Shop for the Best Fixed Rate Electricity Plans

Fixed rate electricity plans are the most popular electricity plans in Texas, offering convenience and security.

What is a Fixed Rate Electricity Plan?

First the basics. A fixed-rate electricity plan gives you the same rate per kilowatt hour of energy for the term of your agreement. A typical fixed rate term can be 12, 24 or 36 months.

The energy portion of your rate is fixed. Delivery charges are not fixed and your supplier passes those through at cost.

The alternative is a variable rate, where your price changes monthly based on market prices. Most consumers prefer a fixed rate. Who wants to worry about whether electricity prices will go up?

You can learn more about different types of electricity plans (fixed, variable or indexed) in our article on that topic.

How Do I Find the Cheapest Fixed Rate Plan in Texas?

To find the cheapest fixed-rate plan for your home, you should shop based on your monthly usage.

With our Electricity Bill Calculator, just enter your monthly usage to see what your average price will be. And, we’ll show your estimated monthly electric bill.

You can pick from true fixed-rate plans, tiered rates or bill credit plans. Shopping based on your average usage lets you see your average price per kWh and your estimated monthly bill.

We usually refer to tiered rate and bill credit plans as gimmicky plans. They’re great if you know your usage and read the requirements.

But it’s far easier to pick an electricity provider with a true fixed rate plan, what we call Basic Electricity.

You’ll get one price per kWh for every unit of power you use. No hidden math, bill credits or tiered rates that make it look like you’re getting a cheaper rate.

The plans below are basic fixed rate plans.

What are the Benefits of a Fixed Rate Electricity Plan?

Fixed rate plans are the most popular type of electricity plans. The benefits of a fixed rate electricity plan include:

• Security: A fixed rate gives you security. Your have the same price per kilowatt hour of electricity for the term of your agreement.
• Convenience: With a fixed rate electricity plan, you don’t have to monitor your usage like a tiered rate plan. And you don’t have to think about what your rate will be next month, like a variable rate plan.
• Stability: A fixed rate plan doesn’t fluctuate like a variable-rate month to month plan.

Every energy supplier in Texas offers fixed rate products. So you have a lot of companies to consider when you switch energy providers.

You can find out more about how to find the best electricity rates in our blog article on that topic.

Are There Discounts & Promo Codes for Fixed Rate Electricity?

Everyone wants to find the cheapest electricity plan. Who wants to pay more for what’s basically the same no matter what what company you pick.

That’s why we work with select providers to negotiate a discount with our promo code.

You can find a complete list of discount with promo code for these fixed rate electricity plans. Some of the companies that give us an exclusive discount include Champion Energy, Pulse Power and Shell Energy. When you shop through our website, you’ll get these discounts of almost 1/2 a penny per kilowatt hour. That’s huge savings for fixed rate electricity plans.

When to Shop for a Fixed Rate Electricity Plan

We recommend shopping for a new fixed rate electricity plan when you are 30-45 days from your contract expiration date.

This lets you compare offers and find the best electricity rates for your home. You can select your start date for your new rate and plan to match your contract expiration date. You’ll want to have a new rate locked in before your contract expires.

If your contract has already expired, you are likely paying your provider’s default month to month variable rate. These rates can be 50-70% higher than what you could be paying with a fixed rate electricity plan. If you are on a default rate, don’t delay, shop immediately!

If you are moving before your electricity plan expires, you will also need to shop for an electricity plan. You can take your fixed rate electricity contract to your new home, or you can shop for a new lower electricity rate. Any early termination fee is waived when you move. Just provide a forwarding address.

Need help remembering to shop for a new fixed rate electricity plan? Sign up for our shopping reminder service. We’ll make sure you don’t forget to shop. And we’ll give you shopping tips too.

What is a Flat Rate Electricity Plan?

One new trend in Texas is the Flat Rate Electricity Plan. Flat rates offer the same bill amount every month for the term of the agreement. So it’s not the rate that’s fixed. It’s the amount of the bill that’s fixed. And with a fixed energy bill, you can have a more secure budget. After all, you’ll know your payment every month.

Here’s the trick to flat rate or flat bill offerings. They usually only benefit the retailer, not the customer.

Most consumers don’t remember what they pay for a summer or winter bill. They see a flat bill amount and think, “That looks reasonable vs. what I’m paying now.”

But they’re forgetting that they only pay those high summer bills for 4 months out of the year. Your bill in the spring, fall and winter is a lot less. And that’s how you get locked in to paying too much.

Flat rate or flat bill offerings can be what we call a Texas teaser rate. These are rates that look good… but only if you meet specific criteria. And if you use more than what they specify, you could pay a higher rate per kWh, on top of the flat bill amount.

Make sure you understand your monthly usage and average usage before using flat rate electricity plans. If your usage is a good fit for this type of fixed rate plan, you can get a great deal!

When reviewing these plans, always read our 1-line plan description. In it, we’ll include the usage parameters for the plan.

Other Types of Electricity Plans in Texas

As we said, most consumers in Texas prefer the security of a fixed plan. But there are plenty of other options to pick from.

• Plans that offer free electricity at certain times are also known as time-of-use plans. You’ll pay nothing for your electricity during free weekends or free nights, then a higher rate during the other time periods. If you are aren’t home much during the week or not home until after 7pm weekdays, these could be a great option.
• Are you credit challenged or prefer to pay-as-you-go? Consider prepaid electricity plans. These are usually variable rate plans. You’ll receive notifications when your pre-payment is running low, allowing you to top-off your account. And many providers will also let you convert to a standard fixed rate plan after you have established good payment history with them.
• Variable-rate month to month plans are also available. While we don’t recommend them, some people prefer not to be locked in to a contract. If that’s you, just be careful. Your rate can change monthly with no limits.

If you want to learn more, read this article on the differences between fixed, variable and index rates.