Factors That Affect Electricity Rates in McKinney
McKinney electricity rates keep varying per the wholesale market prices. Power is a utility in Texas, and like any other commodity, the rates change per the demand. The factors that alter energy rates include:
Supply: Some fuel sources may not be available in the region, which means power generating plants get them transported. The fuel may come from overseas or domestic locations. Either way, the transport charges reflect on your energy prices.
Fuel Type: Wind, solar, and other renewables are abundant in Texas, including McKinney. So, harnessing these is free. Besides, Texas has plenty of oil and natural gas reserves, making them some of the least expensive fuels to use power generation. Based on how your electricity is produced, the prices for each plan vary.
Demand: Summer and winter see additional demand for power to cater to McKinney residents’ air conditioning and heating needs. Plus, temperature extremities and unforeseen natural calamities cause an increase in electricity demand and a bump in market energy rates.
Local Utility: In McKinney, the local wires company is Oncor Electric Delivery. It handles the electricity transmission, distribution, and maintenance of electricity infrastructure. This company will set the base price on energy plans.
Energy Deregulation Basics
New legislation regarding the Texas energy market made deregulation possible in 2002. With that, electricity consumers gained the power to choose their supplier. About 85% of Texas, including McKinney, comes under the deregulated service territories.
Deregulation means no more monopoly over the energy market. Earlier, state-appointed utilities like Oncor were the sole regulators of energy prices, plans, and contract terms. Energy deregulation gave several new companies to enter the market and compete for customers’ business at affordable prices.
Oncor is the TDU (Transmission and Distribution Utility) that still supplies your power; it is the REP (Retail Electricity Provider) you choose that bears the name of your bill. Still, there is no difference in the quality and reliability of electricity. Only the packaging is different, and each company may provide the same power under other names.
You can benefit by comparing each plan from each provider in your Zip code. Choose the rates, terms of service, contract length, and payment modes that suit your needs, budget, and usage level.
You have fixed-rate plans, variable pricing, postpaid, prepaid, no deposit plans, and green energy plans. You can even select free electricity plans that let you use as much power as you wish during specific periods of the day or week.
Green Energy Options in McKinney
Deregulation also means that you can choose which fuel should generate the power you receive. By opting for green energy plans in McKinney, you can do your part in saving the planet.
As opposed to traditional power generation techniques that use fossil fuels like coal or petroleum, green energy comes from non-polluting resources. While conventional fuels emit toxic chemicals and gases into the air, soil, and water, green energy sources have the same genetic make up as nature.
Renewable or green energy comes from wind, sun, water, biomass, etc., which are plentiful in the world. They do not release harmful byproducts in the process of power production. More importantly, there is no shortage of these resources. They also keep replenishing themselves, making them practically inexhaustible.
Texas is the forerunner in wind power generation in the country, while its solar production is not far behind. Even in McKinney, the authorities encourage people to choose green power solutions and energy-efficient appliances and practices.
The city also has two significant green building initiatives in Wal-Mart and a Toyota dealership. Environmentally-conscious McKinney residents can now have clean electricity without getting residential solar panels installed at their homes.
Several electricity providers in the service area offer green plans with renewable energy content ranging from 20-100%. Look through your selected plan’s EFL to know how much green
Plan Length: Month-to-Month, 6-Month & More
The Electricity Facts Label document or EFL of each plan gives you an idea of your energy bills’ pricing breakup. You can determine the required or appropriate price point for your situation and usage. You also find other details of the plan, such as contract length, late fee penalty, pricing type, etc.
We have touched upon fixed and variable rates for various energy plans. Fixed-rate plans are those that let you enjoy stable pricing for the length of your contract. On the other hand, variable pricing means that your monthly electricity rates may fluctuate per the market highs and lows.
While both have their advantages, it is wise to learn them before choosing one. With fixed-rate plans, you have price stability and consistent bills. Variable-rate plans result in a lowered bill when wholesale prices go down. However, if the market prices soar, you get a higher bill.
You have three to twelve-month contracts with fixed rates. Six-month agreements are the most common. Some providers also offer three-five years plans. You agree to the terms stipulated in your contract and renew the plan ones the end date arrives.
These are no-contract, no-commitment plans, variable-repricing electricity plans. You can switch providers whenever you want without a penalty, unlike a contract plan. A contract plan, when left unrenewed, converts into a no-contract plan.
Just like the electricity market pricing changes every minute, your power needs may also vary every day or month. So, you must check and control your energy spending. Prepaid energy plans are a great way to do that.
Prepaid or pay as you go energy plans require you to input some amount in your account to get the service initiated. You have smart meters or prepayment meters installed that track the amount of power you consume every minute. The minimum balance you deposited keeps reducing with your energy spending.
When the balance is low, you simply add more to receive a continued supply. You also get SMS or email alerts every day or week to notify you about the remaining credits in your account. By monitoring your balance and adjusting your power requirements, you can make significant money savings. Even if you lose the connection due to low credit, you can get the lights back on by adding funds to your account.
Prepaid plans are ideal for those living in temporary housing, people that move frequently, or students or employees shifted to a new place. You may also get same-day power with these no-deposit plans. Anyone can access an uninterrupted power supply as there is no hard credit check or ID verification.