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

 

Amigo Energy Houston

Need a Texas Electric Provider with a Guaranteed No Deposit Requirement?

Bounce Energy is currently offering a “no deposit or low deposit plan” that will allow those with bad credit scores to qualify for a no or low deposit electric rate depending on credit score. The rate is a cheap Texas electric rate and many times cheaper than some of the bigger brand name electricity providers in the state.

If you are looking for a no deposit plan please use our compare tool at the top right of this page.

Compare Amigo With The Others

Amigo Energy has an updated electricity facts label on the www.powertochoose.org website. Their electric rate continues to be one of the lowest electric rates with pretty fare terms and agreements when comparing with some of the other discount electric providers in Texas. For instance, as of 9-12-2007 they have a 12 month rate at 10.7 cents kWh but if you add the $6.95 monthly customer charge you will be paying a rate of about 11.4 cents kWh cents. Because there is a $6.95 cent monthly base charge this would actually make the rate a little higher then Spark as they do not charge a monthly customer charge. Spark Energy which is offering a 10.3 cents kWh rate for 6 months and a 11 cents\kWh rate at 12 months has no monthly customer service charge. If you want to sign up with them you can click here and do it online immediately – Spark Energy 11 cents kWh | No Monthly Customer Service Charge | Very Low early termination fee | No Hidden Charges | No Deposit Under Most Situations

Amigo Energy Facts Label

Here it is, Amigo Energy’s Residential Electricity Facts label. The Facts Label is the equivalent of the nutrition label on the back of a can of food. It is really all you need to compare rates prior to signing a contract. They can’t mislead you on the facts label and then offer a different electric contract or they would be in serious trouble with the (PUC) Public Utility Commission.

Electricity Facts
Amigo Energy Services
Electronic Offer 12-mo Commitment Program featuring E-Billing and direct debit payments Rate Code: ONLINE-12
9/12/2007

Electricity
Price

Average monthly use: 500 kWh 1,000 kWh 1,500 kWh
Average price per kilowatt hour:
TXU (Oncor) Area: 10.7 ¢ 10.7 ¢ 10.7 ¢
Centerpoint (Houston) Area: 11.2 ¢ 11.2 ¢ 11.2 ¢
AEP Central (CP&L) Area: 10.8 ¢ 10.8 ¢ 10.8 ¢
TNMP Service Area: 11.1 ¢ 11.1 ¢ 11.1 ¢
AEP North (WTU) Area: 11.5 ¢ 11.5 ¢ 11.5 ¢


This price consists of the price per kWh charge plus a $0 fixed monthly charge for meters using at least 500 kWh per billing period. At or above 500 kWh per billing period your average price per kWh for electric service will not vary regardless of usage.

This price consists of the price per kWh charge plus a $6.95 fixed monthly charge for meters using less than 500 kWh per billing period. Your average price for electric service per kWh will vary according to how much electricity you use.
 

 

 

2 Average Months: JUN &SEP
Average Month kWh Charge: above
8 Off-Peak Months: OCT-MAY
Off-Peak kWh Charge: 0.23 ¢ off-peak discount
2 On-Peak Months: JUL-AUG
On-Peak kWh Charge: 0.57 ¢ on-peak charge


Contract

Minimum Term: 12 Months Early Termination Fee: $69.95

See Terms of Service for a full Listing of fees, deposit policy, and other terms.

Sources of
power
generation

 Â

Texas

Â

This Product

(for comparison)

Coal and Lignite

32%

32%

Natural Gas

51%

51%

Nuclear

10%

10%

Renewable Energy

4%

4%

Other

3%

3%

Total

100%

100%

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