![]() You can choose a variable rate plan in deregulated Texas, where the rate per kWh you pay tracks with the market costs of electricity. Fixed-rate plans are good for people seeking predictability and cost control. Your energy consumption is the only variable in your monthly electric bill. The drawback to a fixed-rate plan is if electric rates decrease below your locked-in fixed rate, you still pay the higher, agreed upon rate until your plan expires. The benefit to a fixed-rate plan is a predictable bill and protection from fluctuating electric prices. In general, most plans will secure your rate for 12 to 36 months. Fixed-rate electric plansįixed-rate electricity plans offer a locked-in supply price for a set period of time, even while electric prices are rising or falling. Here are the most common types of electric plans offered in Texas' energy choice marketplace. What types of electricity plans are offered in Texas? You can find the full list here of Texas cooperatives here. Cooperatives, or co-ops, often have a board of directors voted in by members. It's more beholden to the customers who formed the cooperative utility," said Sioshansi. Electric cooperativesĮlectric cooperatives are essentially owned and operated by the customers they serve. One exception on the municipality list is Lubbock Power and Light, which is expected to transition to ERCOT and into a competitive deregulated energy market sometime in 2024. If you live in Austin Energy's service area, for example, you can only buy your electricity from this utility and do not have a choice in providers. Municipal utilities are owned and operated by the city and are not energy choice markets. If you live in an area served by one of these investor-owned utilities you will have energy choice: "An investor-owned utility is a publicly traded company beholden to their shareholders," said Sioshansi. It all depends on what utility area you live in. Not all of Texas is restructured with energy choice, though. If you want to switch to a better price per kilowatt-hour or if you are interested in a renewable energy plan, you can shop for a new retailer or supplier. It is the retailer or supplier where you, the consumer, have a choice. Electricity retailers buy the electricity wholesale and resell it to you as the customer, he said. "We think of it as essentially being a middleman to some extent," Sioshansi said. ![]() The two terms are used interchangeably in Texas, but the retailer or supplier owns the electricity as a commodity, sometimes buying it from a generation source such as solar, wind, hydro, nuclear or fossil fuel plants. Essentially, Texas prefers to operate on its own and without FERC intervention, which has helped fuel its restructured energy economy, explained Sioshansi. You don't have this in Texas, because essentially, all of the regulatory oversight is at the state level," said Sioshansi. "What the state and the federal-level regulators want to do sometimes are in conflict with one another. State legislators pushed to keep the Federal Energy Regulatory Commission out of Texas so its energy market can operate with state-only oversight, said Sioshansi. The advantage of Texas having its own grid system like ERCOT is that it can operate outside of federal jurisdiction. ERCOT also plays a role in forecasting how much infrastructure is needed to meet anticipated capacity. "If it sees that a generator wants to inject energy that would overload the transmission system, ERCOT basically has the authority to make adjustments to ensure that transmission lines are not overloaded," he said. ERCOT provides a balance between supply and demand, said Sioshansi. The role of ERCOT is to manage the wholesale energy electric market, the transmission infrastructure and long-term capacity planning. Overseen by the Public Utility Commission of Texas, the nonprofit system operator is called ERCOT, or the Electric Reliability Council of Texas, and it serves 90% of the Texas grid. Like CNET, Choose Energy is owned by Red Ventures. For the most up-to-date rates in your area, please enter your zip code at. ![]() *All rates above are for the Oncor utility area and accurate as of Nov. Payless Power - Rate Lock 6 - Prepaid Plan Green Mountain - Pollution Free e-Plus 24 Preferred Compare electricity rates in Texasįrontier Utilities - Frontier Saver Plus 24Ĭonstellation - 12 Month Usage Bill Credit Here's what Texas movers and switchers need to know about shopping for the best electricity provider, how to compare the best electricity plans, what to look for in a plan, and pitfalls to avoid. ![]() "I think the biggest advantage in Texas is you can find some fairly exotic price structures that you just would not have found pre-restructuring ," said Ramteen Sioshansi, professor of engineering and public policy as well as electrical and computer engineering at Carnegie Mellon University. ![]()
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