Shopping for electricity in Texas shouldn't be a confusing or difficult process. Enjoying the benefits of living in a deregulated electricity market is almost too easy with the competitive prices and products from major energy companies. The key to saving even more on your monthly energy bill is understanding exactly what makes each service unique. With that being said, Texas energy companies have several fixed and variable rate plans that give people like you a ton of great options for electricity
service. So what exactly is the difference between a fixed and variable rate?

Fixed
A fixed rate generally carries a contract term with it, meaning you can lock in your price on a monthly basis after signing a contract. Terms generally run 12 months. The advantage of a fixed rate plan is that your price doesn't fluctuate when the rest of the electricity market does. Think of a fixed rate as sort of a security blanket.

Variable
Variable rates do change based on the several factors, most especially demand. During hot summer days or cold winter nights you'll often see price spikes as electricity use increases. The advantage to having a variable rate plan is that you can cancel your service at any time, and the monthly and cancellation fees are often very low.

Regardless of what you choose, living in a state that gives you power to find the service that meets your individual electricity needs is a wonderful thing.