Factors That Affect Electricity Rates in Woodlands
Every summer, Texans have to bear the brunt of high energy bills. Peak summer demand and the additional stress on the power grid may cause the electricity prices to soar high.
Aside from seasonal price fluctuations, many other factors can burden the wallets of The Woodlands residents. They are:
Unexpected weather conditions. Sudden temperature extremities and natural calamities like floods or droughts may arrive without warnings. Especially in the present situation of global climate change, everything turns unpredictable. Such circumstances can create a demand surge and affect retail electricity rates.
Global markets. Imports, exports, and transmission of power-generating fuels through international or domestic channels can increase energy prices. Even market speculations, which may not be right, also impact the electricity supply.
Fuel and power plants. The type of fuel used to generate energy and the costs of the power plant’s daily operations can add up in your bill. In addition, your local TDU, which is CenterPoint Energy, also levies some charges for maintaining poles, wires, electric substations, etc.
Variable pricing. Customers that want price flexibility and freedom to switch electricity providers more frequently may opt for variable-rate plans. However, such energy plan rates are dependent on the wholesale prices of the Texas energy market.
Energy Deregulation Basics
Just as you would buy a smartphone from a brand of your choice, you have the power to choose an electric company offering an energy plan that suits your budget, needs, and lifestyle.
Texas energy deregulation laws, effective from 2002, allowing residents to compare energy plans, electric prices, service terms, and contract lengths. 85% of the state falls under the deregulated market, and The Woodlands is one of the service areas.
CenterPoint Energy is the local electric utility in The Woodlands. It is responsible for electric infrastructure functioning like overhead wires, poles, and delivery to electric substations and retail suppliers.
If there are extended power outages due to severe weather, blackouts, brownouts, downed power lines, or broken poles, customers can report on the CenterPoint Energy website for a quick resolution.
The electricity provider that supplies power to your home or business gets the energy from the local utility. So, what you receive is the same quality of reliable power, regardless of your energy bill’s provider name.
Commercial and residential electricity consumers in The Woodlands spend considerable energy on their HVAC systems, machinery, lighting, electronics, and other appliances. They can benefit from selecting cheap rate electricity plans with more flexible prices and reduce their monthly energy bills.
Green Energy Options in Woodlands
Traditional power plants that use coal and other fossil fuels are among the leading causes of environmental pollution. They cause ozone layer depletion, smog, acid rains, and more. Going green in every way possible can reduce emissions.
Green power comes from renewable resources, such as wind, solar, water, biomass, and geothermal energy. When you choose such a renewable energy plan, you contribute to stopping or slowing climate change. You simultaneously reduce your carbon footprint and your energy bills.
Being one of the chart-topping states in the country for green energy production, Texas has large-scale wind, solar, and hydropower plants. Some customers that wish to fight climate change and promote renewable power can generate their power directly. However, if your living situation or housing unit does not permit that, you can get green energy without residential solar panels.
Several electricity providers in The Woodlands procure green electricity for individuals and businesses, coming directly from a few renewable generator partners. Receive sustainable energy solutions for a greener future with renewable electricity sourced from local solar and wind farms.
Enrolling for a pollution-free energy plan also gives you other benefits like lower prices or some free plans like free nights and weekends electricity plans. You may choose anywhere between 20-100% green energy by looking at the EFL of each plan.
Plan Length: Month-to-Month, 6-Month & More
Before you get into comparing contract lengths of electricity plans, you should know how they are priced.
Fixed-Rate Plans
These are stable-rate plans where you secure a set price per kWh for the agreement’s entire duration. The rates may be higher than some plans, but given the benefits like predictability in bills and stability, you may indeed save money.
Variable-Rate Plans
The supply rate keeps fluctuating every month in accordance with the market rates. You can take advantage of these plans and see reduced bills when the market price is low. However, when market rates go up, you are burdened with a bill hike.
Time-of-Use Plans
You pay different rates for electricity during specific periods of the day or week. For instance, you may choose a free nights plan. You can then cut back on using energy-intensive appliances like dishwashers during the day and save money.
6-Month Plans
Plans ranging from six to twelve months are standard. They can be fixed or variable-rate plans, depending on the contract terms.
Multi-Year Plans
Some electricity providers also offer fixed-rate plans for three to five years that give you price stability. You can be free from shopping for lower rate plans.
Month-to-Month Plans
These variable-rate plans are no-contract plans. You can switch suppliers whenever you want without incurring a penalty. But all contract plans, short or long-term, carry an early termination fee.
Prepaid Plans
Prepaid plans are nothing like postpaid electricity plans where you get a statement at the end of your billing cycle. You pay a deposit upfront before you get the electricity service. This amount is not refundable like a security deposit but goes towards your energy usage.
The benefits of prepaid plans are that you can get service even with a low credit score. The energy supplier does not require your social security number or payment history. More importantly, most prepaid plans are same-day power plans.
So, if you have recently moved to The Woodlands, are an international student, or live in temporary housing, you may be eligible for a prepaid electricity plan. You can power your home without paying a hefty upfront deposit and switch to a cheaper rate plan at any time.
The prerequisite for a prepaid plan is that you should get a smart meter or prepayment meter and add minimum credits. These meters track your energy consumption by the minute. Prepaid plans, also named pay as you go plans, allow you to lower your bills by alerting you about your dwindling balance.
You can make digital payments, enter a token into the meter, or pay in-person at authorized stations when it is time to add more funds. Even when you forget making the payment, and the service is cut, reconnection is easy when you deposit money into your account.
