Finding the right electricity plan for your home is a complex task. It requires considering the square footage of your home, its age, energy usage, and other factors.
The cost per kilowatt hour (kWh) is an important factor to consider, and you should pay attention to how rates vary by usage tiers.
Fixed-Rate Plan
Customers can choose from many types of electricity plans in states with deregulated energy markets. The Plano electric company offers fixed rates that do not change for their contract term. These plans are popular with homeowners as they make it easier to manage their energy costs.
With a fixed-rate plan, per kilowatt-hour electricity rates will remain the same throughout your contract term (which could be anywhere from several months to a few years). The disadvantage of this plan is that you will only enjoy savings if market prices drop. Additionally, some power companies impose early termination fees.
This plan may be right for you if you live in a place with hot summers or cold winters. However, if you don’t use much energy or live alone, you may be more comfortable with a variable rate plan. Indexed rates are also available, but they require a lot of monitoring and research to save money. If you’re willing to do this, you can save a lot with indexed rates.
Time-of-Use Plan
This plan adjusts the cost per kilowatt-hour depending on the time of day you use energy. It has different rates for peak demand times – called on-peak by APS and other utilities — 4 pm-7 pm weekdays during summer and a “super off-peak” period from 10 am-3 pm weekdays during winter. These plans help reduce strain on the electrical grid by encouraging electricity use when needed least, such as at night.
Peak times are when people turn on air-conditioners, do laundry and cook, and charge their devices. These are also times when electricity prices are highest. By shifting your major appliances to run during off-peak hours and by setting your electric heat to a lower setting during peak times, you can save money*. Some TOU plans also offer bill credits if you consistently stay within a specific usage range. That’s why estimating your monthly kWh consumption is important to avoid major bill surprises.
Energy Facts Label
When choosing a new electricity plan, reading the fine print is important. This includes the Energy Facts Label, or EFL, which contains key information about each REP’s plans.
You’ll find key information on the EFL, such as the average price per kWh, monthly charges, type of product, contract terms, and more. It also discloses any potential early termination fee and the percentage of renewable content in each plan.
Understanding the EFL is key to selecting the best electricity plan for large homes. This will allow you to compare plans better and ensure they fit your home’s energy needs well. While it’s only possible to know exactly what your usage will be like once you receive a few months of bills, estimating your home’s energy efficiency can give you an idea of what your power bills should look like. This will help you select a plan that meets your energy needs while keeping your bills affordable.
Variable-Rate Plan
A variable-rate plan varies in price. Your per kWh rate will change depending on market conditions—similar to how gas prices fluctuate at the pump. When wholesale rates are high, your rate will increase; when they’re low, your rate will decrease. These plans are best for consumers who like to keep up with the energy markets and watch prices. They can be a good option when you’re planning on signing up for a longer-term fixed-rate plan in the future but want to see how the market behaves first.
However, your rate could be higher than a fixed-rate plan when electricity demand is high, and you may pay more for your energy than you should. Because of this, it’s important to shop for a plan with competitive rates before you sign up—that’s why we recommend using our marketplace to compare all available plans and terms on an apples-to-apples basis. It’s fast, easy, and completely free! Plus, if you find the best plan for your needs, you can often follow a link from our website to start making the switch.
No Deposit Plan
A no-deposit and prepaid electricity plan is a great option for large homes in states that deregulated their energy markets. These plans avoid requiring credit checks and offer control over how much electricity you buy and when you buy it. In addition, prepaid electricity plans minimize upfront costs by allowing you to pay via an app, bank account, or cash.
While no-deposit plans are a great choice for large households, they may only be right for some. Because no-deposit plans require a deposit to offset losses from unpaid energy bills, they can often cost more than regular electricity plans.
A good way to determine whether a no-deposit plan is right for you is to check rates at different usage levels. You can do this using the Choose Energy marketplace. To view rates in your area, please input your ZIP code. You can contact us for more information on available plans and their functionality. We will assist you in locating a dependable power supplier with a no-deposit option that can meet your household’s energy requirements.
