Learn Why Fixed-Rate Electricity Is Best in Texas

Our top choice: Fixed-rate electricity plans

Fixed-rate electricity plans are our experts’ favorite option for Texas energy because they strike a balance between affordability and stability. This type of plan also offers the widest selection, giving customers more options based on their home size and budget.

How to pick the right electricity plan

Picking the right energy plan starts with understanding your options and identifying which one best matches your needs. Luckily, Choose Texas Power can help with this process. This guide covers everything you need to know to confidently pick an energy plan. Review your options, consult our expert-written resources, and sign up directly on our website.

Here are the main factors to consider when you go energy shopping.

Rate types

Your rate structure is the first decision you should make when shopping for electricity plans because it determines how you are charged for energy. There are two main types of electricity rates in Texas:

1. Fixed-rate electricity plans have a set energy price for the duration of your contract. Our experts recommend this plan because it offers predictable energy bills and protection from price spikes. Keep in mind that you’ll pay an early termination fee (ETF) if you cancel your contract early.
2. Variable-rate electricity plans offer less stability than fixed rates, because your rate changes monthly with the wholesale cost of energy. However, variable-rate plans are a good option if you want flexibility and prefer not to sign a contract.

Read our guide on fixed vs. variable rates to get a deeper understanding of these two options.

Special plan features

Fixed and variable rates are the first layer of energy plans, but you’ll find even more variety within these plans. Here are a few more plan types or features that can fall within those initial categories.

Prepaid plans: Most energy plans require a credit check and deposit to start service — except for prepaid plans. Shoppers with low credit may benefit from a prepaid plan because they can skip the credit check and deposit. Pay for your energy in advance with these popular prepaid options from Payless Power:

• 6-Month prepaid
• 12-Month prepaid

Bill credit: Bill credits are often included in fixed-rate plans as a monthly discount for meeting a specific energy usage threshold. For example, your provider may offer a $100 credit if you use at least 1,000 kilowatt-hours (kWh) in a month. This usage amount is set in your contract and should not change. A bill credit plan is best for someone who knows their average consumption and can qualify for the credit every month. Here are two of our top bill credit plans:

• Smart Edge 12 from TXU Energy
• Maxx Saver Value 12 from 4Change Energy

Time-of-use: This type of energy plan offers a different rate depending on the time of day. Some may even offer periods of free electricity, typically in the evenings. Your Electricity Facts Label (EFL) should clearly outline the terms of your time-of-use plan. Time-of-use plans are ideal for customers who use most of their electricity during off-peak hours.

Green energy: Most Texas energy plans include a specified amount of renewable energy from solar energy or wind power. However, some providers specialize in 100% green plans that cover your usage with renewable energy credits purchased on your behalf. Want to improve your carbon footprint? Check out a couple of our top green energy plans:

• Gexa Eco Saver Plus 12 from Gexa Energy
• Rhythm Saver 15 from Rhythm Energy

Contract length

Contract length is another important factor to consider when comparing energy plans. The ideal contract length depends on your budget, timeline, and preferences. Renters should consider shorter contracts that align with their lease, while homeowners could spring for a longer commitment. Some providers offer unique term lengths, such as month-to-month or six-month plans, but the most common contract lengths are 12, 24, or 36 months.

Ensuring your contract length is a good match also helps you avoid ETFs, which can cost anywhere from $150 to $395, depending on your provider’s policy.

What is the best energy plan for you?

Choosing the best energy plan in Texas is dependent on your energy needs, usage patterns, and goals. Answer a few of these questions to point yourself in the right direction:

• Do you prefer stability or flexibility? If stability is your priority, opt for a fixed-rate plan. If you prefer flexibility, consider a variable-rate plan.
• How long can you commit to an energy plan? If you’re not ready to commit to a contract, a month-to-month plan may be best. However, if you plan to live in your current home for a year or more, explore long-term plans that let you lock in a low rate.
• Want to lower your home’s carbon footprint? Our marketplace features a variety of green energy plans. If green energy is important to you, consider one of our competitive renewable energy plans.

If you feel stuck between a few options, call our energy specialists at the number on your screen for guidance. Our experts have years of industry experience and can help you find the best plan.

Our tips for predictable bills

No one enjoys being surprised by a high electricity bill. This usually happens when customers are unaware of their plan’s different rate tiers and end up in the most expensive one. Here’s how to get stable, predictable energy bills:

1. Pick a plan based on your usage level. Aligning a plan to your average monthly consumption helps you know what to expect when your bill comes. Check multiple past energy bills to learn your average usage, then pick a plan with a good rate for your tier.
2. Search for a plan with less variation between usage tiers. Plans with rates that jump significantly between usage tiers are prime culprits for high energy bills. If you slip into a higher usage tier for one month, your energy bill could be much higher than expected. Carefully review the price differences across tiers to find one with the least variation.

Texas energy plans FAQs

Is a fixed rate for electricity a good idea?

Yes, our energy experts generally recommend fixed-rate electricity plans because they offer the most savings. Thanks to the set rate, you can budget for your energy bills and enjoy peace of mind.

Which type of energy plan is best?

For most Texans, fixed-rate plans are best because they offer protection against price spikes often experienced during summer and winter. Fixed-rate plans also have the most variety and cheapest rates compared to other types of energy plans.

Do energy plans contain hidden fees?

Energy rates on our marketplace are transparent and include utility delivery fees. Your energy bill will also include local and state taxes. To avoid surprises down the road, carefully review your plan’s EFL for details on your rate, base charges, TDU fees, and more.

Will I have to pay a deposit?

If your credit score is lower than the threshold set by a provider, you may have to pay a deposit to begin service. You won’t have to pay a deposit if your credit score exceeds the provider’s threshold or if you sign up for a no-deposit plan.

What happens if I’m late on a payment?

If you are late paying your energy bill, your provider may charge a late fee. Your service could also be disconnected if you are late multiple times or your account is past due for an extended period. Your provider should send you a notice before disconnecting your service.