Understanding Houston Energy Providers and Electric Rates

Thanks to the deregulation of energy companies in the state of Texas, you now have the right to choose which electric company will provide energy for your home. When you begin looking into making that choice, one of the things you will find is that you actually have access to different service providers that offer different types of rates. Rates actually matter a great deal for you and your electric bill, so they are something that you will need to understand very clearly so that you can make the right decision. Here is your guide to understanding Houston electric rates.

Electric rates have to do with how a company bills you for the electricity that you use. With the old standard, you simply pay for the electricity that you used calculated by kWh and based on the index rate for the month. Your electric bill could rise and fall from month to month. Rates were affected by energy demand and time of year. Many people noticed that their Houston electric rates would go up significantly during the summer season when electricity was in high demand. Now that energy deregulation has taken place, you have a choice of four different electric rates. Choosing the electric rate that makes the most sense for your home, your life, and your budget will help you determine which electric company would work best for you. Here is an explanation of the four different types of Houston electric rates.

Fixed Rates

This is a favored option for many people because they feel more in control of their budget. With a fixed rate system, your energy bill will be calculated on a scale and then it will stay exactly the same every month for a whole year. At the end of the year, a new calculation will be made and your next year’s rate will be adjusted accordingly.

Variable Rates and Indexed Rates

These rate plans will allow you to enjoy the benefits of lower electric rates as they come around since your bill will change from month to month. In the case of indexed rates, the amount you pay will be based on the national index.

Prepaid Rates

For people who may not want to sign a contract or when a low credit score is in play, these plans allow you to subscribe to electricity on a month-by-month basis so that you do not have to deal with contracts, deposits, and credit checks.

Your Houston electric rates will have a big impact on your monthly budget, so you will definitely want to compare companies and the rates that they offer.

ShopTXElectricity makes it easy for you to compare Houston electric rates all at one place.

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