Why a Fixed Rate Plan Electric Provider Offers Peace of Mind

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A fixed-rate plan locks in a specific price per kWh for the length of your contract, which can be from a few months to several years. This provides greater predictability to your monthly bill and reduces energy market risk.

This is perfect for consumers who live paycheck to paycheck and want the security of knowing their bills won’t spike unexpectedly.

No Surprises

When you choose a fixed-rate electricity plan, you’re locking in a price per kilowatt-hour that will remain the same throughout your contract length. This protects you from spikes in energy prices, which can occur during peak demand. While variable-rate plans allow you to take advantage of lower rates during periods of low energy demand, they can also lead to surprise bills that may be more expensive than expected. These unexpected expenses can impact your budget, making it more challenging to put money toward savings or other financial goals. A fixed-rate plan allows you to create a budget for your monthly energy costs and ensures that the rate won’t change until your contract ends. This is ideal for households that use roughly the same energy each month. While shopping for an electricity plan can seem daunting, it doesn’t have to be. A few simple tips can help you find a plan that works for you. Read the Energy Facts Label (EFL) for each project you consider – this is standard documentation that every electricity provider must provide. This will describe all the important information, including the price per kWh, the length of the contract, and any other charges or fees that may apply to your bill. This will save you from a bad experience, like getting an unexpectedly high electricity bill or being obligated to pay charges you didn’t know about.


In a deregulated market, you have many options for electricity companies in Houston. But with so many choices come different pros and cons, and it’s important to consider these before you sign up for a project.

If you choose a fixed-rate plan, your rate per kilowatt hour will stay the same throughout your contract, regardless of what happens to energy prices in the market. This offers price certainty, but it can also mean that if the market experiences falling prices, you may miss out on saving money. A variable-rate plan lets you take advantage of lower electricity prices when available, but it also means that your rates could rise when market prices increase. This can add up over time, especially during peak demand periods, such as during winter storms or other weather events in Texas. A fixed-rate plan may be the best choice if you want to know exactly how much your energy bill will be each month, which makes budgeting easier. However, a variable plan may be right if you like to keep up with the energy market and prefer to take advantage of low prices when available. No two households have the same energy needs, so choosing a provider and plan that works for your unique family is important.


Choosing a fixed rate plan allows you to lock in a specific per kilowatt-hour price until your contract ends. This stability can help you budget your monthly energy costs and avoid surprises. On the other hand, variable-rate electricity plans allow your energy costs to vary each month based on demand and market conditions. Generally, these plans let you save on your bills when market prices dip, but they also expose you to higher rates during peak demand. View your energy usage pattern and risk tolerance if you’re considering a variable-rate plan. Once you’ve determined your needs, compare the plan types and rates in the deregulated Texas marketplace to find a power provider that fits you. Before signing a contract, check the length of the term and any early cancellation fees. Some electric companies require that you wait until your contract ends to switch providers, so consider your options carefully before deciding. However, switching to a new provider doesn’t have to cause a service interruption or involve additional fees. Your current provider may even be able to handle the process for you, leaving you with no service interruptions and no early termination fees to pay. 


A fixed-rate electricity plan locks in your price per kilowatt hour for your contract (often 12 months or 24 months, but some energy companies offer plans up to 48). So, even when market prices are volatile, you can rest assured that your rate will be the same throughout your contract period. This can help you budget your energy costs so you know exactly how much you’ll spend on power each month. That’s especially helpful if you’re on a tight budget or have financial goals that depend on consistent, predictable spending. The other main benefit of a fixed-rate plan is that it protects you from unpredictable energy prices. When market conditions fluctuate, it can lead to an unexpectedly high energy bill. That’s because energy prices are influenced by weather, demand, and the cost energy providers pay to buy electricity from power generators. When it comes to choosing an electricity rate, no two households are the same. Your decision will depend on your unique energy needs, how much risk you’re comfortable taking, and local energy prices. When you’re ready to choose an electricity rate, take some time to carefully examine the energy facts label and terms of service for each option. This will help you understand the plan’s important details, including rates, contract lengths, usage tiers and potential fees.