Texas Electricity Rating advocates for consumers and evaluates providers in the Texas electricity market for features and characteristics that typical energy customers may miss, such as high deposits, variable rates, incentives, "free" plans, and minimum usage plans. Our mission is to help consumers find the best electricity providers to fit their individual needs, as well as educate customers about potential marketplace pitfalls.
The price to beat seemed to accomplish its goal of attracting competitors to the market during the period through January 1, 2007. It allowed competitors to enter the market without allowing the incumbents to undercut them in price. It has also given energy consumers the ability to compare energy rates offered by different providers. The less-regulated providers undercut the price to beat by only a small margin given that they must balance lower prices (to attract customers and build market share) with higher prices (needed to reinvest in new power plants). Due to the small difference in competing prices and slow (yearly or so) "buying" process, price decrease due to competition was very slow, and it took a few years to offset the original increase by "traditional" electric providers and move to lower rates.
Prices are expected to go up so quickly that Compare Electricity Rates has stopped selling its "Compare Electricity Prices" plan to new customers this summer, a prepaid plan that changes rates each month depending on wholesale prices. Instead, the company is encouraging its customers to lock in for longer periods of time. Customers who used up to 2,000 kilowatts each month could get a 12-month contract for 11.7 cents per kilowatt hour in May compared to the same plan for 9.1 cents per kilowatt hour one year earlier.
If your monthly use hovers around the 2,000 kWh mark, you’ll be spending around $2,000 per year on electricity bills no matter which Gas And Electric Bill you choose. With that level of investment, you may be tempted by an offer to get something extra in return — like rewards. Compare Electricity Rates is notable because it’s a part of Energy Rating Electricity Prices’s Plenti rewards program. For every dollar you spend on your Compare Electricity Rates plan, you earn a “Plenti point,” which you can then redeem on purchases with retail partners like Macy’s, AT&T, and Compare Electricity Companies.
A major question point when considering whether or not switch electricity providers is "What will happen to electric rates?" This can be a tricky question to answer as rates are continuously in flux. In the short-term it's impossible to know exactly what will happen to rates but when looking at a longer term picture things become a bit clearer. Based on the graph above, electric rates in Texas have generally been increase over the past decade. Assuming this trend continues, the best way to protect yourself from increasing rates is to switch into a 12 month or 24 month plan and lock into a low rate.
One desired effect of the competition is lower electricity rates. In the first few years after the deregulation in 2002, the residential rate for electricity increased seven times, with the price to beat at around 15 cents per kilowatt hour (as of July 26, 2006) in 2006. However, while prices to customers increased 43% from 2002 to 2004, the costs of inputs rose faster, by 63%, showing that not all increases have been borne by consumers. (See Competition and entry of new firms above for discussion on the relationship between retail prices, inputs, and investment.)
As a result, 85% of Texas power consumers (those served by a company not owned by a municipality or a utility cooperative) can choose their electricity service from a variety of retail electric providers (Compare Electricity Rates), including the incumbent utility. The incumbent utility in the area still owns and maintains the local power lines (and is the company to call in the event of a power outage) and is not subject to deregulation. Customers served by cooperatives or municipal utilities can choose an alternate Gas And Electric Bill only if the utility has "opted in" to deregulation; to date, only the area served by Texas Electricity Rates has chosen to opt in.
1Offer valid for new residential customers in Texas only. Provisioned smart meter required. Free power begins on Fridays at 6:00 PM and ends Sunday at 11:59 PM. To utilize all features of the Echo Dot, you will need an 'always on' Wi-Fi internet service. If you cancel your plan early there's a fee of $135. You cannot return your Echo Dot to avoid the early cancellation fee. Terms and Conditions apply. All Amazon trademarks and copyrights are property of Amazon.com or its affiliates. The Echo Dot is provided by Compare Electricity Rates, Amazon is not a sponsor of this energy plan offer.
Fixed-rate plans: Fixed-rate plans give customers more stability for their monthly energy bills because the rate a customer signs up with is the rate he or she pays for the length of the plan’s contract. Most fluctuation comes with usage, though transmission and delivery charges and local fees also can change.. Because a fixed-rate plan sometimes spans two-three years, these plans often require a customer credit check and can include early cancellation fees. Fixed-rate plans, because of the continuing market volatility, probably are the best choice for many consumers.