Tiered rate and bill credit plans are all the rage in Texas. Most Retail Electricity Providers (REPs) offer at least a few of these plans. These are the electricity rates that look amazingly low at the advertised rate of 1000 or 2000 kWh. But dig into the details and you may find your usage level would pay a higher price per kilowatt hour than you expected. We call these plans a Texas teaser rate.
Key Takeaways / TL:DR
- A Texas Teaser Rate is an electricity rate that looks good at a specific advertised level of usage, but has a higher effective rate per kWh if your usage varies.
- Bill credit plans and tiered rate electricity plans can be considered teaser rates, since the advertised rate is low. It’s important to read the Electricity Facts Label or shop by your average usage to see what you will actually pay.
- The best way to avoid a teaser rate is to buy a basic fixed rate electricity plan. You’ll pay the same rate per kWh for your energy. And the average rate per kWh will only vary because of monthly fixed fees from the utility or retail electricity provider.
Read More about Tiered Rate & Bill Credit Electricity Plans – How to Sniff Out a Texas Teaser Rate