A Look at the Various Plans Offered by Energy Utility Companies in Texas

While the deregulation of the energy industry in Texas gives consumers more options than ever before, some of the choices can be a bit confusing. For instance, energy utility companies are offering a range of different electricity rate plans to fit various needs. Understanding those plans is important to ensure that you’re able to make an informed decision on your electricity needs. They’re not necessarily easy to understand, though. The guide below will help.

 

Prepaid Plans – Are They Right for You?

One of the options available to you through energy utility companies is the prepaid plan. This is very different from what most consumers are used to with consumption based plans. Essentially, a prepaid plan involves you paying the energy company a specific amount of money per month. This is also called a pay as you go plan. It’s very similar to the way that prepaid cell phone plans work, in that once your credits are used up, you don’t have electricity until you send in another payment. However, it does offer the means to customize your electricity use to an amazing degree.

 

Fixed Rate Plans – What You Should Know

You’ll also find that some energy utility companies are offering fixed rate plans. This can be a good option for some consumers and business owners, although it’s a bit more complex than what it seems. Basically, it locks you into a specific amount of money per kilowatt-hour used. That can protect you when electricity rates go up, because the amount you pay will not change. However, if rates were to go down, you’d be left paying more than others because you were locked into your rates. If that doesn’t sound appealing, you can consider a hybrid rate plan. These combine elements of fixed rate plans with elements of standard billing. Basically, you pay a specific amount for a number of units (usually time), and then anything used beyond that is billed at a variable rate (higher or lower depending on market prices).

 

Variable Rates Plans – Do They Work?

The hybrid rate plan from energy utility companies mentioned above combines a fixed rate plan with a variable rate plan. However, you can opt for a straight variable rate plan if you wish. In this instance, your rates will go up and down with market prices. This can be good if rates are dropping, but if they shoot up, you can end up paying a great deal for your energy.

Looking for various electricity plans offered by utility companies in Texas, find it at http://www.shoptexaselectricity.com

 

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