According to the U.S. Energy Information Administration, the average household in Texas uses about 15,000 kWh of electricity per year — 26 percent more than the national average, “but similar to the amount used in neighboring states.” That said, the only way to know your personal average energy consumption is by looking at your electricity bills over the course of a year (you want to accommodate all weather conditions) and understanding both your overall usage, as well as if you use more or less during certain months.
Although conventional long-term contracts may offer you very low kilowatt-hour prices, these contracts also impose many obligations and hefty penalties for non-compliance. No deposit electric plans tend to have a slightly higher energy price that long-term contracts, but allow more freedom in how you pay for your electricity. The most relevant differences between no deposit electricity plans and conventional contracts are summarized in the following table:
The local electric company is the utility – that’s the company who owns the infrastructure, including the poles and power lines that deliver electricity to your home. They are who you call if your power goes out or there's an emergency. But in almost every city in Texas, you must choose another company to supply that energy, called a Retail Electric Provider (REP). These REPs, like Spark Energy, allow you to choose electricity plans that offer competitive prices and plans to meet your needs.
Since that humble beginning, Ambit has welcomed over a million Customers and generated over $1.2 billion in revenue. Chris and Jere’s dream of creating the finest and most-respected retail energy provider in America has driven Ambit’s success. Read Ambit’s full story, and find out more about how you can be a part of this incredible and ongoing success story.
Constellation is one of the largest integrated energy suppliers in the US, providing electricity and natural gas to over 2.5 residential and commercial clients, including two-thirds of Fortune 100 companies. The company promotes renewable power, and offers energy management products and services for both homes and businesses. From energy procurement to energy efficiency and distributed energy solutions — the company helps its customers strategically buy, manage and use their energy.
Fixed-rate plans: Fixed-rate plans give customers more stability for their monthly energy bills because the rate a customer signs up with is the rate he or she pays for the length of the plan’s contract. Most fluctuation comes with usage, though transmission and delivery charges and local fees also can change.. Because a fixed-rate plan sometimes spans two-three years, these plans often require a customer credit check and can include early cancellation fees. Fixed-rate plans, because of the continuing market volatility, probably are the best choice for many consumers.
Fixed-rate, long-term (contract) plans provide stability in electricity rates. If market energy costs suddenly trend upward where you live, you can rest assured that you won’t have to pay more out of pocket. However, if you want to switch to a different, lower-cost plan before the end of the contract term, you’ll likely have to pay a cancellation or early termination fee.
After Senate Bill 7 went into effect in January 2002, nearly 6 million power customers became eligible to choose their energy supplier. That number has grown through the years. By deregulating the state’s energy market, the Texas Senate gave constituents the power to choose. The process of energy deregulation in Texas dismantled the utilities’ monopoly over the electric market and encouraged customers to explore their energy options.
On the other hand, month-to-month variable rate (no-contract) plans don’t have cancellation fees. You won’t be penalized if you find a better deal elsewhere and want to make another switch. And, you won’t be stuck paying more than you should be if the market rate for electricity trends down. But, if it goes up, you’ll be paying more than your in-contract neighbors, and you’ll likely want to shop around again for a better deal.