Compare Texas Electricity Rates
Are you interested in how to compare Texas Electricity Rates? Then look no further. APG&E will guide you through the necessary steps. If you live in Texas you will know that the average Texan uses more electricity than your average American, 30% more in fact. As a result, it is critical to ensure that your Texas Electricity Rate is providing you with real value for money. You work hard for your money; your Texas Electricity Rate should work hard for you. The best way to ensure this is the case is to understand your Texas Electricity Rate and compare it to reasonable benchmarks. Read on to help you do this…
To quickly shop for electricity, you can use our rate table below. If you like what you see, enter your zip code and shop for these and more rates in your area. Call APG&E support for assistance with your electric plan. 1.866.714.7125
Is it just me or is there no such thing as a single Texas Electricity Rate?
Up until 2002, Texas Electricity Rates were regulated as a Public Utility. Texans were served by a single local provider, which owned the power plant, the transmission and distribution lines, and the customer service and billing functions. Texans had no choice but to buy electricity from the monopoly provider.
All that changed in 2002, as old monopoly utilities, were unbundled into three separate entities – (1) the power plants (2) transmission and distribution companies, and (3) the Retail Electricity Providers (such as APG&E), handling customer service and billing.
A new competitive free market emerged in Texas with a significant number of Retail Electricity Providers selling their Texas Electricity Rates to residents throughout the state. Competing Retail Electricity Providers buy electricity wholesale from private power generators to sell to most Texas residents.
The partnership between generators and Retail Electricity Providers is governed by the Electric Reliability Council of Texas, or “ERCOT”, which attempts to balance the power grid’s electricity supply and demand by purchasing small amounts of electricity at 15-minute intervals throughout the day.
So…Retail Electricity Providers set Texas Energy Rates?
Yes, Texas is the power to choose the electricity market. Texas Retail Electricity Providers compete by creating customized electricity plans and setting rates for you. As a Texan, this creates a unique opportunity for you to choose the Retail Electricity Provider that best meets your needs and makes your life easier. That being said, there is a little work to do to understand how your Texas Electricity Rate compares to others in order to get the most out of this benefit.
How do I compare Texas Electric Rates?
Comparing Texas Electricity Rates can be a little tricky. Follow these steps to ensure your Texas Electricity Rate is providing you with value for your money.
Step 1 – How much electricity do you use each month on average?
The first step is determining how much electricity you use each month in kilowatt hours (“kWhs”). APG&E provides all of its customers with monthly usage graphs to make this easy for you – but if you are not an APG&E customer you can look at past bills to see how much you use. You will need to look at 12 months of usage as monthly usage will vary, and keep in mind that you will generally use more in the summer and winter than in the spring and fall, especially in Texas.
Step 2 – How much electricity do you use in the summer and spring?
Next, determine what your range of electricity usage is. This is critical because each electricity plan has different electricity rates for different usage levels. This means that your Texas Electricity Rate will vary every month depending on how much electricity you use. This is because there may be monthly charges that are charged at a fixed dollar ($) amount. This is the case even if the plan is labeled as a “Fixed Rate” plan.
Step 3 – How do the energy rates you are looking at vary at different usage levels?
When comparing Texas Electricity Rates you will want to take into account the energy rate, base charges, delivery charges, any other monthly charges.
Fortunately, when you compare energy plans, you will find that every Retail Electricity Provider in Texas must disclose the average electricity rate for each plan they sell at three benchmark usage levels, 500 kWh, 1,000 kWh, and 2,000 kWh. This was designed by the Public utility commission of texas to make it easy to compare Texas Electricity Rates.
The Electricity Facts Label or “EFL”, for short, is where you should go to understand your Texas Electricity Rate. Here is a snapshot of APG&E’s EFL for your reference.
Step 4 – Calculate your Texas Electric Rate and compare your expected rate under different electricity plans
The Average price in ¢ per kWh in the EFL includes the Energy Rate, Base Charge, and Energy Delivery Charges and is calculated adding the per KWh charges and the per month charges (divided the number of kWh) together into a single per kWh charge. This will be your electricity bill.
To compare different rates, you will need to calculate what you expect your Average price in ¢ per kWh to be every month based on your expected usage.
Step 5 – Compare Your Texas Electricity Rate to National Averages
To give you a little confidence that you are getting value for money we recommend that you should always step back and look at Texas Electricity Rates and compare those to National Averages.
According to data from the U.S. Energy Information Administration:
- Texas residential electricity rates are 10 percent lower than the national average.
- Texas commercial electricity rates are nearly 23 percent lower than the national average.
- Texas industrial electricity rates are nearly 16 percent lower than the national average.
- Texas generates (by far) the most electricity of any state from wind.
- Texas generates the fifth-highest amount of electricity from solar energy.
Step 6 – Compare Your Texas Electricity Rate to Historical Averages
We don’t recommend trying to time a market, but you should always step back and look at Texas Electricity Rates over time to see how your Texas Electricity Rate compares to historical trends.
Electricity Rates in Texas are always changing. Bookmark this page and visit us again the next time you want to compare Texas Electricity Rates.
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