July 6, 2008 admin

Dallas Fort Worth July 2008 Residential Electric Rate Comparison

Residential Electricity Close to a 3 Year Historical High

The market is way up right now and a question on a lot of peoples mind is if they should sign up on a 12 month fixed rate contract or a longer term such as a 24 or 36 month fixed rate contract. Right now a 24 month and 36 month fixed rate contract is cheaper then a 12 month fixed rate. The reason you get a cheaper rate as you go longer terms is due to a correlation with the natural gas market. Natural gas futures contracts are cheaper as you go out on a longer term. You can verify this by looking at futures contracts for natural gas on one of many commodity broker quote sites. The key to what you should do is in the contract. The reason they give you a cheaper rate is because they believe rates will come down between now and 24 months or 36 months from now. Because the commodities traders expect rates to come down they have a strategy to sell you on a longer term contract at a cheaper price. Many people fall for this but keep this in mind, you would be locking in at the top of the market.

We recommend signing a 12 month fixed electric rate agreement and trying again next year. We have a comparison chart listed below of multiple electric companies in North Texas, Dallas, Fort Worth, Plano, McKinney and the rest of the Oncor Electric Utility area of Texas. Compare and pick a provider. Some of the links below are discount 12 month rates, cheaper then what the Texas electric companies generally offer. Simply click the provider you want to go with and sign up online. The Texas government will automatically take you off your current electric provider and put you with your new one. You will not need to call your current provider to be taken off as this happens automatically.

Find a rate you can be confident about for the next year and try again next year. The market is very high right now so these rates will be much higher then what they looked like last July. The rates are updated as of July 6 2008. Many times the market will go up or down within a few weeks. You may click on the links below and possibly find the company offering a slightly higher or lower electric rate as we move further into the month of July.

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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 (4)

  1. johnjose@sbcglobal.net

    I am looking for a reasonable, competitive
    price per kwh for electricity. I can see
    in your chart 14.8c. Is that right?
    Can you please give me a call to discuss
    the price.Ph: 713-995-6811

  2. Shan

    The Champion rate for today states a $125 penalty for early termination. I cant seem to find if this would apply, if I sell my house and move-out. Reliant does not charge early penalty during move-out. Can anyone clarify this for champion. Called Customer Service and they did not know. Was told someone will call back. Thanks.

  3. AL

    Champion was a excellent service provider until my second year. After renewing my contract I had market fees for lapse contract time and late fees for payments that were not late. I copy of my bank statement was required to dispute a 5.50 fee. On top of that the monthly charges were added to my account that did not exsist the previous year however, for a dependable company I was willing to pay it… NOT how I feel at this time. Seriously consider Green Mountain instead, that was the next choice on the texas website and who I will be switching to after this go round. The texas choice website was a great help. Hope this stops anyone from making a bad choice with champion.

  4. With any Texas electricity provider you will be put on an unhedged energy price if you let your contract expire. If you sign up for a fixed rate be sure to place a reminder on your calendar to renew at a certain date. Champion sends out a letter to their customers prior to their contract expiring and giving a website address where the customer can renew. It is not uncommon for a customer to throw away the letter and let their contract expire. When the rate goes to a variable price because the electricity is not hedged (meaning the provider has not bought natural gas futures to make the electricity price fixed for the customer) the customer takes on the risk of a variable electricity price. If fuel prices are up in Texas that are used to generate our electricity the customer will end up paying for the spike in price. If you are uncomfortable paying higher prices on a variable rate we recommend to always renew your contract on or before the deadline. This issue is something all customers face with any provider they deal with.

    Green Mountain Energy is a good company although their electricity rates are quite a bit higher than Champion Energy as of August 2009. You can sign up with either electricity company using the comparison rate chart above.

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