When researching electric companies in Midland and their electric rates, there are several factors to keep in mind. Perhaps the most important is the type of plan you choose. The plan type affects electric rates as well as the time period you have to pay that rate.
Different types of electric rates offered by Texas electric companies
Electric companies usually offer a few different plan types. The most common are stable, variable and indexed plans.
Stable-rate plans give consumers a set electricity supply rate for the whole contract length. If you enroll in a 12-month contract term, then you pay the set rate per kWh you use for all 12 months. At the end of the term, you may be automatically enrolled in the provider's variable rate plan. If you enjoyed the security of paying a set rate each month, then you would need to find a new stable-rate plan to enroll in. Supply plans with stable electric rates may be as short as three months, though some electric companies offer plans as long as five years!
Variable-rate plans offer the potential for a different supply rate every month you are with the plan. The rate per kWh changes based on fluctuations on the energy market. It could go down when the market rate dips and go up when the market rate rises. Most variable-rate plans are month to month, meaning after one month you can enroll in a different plan with the same or a different provider, if you like. Many electric companies' customers sign up with this plan type if they are confident in their tracking of the energy market or if they know their situation will be changing soon, such as moving to a new home.
Indexed is another plan type offered by some electric companies. These plans' electric rates are usually tied to a market index, such as the market price of natural gas. As that market changes, so does the plan's supply rate. Some of these plans have a cap, meaning the supply rate won't go higher than the advertised price, and it may even be lower.
Don't forget electric company rates for green energy
Another type of plan that many electric companies in Midland offer is green energy plans. Green, or renewable, energy doesn't go directly to your home when you sign up for these types of plans. However, the equivalent amount of renewable energy is placed on the electric grid, offsetting your consumption. More renewable energy on the grid reduces the amount of fossil-fuel generated electricity that must be generated to meet energy demands, which in turn reduces the amount of air pollution.
EnergyProvidersTexas.com can help Texas residents examine the different types of electric rates and plans available in their area. When you're ready to enroll in a new plan, give us a call!