Which Texas Electricity Plan is Right for Me?

We discussed how to shop for electricity plans in Texas in another post. It’s crucial that every Texas energy consumer knows how to search through all of the available options. This includes the popular competitor sites and the actual website for various retail electricity providers (REP) serving the deregulated parts of Texas.

But once you figure out where and how to look for plans, what you see still might not make sense. This is when a familiar internal monologue kicks into high gear:

• “There are so many choices!”
• “Why are there so many choices?”
• “What’s the difference between all these plans?”
• “Why are the rates different between plans of the same length?”
• “What happens if I pick the wrong one?”

We get it! While electricity choice in Texas is objectively a great thing for consumers, many people do get frustrated by having too many options. Like most people, you probably want a plan that helps you maintain a respectable electricity bill each month. In this spirit, we want to share our three favorite guidelines to determine which Texas electricity plan is right for you.

1.  Learn the Terminology

While we’re not recommending that you become a certified expert in the Texas energy industry, it’s helpful you understand the most important vocabulary words so you make an informed decision. Such key terms and concepts include:

• Fixed-rate v. Variable-rate
  • A locked-in rate over a set period of time bound by a contract
  • A rate that changes monthly without a contract
• Contract term length
  • How long you are bound to a fixed-rate plan before you can switch to a new plan without a penalty
• Electricity Facts Label (EFL)
  • The document outlining the crucial details about a given plan in relation to both the REP and your local utility company
• Traditional v. Green energy
  • Energy created using fossil fuels like coal and natural gas
  • Energy created using renewable sources like solar and wind
• How electricity prices are determined
  • Consumer demand
  • The cost to generate the supply
  • Seasonality
  • The cost to transmit and distribute electricity from generators to consumers

Once you have a decent grasp of the basics, you’ll be better equipped to first parse the differences between the plans and then proceed to the next tip.

2. Know What You Want

You need to understand what’s important to you in terms of your home electricity. That way, you can most effectively use the sorting filters on electricity comparison sites to limit your choices. Such considerations can take several forms, but it mostly depends upon how, when, and where you use electricity around your home:

• If your home sits empty during the daytime because everyone is at work or school, a “free nights and weekends” plan would appeal to you.
• If you move often for work, a variable-rate plan without a contract might better fit your needs.
• If you want to invest in smart home technology to manage energy usage from your smartphone, a plan offering a smart thermostat would be a good match.
• If you’re an established homeowner with a “set it and forget it” relationship with your thermostat, a long-term fixed-rate plan could be best.
• If you engage in recycling, upcycling, and other green living habits, you might love an electricity plan created from 100% solar sources.

And that’s just a small sample of options and deliberations! Focus on the factors and details that have the highest priority for you.

3. Recognize Your Power

The power of energy choice in Texas truly rests in your hands. This can’t be stressed or emphasized enough. You can choose the REP and plan that makes the most sense to you today and switch to something else completely different later.

The reason REPs in Texas create lots of electricity plans is they know that consumer needs, whims, and preferences can and will change. It’s not about attracting every possible Texas energy consumer in the market to a single company and plan – though they might like to. Instead, it’s about presenting each individual consumer with the power to choose the right plan for them at the exact instant they need to sign up for an electricity plan.

Here’s our final piece of advice:

Choose the one that’s right for you right now. The “right” electricity plan for you today might not be the right one for you the next time you need a new plan. And it’s definitely not the right one for your friends, family, and neighbors.

Ready to choose the right Texas electricity plan for you? Since you’re here, why not head over to our plans page to learn all about how you can use 100% solar energy in your home without installing solar panels on your roof. Chariot Energy is delivering sunshine all across the Lone Star State!