Factors That Affect Electricity Rates in Plano
Electricity rates keep changing throughout the years in Texas.
Apart from your home or business size, the plan type, and the energy supplier you choose, there are many factors influencing the retail costs of electricity in Plano.
Weather. Seasonal changes bring about a rise or fall in temperatures and weather conditions. While it is predictable, electricity rates may be higher in summer and winter as you use your HVAC systems more, weather forecasts also can affect the prices. Predictions about impending bad weather can alter spot market prices until the normal conditions return.
Fuel Supply. Energy generation happens from sources like coal, gas, water, wind, solar, nuclear, and renewable fuels. The wholesale electricity rates depend on the available supply or lack of abundance of these sources. Hence, the going rates also change every hour.
Demand. Peak demand time during the day or year means the necessity of usage of more power for lighting, heating, cooling, and other processes. For instance, colder and hotter months of the year, or late afternoons and extremely chilly evenings, may see increased rates to meet the demand.
Transmission. Transport of energy from the utility companies to your home will need electrical infrastructure maintained in good condition, adding to the costs. There are also many constraints on gas pipeline capacity, restricting the energy transmission and distribution system.
Global Energy Markets. Imports of energy sources and fluctuations in the global fuel supply may affect the wholesale prices in Texas, which in turn can increase retail electricity prices in Plano.
Energy Deregulation Basics
Plano residents, residential, commercial, and industrial electricity consumers can choose their energy supplier just as they would a phone company.
Several states across the country are in deregulated energy markets, while many are considering the move. In 2002, Texas Senate Bill 7 got passed, and the Texas deregulation laws took effect.
The basic idea behind the deregulation move was to give consumers the power to choose electricity rates and plans that suit their budget and requirements.
Currently, there are more than 160 electricity companies in Texas deregulated service territories, while over 10 operate in Plano alone.
But even after nearly 20 years, some Plano residents may be confused about the deregulated market. It may be stopping them from taking full advantage of deregulation benefits.
So, here are some facts that can help:
Retail Electricity Provider (REP): It is an electric company that offers various energy plans with competitive rates to attract customers. You can compare rates and plans provided by various electricity providers and choose. Fees will differ from company to company.
Transmission and Distribution Utility (TDU): Every deregulated area is serviced by a local utility company. For Plano, it is Oncor Electric Delivery Company LLC. The company purchases electricity from power plants and distributes it to REPs. Although you have the right to choose an electric company, you can still opt to get your power supply from the state-appointed utility.
Green Energy Options in Plano
There are several electricity providers offering plans with 10-100% energy sourced from renewables. Eco-conscious customers can utilize these options are part of their effort to go green.
The Electricity Facts Labels is a document that details how much renewable energy content you receive with a particular residential electricity plan.
Why Choose Green Energy?
Green energy is generated from renewables, and as the name suggests, it is environmentally friendly. Renewable resources like wind, water, solar, etc. are abundant in nature and keep replenishing themselves.
On the other hand, coal, petroleum, and gas are limited, and generating power using these fuels can harm the planet. In the U.S., the majority of air pollution comes from contaminants released from power plants using fossil fuels.
Globally, they can cause the depletion of the ozone layer that protects the earth from UV radiation. They also create ground-level ozone, which we know as smog, which leads to the development or aggravation of many lung diseases.
Greenhouse gases like CO2, SO2, and NOx cause climate change triggers like global warming and a rise in sea levels. Needless to say, countries are looking for more sustainable ways of energy production.
Plano’s renewable energy footprint has been growing in the last decade with subsidized solar and wind energy generation projects. The city has also joined the national initiative, SolSmart, along with nearly 30 other cities and counties, to provide solar energy at affordable rates.
Plan Length: Month-to-Month, 6-Month & More
A great perk of living in Plano is that you choose the electric rates for the exact amount of energy that your lifestyle demands.
Typically, home electricity plans display the prices per kilowatt-hour based on 1000kWh usage. Your living requirements, the number of people, and the size of your dwelling may impact the end-of-the-month bill.
If your goal is to save money, choosing the right plan becomes crucial. These are the basic you should know about postpaid plans in Plano:
Fixed-Rate Plans: These types of plans offer price stability as they do not waver with market fluctuations. So, your bills will be consistent no matter the fuel shortage or abundancy if energy consumption is the same.
Variable-Rate Plans: These plans have prices that change every month with variations in wholesale electricity rates. So, if your power spending is less, and the market rates are low, your bill will be lower.
6-Month Contract Plans: Most of the residential electricity plans in Plano are for a 6-month period. Some providers offer long-term plans for 24-36 months or an extended duration of 60 months. Usually, the rates stay the same for the entire duration.
Month-to-Month Plans: Here, there is no contract tying you to a single electric supplier. These are often variable-rate plans. You can switch to another company if you find better rates any time you like.
There will be no early termination fee for canceling the service, whereas contract plans carry a penalty if you cancel before the agreement ends.
More often, when you choose a postpaid plan, the electric provider may require an initial deposit. They may also ask you for your identification and utility payment history. They can turn down service if you have outstanding bills.
Besides, they conduct a thorough credit check to ensure that you won’t default on their bill payment. Also, the process may take days before you can get the lights on.
You can avoid all this by choosing prepaid electricity plans in Plano.
Prepaid plans may be the right solutions when you want to lower your energy bills or if you are setting up electric service for the first time. With these plans, you can get a reliable electric connection on the same day as you apply.
How Do Prepaid Plans Work?
By paying a minimum amount, you get the service started. Your smart meter or prepayment meter uses wireless RF communication to broadcast your real-time energy usage. Monitor your spending, and as the balance lessens, keep adding money to your account from anywhere. Hence, these plans are also called pay as you go electricity plans.
When the credit becomes too low, you may lose service, but getting it reconnected is easy. Simply add more balance and get your power back on automatically.