How to Find the Best Electricity Rates in Texas
How to Find the Best Electricity Rates in Texas
Electricity Rates
With energy prices constantly on the rise it is now more important than ever to make sure that you are getting the cheapest electricity rates possible. The chart below created by the US Energy Information Administration shows the average retail price of electricity between 1960 and 2020:
You don’t have to be an Excel specialist or spend hours reading through contracts to find the best electricity rates. Surprisingly, most homeowners don’t shop around when it comes to their energy provider, and they keep renewing the same plan that they are enrolled in. In fact, consumers who spend just a few minutes comparing electricity rate plans can save 30% on average on their electricity bill.
Let’s walk through a few simple steps that you need to take in order to ensure that you are not overpaying for electricity.
First, What Are My Options?
The first thing that you will need to check is that you live in an energy deregulated area. The following states are deregulated energy states: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Ohio, Pennsylvania, Texas, and Washington DC.
Tip: some ZIP codes in these areas may still be regulated. To verify that your specific address is in a deregulated area simply enter your ZIP code in one of the websites listed below.
The main difference between regulated and deregulated electricity rates area is that deregulation allows many electricity providers (aka Retail Energy Providers – REPs) to compete for your business. You, as the consumer, have the power to choose your own provider and electricity rate plan. This competition can lower your overall electricity rates if you know how to take advantage of it.
Know Your Usage
The most important step in the process is to know your usage. The more information you have up front the better rates you will be able to get later. For this you’ll need to:
1. Find your recent electricity bills. The further back you go the better.
2. On the bill, keep note of the actual price that you are paying per kWh (Kilowatt/Hour). You can also calculate that by taking your total monthly bill and dividing it by your usage for that month.
Shop Wisely Using a Comparison Website
You may be tempted to sign up with the REP that advertises the lowest rates. These plans many times have hidden fees and a tiered pricing structure that can increase your bill significantly. Today, technology has replaced our need to manually run all these tedious calculations, and based only on your zip code and usage history you will be able to tell what the cheapest plans are. These sites will let you look past all the hidden fees, discounts, credits, and the gotchas to find the actual rate you will be charged at the end of the month.
Texas, which is the leading deregulated energy market (by size) in the country, has an official state-run comparison site called PowerToChoose. While it is still a decent option that offers many plans to compare from, it lacks a key feature that can truly find you the best savings.
To get the cheapest energy rate you need to shop for an energy plan that is tailored to your level of usage. It needs to account for hot summer months with high-usage and low-usage winter months as well. To tackle that problem specifically a new smart energy calculator was developed by SlashPlan.com, they let you enter your previous 12-month usage to learn your energy usage habits, and they do all the heavy lifting for you. SlashPlan runs your usage across all plans and providers and instantly finds that one plan that offers you the maximum savings.
Once you find the best plan, enrollment is super-easy! The process takes about 5 minutes and you can have your plan switched the next day, without even calling your current provider..
What About Early Termination Fees?
Most energy providers charge early termination fees if you switch away from your plan while you are still locked in a contract. Usually, the longer-term plans have higher termination fees. They are typically charged as a one-time fee or a smaller fee per month that is left in the contract.
It will usually not make sense for you to switch away from your current plan if you need to pay a penalty. However, with that being said there are a few important exceptions:
- In Texas, the law allows you to switch plans 2 weeks before your current contract expires. regardless of your contract term.
- If you are moving to the new address, you will not be charged an early termination fee. You will have an option to carry your current plan with you, but you don’t have to. This is a perfect opportunity to lock in a better rate. NOTICE: you may be asked to show proof that you are actually moving to waive the early-termination fee.
Other Things to Consider
Unless you are signing up to a month-to-month plan, you need to understand that you are signing a contract, which means that you are obligated to pay your bill and remain with the plan that you chose during the length of the contract (unless you are moving again, of course!).
You may want to consider these things before switching:
1. You cannot switch energy providers if you are behind on your energy bills. If you are behind you will likely have a ”Switch Hold” on your account, Which means that your new plan can get cancelled before it is even installed.
2. Credit score matters. When enrolling to a new plan the electric company will likely run a “soft” credit check to determine if you need to pay a deposit. Each REP has its own threshold or minimum credit score requirements, so you may be rejected or asked to pay a deposit If you do not meet their minimum requirements.
TIP: if you are asked to pay a deposit you can simply call the company and ask for a waiver. Depending on your situation, many companies have exceptions to the rule and can waive your deposit if you talk to them.
3. Your current provider will start calling and emailing you about a month before your plan expires. Be a savvy consumer, don’t take their first offer, write it down and compare it with all other offers in the market, it only takes 5 minutes!
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OutFactors
539 West Commerce Street
Suite 1205
Dallas, Texas 75208
Contact@OutFactors.com
(800) 420-7030
Best Electricity Rates Texas | Compare Energy Plans | OutFactors – Dallas Fort Worth, Texas
