Electricity Company Rate Plans

Electric Company Rate PlansWhen picking a rate plan for a residential home or apartment you need to understand how energy providers choose to market.

Every electric provider will have a few good deals on certain plans. It may be a 3 month rate or a 15 month rate but what you will see is a slightly cheaper price for that term than a typical contract term.

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It will not always be the 3 month and 15 month fixed rate plan that offers the best electricity price but this serves as an example so I can explain what is going on here.

Many times a standard 12 month fixed rate will offer the best deal but a provider can steer you to a different rate plan by making look better.

Even if certain things about an electricity company rate plan are bad for the customer an electricity provider will market it in such a way that you may see the bad aspects as positive.

These energy suppliers are simply featuring the bad parts of their plan and making you pay more for it. Don’t fall for these tricks as you end up losing in the end.

Below are some points to consider when choosing an electricity company and one of their rate plans.

  • Choose a standard electricity rate plan such as 6 months, 12 months, 24, or 36 months.
  • Don’t always go with the cheapest plan especially if it is a short term 1 – 3 month deal. That price will go up.
  • Lock in to a fixed rate and skip going with the cheaper variable price. Variable rates are always subject to change.
  • If a company leaves off TDSP charges, surcharges, and other hidden fees in their rate don’t trust that they have your best interests in mind. Go with a different provider.
  • Stay away from electricity rate plans that say they are fixed but also have a fuel surcharge that can adjust with the commodities market. This is a trick and it simply means your electricity company rate is not truly locked in as fixed.

Sugar Land Texas Electricity

Compare Electricity Rate Plans and Companies in Sugar Land Texas

Sugar land Texas electricity prices are the same as they are in the city of Houston Texas. When comparing and choosing a Sugar Land Texas electricity provider you want to consider what rate plan you want to get on. The most popular electricity rate plans are the fixed rate plans. Some of the top fixed electricity plans people generally choose are for 1, 2 or 3 years. Occasionally electricity consumers in Sugar Land will choose a shorter term plan like a 6 month fixed rate. Be sure to mark on your calendar when your electricity rate is set to expire. If you do not mark on your calendar and your electricity provider in Sugar land does not send you a reminder email or mailing that you need to renew you will be automatically switched to a variable electricity rate plan.

The issue of a fixed rate expiring and a Texas electricity consumers rate automatically going to a variable rate is one of the banes of the Texas deregulated electricity market. Even when using the larger electricity companies like TXU or Reliant Energy you can find yourself on a no contract variable price much higher than your fixed electricity rate. The only way to insure you do not fall over to a variable rate is to mark it down on your calendar. Sometimes those reminder emails and letters get misplaced, lost, or the provider simply never mails it out.

You can find and compare several cheap Sugar Land electricity rate plans and prices by using the comparison chart at the top of this page. Rate plans are categorized from 1 year all the way out to 3 year. The most popular electricity plans are the 6 month fixed rates and the 1 year fixed rates. Electricity Bid currently recommend locking in fir at least 1 year while electricity rates in Sugar Land Texas remain some what low from their highs.

Generally we discourage residential customers from signing up on a variable electricity contract because the price can go up and down without any warning. Some electricity companies like Bounce Energy have a price ceiling in place so the variable electricity rate can only go so high. If you do sign up on a variable electricity rate with companies like Bounce Energy you are partially protected against price spikes in the variable Texas electricity market.

There were no deposit electricity rate plans in Sugar Land but the company offering this plan has discontinued that rate plan choice. Each no deposit plan had one catch or another and some of the popular ones still available but not recommended involve prepaying for your electricity service. The best we had seen so far involved paying an initial fee of $125 that you will have applied to your first months electricity bill but this rate plan has since been discontinued. This wasn’t exactly a deposit which you would get back at the end of your electricity contract but was applied in short order on your first months bill. Also, if you paid your Sugar Land electricity bill on time that no deposit electricity rate was lowered to the lowest rate plan available. This no deposit plan that is no longer available was for those energy consumers in Texas currently in a credit crunch that couldn’t afford paying a large deposit to their electric utility. This plan was available through Bounce Energy

If you would like to compare no deposit and prepaid electric service offers please use our compare tool at the top right of this page. All of these providers service the Sugar Land area and will be able to provide prepaid service in your area.

Cirro Energy, Customer Confusion Over Variable Electric Rate

Power To Choose had Cirro Energy listed on their website with a Residential Electricity Rate for 12 months at 12.3 cents\kwh back in June of 2007. This tied with Spark Energy who also had a 12.3 cents per kwh energy rate. After looking closer I noticed that you can only qualify for the 12.3 cents\kwh rate with Cirro if you are using more then 500 kwh a month in electricity. Since then Cirro Energy was advertising only a variable 12 month rate on Power to Choose but would show it as a 12 month term. Mind you I had multiple people call me to complain about Cirro because they thought they had signed up for a 12 month fixed rate not noticing they were being locked into a rate that can change at will by Cirro Energy for any reason the energy company decides. I received enough of these calls to realize that most people who signed up with Cirro seemed to be under the impression that their electric rate was locked in for 12 months.

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Another bad aspect to the Cirro Energy residential electricity rate was the early termination penalty. Back in June of 2007 they would charge an electric customer 1 months average electricity bill if you were to cancel. This could be $200 – $500 for some residential customers who use a lot of energy. On a more positive note an apartment customer might only have to pay $50 – $75 to cancel since they do not use as much energy. Since June of 2007 Cirro’s early termination penalty is more in line with other electric providers. They now offer both a fixed rate and a variable electric rate.

In comparison to Cirro Energy, Startex Power has a competitive electric rate worth looking at. They have standard fixed rate terms without monthly service charges. Another electric rate plan that is good for those looking for a guaranteed no deposit plan is with Bounce Energy.  The electric rate is not dependent upon the amount of electricity used  unless you are using under 500 kWh a month. Most people do not use under that but if you do there is a $4.95 monthly fee.

Cirro Energy has announced as of August 2008 that they are being bought out by a large electric company named Dominion Retail with over 1.7 million residential and commercial electric service customers throughout the USA. My guess is that the churn rate of electric service customers has been increasing and electric companies like Cirro are looking to sell out. After reaching critical mass it actually does make sense to sell out. I wonder if this sell out is foreshadowing what is to come in the Texas retail electricity market?

Remember telecom long distance deregulation? AT&T, MCI, and Sprint. The market became pretty thin and volume ended up making or breaking these companies. Once the companies got too big and their customers started jumping ship to the next best provider they couldn’t justify the size of their companies infrastructure any longer. These companies began losing money and selling off and downsizing.

Electricity Bid helps you find an electric rate and provider to save you money and keep life simple.

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