August 2009 Dallas Electricity Rate Comparison

Today is August 14 2009 and we have gone out to the power to choose website to check on electricity rates from companies like Champion, Startex, Green Mountain Energy, Spark Energy, TXU, Ambit, Stream, Bounce, Texas Power and Reliant Energy.  We checked on some other Texas electricity providers but these energy companies provide a good overall comparison of rates. We have sorted the electricity rates  in order from cheapest to most expensive using the pricing available on the Power to Choose website.

Startex Power, Champion, and Green Mountain Energy, are some of the more popular electricity companies we recommend and Startex and Champion are currently offering some of the cheapest available electricity plans in the Dallas Texas area. There are no hidden fees or charges with Startex or Champion. If you use below 500 kWh per month than a $4.95 monthly service fee will kick in with Startex Power but other than that you are going to be good with the top two cheapest Dallas electricity plans in the chart.

This chart above is a historical snapshot of what Dallas residential electricity rates looked like for the month and day of August 14 2009. These charts sometimes help in determining the track record of a Texas electricity companies overall consistent performance in delivering a low cost electricity price to Texas energy consumers. To see a current comparison of our recommended electricity companies in Dallas Texas please click on our Dallas electricity comparison link by clicking here.

Texas Power Dipped Down, Will It Go Back Up?

News Stations Notice Freaked Out State Of Residential Home Owners Facing Higher Electric Rates

News stations in Texas have spotted an increased anxiety level among residential electric customers who began shopping for a cheap electric rate when their energy contract expired in March. In March electric rates in Texas hit a 3 year historical high. Many people rememeber when electric rates were this high back in 2005 when Hurricane Katrina came through and wiped out some of our states energy infrastructure. Plants came off line and supply and demand issues caused Texas Power rates to spike to abnormally high levels. Over the year 2005 MCPE prices averaged over 12 cents kWh. Fixed electric rates in Texas are around 10 cents kWh and MCPE variable electric rates still average around 7 cents kWh. Imagine if MCPE rose to the levels of Hurricane Katrina levels. Fortunately Texas is not faced with a crisis like that of Hurricane Katrina and we have enough natural gas power plants and other power generation facilities to provide the needed energy production Texas home owners and businesses will need throughout the coming year.

Texas Electric Rates Have Dropped But Is It Just Temporary?

Electric Rates in Texas have dipped down and are now steady at lower levels but they look like they could possibly remain flat or hit a new high again in the next month or two. I ultimately believe they will head back down in the 8 cent a kWh range but when this will happen is anyones guess. Texas electric rate prices are just the same as a stock or commodity price. No one can really tell you what they are going to do and when they will come back down. The question you should ask is how long are you willing to wait? Texas Power prices can remain at above average prices for several months. If we have a milder summer then expected they could come down but even then other factors could potentially keep that from happening. Also pay attention to the fact that there are about 8 different factors that effect Texas electric rates and these have a compounded effect depending on which ones are happening at the same time.

What Is Everyone Else Doing About These High Texas Power Prices?

Sit tight Texas home owners and commercial businesses if you want to wait it out because it could be awhile before we see 8.5 cents kWh. If you have a high risk tolerance then you may be able to wait it out. For those residential home owners looking for a cheap electric rate you might want to try getting on a 3 month fixed rate with Startex Power and then try again in 3 months. If you just don’t want to deal with the headache of signing up for the short term then get on a 12 month electric contract and try again next year. 12 month fixed priced Texas electric rates right now are running at about 13 cents a kWh in Houston and a little cheaper in the Dallas area.

Texas Power

Are you Looking for a Way to Avoid a Deposit?

Precisely every single provider will ask you for a deposit unless they are a prepaid provider. Why is this the case? The reason is simply because you are buying a commodity from a company that has bought that commodity as a large block purchase, they have than hedged their investment the same as a farmer would do to protect the profit in that purchase. They than create an electricity plan in hopes that several thousand customers will buy the plan in order for them to execute this all in a way that based on volume they make a profit.

Your Texas power purchase will not make a provider a profit if they take on a large percentage of untrustworthy customers that will default on their electricity bill and leave them with excess energy they could not sell at a profit. When bad customers default not only do they leave the provider with energy they needed to get rid of they also are out whatever money the customer did not pay them.

Because providers only make money if they sell their block of energy to at least 3,000 or more customers this takes a lot of planning to get this right and a part of this is that they have a very low percentage of customers who default. By necessity these Texas power providers must check your credit and if you fall under a risk threshold that statistically shows you have a high probability of defaulting well then they ask you for a deposit.

On top of checking your credit and asking for a deposit, providers don’t advertise what that credit score risk threshold number is or how much the deposit will be ahead of time. They need to keep this information secret to get a high number of sign ups because the more sign ups they get the higher number of customers they will get.

Since all providers that aren’t prepaid providers check your credit it makes no sense for a provider to tell you upfront if you fall in this category will most likely reject you by asking you for a deposit of said amount. This will cause most customers to move on to the next provider who is less clear about this but then asks you for the same thing. Eventually you get tired of the continuous game that is more of the same and you settle and pay a deposit with a provider after calling or checking online with a few.

The point I am trying to make is that with any traditional provider you have a big positive in that they offer some good standard long-term fixed rates such as a rate that remains the same for 1 year and is reasonably priced. Don’t feel dejected when they check your credit, find out your credit score is poor and go on to ask you for a deposit. They are simply protecting their large investment in energy and you just don’t meet the statistical odds of paying on time every time.

Don’t feel cheated but understand that in America there are usually a host of options and in this particular case it would be to avoid the deposit altogether by looking at Texas power choices that are known as prepaid electricity rates. These prepaid providers allow you to pay in advance to guarantee the provider always get paid and the positive trade-off for you is that you always have your lights on and no deposit is required.

Our comparison widget can show you some of these prepaid choices if you discover that a post-paid option doesn’t fit your situation because they all want you to pay a deposit.

You may call us to order over the phone or learn more by calling 1-800-971-4020

Nov 20 2007 Texas Electric Rates Came Down Today

Texas Electric Market Drops

Here are a couple of the better then usual terms and rates

Monthly Terms Electric Rate

9 months 8.39 cents kWh
3 months 6.83 cents kWh

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