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A Comprehensive Look At Deciding On A New Texas Electricity Provider

Since we moved into our house a few years ago, we know that each May our contract with our current electricity provider will be up. We have the option of either staying with our current provider or switching. In looking for a new Texas electricity provider and/or plan we not only want a good rate, but we first have to decide if we want a contract and what kind, and if we want to use renewable energy, all the while paying close attention to possible promotions and rewards programs. Here is the process we usually go through.

You must first decide if you want a variable or fixed rate plan. With a fixed rate plan, the rate you pay for electricity will remain the same throughout the term of your contract. The price can change only to reflect actual price changes that are allowed by Public Utility Commission rules due to changes in law or regulatory charges. A fixed rate plan allows you to be certain of your price during your contract period and protects you for the duration of your contract against the possibility of rising energy prices, but if market prices fall you have to wait until your contract is over to switch to a lower rate. If you think you might want to discontinue service after a short period of time, look for a company that does not have contracts or offers short term contracts. Companies that have contract periods often have a minimum term and if you cancel your service before the contract period ends, you might have to pay a penalty. It's also a good idea to find out what happens to your rate at the end of your contract period.

Variable rate, or "month-to-month", plans have no minimum contract period and are based on current energy market conditions. With this kind of plan, the rate you pay can go up or down depending on the changes in the electricity market. This allows you to benefit from lowering energy rates and by switching at the right times, a "month-to-month" plan could really help you to save on your energy bill. However, just as this type of plan would allow you to take advantage of market prices falling, your rate will also increase if market prices rise. For some people, dealing with constant changing electricity rates can be stressful so a fixed rate works best for them. On the other hand, there are others who like being able to always get the best rate and don't mind searching for it, making a variable rate plan their best option.

There are also renewable, or "green", plans. You can check the provider's Electricity Facts Label (EFL) to see if their plan produces electricity from renewable resources such as solar, hydroelectric, landfill gas, biomass, geothermal, or wind. EFLs allow you to easily compare what each company has to offer to find the best fit for your energy consumption and budget. Each label contains the following information:

• Electricity Price: This is made up of the electric company's average price per kilowatt-hour (kWh) for 500 kWh, 1000 kWh and 1500 kWh, as well as a possible monthly customer service charge and seasonal pricing. Pricing can differ depending on the number of kilowatt-hours so it's important to look at your past usage. With some companies the more kilowatt-hours you use, the lower the rate will be.
• Contract Terms: Some companies have minimum terms and will charge you an early cancellation fee.
• Power Generation Sources: The provider tells from what resources the electricity is produced (coal, natural gas, renewable energy, etc.) The provider's percentages will be graphed to compare them to the average usage for electricity generation statewide.
• Emissions: In this section companies provide details on the types and percentage of emissions they create per kWh of electricity generated. The provider's percentages will be graphed to show if the emissions are better or worse than the Texas average. This might be an important section for you if you're interested in decreasing your carbon footprint.

So what's the next step? Once you've decided if you want a fixed or variable rate, and if you want a "green" plan, it's time to see what plans are out there. Check out TexasElectricityRatings.com and ChooseEnergy.com to compare prices and ratings. Simply enter your zip code and then pick the kind of plan you want. You will be able to see different electricity providers and their company rating, different plans offered, cancellation fee, if electricity is produced from renewable or non-renewable resources and the terms and rate for each plan. These websites will also show you promotions and incentives offered by each company and if they have a rewards program.

Take a look at the possible incentives and rewards programs offered when selecting an energy provider. Some companies offer rewards programs to their customers such as cash back and gifts. For example, Bounce Energy is currently rewarding its customers for paying their bills on-time. Customers who pay their bill on-time for 6 consecutive months receive their choice of 2 movie tickets or a free companion airfare ticket and also gain access to Bounce Energy's VIP Customer Service line. By paying on-time for 12 consecutive months they receive a $75 bill credit and for 24 consecutive months they get a free month of electricity.

Providers might also offer incentives or promotions for signing up with a new plan such as gift cards, airline miles, charitable donations, or better rates if you sign up online. For example, for signing up for one of their fixed rate plans Bounce Energy has donated $5 to the Red Cross to help Haiti earthquake victims. Another example of an incentive is Bounce Energy's Express Move plan. This short term fixed rate plan makes moving much easier by not only turning on your electricity, but Bounce Energy will also submit your USPS Change of Address form, add your name to the Do Not Mail and Do Not Call lists, give you free identity protection service and give you either a $25 Walmart or Home Depot gift card. Bounce Energy's Terrific 12 plan gives the customer their choice of $25 gift cards to Target, Wal-Mart, GAP Inc., Shell, or a $25 bill credit. They will help you make your home more energy efficient with a performance inspection that will show you how to save energy and save on your utility bills, allow you to make your home's temperature more comfortable, and identify the specific issues affecting your home's energy use and provide solutions.

Another important thing to look at is the forms of payment the provider will accept. Some will only send you electronic bills and auto-draft your account. Others offer free online bill pay, let you pay by mail, in person or over the phone and allow you to use your bank account or credit card. Keep this in mind when you sign up with a provider to make sure the billing and payment options are convenient for you.

There are many electricity providers and plans out there and by doing some research you will be able to find one that is right for your electricity needs and your budget.

About the Author

Bounce Energy is a Texas Electric Company based in Houston. Bounce Energy's goal is provide more than low Texas Electric Rates to our customers. With innovative and flexible plans, excellent customer service, and superior customer rewards, Bounce Energy offers a unique approach to Texas electricity.

How do you relate cost-per-watt to cost-per-kilowatt hour?

I need information on the cost of solar energy over the past couple decades. Most sources give solar energy production in units of dollar per watt ($/W), whereas units of traditional energy cost is usually cents per kilowatt hour (c/kWh). I would like to convert solar energy costs to same units as traditional energy costs for comparison.

dollars per watt is not meaningful as a cost of energy, as watts are a unit of power. (watt-hoiur or kW-hour or joiules are units of energy).

The only way dollars per watt make sense as the cost of building a power plant, such as "Cost of a 5 MW power plane is US$1M, so the cost per watt is $0.2".

.

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