Electricity rates can be fixed, variable, or indexed. A fixed-rate is one that remains the same for the duration of the contract. When people use more electricity, their bill increases. Electric rates for variable-rate plans can increase or decrease depending on the retail price set by your electricity provider. Inflation rates are also subject to change, but they are determined by a formula linked to an index.
The price for kWh at a fixed rate is generally higher than that at a variable or indexed rate. The price of your energy is always known, and you are protected from price fluctuations. The electric rates in Texas jumped 7,400% from around 12 cents per kilowatt-hour (kWh) to $9 per kWh during the February 2021 winter storm.
Residents with variable-rate plans paid huge electric bills during that time. Fix-rate plans protected customers during that time. A fixed-rate price is often preferable when it comes to cooling down in Texas’ sweltering summers.
Plans and Rates for Houston Electricity
1. Fixed Energy rate
Those who own a home or who rent for a long time may find these rates to be more affordable. At the beginning of your contract, you will have a set rate for electricity. Energy prices and rates in Houston will not fluctuate much each month; they will remain the same. Prices are protected and stability is guaranteed, but long-term commitment requirements usually apply.
Even though some contracts are shorter, such as 3 months, some can even be month-to-month; however, others