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Best Electricity Rates in Dallas - How to Find the Best Rate for You

Have you ever spent long hours comparing the prices of electricity rates in Dallas, looking for the best deal? 

This Electricity Market Can Be A REAL PAIN!

Are you tired of manually putting data into spreadsheets, reading the fine print, and trying to see past marketing gimmicks?

Is your electricity company pulling the wool over your eyes?

Power Wizard Can Help.

Never get fleeced again. Let our industry professionals find you the best rates for your unique electricity usage in minutes. 

 

Here you are – on the Internet searching for the best electricity rates in Dallas.

This means you’re either:

• Moving to Dallas and want to find an electricity provider
• Currently living in Dallas and want to find the best electricity plan
• Currently living in Dallas and are looking to switch electricity plans to save money

Good news.

You’re in the right spot.

This guide shares the most up-to-date information about electricity rates, plans, and companies in Dallas, TX.

Dallas Electricity Rates

The number one burning question in your mind is:

How much are Dallas electricity rates, anyway?

Before you start pulling up the different rates, stop and read.

There are a few things you need to know about the Dallas electricity market to make your search more effective and efficient:

It’s Not Just About Electricity Rates in Dallas TX

I know, I know. If you’re like most Texans, you’re looking for the most cost-effective electricity rate there is.

While it can seem like a simple math problem, what you pay for electricity is a bit more complicated than:

price per kilowatt-hour x number of kilowatt-hours = total due

The price per kWh is just one component of your electricity bill.

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Plan NamePlan LengthPlan Rate

RANCHERO – Ranchero Smart & Fixed –	3 months	10.7 ¢ / kWh
AMIGO – Basics PTC –	3 months	10.2 ¢ / kWh
TARA – Basics PTC –	3 months	10.2 ¢ / kWh
SOUTHERN_FEDERAL – SoFed Try Us Out –	3 months	10.7 ¢ / kWh
JUST – Autopay PTC Plan –	3 months	10.2 ¢ / kWh
FRONTIER – Frontier Power Saver	5 months	11.1 ¢ / kWh
GEXA – Gexa Eco Choice	5 months	11.2 ¢ / kWh
CLEANSKY_ENERGY – Embrace Green – New Customer Special	3 months	11.1 ¢ / kWh
SOUTHWEST – Texas Saver Fixed Rate Autopay E-Plan	3 months	11.6 ¢ / kWh
TEXPO – Texpo Saver Fixed Autopay E-Plan	3 months	11.6 ¢ / kWh

Take a woman who lives in Dallas. Let’s call her Rachel.

Rachel is looking for an electricity plan. She wants to know who has the best electric rates in Dallas, Texas.

Rachel has done some research. After about 20 minutes of gathering information about deregulation in Dallas, she starts to think that the least expensive electricity plan is the one with the cheapest rate per kWh.

The cheapest rate Rachel could find was 8.7 cents per kWh.

She signs up for this plan, sets up autopay for her bill, and moves on with her life.

Rachel made three huge mistakes.

• She didn’t take into account that her energy needs are unique.
  • She lives in a small 900 square foot apartment
  • She works nights as a nurse in a nearby hospital
  • Historically, she doesn’t use much electricity
• She didn’t read the fine print of the contract
  • While the price per kWh is 8.7 cents per kWh, there’s a minimum usage amount of 1,500 kWh per month. If Rachel doesn’t use the minimum amount, the rate increases to 10.7 cents per kWh. (Spoiler alert: Rachel doesn’t meet the minimum monthly usage — ever.)
• After signing up for her plan, she completely forgot about electricity.
  • Even if she did happen to choose the best electricity plan for her needs (which she didn’t), she cannot be sure it remains the best plan 6 months from now, a year from now, and so forth. Electricity plans are dynamic, so new ones are always emerging.

What happened to Rachel?

Rachel’s plan had free nights and weekends, which meant nothing to her since she works nights. She only averaged about 900 kWh per month, so she never met her minimum monthly usage.

At the end of the year, she ends up paying an extra $240 more than she planned.

You can quickly see that the price per kWh isn’t the deciding factor.

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Hidden Fees

Many electricity plans in Dallas have hidden fees. Hide and seek may have been fun when you were a kid, but it’s not fun when it comes to your electric bill.

Read through the entire contract. Be on the lookout for terms such as:

• Fee
• Penalty
• Charge

Contract Renewal Upcharge

Some electricity plans in Dallas automatically increase your rate after you renew your contract.

While you may have been paying 8.7 cents per kilowatt-hour a year down the road, the company automatically renews your contract and starts charging you 10.7 cents per kilowatt-hour.

The worst part is that they do all of this without reminding you that the contract is up for renewal and it’s at a higher rate.

It’s legal for them to do this as long as it is in the contract you signed, which is why it is so important that you read the contract.

Choosing an electricity plan is like putting together a puzzle. You have to have all the pieces to put together a plan that is best for you.

Deregulation in Dallas

Dallas is one of the cities in Texas that has deregulated electricity. Deregulation sets the stage for competition. In this case, electricity providers in Dallas called Retail Electricity Providers (REPs) can compete for your business.

The government in Texas deregulated electricity in 2002 to reduce the costs consumers pay for electricity.

Now, private electricity companies compete for your electricity business, which motivates them to be competitive in pricing, rates, customer service, and other factors.

Why Is Deregulation Important to Me and Electricity Rates in Dallas?

With so many different REPs in Dallas, you have the opportunity to shop around for an electricity plan.

Your first phone call to a REP might yield a decent rate, but the fifth or sixth call might yield an even lower rate.

Remember that it’s not just about the rate, though. The best way to make sure you’re finding the best plan for you is to find and compare all of the plans available in your zip code.

It is almost impossible to find the best rate by manually searching for all the electricity information.

Good news.

You don’t have to lose hours of your life doing research. You don’t have to compile all that research to realize that you can’t truly compare plans to find the best rate anyway.

Power Wizard can do it for you.

The Power Wizard Shopping Tool takes five minutes or less of your time, does all the work for you, AND gives you the best rate for your needs.

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Types of Electricity Plans Available In Dallas

Dallas has dozens of REPs. Each REP offers multiple electricity rates and plans. There are short-term and long-term electricity plans in Dallas.

Some of these electricity plans might include:

• Free nights and weekends
• A free gift if you sign up (like a Google Home)
• Prepaid
• Fixed-rate
• Variable-rate
• Month-to-Month
• No deposit
• And more

Consider the following information about each type of electricity rate before deciding which one is right for you:

• Square footage of the home
• Age of the home
• Electricity usage

There are so many factors to consider.

While going to the individual sites of the electricity providers can show you the different rates and plans available, it does not take all of the factors into consideration when displaying the plans that are available to you.

It certainly doesn’t choose the best plan for you based on your individual needs.

This makes it difficult for you to truly choose the best plan for you.

Prepaid Electricity Rates in Dallas

One of the types of plans you might run across is a prepaid plan. This might be a good option if you don’t want to be locked into a contract or want to avoid a credit check.

How A Prepaid Plan Works

Similar to how it sounds, you prepay your electric bill by depositing money into your electricity account. As you use electricity, the bill amount is deducted from a prepaid account.

Prepaid accounts require you to keep a minimum balance prepaid in the account.

Advantages Of A Prepaid Plan

One of the biggest advantages of a prepaid plan is it is a pay-as-you-go plan. This means that you are not locked into a contract and can cancel your plan at any time.

Disadvantages Of A Prepaid Plan

Prepaid plans do NOT tend to have a fixed rate. It is typically a variable rate, so the price you pay per kWh can fluctuate according to current market rates.

If your rate increases, then it can quickly deplete the money you have prepaid into your account.

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Fixed-Rate Electricity Rates in Dallas

If you’re looking for your electricity bill to stay about the same each month, a fixed-rate electricity plan can be a good option for you.

How A Fixed-Rate Plan Works

A fixed-rate plan has the same rate for the entire contract. The rate you pay doesn’t change with fluctuations in the electricity market.

The base amount of your bill is calculated by multiplying the rate by the number of kilowatts you use. This is before taxes and fees are added.

But, you could end up overspending on electricity if the market rate dips below your set rate.

Advantages Of A Fixed-Rate Plan

This type of plan is great for someone who is on a fixed income or likes to know the approximate total of their bill each month.

A fixed-rate plan is beneficial if the electricity market rates increase because your rate will stay the same (and be below the new market value).

Disadvantages Of A Fixed-Rate Plan

This type of plan is generally a long-term contract, which might not be the right fit for someone who is looking for a short-term commitment.

Another disadvantage of a fixed-rate plan is if market rates decrease, the rate you have stays the same, so you continue to pay more than if you had a lower rate.

Variable Electricity Rates in Dallas

A variable-rate electricity plan can be a good option when fixed-rate plans have high rates.

Variable-rate plans can either have a contract or be month-to-month. It depends on the electricity plans you choose.

How A Variable Electricity Plan Works

A variable-rate electricity plan has a rate that changes monthly. The rate is tied to the cost of wholesale electricity. If the price of wholesale electricity increases, then your rate for a variable-rate electricity plan increases.

The amount you pay for your electricity next month could be significantly higher than the previous month.

Advantages Of A Variable Plan

A variable-rate plan is appealing when the market prices are low. If the rates are expected to decrease, then a variable-rate plan can also be advantageous because you’ll end up paying less when the rate decreases.

Disadvantages Of A Variable Plan

A variable-rate plan puts you at a disadvantage if fixed-rate plans are already low and the rates do not change.

If rates suddenly increase, then you can end up paying a lot more for electricity than you did the previous month.

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Month-To-Month Electricity Rates in Dallas

A month-to-month electricity plan directly relates to the length of the contract.

How A Month-To-Month Electricity Plan Works

A month-to-month electricity plan simply means that you aren’t locked into a contract beyond a month.

Most month-to-month electricity plans work similarly to a prepaid plan. You deposit an amount of money into your electricity account. As you use electricity, the amount is deducted from the balance of your account.

You’re usually required to keep a minimum running balance in your account.

Advantages Of A Month-To-Month Plan

The biggest advantage of a month-to-month contract is you are not locked into a contract.

If you find a cheaper rate or a better electricity plan, you’re able to switch right away or within a month.

Disadvantages Of A Month-To-Month Plan

While you may be able to find a month-to-month plan with a fixed rate, month-to-month plans usually have variable rates. If not knowing what your electricity bill is going to be will worry you, then this might not be the best plan for you.

If your account falls below the minimum balance and you don’t replenish funds in time, it can also mean a temporary lapse in electricity service.

The Factors For Choosing The Best Electricity Rate & Plan in Dallas For Your Family

Once you choose the type of plan you like, you’ll have to compare all of the plans in that category to find the best rate.

Remember, though, that the rate is not the only factor to consider. You’re also going to want to consider factors like the size of your home, usage, location, and more to choose the best plan for your electricity needs.

Factor 1: Size Of Your Home

Determine the square footage of your home. This helps you approximate how much energy you’ll use.

For example, ranch-style home is likely bigger and uses more energy than a smaller townhouse.

Factor 2: Electricity Usage

How much and when a family uses electricity is another factor in choosing a plan that is the best for you.

For example, if you have an apartment in downtown Dallas where you live alone, the amount of electricity you use is going to be less than a family of 4 that lives in a single-family home.

Some REPs consider historical usage (even if you haven’t lived in the same home for the last 5 years, they consider the average usage for that specific home).

Some companies might offer a plan with a better rate because of the usage data of the home.

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Factor 3: Age Of Your Home

The age of your home can also be a factor in the rate you receive. Older homes tend to be less energy-efficient than newer homes, which can affect the electricity rate your REP is willing to offer.

Factor 4: Location

Your zip code in Dallas determines which REPs offer electricity service in your area.

Narrowing your search down to the REPs providing service in your area can help you choose an electricity plan. You’re still going to have to compare each provider’s plans and rates from the narrowed list.

Who Has The Best Electricity Rates In Dallas, TX?

The lowest kWh rate doesn’t equal the best rate or plan for you.

While a plan may have the lowest rate, if the perks and features don’t match your usage or lifestyle, you can end up spending too much.

The most important thing to remember when shopping for an electricity plan is to find the right balance between the plan type and rate so that it fully meets your electricity needs.

Considering all of these costs makes the process even more confusing.

Factors To Consider When Choosing An Electricity Rate and Plan

You might see a plan and think it is the best one for you. Maybe it has a low rate, and you receive a Google Home if you sign up.

While, at first glance, it can seem like a win-win, learn the other factors you should consider before choosing a plan.

Here are a few factors to keep in mind for each electricity plan you come across.

Factor 1: Hidden Fees

Read the contract, paying special attention to the fine print.

The fine print is often where the hidden fees hide.

Thoroughly reading each plan’s Terms of Service helps to ensure you won’t be hit with unexpected fees later.

Factor 2: Length of Commitment/Contract

Most electricity plans are for 6, 12, or 24-month terms.

If you’re considering a plan with a contract, be sure to consider how long you expect to be in the same location.

Something else to consider is that new electricity plans come onto the market all the time. A better plan for you might become available after you sign up with an electricity provider.

If you want to switch to a better plan, a long-term contract can make it difficult to do.

Month-to-month and prepaid electricity plans can be more flexible options without a long-term commitment.

Factor 3: Cancellation/Early Termination Fees

Whether you’re moving or you want to switch to a different electricity plan, if you cancel a contract, you’re likely to pay cancellation fees.

Cancellation fees can apply to plans that do not have contracts, too.

The Power Wizard Shopping Tool and algorithm consider all factors, including cancellation fees.

It takes 5 minutes or less to help you find the best plan for you to ensure the switch is worth it.

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How Electric Companies in Dallas Set Electricity Rates

While there are several factors that influence the electricity market and the rates, the three primary factors are:

1. Supply: Electricity rates are directly affected by the available supply of energy (coal, oil, nuclear, and others). Supply can change on an hourly basis.
2. Demand: The demand for electricity also determines electricity rates. If supply is low while demand is high, you’ll see a rise in Dallas electricity rates.
3. Weather: Weather forecasts and weather events can affect short-term electricity rates. It gets hot in Dallas, so during the summer months, there is more demand for electricity to run the AC. Summer months often have higher rates than months with cooler temperatures.

How To Compare Electricity Rates in Dallas

With so many REPs and so many electricity plans, it can suck all the time and energy right out of you. Not to mention that the plethora of information makes it a confusing and frustrating process.

You have a couple of options when it comes to comparing electricity rates in Dallas.

Option 1: Waste Your Precious Hours Scouring The Internet Manually

You can compare all the REPs in Dallas by visiting each of their websites.

Since dozens of REPs service your area in Dallas, this method is very time-consuming and requires tons of extra work for you.

You might:

• Compile a comprehensive spreadsheet a mile long that lists all the REPs and plans
• Read through dozens or hundreds of contracts
• Have to Google all the technical jargon to interpret the terms of service

It ends up being a huge waste of time and effort because you still might not be able to determine which plan is best for you.

Option 2: Save Time, Frustration, And Confusion By Using Power Wizard

The better option is Power Wizard and the Shopping Tool. This one tool saves you time and money.

Power Wizard uses an unbiased algorithm to find the best plan for you.

You enter your zip code and a little information about your home — customizing the search to you and your needs.

In less than 5 minutes, Power Wizard can find a plan that fits your:

• Lifestyle
• Budget
• Electricity needs

Once we find the best electricity plan, Power Wizard helps you sign up or switch from your current plan to the new plan.

Power Wizard considers any cancellation fees and other factors to make sure the transition is smooth and headache-free.

After you sign up for a plan, Power Wizard continues to search for even better electricity plans for you. If Power Wizard finds a better plan, it lets you know.

With all the electric rates Dallas TX has, find the best solution for your electricity needs. Use the Shopping Tool to get started.

 

 

Power Wizard
1601 Elm St Floor 33, Dallas, TX, 75201
214-480-4890