What Makes Cheap Electricity Possible in Texas?
Saving money is important to nearly every individual in the United States. Sure, some don’t have to worry about what they’re paying on their monthly energy bills, but most people do. Finding cheap electricity is a top priority for millions of people in Texas and throughout the country. But is the most affordable electric rate always the best one for you?
In this article, we’re going to look at factors that impact electric rates and how some companies can offer lower rates than others. We will also look at how to find the best and cheapest rates in Texas.
How to Find Cheap Electricity in Texas?
Finding cheap electricity is not only possible, but it’s pretty easy when you use EnerGenie. EnerGenie finds the best and most reasonable rates for you and your family. All you have to do is Contact us and give us some of the following information.
Depending on where you’re located, not every single REP in Texas serves your area. By giving us your Zip Code, we can narrow down the possible companies that you have to choose from.
The last thing that EnerGenie wants is to force you to overspend. We won’t push you to make any decisions that will put you in a challenging financial position.
There are several different electricity plans, such as prepaid plans, fixed rate plans, or variable rate plans. Each of these plans has its own pros and cons, and most companies offer dozens of each type of plan. If you don’t know what kind of plan you want, EnerGenie will get several of the best rates for each kind of plan. That way, you know all of the options available to you.
Once we have a list of options for you to choose from, the final decision is up to you. After you select the plan you wish to enroll in, EnerGenie will take care of contacting the company on your behalf. We take care of the research, comparing plans, enrollment, and management of your electric plan. Contact us if you want to enroll in a new plan or switch out of your current one.
How can Some Companies Offer Cheaper Electricity Than Others?
The reason that REPs in Texas can offer different rates is that Texas has deregulated energy. What that means is that residents of Texas have the opportunity to choose which company and plan they want to enroll with. Not all states have deregulated energy, and not all of Texas does either. However, at least 90% of Texas has the power to choose their power company and plan
How Does Deregulated Electricity Work?
In 2002, Texas officially decided to deregulate its electrical system. This has allowed hundreds of different REPs to compete for your business, just like any other industry. In areas without deregulated electricity, people are stuck with whatever company has jurisdiction in their region. For example, most of Ohio is controlled by AEP or American Electric Power. That means that AEP doesn’t have to compete with other companies for the best rates.
Are the Cheapest Rates the Best Rates?
Something that many people don’t realize is that the cheapest electric rates aren’t always the best ones. Electricity companies often have hidden fees and stipulations that are hard to catch on your own. Here’s an example of what we’re talking about.
|Company Name||Price per 500 kWh||Price per 1000 kWh||Price per 2000 kWh|
|Power A||10 cents per kWh||15 cents per kWh||20 cents per kWh|
|Power B||20 cents per kWh||15 cents per kWh||10 cents per kWh|
In the example above, two REPs are offering two different deals. Power A offers a deal in which you pay more for electricity based on the more you use. These numbers are tricky because if you use 1,700 kWh of electricity, here’s how the numbers break down. You don’t pay 10 cents for the first 1,000 kWh and 15 cents for the next 500 kWh, and 20 cents for the last 200 kWh. You actually pay 20 cents per kWh for all of your electricity.
In the second example, Power B offers increasingly lower rates for the more electricity you use. However, on their offer sheet, you might only see that they charge 15 cents per kWh. If you sign up with Power B and think that you can save money by using as little electricity as possible, you might actually end up paying more for less. If you only use 900 kWh of electricity versus 1,100 kWh, you’ll end up paying 20 cents per kWh versus 15 cents per kWh.
In each of these examples, you won’t realize that you’re overpaying for your electricity until the bill comes. If you signed up for a fixed-rate term for a minimum of a year, you’re stuck in your plan until the end of your term. That is, of course, unless you want to pay a hefty cancellation fee. When you enlist the help of EnerGenie, we’ll make sure that you understand exactly what you’re getting into. You won’t have to worry about unexpected fees or high prices with EnerGenie.
What are Factors that Affect the Price of Electricity?
Electric rates are volatile and prone to change without warning. Here are some of the main factors that affect the cost of electricity.
You might be thinking that gas and fuel shouldn’t have an impact on electricity, but it does. In most cases, when the price of fuel is high, so is the price of electricity.
In extreme weather conditions, such as the ones seen in Texas in early 2021, electricity prices tend to skyrocket. When the temperature is extremely hot or cold, people use more electricity to stay comfortable, and prices will increase. When it’s windy, sunny, or rainy, people can use alternative sources for electricity, and prices go down.
Just like every other company, retail electric providers have bills and expenses to pay. Different companies charge different amounts based on how much money they need to make to turn a profit.
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