Factors That Affect Electricity Rates in Arlington
Electricity prices keep changing every minute, but retail providers charge you per the seasonal demand.
Some of the deciding factors in your energy rates are:
Type of Consumer: Industrial electricity rates are lower than the rates for business and residential electricity. Since they need a bulk supply of power at a time, delivery and generation are quicker.
Fuel Costs: Fuel prices fluctuate based on local and global market trends. So, the type of fuel used to generate electricity and its price impact the cost of retail electricity.
Power Plant Costs: Power plants have to ensure smooth operations to produce energy. If there are any maintenance issues, they cause a hike in your electricity prices.
Delivery Costs: Utility companies that deliver electricity to retail companies also build, maintain, and repair power systems. These costs reflect on your energy bill.
Weather Extremities: Heavy rain or snow can sometimes work in your favor as they can help generate more amount of cheaper hydropower. But droughts can increase the power demand when the resources are low.
Seasonal Demand: Like the above factor, summer and winter are two ends of the spectrum where your HVAC systems run non-stop. You need more power, which means an increased burden on power plants and higher costs.
Energy Deregulation Basics
In 1999, the energy markets were thrown open to competition. The representatives of several U.S. states, including Texas, voted to do away with the traditional monopoly.
Since 2002, 85% of Texans have been utilizing the power to choose their electric company. The remainder is exempt from the deregulated energy market. They live in areas served by electric cooperatives, municipally-owned utilities, and smaller investor-owned utilities.
Arlington is one of the deregulated service areas in Texas. Meaning, they have electric choice to pick their energy supplier from a pool of candidates that offer competitive rates.
In the past, the Public Utility Commission of Texas regulated the electricity rates. But after the energy deregulation laws took effect, companies can set their prices to distribute power to their retail consumers.
Earlier, both supply and distribution of power remained with a single local entity, called a Transmission and Distribution Utility or TDU. The local TDU in or transmission and distribution service provider (TDSP) Arlington is Oncor Electric Delivery. It is responsible for the electric infrastructure and delivery, including wires, poles, meters, and power outages. The retail electric companies purchase reliable energy from Oncor and supply it to you at the best electricity rates.
Green Energy Options in Arlington
Most of the energy generated in the U.S. comes from coal, natural gas, nuclear, and petroleum power plants that cause significant damage to the planet.
Byproducts of energy production processes like CO2 and other greenhouse gases increase the global temperatures and are paving the way for a drastic climate change. Also, these resources are exhaustible and may disappear within a few years.
In contrast, when you use replenishable resources to produce the energy necessary for human needs, there will be a minimal environmental impact.
Prime examples of these infinite resources are water, wind, solar, thermal energy inside the earth’s crust, etc. Worldwide, these are being used to generate sustainable energy, and global leaders stand against the impending climate change.
Texas has a booming renewable energy sector. At one point in time, Texas wind power
has supplied half of the state’s electricity.
Several industries, tech giants, universities, and even condo or apartment dwellers install solar panels on their premises. Arlington electricity providers supply green energy sourced from a variety of renewables like wind and solar for eco-conscious customers.
You can now look at each plan’s EFL and choose the renewable energy content that suits your requirements and budget to make your contribution towards protecting the planet.
Plan Length: Month-to-Month, 6-Month & More
No matter which electric provider supplies your electricity, the energy rates depend on the plan type and contract length. The pricing can remain the same (fixed-rate) or change every month (variable-rate) based on the wholesale market.
There are three types of plans:
Short-Term Contract Plans
These plans allow you to choose the cheapest rates available for a short period of 6 months. Some providers also offer 3-month plans, which may benefit you when moving to a different service area in a couple of months or similar situations. These can be fixed-rate or variable-rate plans.
Long-Term Contract Plans
You can choose a contract plan for 12 to 36 months when you have a permanent living situation. Lock in the electricity prices and ensure stable and predictable bills every month based on your energy spending. They usually carry a cancellation fee in case you terminate the contract before the agreement end date.
Month-to-Month or No-Contract Plans
When you do not want a commitment or move very often, getting a no-contract electric supply is quick and easy. You will be eligible even if your credit score is low, and you don’t need to pay a security deposit. You can switch providers any time you wish without a penalty.
Short and long-term contract plans are mostly postpaid, while month-to-month electricity plans can be prepaid, too.
Also known as same-day power plans or pay as you go electricity, prepaid plans are beneficial to customers without established credit. More often than not, electric consumers with low or non-existent credit score get turned down when they apply for a connection.
They are also no-deposit electricity plans where you fund your account before the company can initiate the service. You also don’t need to provide any identification to become eligible. Prepaid plans ensure that every Texas resident in a deregulated area can have access to a continuous power supply.
They are typically month-to-month variable-rate plans, but some providers also offer up to fixed-rate plans for up to 12 months. In either case, you pay your electricity bills upfront. All you need is a prepayment meter to monitor your power consumption.
Keep a watch on your spending, and when the credits are low, add funds to your account through your mobile or purchase more credits from your supplier-authorized agent. Even if you lose connection due to negative balance, add money to get the service back in an automatic process without a late fee or reconnection fee.
Prepaid electricity plans are perfect for people who are often forgetful about bill payments and end up coughing up more money with the additional penalty. Also, consumers that need flexibility and no commitment issues can opt for these plans.