose a plan based solely on this advertised rate.

Why?

Extra or “hidden” fees are not always included.

You may ask “What fees? What else do I need to pay for, aside from my energy usage?” The answer might surprise you.

Hidden Fees Associated With The Best Electricity Rates

There is a problem with some plans advertising “cheap” rates:

Companies aren’t always transparent about what type of fees you’ll pay and how much they will add to your bill.

You’ll need to put on your Sherlock Holmes hat and do some investigating:

• Look at the REP website
• Some companies include samples of their bills in an “understand your monthly bill” section
• You can also do a Google image search for electricity bills

Some common fees you’ll need inquire about are:

• Minimum usage fee – very important – if a set minimum usage is not met:
• Your rate for the whole month may adjust
• A flat fee may appear on your bill
• Fixed charge/Base charge
• Typically charged monthly
• Surcharges
• Typically small amounts but can add significantly to your overall annual costs
• Discretionary service charges
• REP costs passed on to the consumer
• Energy efficiency cost recovery
• Fees assessed to recoup costs associated with energy efficiency programs

Other fees approved by the Public Utilities Commission of Texas:

• Delivery charges
• Metering charges
• Disconnection notice fees
• Standard reconnection and disconnection fees
• Late fees
• Competition transition charge
• Early termination fees

To make matters even more confusing, REPs use different names for the same types of fees. Some REPs itemize all additional fees, while others wrap all fees into one “REP charge.”

You are a busy person:

• Working 40(+) hours a week
• Managing a household
• Maintaining relationships
• Keeping up with hobbies

Do you have the time or the know-how to decipher the often cryptic terms of service laid out in a potential contract?

If the answer to that question is an emphatic “NO,” you need to be wary of electricity plans touting the cheapest rate available.

You may end up spending more than you do with your current electricity plan.

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Method 1: Search Manually For Days, If Not Weeks, To Get Best Electricity Rates For Your Home

One method you can use when searching for an affordable electricity rate is to lock yourself in your home office and begin searching manually.

If you have loads of extra time and more patience than a Kindergarten teacher, this option may be right up your alley.

Step 1: Research All The Different Electricity Rates Out There

First, you’ll need to identify all the available Retail Electric Providers in your area.

Once you’ve established a list of available REPs, you’ll need to explore their electricity plans and rates.

You have a few options to accomplish this step:

Option 1: Spend Days Calling All REPs About Their Best Rates

Your first option is an old stand-by:

The telephone.

Work your way down the list of REPs you compiled and call each one.

It’s important to be thorough in this step. Don’t skip a company in the interest of time. What if the one company you skip has a great deal?

When asking each company about their rates and plans, be sure to cover the following:

• Rate per kWh
• Additional charges and fees outside of the rate per kWh (see above for common “hidden charges”)
• Available plan types (variable-rate, fixed-rate, free weekends, etc.)
• Contract term options (length)
• Early termination fees
• Deposit – required?
• Promotional incentives

This list is by no means exhaustive. There are a multitude of factors that can affect your monthly bill.

We won’t sugar-coat it. This will be a herculean effort on your part. It may take days or weeks to get through all of the providers.

The silver lining of this method?

By talking to customer service reps, you’ll really get an idea of the level of service each REP will offer you as a future customer.

Figure Out A Way To Organize All This Information

During each conversation with customer service, you’ll need to be documenting all of the information they provide you.

How you do this is completely up to you:

• Keep an “electricity plan” notebook
• Devote a page to each REP and jot down notes as you ask questions
• Design a comprehensive spreadsheet in Excel
• Create a Word document

Whatever process you decide to use, be sure that you cover the same information for each REP.

Option 2: Spend Hours Researching Online On How To Get The Best Electricity Rates

If you’re averse to the telephone, you can also explore plan and rate options online.

Work your way down the list of REPs you compiled and visit each of their websites. Explore their plan types and accompanying rates.

Make sure you are searching for all the fine print for each plan.

Again, cover the same details suggested above.

As we mentioned previously, there are many contributing factors that may increase your electric bill. This list only covers some of the most common factors.

Exploring online may help you narrow down your choices.

But:

It is highly likely that you will still need to call some REPs for answers to questions that arise during your research.

Figure Out A Way To Organize All This Information

As you explore the websites for each REP, you’ll need to simultaneously organize all the information you find.

How you choose to track the information is up to you.

Make sure you have an easy-to-follow system that answers all the same questions for each REP.

You may choose to:

• Keep a notebook with a page dedicated to each provider
• Create a spreadsheet in Google Sheets or Excel
• Start a document in Google Docs or Word

Option 3: Use 3rd Party Websites That “Help” You Find Get The Best Electricity Rates

In your search for REPs in your area, you likely came across third-party websites that aim to find you the best electricity rates.

Using your average annual electricity usage and your location, they will list available plans and rates in your area.

But, do your homework:

• Some websites may only have agreements with a select few REPs
• Others may be biased by ownership or business ties
• Occasionally, these businesses even receive referral fees

You want to be sure that the company you move forward with will:

• Look beyond the rate per kWh advertised by REPs
• Decipher rates charged outside of specific kWh usage points
• Take into account your specific needs

Power Wizard is unbiased, and is funded only by enrollment in the program – we do not accept compensation from any REPs. We are committed to finding the best electricity plan for YOU, regardless of the provider. Get started with our Shopping Tool.

Figure Out A Way To Organize All This Information

Once your choices are populated by the third-party system:

• Organize all the rates in a format that will allow you to compare options
• Review it carefully
• Read all the fine print available
• Look at customer reviews for each REP

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Step 2: What is The Best Type Of Electricity Rates/Plans For Me?

Once you’ve completed step 1 of this process using any of the above methods, you should have a list of all the electric plans available to you.

Now comes the fun part of your journey.

Which type of plan is the best for your household?

It would not be wise to choose a plan based on rate alone. You first need to decide what type of plan makes the most sense for your situation.

What Are The Different Types of Electricity Rates & Plans?

Not only do REPs offer a wide variety of rates per kWh, but they also offer several different types of plans.

Before choosing a plan, review your needs and compare them to the following plan options:

Variable-Rate

Variable-rate plans:

• Rate adjusts monthly with the electricity market
• High market rates = high customer rate and vice versa
• Often no monthly contracts or cancellation fees

Fixed-Rate

With a fixed-rate plan:

• Rate per kWh stays the same for the length of your contract
• Fees and administrative costs my still fluctuate
• Can’t take advantage of lower market rates until your contract ends.

Pay as You Go

These plans are also referred to as “Prepaid Plans:”

• Allows customers to purchase electricity in advance
• Plans can be fixed or variable
• Usage calculated daily
• May require upfront payment

Free Nights and Weekends

These plans are also referred to as “Time of Use Service:”

• Incentives are offered to use service during certain times
• Average price calculations can vary by REP
• Based on the estimation of the percentage of use during “premium” times
• The price you pay will vary depending on your actual use during the free hours
• You need to shift your usage to avoid higher bills

Step 3: Create Some Sort of Spreadsheet Comparing All The ‘Best Electricity Rates’ Against Your Unique Electricity Needs

Once you have completed Steps 1 and 2, you should know what types of plans and what rates are available for you to choose from.

Now, you’ll need to develop a system to compare these options against your unique electricity needs.

First, You Need To Figure Out What Your Unique Needs Are

In addition to your location and historical electricity usage, there are several unique factors that can affect your electricity needs:

• Size of your home
• Age of your home
• Number and type of rooms in your home
• Single-story vs. multi-story
• Number of people who live in your home
• Varying seasonal temperatures
• Temperature preference in your home

Use Your Software Developer Skills To Code Your Needs Against The ‘Best Rates’

Once you have established your unique needs, you’ll need to develop a way to compare your needs against the list of available plans you created back in Step 1.

The only way to objectively do this is to code an algorithm that will compare your data to the hundreds of plans in your area.

The average person may not have the skills to do this. Do you?

Don’t reinvent the wheel, let Power Wizard’s algorithm do the work for you.

Step 4: Ensure That The Best Rate For You Today Is The Best Rate For You Tomorrow

If you manage to work the system and magically find the electricity plan that is ACTUALLY best for your household, you deserve a major pat on the back.

Unfortunately, your work is not done.

Electricity rates and plans are constantly changing. How can you be sure that the best plan for you today is going to be the same tomorrow? Next week? Next year?

You’ll need to regularly monitor your rate and keep searching for plans every day to ensure that you’re always getting the best rate.

You could write code or develop an algorithm that will do the work for you. OR, take advantage of technology that already exists – Power Wizard.

Live ‘Best’ Electricity Rates By City in Texas

Plans and rates vary by location. If you live in Plano and your brother lives in Fort Worth, the options may look very different.

When searching for a new electricity plan, always remember that “cheap” doesn’t always equate to “best.”

We’ve found some of the most competitive rates in Texas based on the most populated and deregulated areas. Take a look below to see how rates can vary by location.

Best Electricity Rates in Houston

Here are current rates for electricity in Houston, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

Best Energy Rates in Dallas

Here are current rates for electricity in Dallas, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

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Best Energy Rates in Austin

Here are current rates for electricity in Austin, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

Best Energy Rates in Plano

Here are current rates for electricity in Plano, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

Best Energy Rates in Fort Worth

Here are current rates for electricity in Fort Worth, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

Best Energy Rates in Corpus Christi

Here are current rates for electricity in Corpus Christi, Texas. You can use this list to review the best electricity rates.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate –	3 months	9.9 ¢ / kWh
JUST – Sustainable Living Bundle –	3 months	9.6 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed –	3 months	10.0 ¢ / kWh
AMIGO – Sustainable Lifestyle –	4 months	9.7 ¢ / kWh
FRONTIER – Frontier Power	5 months	9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 months	12.0 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.8 ¢ / kWh
DISCOUNT – Saver	6 months	12.0 ¢ / kWh
CIRRO – Smart Simple	6 months	12.1 ¢ / kWh

Method 2: Instead of Wasting Hours Or Days Searching Manually For The Best Electricity Rates, Spend a Couple of Painless Minutes Using Power Wizard’s Unbiased Algorithm

If you’ve reached this point in our guide to finding a better electricity deal, you may feel dismayed.

Does it even seem possible to find the best electricity plan on your own?

There IS a better way.

Power Wizard’s unbiased algorithm can quickly identify an electricity plan that will meet your needs and potentially save you money.

Our program moves through the four steps of finding the best electricity rates in minutes, NOT days or weeks. It takes into account not only your location and energy usage, but all the factors we reviewed that can affect your electricity needs.

Step 1: Enter Your Zip Code and Allow Power Wizard to Get the Best Electricity Rate for You

Using your location and other relevant information, Power Wizard’s algorithm filters through a plethora of available plans to find the best electricity rate for you.

In a mere five minutes, our technology can determine whether or not there is a better plan for you.

Step 2: Power Wizard Will Enroll You In the Best Plan with the Best Electricity Rate for You

Rate for You

After Power Wizard has identified the best plan to meet your unique needs, we take care of every step of the enrollment process.

This includes:

• Canceling service with your current provider
• Establishing service with your new provider
• Enrolling you in auto-pay
• Ensuring there is no gap in service between providers
• Acting as a liaison if any questions arise

Step 3: Power Wizard Will Continue to Monitor Your Current Plan and Rate

You don’t have to worry about monitoring your electricity rate and ensuring that it still works for you a month or year from now.

Once you are a Power Wizard member, we will continuously monitor your usage and rates.

This allows us to calculate your annual costs. If we discover another plan that will save you more money (including any termination fees), we will notify you and give you the opportunity to switch providers.

When your current plan is close to expiring, we will alert you and help you make any changes in service that will keep you from automatically rolling into a potentially more expensive plan.

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