Electricity Rates: Richardson Texas - Current Rates and How to Find the Best One
You’re looking for the best electricity rates in Richardson, Texas, and realizing that shopping for plans is not as straightforward as it seems.
You may be wondering if it’s even possible to know what the best rates are.
Don’t worry, it is possible to find the best electricity rate in Richardson.
With a little research, you can save hundreds on your energy bill by securing the best plan.
In this guide, we’ll discuss:
- The electricity rates in Richardson,Texas
- How they are set; and
- The easiest way to find the best one
What is the Average Electricity Rate in Richardson?
On average, residents of Richardson pay about 10.98 cents per kilowatt-hour for their electricity.
Rates are determined by zip code, so it’s hard to know exactly how much you can expect to pay.
Rates also fluctuate for many other reasons including:
- History usage in your area
Even though the average rate in Richardson is 10.98 cents, your rate might end up being higher or lower based on many factors.
Keep in mind, the easiest way to save money on your electricity bill is by finding the best plan for your household rather than the lowest rate. We’ll discuss this more later.
How do Richardson Electricity Rates Compare to Texas Overall?
Average rates for electricity in Richardson are slightly lower than in Texas overall.
The average rate for electricity in Texas is 11.10 cents, .12 cents higher than the average in Richardson.
How do Richardson Electricity Rates Compare to Surrounding Cities?
Richardson has a lower average electricity rate than surrounding cities because it’s a smaller community with a lower cost of living.
Here are a few examples of cities in the surrounding area:
The average rate in Dallas is 11.79 cents per kilowatt-hour, .81 cents higher than the average rate in Richardson.
Dallas is a large metropolis. This may account for why there are higher average rates for electricity. The retail rates might be higher because there is a higher demand for energy in Dallas.
The average rate in Plano is 11.11 cents per kWh. This is .13 cents higher than the average rate in Richardson.
The average rate in Irving is 10.98 cents, the same as the average rate in Richardson.
Who Provides Electricity to Richardson Residents?
There are 3 types of companies responsible for getting electricity to your home or business:
- Retail Electric Providers
- Transmission and Distribution Utility Companies
- Energy Generators or Power Plants
Retail Electric Providers (REPs) sell electricity directly to Richardson residents and business owners. These companies set rates and work directly with you to make sure energy gets to your home when you need it.
REPs buy the electricity at wholesale prices from power plants that collect energy from different types of generators.
A few types of energy generators include:
- Hydroelectric / Dams
- Thermal / Coal
- Solar / Sun
So, the power plant is the wholesaler, and the REP is the retailer. But who is responsible for the wires and electrical poles that bring electricity directly to your home or businesses?
The Transmission and Distribution Utility company (TDU) maintains this equipment. It is not uncommon for there to be an additional fee on your electricity bill each month for this service.
What is a TDU?
The TDU company in Richardson is responsible for setting up and maintaining electrical poles and wires that bring energy to your home or businesses. They also read your electric meter and deliver those readings to your REP.
The wires, poles, maintenance, and readings all account for a small fee/charge on your electricity bill each month.
Which TDU Provides Electricity for Distribution by REPs in Richardson?
Oncor Electric Delivery is the TDU company that provides electricity distribution to the Richardson area.
Their website provides information about the various services they offer.
Oncor handles things like:
- Downed power lines
- Tree pruning around power lines
- Storm preparation concerning electricity
- Meter tampering
They can assist with energy efficiency and finding contractors for your electrical needs.
Oncor offers “ways to save” on their website. They suggest:
- Energy efficiency programs
- Energy efficiency tips
- Electric vehicles
If you ever experience a power outage in Richardson, you can report it to Oncor on their website or over the phone. Since they service the electricity wires and poles in your area, they will repair any damages due to weather or other circumstances.
How Does Oncor Affect Electricity Rates in Richardson?
Oncor and other TDU’s services do, in fact, affect the bottom line of your electricity bill.
Depending on your area and retail provider, you might notice a fee each month for the maintenance of electrical poles and wires.
Usually, the fee is nominal, and it won’t make a very large difference to your bill.
The rate per kWh is the most important thing to consider, which is why it’s worth shopping around for the best one.
Best Electricity Rates in Richardson, Texas
How do you find the best electricity rates in Richardson, Texas?
It might seem very straightforward.
Call the REPs in your area, get rate quotes, and choose the lowest one.
We’re sorry to tell you, it’s unfortunately not that easy.
REPs all have different types of plans. Comparing all of them is nearly impossible to do without extensive research.
There are many factors that need to be considered in order to find the best rate for your personal usage needs.
Here are a few factors:
- Your personal usage habits – how many kilowatt-hours you use and at what times
- The contract length and any hidden fees
- The structure of the rate and types of plans
When you’re shopping for plans, you have to take these things into consideration. The most important thing is to find the best rate structure for your needs, as opposed to the cheapest rate.
If all this sounds very complicated, and you don’t have extra time and effort to spend researching companies, consider using Power Wizard instead.
Power Wizard is not a REP, but our unbiased algorithm can scan all the electricity deals on the marketplace at one time.
We match up your zip code and personal data to the best plan that will save you the most money each month.
You don’t have to become an electricity expert. Simply try our free savings estimate to see how it works.
How Does Kilowatt Usage Affect Electricity Rates in Richardson?
Some REPs offer plans based on your home’s historical kilowatt usage.
There are several other rates that depend on kilowatt usage as well.
Let’s take Cindy’s plan for example.
Cindy used Power Wizard to find the best rate for her household, and now she saves a lot of money every month on her electricity with a free nights and weekends plan.
Free nights and weekends usually have a high rate per kWh during certain hours during the day, and then no charge for using electricity during the evenings and weekends.
Not everyone saves money with these types of plans.
If you happen to miscalculate the time you spend at home, you could end up paying a very high rate during daytime hours, which negates the savings of the free nights and weekends.
Luckily, Cindy happens to work long hours at the office. She’s away from her home during the day and comes home late in the evening every day.
She turns off her air conditioning when she’s away and turns off all the lights and utilities.
Her home doesn’t use very much electricity during the day.
Let’s use Mark as an example of what can happen if you choose the wrong kilowatt-usage-based plan.
Mark shopped around for electricity plans in Richardson without any assistance. He called a few different REPs and got rate quotes from each one.
He decided to simply choose the electricity plan with the lowest rate per kWh, without considering any other factors. He signed a one-year contract with a REP that offered a very low rate.
Unfortunately, Mark didn’t spend a lot of time reading the fine print in his agreement.
When his first electricity bill arrived, it was much higher than he anticipated.
He found out that the low rate only took effect after a minimum usage amount.
Since Mark didn’t use enough electricity to qualify for the rate he thought he was signing up for, he was charged the base rate which was much higher than he anticipated.
Example #1 – Cirro Energy
One of the REPs in Richardson is Cirro Energy.
Cirro offers competitive rates and special promotions — but the rates change often.
Some of Cirro Energy’s plans rely on your usage per kWh. When choosing a plan, you would need to decide how much electricity you will use in a month and pay a flat rate for that amount of usage.
This type of plan can have pros and cons.
You may qualify for a low rate per kWh.
It can be very difficult to determine how much electricity you need in a month. If you go over, you’re subjected to a high rate or a fee. If you are under, you may have wasted money paying for electricity you didn’t need.
Example #2 – Direct Energy
Direct Energy is another REP that offers electricity plans per kWh.
One of their plans is called “Free Nights.” Free Nights might sound like a great deal for people who work during the day outside of the home.
However, sometimes energy companies use this promotion to charge you a higher rate during the day.
You may not realize how much energy your home uses while you’re away. If you have a pet, for example, you probably keep the air conditioning on inside your home. So you might not save as much money as you expect to.
How Does Contract Length Affect Electricity Rates in Richardson?
Do you plan on living in your current home for many years?
Or are you unsure what the future looks like for your living situation?
If you aren’t sure if you will stay in your current home, pay close attention to the length of your electricity contract.
Although you may qualify for a lower rate for a longer contract, hidden early-termination fees can be an unexpected cost if you ever have to move before your contract has ended.
Example #1 – Lone Star Energy
Lone Star Energy provides different types of rates to residents and business owners in Richardson.
Many of their rates depend on the contract length you are going to sign.
For example, if you sign a 6-month contract, the rate might be a little bit higher than if you sign a 12-month contract. The longer the contract period, the lower the rate.
If you’re planning on staying in your home for many years, a long-term contract may be best for you. However, you also have to consider that rates change all the time.
If you lock yourself into a rate for 36 months, you won’t have the option to shop for cheaper plans later without the possibility of an expensive termination fee.
Example #2 – US Energy Savings
US Energy Savings offers rates and plans based on contract lengths as well.
Generally, if you’re willing to sign a long-term agreement, you can expect to get a lower rate.
Make sure you read all the fine print in your agreement so you understand ETF’s (early termination fees) and other fees you may be subjected to.
How Do Electricity Plan Types Affect Rates in Richardson?
There are many different types of rates available in Richardson. Here are a few common rate structures.
Fixed-rate Plans in Richardson
Fixed-rate plans have a rate that stays the same each month.
This type of plan is great if you find a historically low rate, and you don’t want any surprises on your bill at the end of the month.
Whether rates will go up or drop in the future is hard to predict. Locking in a rate can save you money if prices go up. But on the other hand, you could get stuck paying a premium if prices happen to go down.
Variable-rate Plans in Richardson
Variable-rate plans have a rate that changes from month to month based on demand and other factors.
Let’s take Sarah’s plan to illustrate:
Sarah signed up for a variable-rate plan in October. The rate was very low, but she was aware that prices would go up when demand peaked.
The following summer, Sarah’s utility bill skyrocketed.
She knew that her personal usage was high because she had been using her air conditioning but her rate also spiked because of higher demand in the market.
Variable-rate plans can save you money if you are able to anticipate the way electricity prices fluctuate. If you’re unfamiliar with this process, you might get stuck with an unexpectedly high bill.
Prepaid Plans in Richardson
With a prepaid plan, you pay your bill before you use electricity. You load your account with funds and then re-load as it gets depleted.
Prepaid plans are great for people who are in transition or have trouble managing a budget.
If you like paying in advance and keeping a close eye on your usage, a prepaid plan might be a good option.
However, there are some fees that you might incur with a prepaid plan.
If you let your account fall below the minimum balance requirement, you may receive a fine from the company.. It’s important to understand that if you forget to put more funds into your account, you risk getting more fines or your electricity being shut off.
How to Compare Electricity Rates in Richardson, TX
Comparing electricity rates in Richardson can be very difficult. The information you need is not readily available, and it’s constantly changing.
Luckily, there are two methods to shop for the best electricity rates In Richardson, TX.
Method One: Manually
Manually shopping for electricity plans is difficult.
Unlike shopping around for cell phone plans or cable, there are multiple steps you’ll need to take when comparing REPS and rates:
- Put together a list of the REPs in your area. There may be dozens of providers, and this information might be hard to gather. You’ll have to contact each REP individually to see if they service your zip code.
- Collect rate quotes from all the REPs. Make sure to do this quickly, since rates change daily.
- Research different rate structures so you understand how to compare the rates.
- Analyze your own personal electricity usage.
- Read the fine print before signing a contract. Make sure you find any hidden fees and account for them.
- After you sign a contract, continue to monitor the marketplace for better deals. Even if you have a cancellation fee, some promotions and rates might be worth switching providers.
Method Two: Power Wizard
If you don’t want to become an energy expert and do a ton of research, there is an easier way to shop for electricity plans.
Power Wizard’s technology scans the entire marketplace for deals and matches you up with the best rate based on your needs.
Simply enter your zip code into the Free Savings Estimate. Our unbiased program will instantly know which rate and plan will save you the most money each month.
The best part is – we continue to work for you by monitoring your contract and the current deals on the market. If a better plan becomes available, and it makes sense for you to switch, we help you do so.
You don’t even have to change your contract or set up bill-pay, it’s all automatic.
Instead of spending weeks analyzing your energy usage and comparing rates, save time and money by putting your electricity bill on auto-pilot with Power Wizard.