Types of Electricity Plans to Choose From in Texas
First, let’s explore the most popular types of electricity plans in Texas. Below we explain how each one works so that you can understand which one might be the best choice for your home.
1. Fixed-rate electricity plans
Texas energy choice means that you can choose among plans. With a fixed-rate option, you lock in the price per kWh for the duration of your contract. The price you pay for your electricity supply doesn’t change for the entire length of your contract, no matter how high prices go on the wholesale market. This option protects you from unexpected price increases.
2. Variable-rate electricity plans
When choosing electricity in Texas with a variable-rate plan, the price you pay per kWh can change for any reason at the discretion of the retail electric provider, which must post its historical prices for its variable-rate product on its website. Variable-rate plans usually run month-to-month, which may make it difficult to budget for your energy costs.
3. Prepaid plans
If your credit is less than ideal or you haven’t established credit yet, a prepaid electricity plan can still deliver the energy you need. With this Texas energy choice, you buy a set amount of electricity and pay for it at the start of your billing cycle. Any unused kWh credits may roll over to the next month. If you use more than expected, you can buy additional credits, often at a higher fee.
4. Renewable energy plans
If you’re interested in helping the transition to a power grid that minimizes fossil fuel use, your choice of electricity plan can play a major part in supporting that change. When you buy a plan for electricity from renewable energy sources, you create economic incentives for further renewable energy investment. You can also invest in solar energy systems for your home.
5. Time-of-Use (TOU) plans
Because energy may be less expensive during times when demand is low, many energy companies offer a way to take advantage of those savings. When it comes to choosing the best electricity plan for you in Texas, changing your habits, could save on costs. TOU energy plans may help lower your energy rate overnight. Doing laundry and running your dishwasher during these off-peak hours uses energy when it’s at its lowest rate.
Which Texas Electricity Plan Should I Choose?
When choosing electricity in Texas, you have the opportunity to purchase an electric plan that works best for you. The plans mentioned above are just some of your choices when it comes to finding your best electricity plan in Texas. You should do your own research to see what’s available, and ideally work with an energy provider like Constellation that will walk you through your options, so you can make an informed choice.
How are Electricity Rates Calculated?
Electricity is sold by kWh, which measures the kilowatts used by an electric device or appliance during an hour of operation. One kilowatt is equal to 1,000 watts. Your monthly electric bill reflects the number of kWh used, multiplied by your rate per kWh.
Read your provider’s Electricity Facts Label for detailed information about your kWh rates. And learn more about kWh in our guide to understanding energy costs and bills.
What if I purchase a 1,000 kWh plan but use 1,100 kWh?
What happens if you use more electricity than your plan specifies? It depends on the type of plan.
If you have a prepaid plan, you’ll get a warning when you’re close to consuming all the electricity in your plan. You can then pay up front for additional kWhs, or conserve your energy usage until the next month.
When it comes to choosing an electricity provider in Texas, you’ll want to work with one that provides you with plenty of transparency, so that you can monitor your usage.
How to Choose an Energy Provider in Texas
Considerations when shopping for an electric provider
When shopping for an electric provider, consider the following details:
- Your service area. In a state as large as Texas, a retail electric provider may not offer services in every town or city.
- Cost per kWh. Electricity use is measured in kilowatt hours, or kWh, and this is how your provider will share their rate.
- Fixed-rate plans. You can lock in the price per kWh by signing up for a fixed-rate plan. This guards against energy price fluctuations and offers more budget certainty..
- Additional costs and fees. Your new energy provider should disclose all costs and fees before you sign up for service. Pay attention to these so that you can get a good estimate of what your monthly electricity costs will be and how they compare to what you’re currently paying.
- Reputation. It’s always a good idea to perform your due diligence when purchasing any product, and the same is true when choosing an electricity supplier in Texas.
Switching Texas electricity providers
If you currently live in Texas and are looking to switch REPs, we suggest these steps:
- Check the terms of your current contract. You can sign up with a different electric retail provider at any time, but you may be charged an early termination fee if you switch suppliers before your current contract ends. Check your original agreement to see when you can opt out of your service without having to pay a fee.
- Evaluate your energy needs. Your electricity consumption will vary based on the size of your home and family. Other variables, such as the efficiency of appliances, can be harder to evaluate. Review your previous energy bills to get a better estimate of your average monthly usage. Knowing your energy needs can help you choose the best electric plan in your area.
- Contact Constellation. Visit our Residential Sign up page to get started. You can also call us at 888-900-7052 to speak to a representative.
- Choosing a new electricity provider when moving within Texas
- When you move into a new apartment or house, you can choose a new REP and energy plan. You may be able to keep your existing contract, if the new address falls within your current provider’s service area. If not, you won’t be charged an early termination fee, but you must provide proof that you’ve moved.
What is the Best Time to Sign Up for Electricity in Texas?
No Texas energy guide would be complete without offering advice about the best time to sign up for energy plans in Texas. If these things happen to you, it may be the right time to change your energy provider:
- Your rates are being raised by your current provider. By contacting a competitor, you may be able to find better rates and better plans that can save you money.
- You’ve seen better deals. If you’ve shopped around and found a company you trust that offers plans that might better fit your needs, like a fixed-rate plan, it’s a good time to switch.
- You’ve received poor service. If your current provider isn’t treating you right, it could be time to find a competitor that will take better care of you.
- During the off-peak season. Before Texas hot summer air conditioning use drives up rates or before a winter freeze sets in, rates might be lower. Check to see wWhen electricity rates are lowest to lock in a price.
Consider Choosing Constellation as Your Texas Electricity Provider
Here are three reasons why Constellation is a great choice:
- Enrollment is easy, and switching is a very simple process that doesn’t take time or effort on your part.
- We provide multiple electricity plan choices. Take your pick of fixed-rate, variable-rate, renewable energy and bundled plans (offered in select areas).
- Exceptional customer service. Constellation is known for responsive and professional representatives, and we’re committed to earning your continued business.
Texas Power Guide FAQ
A transmission and distribution utility, or TDU, is what most people think of when talking about the electric company. In Texas, TDUs are responsible for delivering electricity, managing and maintaining power lines and reading the meter at your home. With a fixed-rate plan, your electricity supply rate won’t change for the length of your contract, but TDU charges are set by the utility and can fluctuate at any time.
Constellation customers must pay their early termination fees. You typically do not pay before you switch. The early termination fee will appear on your final bill, which you will receive after your switch has occurred. Texas energy choice is meant to be easy.
The early termination fee appears on your final bill, which you receive after you’ve switched to a new provider. If you have trouble paying it, many companies will work with you to set up a payment plan.