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.