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The Different Types of Electricity Plans

What makes deregulated energy in Texas so great is that you have many options when it comes to determining your electricity for your home or apartment. This comes not only in the form of what provider you choose, but also in the pricing method and how you pay your monthly bill.

There are four types of electricity plans offered through the various providers of ElectricityTexas:

Fixed rate plans are plans that allow you to lock in your electricity rate. This can help protect you against rising or constantly changing prices, but may cause you to miss out on savings if the prices were to drop even more.

Variable rate plans are plans that have changing prices on a month-to-month basis. While you can not lock in a low rate, there is potential to save money on your bills if the prices were to suddenly drop, or stay as low as they are right now.

Indexed rate plans have a pre-defined, published formula for how the rate per kWh is determined. Often indexed rate plans are tied to an index such as the natural gas index, which is why there are great rates currently on some of these plans.

Prepaid electricity, or pay-as-you-go power, allows you to pay a flat fee up front for your electricity, with no credit checks, deposits or IDs required. Going forward, you will receive your bill in advance of your next billing cycle. If you're interested in prepaid electricity for your home, check out our bruised credit page.