Electricity is one of the most essential things that you need to keep your house running. It powers appliances such as your refrigerator, your television, your internet connection, and charging outlets.
Texas electricity rates are slightly more expensive than the national average. The average electricity rates in Texas are about $140 a month while the national average is just over $117 a month.
Obviously, there are factors that are going to influence how much or how little you will have to pay on your bill.
What are the biggest factors that you should keep in mind? Here are 10 of the biggest ones.
1. Home Size
The first thing that you should know about electricity rates is that the cost is going to depend on the size of your home. Common sense here suggests that the more space you have, the bigger demand there is going to be for electricity.
An extra bedroom, for example, could mean one more person using an outlet to charge their phone. One more bathroom could mean an extra person needing a hairdryer.
Any extra room also generally means another room where you need electricity to turn the lights on and use other appliances.
In Texas, it does not help that the median home size is one of the biggest in the United States. The average square footage in a Texas home is over 2,000 square feet.
You need to consider how big your home is to get a better idea of how much electricity you are going to use.
2. Your Recent Electricity Usage
Another thing that you should know is how much electricity you have used in the past. In the United States, this is generally measured as kWh (kilowatt hours).
If you keep track of your kWh usage for the last year, you should have a good idea of how much electricity you are going to use for your new electricity plan.
This can help you determine things such as if you should get a fixed rate or a month-to-month plan, if you should get a short-term plan or a long-term plan, and help you pick out a plan that can be based on specific kWh usage.
Keep track of this so that you can be realistic about what electric plan you decide to go with in the future.
3. How Long Are You Staying?
Next, you need to take how long you plan on staying in your home into consideration. This is because some electric plans go by a certain number of months.
So, if you plan on staying in your home for the next 20 years, you have more options to take a one or two-year electric plan to possibly save some money.
However, you could be a renter that does not know if you are still going to be living in that apartment next year. In that situation, it is recommended to take a shorter electric plan or even go month-to-month.
Try to have an idea of how long you are planning on living in that location before signing up for a plan. It can either potentially save you money or give you more flexibility to back out of a plan.
4. Fixed Rates or Flexible Rates?
As discussed above, electric plans usually have an option to have you either take a fixed rate every month or for you to have more flexible rates every month.
Fixed rates give you security and the stability of knowing what you are going to pay every month. However, the con to this is that you could be missing out on a deal or a sale.
When it comes to flexible rates, these tend to be for those with a strong stomach. You may try to take advantage of introductory programs or buy a plan during a low season.
However, a risk to going this route is if you buy during a time when electricity is in high demand such as during a heat stroke or a blizzard, you could end up with a much higher electric bill.
5. What Season Are You Buying a Plan?
Going off of the flexible rates above, it is important to note what time of year you plan on buying an electric plan. This is because some companies have a spike in prices when electricity is in most demand.
In most cases, this is usually during the hottest time of year when humidity can be intense. Or, in a rarer situation in Texas, a blizzard or winter temperatures.
For example, in the summer months, the average kWh usage in Texas is over 1,100. Whereas in off-peak times, the average can be around 700.
These are times when more people are going to be using their heat and air conditioners, so you need to be prepared for electric companies to try and take advantage of the demand.
Try to wait for an off-peak time of year before signing up for an electricity plan.
6. Special Electric Plans
Some people choose to look for more unique electric plans that could benefit their lifestyle. An example of this is an electric company that offers free electricity on nights and weekends.
This would be that any electricity you use at certain hours of the night plus on weekend days would not be charged to you.
So, what is the catch with this? The catch is that with these plans, you are typically paying much higher rates for electric usage at all other times.
For example, you could be paying double for kWh usage on Mondays through Fridays during the day compared to what a regular plan would offer.
Now, this could be a very good plan for people that work from home at night and have flexible hours. However, those that are not in their homes much at night or sleep most nights may not benefit from this type of plan.
7. Plans Based on kWh Usage
Another type of plan that electric companies may offer is a tiered plan based on kWh usage. This means that depending on your kWh usage, you could end up paying a lower rate.
A tiered plan can be a very good option for those that have a very good idea of how much electricity they normally use. It sets expectations for yourself and you can get a very good rate out of it.
The catch? You have to watch your electric usage more carefully with this type of plan. If you go over your tier usage, you could be hit with steep penalty fees.
8. Bill Credits
Going off of kWh usage plans above, one part of that is that some electric companies will offer you a bill credit if you stay within a certain range of kWh usage.
For example, let’s say that an electric company will offer you half price per kWh if you manage to stay between 1,000 and 1,500 for the month.
This can be a great deal if you know you typically stay in that range every month. However, like the above, you have to carefully monitor your electric usage in this situation. If you are over or under that range, you would be charged the normal rate.
9. Your Location
Before buying an electric plan, you should consider what part of Texas you are going to be living in. Texas is a huge state and the second largest in the country.
This means that every part of Texas is not alike and it has vastly different landscapes. You could be living in the desert in one part of the state, by the mountains in another part of the state, in the middle of a city, or right on the gulf coast.
The point here is that your location will factor into how much electricity you need. Someone in the city is not likely to need as much air conditioning as someone in the desert. And, someone in the mountains will likely need more heat than someone by the gulf coast.
Factor that in carefully before signing up for a plan.
10. Shop Around
Finally, do not be afraid to shop around for different electric companies. If you have that option, you should use it because it can help you find the best price and the best plan for you.
Find the Best Texas Electricity Rates
These are 10 things that you need to know about Texas electricity rates before you sign up for a plan. Do your homework, know your environment, and figure out how long you are going to be in that location.
Do you want to know more? Message us today with your questions.
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