Our Electricity Calculator can help you decide what type of electricity plan would be fit your home and lifestyle. First things first, let's try to determine what you're currently paying by entering your home details in the calculator below. The average price for electricity in Texas for 2020 was 11.86 cents per kWh. If you know what you're currently paying, you can also enter in your rate to see how it compares!
Pricing displayed is based on 2000kWh usage and is solely determined by the property size and year the home was built. Please keep in mind that every home's usage will vary based on season, number of people occupying home, age of appliances, and many other factors. Our calculator should just be used for information purposes to help provide you the opportunity to compare costs side by side. HomeSwitch is not responsible for managing your usage and has no control over these circumstances.
Shopping for electricity can be extremely time consuming and frustrating. We are here to streamline this process to ensure you get the savings you deserve without having to worry about if the plan you choose truly fits your home. The best way to start saving is to first understand how electricity works.
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Regulation versus Deregulation
Texas became deregulated in most areas back in 2002. This gave consumers like you the option to shop multiple rates and companies to be your provider versus being stuck with only one provider option.
Although this opened the door to tons of savings for consumers, it also allowed Retail Electric Providers to determine their own rates and offer not so transparent plans that can trick you into thinking you will be saving money, when in reality you will not.
Understanding Your Electricity Bill
Electricity billing can be a bit confusing. Ultimately, you are paying 2 providers. You will have your chosen Retail Electric Provider which does the resell of electricity at a certain rate based on the plan you selected.
You also have Transmission and Distribution Utility (TDU) which is typically going to be either CenterPoint or Texas New Mexico Power. You have no options when it comes to who your TDU is or their fees. Every resident in the designated area will pay the same regulated delivery charges each month.
Fixed Rate versus Variable Rates
A fixed rate is when a contract between the Retail Electric Provider and the consumer have agreed to a set rate for a certain time frame. These plans usually run anywhere from 3 months all the way up to 3-5 years.
A variable rate is a month to month plan where the rates will vary based on the wholesale energy cost. There are many other factors that can play into this pricing, all of which are determined by the Retail Electric Provider.
FAQ
Glad you asked! For years electricity providers have found ways to hide fees in their plans with several advertising techniques. We are ready to put an end to that confusion. HomeSwitch has access to all Retail Electric Providers so we can estimate the properties electric usage and find plans that best find your home and budget. Check out our Electricity Calculator to see the states current Average Cost per kWh versus the lowest long term and short term provider plans currently on the market to determine your savings!
No! Your electricity billing will be handled directly between you and your Retail Electric Provider. HomeSwitch is just here to make sure you are saving money!
If you are staying in the same residence and under a contract with a Retail Electric Provider, you will be subject to a cancellation fee for cancelling before your contract expires. This charge could either be a flat amount or be determined based on how much longer you have in your contract. You will need to refer to your Retail Electric Provider contract to determine this cost.
However, if you are moving to a new location, your contract is ONLY tied to the meter in which it currently services. For your new property, you will be able to shop the current market rates and find a new plan and Retail Electric Provider to service the home. This can be done with no fees and penalties per the PUCT Law.
No! All service providers offer the best rates to new clients. Additionally, even if your provider was the lowest cost provider years ago, the prices are always competitively changing. There is a very high chance that there are many other providers available with way better New Customer Offers.
If you stay at the same location and are out of contract with your current provider, then upon enrolling with a new provider, you do not need to take any further actions unless requested by the new provider, which is uncommon. The new providers plan will automatically cancel out the old plan based on the activation date you selected. There will be no interruption to your electric service.
If you are moving to a new residence, then you are free to enroll with any Retail Electric Provider of your choosing. However, we do recommend contacting your current provider to give them a shut off date for the current residence to protect you from paying for the new occupants electricity by mistake.
We avoid these plans to keep our customers protected from unpredictable price spikes. Variable Rate plans pricing is constantly changing based on the wholesale cost for electricity. Although at times the cost of these plans may seem appealing, since the cost of electricity is ever changing, so will the cost you are paying. This can really be an issue when situations like the heat wave in August of 2019 or the hard freeze from February of 2021 come into play. Wholesale prices skyrocket and you as the consumer could have astronomical bills because of it.
There are many variables that play a role in this. Rates are usually higher in the summer and winter due to a higher demand for electricity. The supply and demand cost determine what the wholesale price of electricity will be. However, factors such as cost of fuel, power plant costs, TDU costs, and even extreme weather events can vary the cost of electricity.
Deposits can be a common thing you may run into when shopping for electricity. Running into a deposit does not necessarily mean you have bad credit.
A couple reasons a deposit might be requested are:
No utility payment history
Missed or late payments between you and another utility provider
Outstanding balances or collection agencies reported to the credit bureaus
Ways to waive a deposit:
Over 65 years old with a driver's license and recent electric bill showing good standing
Victim of Family Violence
Letter of credit: This is a letter from your current provider provide 12 months of good standing payments
Deposits are usually returned after 12 months of positive payment history.
If deposit payment is not an option, there are a few select companies that offer upfront payment. These rates are generally higher and you will need to constantly make sure your account is funded enough to cover your usage to avoid getting power shut off.
Unfortunately, these areas are still regulated in Texas and there are no alternate providers available.