Factors That Affect Electricity Rates in Garland
Like any commodity in the market, electricity rates also depend on supply and demand. When you want price stability from market influences, it is better to choose a fixed-rate energy plan that allows paying for the power consumed at a set price per kWh. This way, you can avoid unusually high monthly bills.
The minimum duration is three billing cycles, which is the shortest contract length.
For any other type of plan, there will be price variations. For instance, summer has a high power demand, and so the bills are higher.
Some other influential factors are:
Electricity Provider: While the power you receive comes from the local TDU in Garland, Oncor Electric Delivery, your rates depend on the supplier. In particular, the electricity rates vary with each energy plan. The type of fuel used and power plant operational costs also feature in the electricity prices.
Type of Consumer: Industries need large amounts of power regularly, and hence electricity providers supply energy in bulk. This process is less expensive in terms of transmission and delivery. So, the rates are the lowest for the industrial sector and the highest for residential electricity customers.
Imports and Exports: If the fuel used in the power plant comes from overseas, a range of domestic and global transport factors affect power prices. Added to this, international market speculations, business mergers, and acquisitions can hike the prices.
Energy Deregulation Basics
The Texas energy market is deregulated and allows for several companies to compete for your business. They package various kinds of plans and prices per the needs of several consumer groups, dwelling or business sizes, and usage levels.
It is the scenario since 2002 when the deregulation laws became effective. Prior to that, a state-appointed utility company held a monopoly over the electric market in each service territory. Texans in around 85% of the state have the power to choose energy rates and retail electricity providers (REPs).
A REP is an electricity provider that purchases power from the local TDU (Transmission and Distribution Utility) and delivers it to you. The TDU or local electric company in Garland is Oncor Electric Delivery, which gets the energy from power generation plants.
Oncor also handles the maintenance of power delivery infrastructure like electric wires, poles, etc. In case of a power outage, customers can report it to the TDU.
A significant portion of Garland, TX, gets its power supply from the municipally-owned utility company, Garland Power & Light. If you reside in Garland’s deregulated areas, you are fortunate to have the opportunity to reduce your bills by choosing a low-rate electricity plan. You can pick a REP of your choice from over 50 companies in the service area.
Green Energy Options in Garland
Renewable electricity is 100% pollution-free energy produced from inexhaustible natural sources that replenish themselves. Wind, water, and solar are some of the renewables used in power generation in the country.
Also known as green energy, this type of electricity and its production methods do not release harmful gases and byproducts into the environment. In contrast, traditional modes of power generation, such as coal and natural gas power plants, release toxic chemicals that destroy the planet.
From CO2 to SO2 and NOx gases, these emissions cause acid rains, ground-level smog, ozone layer depletion, rising global temperatures, and many other environmental problems. You can reduce your carbon footprint and partake in saving the planet by choosing Garland’s green energy options.
Texas is already leading the country in wind-power generation, but now it is also foraying forward in solar. A number of new wind and solar farms have come up recently, and the government is planning to expand more pollution-free generation facilities in Garland and other parts of the state.
When you research the electricity plans in Garland, TX, areas and compare energy rates, you can also choose the renewable content. Look through the plan’s EFL document to find out how much percentage of renewable energy it offers.
Plan Length: Month-to-Month, 6-Month & More
It can be overwhelming to select from the various electricity plans available. So, it is vital that you familiarize yourself with the different plan types, contract lengths, terms, etc. Here, you can have the simplified version:
6-Month Contract Plans
The standard length of any postpaid plan is six months. For this agreement period, you sign a contract with your provider, wherein the terms are mentioned. These plans are fixed-rate type, which calculates your energy bills based on a previously agreed upon pricing.
Long-Term Contract Plans
Although many contract plans are available for three to twelve months, some providers also offer fixed rates for up to five years. You can have enhanced price stability and consistent bills for an extended period.
These are also considered no-contract plans as you don’t sign an agreement. They can be either fixed-rate or variable-rate energy plans, depending on the plan you choose. Some providers may not even require an initial deposit from you.
A few differences between contract and no-contract plans are the late fee and early termination fee. In case of a delayed payment of bills, a late fee may apply for contract plans. If you don’t renew the contract, your plan may convert into a month-to-month plan with a higher variable-rate. If you cancel the contract plan before the agreement end date, you most likely incur a penalty.
As a prepaid electricity customer, you pay their bill before you use power, so they are also considered pay as you go energy plans. They offer a higher flexibility level since they don’t need security deposits, credit checks, or long-term contracts. You just pay an initial amount to get the service started, get a smart meter or prepayment meter installed, and go about your daily routine.
Instead of getting end-of-the-month bills, you receive daily or weekly notifications on your email or mobile device, alerting you of the remaining balance. These plans can help you monitor your usage and reduce your energy bills accordingly.
When you are close to using up the balance, you can add more funds and continue receiving uninterrupted and reliable power supply. In case you forget replenishing the account, and the credit goes to zero, the service may get disconnected. However, once you add more money, automatic reconnection will restore your power.
Prepaid plans are attractive options for residential customers since they can take charge of their electricity expenses. Students, recent graduates, and job seekers can avail of these plans and keep their bills in check. If you are a landlord, pay as you go plans offer security from outstanding energy bills if your tenants leave abruptly.