November 8, 2007 admin

Ambit Energy’s Variable Rate Plan

Ambit Energy Lone Star Fixed Rate Plan

Today I checked with Ambit Energy on what their electric rate is for the Lone Star Fixed Rate plan. They explained that as long as you use 501 – 1000 kWh you will pay 10.99 cents kWh for 12 months. Basically you will pay 11 cents kWh for a 12 month term. They will only waive the $9.99 monthly customer service charge if you use 1000 kWh of electric usage or more. Let’s say you use 900 kWh of electric usage a month. This means the $9.99 charge a month would equal .0111 cents a kWh. So if you are quoted 10.99 cents a Kwh you can go ahead and add 1.11 to that which gives you a rate of .1210 cents a kWh. This makes their apparent very cheap rate actually over 12 cents a kWh provided you use over 500 kWh a month.

Comparable Electric Rates To Ambit Energy

Spark Energy
6 Months at 11.3 cents a kWh | No Monthly Customer Service Charge
12 months at 12.0 cents a kWh | No Monthly Customer Service Charge

Startex Power
6 Months at 10.8 cents a kWh | No Monthly Customer Service Charge
12 Months at 12.3 cents a kWh | No Monthly Customer Service Charge

Best Rate Winner for November 2007 – Champion Energy

Champion Energy
12 Months at 11.3 cents a kWh | $4.95 Monthly Customer Service Charge
Lowest Electric Rate averaging .1185 cents including the Customer Charge

Should I Go With Ambit’s Variable Electric Rate?

If you call Ambit Energy they will quickly try and get you on their month by month variable electric rate. They make the argument that you are not locked into a contract term so isn’t that great! Basically the idea that you are not locked into a rate is attractive to most people. The problem lies in the fact that an energy company offering a variable electric rate will likely raise the rate gradually over time until you are averaging the same or even higher then a fixed rate. The electric provider is protected in case rates go down but you are not protected either way. The electric company could charge you the same or higher regardless of what the market is doing. The best thing to find out when being asked to switch to a variable energy rate is what the rate is made up of. Sometimes it will be partially a fixed rate and maybe 15% will follow the natural gas commodities market or perhaps the ERCOT grids MCPE index. If they have something in the energy rate that says they can raise the energy rate for any reason they so desire then I would stay away from it.

Ambit Energy Rate In Houston Texas

Right now the month to month variable rate with Ambit Energy is called the Heart of Texas Month to Month. In the Houston area they are charging 12.99 cents kWh if you use 501 kWh or more in energy each month. If you use 500 kWh or less you will be charged 13.99 cents kWh and after the first month they can change the rate to whatever they want. Be careful with variable energy rates or you may get a bill that has a much higher electric rate then you expected. It’s always best to stay with a fixed electric rate. 6 Month fixed rates are the cheapest right now followed by 12 month electric rates.

A comparable variable rate that provides a disclosure of what the variable rate has done historically is listed below.

Startex Power Variable Rate and the historical rate disclosure.

After the 1st month which is just a promo rate you can track what the next month’s rate will be here on a monthly basis from the link below:

Track Historical Variable Rate With Startex

 

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

Comments (3)

  1. Dr. Weblog

    My electrical consumption is anywhere from 3,500 kilowatts to just a little over 4,000 kilowatts per month. (I'm wondering if I have a bad electrical meter) An electrical bill over $800 per month is just crazy!! I contacted 15 electrical companies and finally found Ambit Energy. Ambit Energy's rate in my area was .095 cents cheaper per kilowatt and it didn’t cost me anything to switch over! BTW, the other 14 electrical companies wanted a $450 to $500 deposit; Ambit Energy DID NOT request a deposit! (Ya my credit was screwed up after losing my career job after 9/11) The best part about switching to Ambit Energy is the referral program they have that can reduce my electrical bill to zero dollars every month!! This is not a pyramid scam. I refer people I know to Ambit Energy and my monthly bill is reduced. This is a lot easier than having to work a second job just to pay my electric bill. Scam or not, I’m receiving the same electricity from Ambit Energy cheaper then what Commerce Energy was sticking it to me with! If anything, I learned not to trust a California company to provide me with Texas power!!

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