Don’t Get Bitten This Winter By Your Variable Electric Rate

Variable electric rates are not all bad but there are problems with them that if not understood can leave you like many others, very confused when your rate goes up.

As the name implies a variable price does not guarantee by any means that your price will always stay the same or go down but never up.

The variable price is just as likely to go up as it is to go down.

Most electric companies in Texas will give you an introductory rate when getting you to switch to their variable price. The rate looks exceptionally low compared to locking in at a much higher fixed contract for 12 months.

Many people simply see that cheap variable intro rate and sign up. Once your rate goes up and you realize it has gone up it is usually too late to switch away before you get a sticker shock electric bill in the mail.

It is possible that 45 days of electric usage could have accumulated during the time your price was jacked up. Since you get billed every 30 days you will likely disconnect a week or so after that.

You will get billed at the higher rate for over a month before you can switch away and this may have caused you to spend $200 or more than you were planning on.

If your price follows an index like natural gas you can rest confidently when your rate is high because you know you will be rewarded when commodity prices come down.

The problem is that most providers do not make it very clear how their variable price works and so you really have no assurance of anything.

To save you all this headache try a fixed rate like what I usually go with. I sign up for 12 months on a fixed plan and have no worries for a year. At the end of the year I get a reminder email to shop prices and I simply renew with who I consider to be the best provider for another year.

Tyler Texas Electric Rates Compared

Comparing Rates

I called Texas Power today to find out what their residential electric rates were. I heard an interesting radio advertisement from them and even saw a billboard with an ad that appeared to show that they had a lower electric rate then several other energy companies in Tyler Texas. So I call Texas Power Electric Company and ask them what their residential electric rate is. They tell me they can lock me in on a rate at 11.9 cents kwh. They explained that this is not an introductory rate but it is a variable electric rate (meaning it can change). They explained that it changes price based upon the Natural Gas price. If Natural Gas goes up then their rate will go up. If it comes down then their rate should come down. It sounded fair enough but I checked into natural gas and discovered that natural gas is at a 2 year low and is currently heading up. Not only that but they want $10 a month if you don’t use over 1,000 kwh a month in customer service charges. This charge would easily eat up any savings I thought I was getting. I past on this deal as I found another rate plan that is fixed for 12 months at 10.8 – 11.8 cents kwh depending on your area and has no monthly customer service charge regardless of how much or less energy you use. This rate plan was with Startex Power. Update: As of February 2009 Startex 12 month electric rate is 10.8 cents kWh in the Dallas area. This was a promotional electric rate with Startex Power. You could sign up on this promo rate at a link in the past but we now have other offers and providers available through the use of our compare tool.

Looking for a No Deposit Plan?

If you have a low credit score or bad credit you may have noticed most electric companies in Texas want a very high deposit. We have a no deposit or low deposit choice available with Acureed Energy and several others. Use the compare tool at the top right to check all prepaid offers out and order online.

What Would Be The Best Electric Rate Plan

If you are going to pick a plan in Tyler Texas then it really isn’t any different then other areas of Texas. Different regions in Texas have different pricing but this is regulated by ERCOT (A Texas Agency) and not something the energy provider controls. Your concern should not be the brand name of the company or how they market their product. If you go out to the Texas website www.powertochoose.com they will show you several electric company rate plans along with the Facts Label. The Facts Label is like the government required nutrition label on the back of a can of food. You can’t go wrong by comparing an energy plan’s facts label with another energy plan’s facts label.

Here is an example of Spark Energy’s Facts Label:  Facts Label

More about Tyler Texas Electric Companies

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