A variable rate electricity plan is just what it sounds like—the rate you pay for electricity can vary from one month to the next. These rate changes are usually caused by changes in how much it costs to generate and deliver electricity. In Texas, most of our electricity is generated from natural gas, so changes in the price of natural gas can make the rates on these plans go up or down.
People like the flexibility of variable rate electricity plans because they don’t have monthly contracts or cancellation fees. But, because variable rate electricity plans offer this flexibility, their rates are sometimes higher than the rates of a fixed rate plan. If you’re a college student, move around a lot or live in an apartment a variable rate plan might be best for you.
You might like variable plans if you:
- Think energy prices are going to fall
- Like freedom and flexibility
- Don’t want to be locked in to a contract
- Might move soon
You might not like variable plans if you:
- Like your rate to stay the same
- Think energy prices are going to rise
Compare variable rate plans with other plans.
See pricing for variable rate plans now.