Pearland Texas Electricity Rates and Plans

Pearland Electricity Rates and Comparisons

Lately the credit market has dried up a bit and because of it new apartment renters for the first time will likely be asked for a deposit even if you have no outstanding or bad credit dings. Why is this? Electricity utilities operate on thin margins and because of this they cannot have too many outstanding debts or they cannot afford to both hedge the energy they sell and sign up new customers. Obviously if an electricity company is not making a profit they cannot continue to sell electricity service so unless you have good credit history in the Pearland Texas area you will usually have to come up with some type of deposit amount. Some electricity companies charge as much as $800 to have your electricity service turned on. If you shop around enough you can find deposits as low as $200. If your credit is terrible and you have been late in paying utilities in the past there is usually no way out of having to pay a deposit to your Pearland Texas electricity company. There are some exceptions which we will outline below.

Are No Deposit Electricity Companies Worth It?

Although from time to time there are legitimate electricity companies in Pearland TX offering no deposit choices they eventually quite offering this type of plan because they end up losing money on the deal. What ends up happening is a large percentage of these electricity service customers fail to pay their electric bill. No matter how many incentives a bad credit customer receives from their electric provider they end up making poor choices and fail to pay their bill. The electricity company ends up getting burned and the punk teenager moves back into mom’s. The only other alternative electricity service that offers a no deposit plan are known as prepay electricity service, pay as you go, and prepaid electricity plans. The companies right now that offer these plans in Pearland Texas are Freedom Power, DPI Energy, and a few more.

Pay As You Go Common Scenarios

The bad thing about a prepay electricity company is the way you get sucked into one of these plans. The promise is usually a low turn on fee of $99 – $150. A couple weeks into the plan some of these prepaid electricity companies will demand sometimes more money than the initial turn on fee to keep the Pearland electricity service on. The reason the 2nd amount is higher is because of how high the per kWh electricity rate is they will charge you. You usually cannot get into one of these plans for less than 17 cents per kWh. Imagine you are a low electricity usage customer only consuming 1,000 kWh a month. Most people use more than this but lets say that is all you used with a prepaid electricity company. You will end up spending $170 for one month of electricity. If you are a family living in an apartment you may be using more in the range of 2,000 kWh a month. This would be a monthly electricity bill of  $340. Instead of getting sucked into a pay as you go electric plan we recommend paying a deposit in the range of $200 – $400.

What a Prepaid Electricity Bill Looks Like in Comparison to Paying a Deposit Amount

By paying a deposit you will be able to choose a much cheaper electricity plan in the range of 9 – 13 cents per kWh. If you got on a plan that was 11 cents per kWh and you used 1,000 kWh a month your monthly electricity bill in Pearland Texas would be $110. If you used 2,000 kWh a month your electricity bill would be $220 a month rather than $340 a month. As you can see you would recoup your deposit usually in less than 1 to 2 months. You will also get your deposit back at the end of your electricity contract. By signing up on a prepaid electricity plan you are really only putting off a very large amount of money you will eventually have to pay by a few weeks. Instead of putting the inevitable off we recommend signing up on a reputable and traditional electricity company. A traditional Pearland Texas electricity company will allow you to use a months of electricity and than give you a couple weeks to pay your bill. A pay as you go electric company will constantly hound you to prepay again or risk your electricity be turned off.

Check out the electricity comparison chart for the Pearland Texas area above and compare and choose a cheap low deposit electricity company in the Pearland Texas area.

Pearland Tx Electric Company

Residential Pearland Electric Rates and Companies

If you need to compare the cheapest available Pearland electricity rates and providers then you can use the below comparison chart that offers the cheapest available offers below. Simply click on the “Select Plan” box to pick the plan you want to compare and then click on “Get Rates”. Once you are ready just click on “continue” to confirm the Pearland electric rate you want to sign up for.

For commercial quotes click here

Who is the Best Pearland Electric Company?

Shopping for electric rates in Pearland Texas actually isn’t as hard as it first seems. Yes, there are about 40 different retail electric providers in Pearland and about 300 different types of electric plans offered by these Texas Power providers but by using our searchable database you can narrow down who has the best electric rate for your city in no time. A question Electricity Bid often gets asked is in regards to which Pearland and Houston Electric Company is considered the best. This isn’t an easy question because there are many brand new companies that have come into existence in the last year. These new electric providers in Texas are faced with the prospect that many before them have come into Texas only to leave unprofitable. You have to be pretty smart to run a successful Texas retail electric provider. An energy companies billing system, customer service, and back office need to be running smooth or they could begin misbilling their customers. When misbillings occur customers begin to call the customer service desk at that energy company. If the customer service desk is at a Bangalore India call center you may find yourself being given information regarding misbilling that doesn’t help you very much. If the back office and billing issues do not get succesfully handled this can cause the beginning to the ultimate demise of a beginning electric company. Another issue often faced by new Texas energy providers in Pearland Tx and the surrounding Houston Metro area is risk management policies in place with the energy providers trading desks. If the electric company buys their energy and hedges it in a risky way they may become unprofitable after taking into account the cost of running the overall REP. Many energy providers have come in and signed many cheaply priced electric contracts only to close shop when they were not able to make a profit. This scenario leaves all their customers needing to look for another Texas energy provider at potentially higher prices depending on where the market is at.

Feel free to call one of our energy consultants at 1-800-971-4020

Looking Out For Additional Fees in Texas Electric Rates

Finding the best electric company in Pearland Tx requires that you consider whether the company has the potential to be a fly by night company and how cheap their electric rate is. Another consideration is whether they are advertising a cheap price but have additional fees elsewhere in the contract. For the most part the only other additional fees in a residential electric contract would be a monthly customer service charge. Monthly customer service charges can be anywhere from $4.95 – $15.00. You can divide your average kWh you use for the month into the fee and add it to the rate to see what the average electric rate would look like. If you use 1000 kWh a month you can divide $4.95 by 1000. This gives you .00495 as the average additional amount per kWh. If a company is quoting you 11 cents kWh for a fixed rate you could add in the charge like this: .110 + .00495 = .11495 cents kWh. Basically $4.95 would add an additional 1/2 cent to your rate if you only use 1,000 kWh a month. If the fee is $10.00 a month it would raise the advertised rate another cent. Don’t be fooled by the monthly service charges. Calculate it out to see how much it could raise the advertised Texas energy rate.

Is the Cheapest Energy Price Always the Best Choice?

Finding the cheapest commercial or residential electric rate in Pearland Tx is definitely the goal for most consumers and what we recommend. A close 2nd to obtaining the cheapest electric rate is choosing a company that will be in business for awhile. Nobody knows just how long a new Texas electric provider will be around but knowing how long they have been in business gives you somewhere to start. Some new electric providers in Texas recently opening up for business in Pearland Tx are, Mega Power, Riverway Power, Trickster Energy (name withheld by legal), and Affordable Energy. Ambit Energy and Ignite Energy are multi-level marketing energy companies in Texas that market to friends and family. These energy MLM companies come with their own source of problems that come with being a multi-level marketing pyramid operation. Riverway Power outsources their customer service desk in Bangalore India. The other new companies listed are too new to know much about.

Below Is A March 2008 Residential Electric Rate Chart

Here is a chart showing you residential Pearland Tx electric rates from cheapest to highest. Remember that with variable electric rates they follow the market after the first month. Startex Power has the best rate right now and we recommend it as they do a good job with staying in line with market conditions. Startex Power also advertises the last two months of what their month to month rate has been at so they are not hiding anything about this energy rate.

If you need updated electric rates for the Pearland and Houston area you can visit our Texas Historical Electric Rates section.

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