When searching for electricity plans in Houston, you’ll likely encounter several different plan types. The most popular options include fixed-rate, variable-rate, and no-deposit plans. Rates and plan types on the Choose Energy marketplace are all-inclusive, meaning the price you see includes base fees and transmission and distribution (TDU) charges. However, the prices will not include tax. Discover more about the types of available energy plans with Choose Energy.
Contract term lengths
If you decide to go with a variable-rate or no-deposit plan, you won’t have to worry about electricity contract term lengths. With a fixed-rate plan you will have a contract for a certain period of time, usually ranging from six to 36 months. You will most commonly find plans with 12-, 24-, and 36-month terms. Longer electricity contracts can often lead to more affordable rates if you are able to commit to them. Shorter term lengths are a good option for renters or those who like to shop around.
Fixed-rate plans
With a fixed-rate plan, you will be protected from fluctuations in market prices and will gain more stability in your electric rate than with other types of plans. Your electric rate will not change over the length of your term agreement, which usually lasts between 12 and 36 months. If you want to cancel your electricity contract before your term is complete, you may have to pay an early termination fee (ETF). However, this fee will not be required if you are moving out of the coverage area.
Variable-rate plans
Variable-rate plans come with some risk because the rate you pay every month changes based on the wholesale cost of electricity. When demand is low during milder temperatures (usually spring and fall), you can take advantage of lower rate trends. However, your electricity rate may increase during periods of high demand when temperatures are more extreme. Variable-rate plans don’t require an electricity contract, allowing you to switch plans at any time.
Prepaid and no-deposit plans
Your energy provider might require a deposit before starting your service, depending on your credit score. If you want to bypass the credit check and deposit, consider no-deposit energy plans. A common no-deposit option is a prepaid electricity plan, which lets you pay for your power upfront. When your funds begin to deplete, your provider will send a reminder to add more money to your account.
Enter your ZIP code and filter for “all credit-approved” plans on the Choose Energy marketplace to find prepaid plans in your area.
Houston green energy
Texas is a national leader in green energy generation, especially wind energy and solar power. Houston residents can choose from various green energy plans from several electricity companies.
Every Texas energy plan includes a percentage of green energy. To find the exact amount in a plan, check the Electricity Facts Label (EFL). A Houston energy provider that offers 100% green energy plans is Gexa Energy.
Enter your ZIP code and filter for green energy plans offered near you.
Business electricity rates
Houston businesses can also use the Choose Energy marketplace to secure affordable business electricity rates. Our energy experts can compare business electricity rates from the top Houston energy providers and help you build a customized commercial plan for your business. Visit our commercial energy page to request a quote for your Houston business.
When should I buy to get the best deal?
Over the previous year, electricity prices increased from $0.147 kWh in January 2022 to $0.168 per kWh in January 2023 according to the Bureau of Labor Statistics. Although electricity rates in the U.S. are increasing, milder temperatures in early spring have decreased energy demand in Houston, lowering local rates. With the hot Houston summer on its way, however, now is the time to shop for the energy plan that fits your needs and secure an affordable rate.
If you are nearing the end of your current contract, it’s important to check whether you still have the most affordable option before renewing it. Use the Choose Energy marketplace to compare the available plans and rates in your area and find cheap energy in Houston.
Compare cheap electric rates in my area
When you compare energy rates in Houston, it’s important to search for plans in your ZIP code since energy rates can vary by location. The local utility company determines utility transmission charges, which can change depending on where you live. Residents in one part of Houston may pay a different rate than those living in another area.
The Choose Energy marketplace allows you to compare accurate energy rates and plans near you. Enter your ZIP code on this page to find the current electricity rates in your area.
