What Are Your Choices For Electric Service In Sugar Land TX
When shopping for an energy supplier in Sugar land you have several choices but only one choice when it comes to natural gas. There are over 30 Electricity providers in Sugar Land and among these about 5 – 10 have competitive electric service prices. Some of the larger brands in the Sugar Land Texas area have been pricing closer to the top of the pricing range because they are successful in signing up customers based on brand loyalty. An interesting thing about electric service in Sugar Land TX is that it all comes from the same poles and wires so regardless of the electric provider you decide to go with in Sugar Land you ultimately are receiving the same electric service. So why does it matter which electric service company you pick?
Energy Service Ultimately All Comes From One Place Regardless of The Provider
Although the electric service in Sugar Land all comes from the same source it isn’t billed the same way. Some electric providers will hedge their prices by buying natural gas futures commodities out in the future while gas prices are low. Since 44 percent or so of our electric power in Sugar Land is produced using natural gas you will see electric companies lock in this commodity so they can offer a cheaper fixed electric rate. You may have seen those Reliant Energy ads that comfort people through billboard, radio, and TV ads explaining that you can lock in to a fixed electric rate that will not change. Companies like Reliant Energy can offer plans like this by buying natural gas futures as a hedge on their price.
How Electric Rates Are Figured and Offered To Electric Service Customers
A Sugar Land electric company will buy a large block of electric power and than hedge that power when gas prices are low. They can than ad in their profit margin and sell this electric power to Sugar Land residents at a cheaper price than their competition. Other providers will offer variable electric rates that have no hedging involved. These variable prices can change and sometimes are much lower than fixed rates. The issue with a variable Sugar Land TX electric rate is that it can go up in price with no warning to the customer. The customer takes on the risk when on a variable electric price while the provider takes all the risk when selling a fixed electric rate. Think of a fixed electric rate as insurance. If you are ok with the possibility of your electric bill doubling or tripling during the summer or winter than a variable electric rate may be ok since you are aware of the risk.
Commercial Electric Rate Choices in Sugar Land
For most people it is best to stay away from choosing a variable electric rate. You really have no way of knowing what prices will do similarly to not knowing what the stock market or stock prices will do. It is best to pick a cheap fixed rate by comparing multiple Sugar Land TX electric providers. These electricity companies are listed in a detailed comparison chart showing you all fees and charges in a clear apples to apples comparison. The chart is for residential electricity although we also offer a commercial reverse auction process as well.