A fixed-rate plan can help you budget electricity costs, especially if you follow energy market prices closely. It also provides stability when your energy needs increase during certain seasons.
However, it’s important to shop around for a low per-kilowatt-hour rate. Power rates tend to dip during summer, so this could be the ideal time to switch plans.
Know Your Electricity Needs
No two families are the same when it comes to their energy needs. Many factors play into how much power your household consumes, including how many people live and which appliances are used most often. Your home’s average usage can also impact your choice between a fixed or variable rate plan.
With a fixed-rate plan, you’ll pay the same per-kWh rate as long as you are under contract. This allows you to budget around your power costs and helps you avoid energy market price fluctuations.
If you choose a variable-rate plan, your energy bill will fluctuate with the flow of energy markets. Prices will increase with high demand and decrease with low demand. You’ll need to stay aware of seasonal changes, too — for example, your bill may go up when the weather gets cold or down when it gets hot.
To find out how much electricity you use, you’ll need to know the wattage capacity of each appliance in your home. You can easily estimate your average monthly usage using a little old-fashioned arithmetic. Start by adding up the wattage rating of all general lighting and plug-in outlet circuits. Then, multiply that number by the average daily hours each device uses. The resulting number gives you your average kilowatt-hours (kWh) home power usage. You’ll want to add a safety margin for peak consumption times.
Determine Your Budget
If you’re looking for stability and predictability in your electricity costs, a fixed-rate plan might be the right choice for your home. Fixed rates offer a consistent price per kilowatt hour that doesn’t change throughout your contract, meaning you won’t have to worry about market highs or lows.
However, it’s important to note that if energy prices fall during your contract term, you won’t be able to take advantage of these lower rates until your term ends. This is why it’s always a good idea to shop around and compare your options when you’re ready to switch providers.
Tiered rates are another option for customers looking for some flexibility with their energy usage. These plans charge different rates based on your energy consumption time. This can be helpful if you shift some of your heavy usage to off-peak hours, as these rates are typically cheaper.
Depending on your preferences and energy needs, consider renewable energy options. These plans offered by electric company Midland, TX utilize renewable resources like wind and solar power to help reduce your carbon footprint. However, remember that these plans may be more expensive than traditional electricity. You’ll want to compare rates and find the best fit for your budget and lifestyle. Many energy providers also offer promotions and incentives for new customers, such as waived fees or free months of service.
Make Sure You’re Choosing the Right Plan for Your Needs
One of the most important things you can do to ensure you’re getting the best value on your energy plan is to choose the right one for your needs. A fixed-rate plan allows you to lock in a low per-kilowatt-hour rate for the duration of your contract, which can be anywhere from a few months to two years. These plans are ideal for customers who want the security of knowing their energy prices will stay low no matter what happens in the market.
On the other hand, if you’re comfortable keeping up with market price fluctuations and like to shop around for the best rates, then a variable plan may be a good fit for your budget. These plans work well for active consumers who can switch to a better plan before their contract expires.
Another option is a plan with tiered pricing, which offers a lower rate during certain times of day and a higher rate at other times. These are ideal for customers with time-of-use electricity needs, such as households that run laundry, dishwashers, and other appliances during certain times of the day or night. Finally, prepaid plans are a great choice for credit-challenged consumers who want to control their budget and avoid surprises.
Get a Quote
The best plan for you depends on your household energy usage, how long you want a contract, and how much risk you’re willing to take. However, shopping around for rates at the right time is important to save money. Generally, the best time to switch to a new electricity plan is when energy rates are on a downward trend.
Once you know your needs and budget, it’s easy to find a cheap fixed-rate electricity plan that fits your lifestyle. Using an online marketplace, you can compare all the plans available on a fair scale and apples-to-apples basis. Plus, the process is quick and convenient. You can sign up in minutes and start enjoying your new electricity plan.
If you have questions about a specific plan, you can call or chat with an energy expert to get your answers. They can help you find the right plan and even handle switching your service from your old provider, so you don’t have to worry about anything.