Fixed-Rate Electricity Plans in Texas for Predictable Bills
If you live in a city with deregulated electricity, then you have a choice when it comes to your Retail Electric Provider (REP), as well as from among their plans and rate types. And because energy prices fluctuate, your electric bill will go up and down, too, based on factors like the cost of generating power, extreme weather, and more. But never fear! If you want a predictable bill that doesn’t change from month to month, a fixed rate plan might be right for you.
Advantages of Fixed Rate Electricity Plans
A fixed rate electricity plan is a contract between you and your REP, where you pay a set price per kilowatt hour of electricity for the entire life of your agreement. This means that the price will remain consistent, no matter how much the cost of energy changes.
The biggest advantage of this type of plan is protecting against price fluctuations. You lock in a set rate for the term of your contract – whether it’s 6, 12, 24, or 36 months – and so don’t have to worry about unpredictable monthly costs. So the only thing that will change with your energy bill is how much electricity you use, delivery charges and taxes.
Is a Fixed-Rate Plan a Better Deal Than Other Plan Types?
Let’s take a look at other types of plans, and how they stack up against fixed rate plans.
Fixed Rate vs. Variable Rate Plans
In addition to predictable bills, which offer stability and easier budgeting, fixed rate plans also bring peace of mind because they do not change with the cost of generating electricity or extreme weather. This makes them a great choice for residents of Texas, where major heat waves can cause energy costs to skyrocket, because this won’t impact the rate you pay.
On the down side, if the price of electricity dramatically and unexpectedly drops, you might miss out on savings. Also, if you cancel your plan before the end of the contract term, you’ll likely have to pay early termination fees.
Variable rate plans, on the other hand, don’t typically require a long-term contract and don’t have early termination fees. If you’re willing to adjust the amount of energy that you consume, you could save money with these plans. But they also bring unpredictability, especially during peak demand periods or extreme weather events.
Choosing the Best Fixed Rate Plan
When considering fixed rate plans, one important thing to keep in mind is the reputation of the electricity provider. Look at online reviews from other customers, with one eye peeled for hidden fees, service charges buried in the fine print, and marketing gimmicks like free nights and weekends – which often jack up the price per kilowatt hours during the other hours of the week. At Rhythm Energy, we have thousands of 5-star reviews: we love our customers, and it shows.
Once you’ve selected a few providers and plans as solid options, take a look at the Electricity Facts Label for each one, to make an apples-to-apples comparison. The Public Utility Commission of Texas (PUCT) mandates that all REPs provide an EFL for every plan they sell, giving transparent and comparable information including the type of rate, the percentage of renewable energy, and the cost of delivery.
And when you’re ready to make a switch, be mindful that there are better times to switch your provider or plan… if you’re already in a long-term contract, then think about switching at the end of that contract, to avoid early termination fees. The best time of year to switch is usually Spring or Fall, when weather is less extreme and so REPs are offering better prices per kilowatt hours.
At Rhythm Energy, we make switching a snap. It only takes about 60 seconds, and we handle all of the details – if you’re coming to us from another provider, we’ll even provide up to $150 in bill credits to help offset any early termination fees.
Rhythm Energy's Fixed Rate Plans
With Rhythm Energy’s fixed rate plans, you will pay the same fixed rate throughout the entire term of your contract, thanks to the Rhythm rate lock.
You’ll also get the same rates whether you’re a new or renewing customer, because of our Best Price Always Pledge. Unlike other companies, we don’t raise rates for customers who are renewing their contracts.
And as always, with Rhythm Energy you get a 30 day test drive for your new plan, with no strings attached. If you aren’t satisfied with your plan, cancel it within 30 days for no early cancellation fee.
We’re confident that you’ll love our service, and with the predictable bills that come with a fixed rate plan, we’re ready to start powering your home and your life. To find out what plans are available in your service area, visit gotrhythm.com and enter your zip code.
FAQs
What are the benefits of a fixed rate electricity plan?
Predictable bills that do not fluctuate up and down with the cost of energy or extreme weather conditions.
How do fixed rate plans compare to variable rate plans?
Fixed rate plans let you know what to expect with every electricity bill, because you have a rate that is locked in for the entire life of your contract. With variable rate plans, you pay a variable rate based on the time of day, month, or season.
What are the potential downsides of fixed rate plans?
The main downside is paying an early termination fee that results from you breaking a long-term contract with your REP. But you could also miss out on savings, if the cost of energy on the wholesale market drops.
How long do fixed rate plans typically last?
Most are 6, 12, 24, or 36 months in length.
Are there any hidden fees associated with fixed rate plans?
With some providers, there are! Be sure to look carefully at the Electricity Facts Label for each plan that you’re considering – and know that with Rhythm Energy, there are never any hidden fees or marketing gimmicks. We simply don’t have them.
Can I switch to a different plan if my needs change?
Absolutely, you can switch at any time without losing your electricity service. The only consequences may come with canceling a contract before its term is up.
What happens at the end of my fixed rate plan term?
We send out reminders to customers about contract renewal about 60 days before your contract expires, and monthly after that. If you forget to renew, we will switch you to the same variable rate plan that new customers have access to.
What's the market outlook regarding potential changes to fixed rate plans?
The price of electricity is expected to remain steady in 2024, according to a report by Deloitte. But the industry is preparing for as much as a 3x increase in electricity demand by 2050, prompting many companies to increase their forecasts for demand, assess infrastructure needs, and estimating costs to expand the grid.
