Texas Electricity rates have been on the move down over that past year after having peaked at around 15 cents per kilowatt a few years ago. Rates can now be had for around 9 cents per kilowatt depending on the provider. The results have been electric bills in Texas has steadily declined over the past few years. The primary reason for these drops in electricity rates is due to Texas’ electric plants run on natural gas primarily and since it has dropped in price so has our electricity.
Texas Electricity Rate Contracts
If you plan on staying in a particular residence for a year or more it makes sense to look at 
long term locked in monthly pricing. This will help keep your bill at more reliable and fixed rate for the term of the contract. Most Electricity providers in Texas offer 6, 12, and 24 month terms for there energy contracts. But, beware that there are penalties ranging from $50 to $200+ if you quit your Texas electric rate contract early. Of course if you move and keep the same electricity retail provider no such penalties usually are assessed.
No Contract Electricity in Texas
On the other hand if you tend to move a lot, such as a college student, you likely will not want to sign a contract with your Texas electric retailer. You are going to want the flexibility to pay as you go and perhaps even prepay for your electric much like many people now do with their cell phone service. This allows you to cancel or move your electric at a moments notice and pay little if an cancellation fees. Bear in mind these plans are normally priced a little higher so you will need to way the benefits of each type of electricity plan.
Tips for switching providers:
- You do not need to contact your current Retail Electric Energy Provider if you wish to switch to a new Retail Electric Provider.
- Your new provider will send you a letter as well as the Texas Electric Commission
* note we do not work for or represent any of these companies.