In 2002 when the Texas senate passed Bill 7 (SB7) it gave the consumer the power to choose electric companies, by doing this it left its grip on the state electricity market regulations. This was expected to have the rates of electricity reduce and consumers have cheaper power.

People have been waiting to see if the results of this are going to be good to the energy consumers in the state of Texas, the fact of the matter is that Texas electric is here and still growing. A number of electric providers in Texas have the electric offers on different rates same as the plans in the private and corporate consumers. The Texas electric power choices can be said to be intimidating to the casual customers, who most a time have a problem in comparing the electric power prices among various providers in the state.

There are a number of things that one should have in mind when trying to solve the puzzle on the rates of electricity in the state. The basic parameter remains to be the electric price per kWh, which is chosen by most people to choose the provider they prefer. However, though most preferred it is not the best to follow to make the best choice.

To begin with, those who are environmentally conscious must know that electric companies have rate plans, which have their basis on green energy alone or in other words include their renewable energy in their portfolio.

It is also important to note that there are a number of different power rate plans: fixed, variable or even indexing. The names are explanatory of the basis of the implication of the rating; fixed, the rates are to remain the same throughout the term of the contract. Variables; variables are to differ from one month to another based on the price of electricity and varies from one provider to the other in Texas. Indexed; varies as per the formula determined by the Texas electric provider. Individuals are allowed to choose the type they want.

The fixed rates are usually higher than the variable rates at some point, but when the prices rise, so does the payment of the product under the variable rate plan, but the fixed rate remains the same in the duration of the contract with the company contracted to.

Some of the providers have hidden costs; this may include fees such as termination fee. One should inquire from the service provider how much they charge in case on breaches the contract and in case not satisfied with the service offered or in case one has to move to another place.

With the above in mind, it is thus very necessary to find a provider after comparing the prices of different ones on the different stipulations. The service providers are very much available although many may not have or may not disclose the information asked for.

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