What The Power To Choose Your Electricity Provider Means For You
What is Power-To-Choose? In the past, Texans bought their electricity from a local utility that was often the only choice in town. Utilities had very little incentive to keep rates low or go the extra mile for customers. Today, Texas is one of a growing number of states with a competitive energy market that allows residents The Power To Choose and to purchase power from retail electricity providers or suppliers. Competitive markets are also referred to as deregulated energy markets. A competitive marketplace can have positive results for customers as competing energy providers offer a variety of plans and rates, so you have the power to choose among them. More Simply put you have electric choice.
Retail Electric Providers Vs. Utilities In Texas
A retail electric provider or supplier will buy power on the wholesale market and sells it to customers. With Power To Choose the utility is still responsible for delivering energy to your home, tracking your energy usage, and maintaining the electric wires. With a choice of retail electric providers in one market, competition is possible that would not be with a single utility selling power to homes and businesses.
Which Texas Electricity Plan Should I Choose?
Energy choice gives Texans the opportunity to purchase an electric plan that works for them. A fixed-rate plan includes signing a contract and is ideal for those looking to lock in the price per kilowatt-hour to have energy budget certainty. Variable-rate plans are on a month-to-month basis with no long-term contract but leave you open to price fluctuations, so Power To Choose requires some research by the customer.
Types Of Electricity Plans To Choose From In Texas
There are two popular types of electricity plans in Texas:
Fixed-rate electricity plans:
Customers lock in the price per unit of energy for the duration of the contract. More Simply, you pay a fixed price for each kilowatt-hour regardless of when you use it. These plans can protect you from price fluctuations due to demand, seasonality, and other factors beyond your control.
Variable-rate electricity plans:
The price per kilowatt hour can change on a variable rate plan. That means you may pay more for power during periods of high demand, such as a hot Texas summer. Variable-rate plans usually run month-to-month, which may make it difficult to estimate or budget for your energy costs.
How Are Electricity Rates Calculated?
Electricity is measured in kilowatt-hours (kWh), which is a figure that corresponds to the kilowatts used by an electric device or appliance in an hour. Your monthly electric bill reflects the number of kilowatt-hours used multiplied by the rate per kilowatt-hour. Read your provider’s EFL, or Electricity Facts Label, for detailed information about your rates per kWh. What’s a kilowatt? It’s simply another name for 1,000 watts of electricity. With Power-To-Choose it’s important learn more about kilowatt-hours by reading and Understanding Your Energy Costs and Bill page.