Compare electricity rates in Dallas, TX to avoid getting overcharged and waste money on a commodity. A person typically always has to sacrifice quality or quantity when purchasing anything on a budget, but there’s nothing to sacrifice when shopping for an energy provider offering cheap rates. All electricity companies in Dallas get their power from the same source. Therefore, cheap electric rates will get you the same end-product as that of providers charging higher rates.
There are over 7.1 million people living around the Dallas, Texas area today. This is because the area has quite a few companies offering very competitive electricity rates. This area is also a modern metropolis that’s full of great attractions like the Sixth Floor Museum at Dealey Plaza, which commemorates President John F. Kennedy’s 1963 assassination. There’s also the Arts District, where you’ll find the Dallas Museum of Art, the sleek Nasher Sculpture Center, and the Crow Collection of Asian Art.
The Deregulation of Electricity in Dallas, Texas
In 2002 Bill 7 was passed and electricity in the area became deregulated. This means that residents in Dallas, Texas can shop for an electricity provider of their choice. As such, you’ll have the ability to choose who you get your electricity from and how much you’ll pay for it. Of course, this means that there’s now competition in this area for who can provide you with the cheapest electricity rates. At the same time, you’ll enjoy more control over your electric bill. Together everyone will benefit from greater flexibility.
A Look at Electricity Rates in Dallas, Texas
Whether you own a home or a business in the Dallas, Texas area, you’ll still need to know what the average rate is for electricity. This is the only way you’ll ever know for sure that you’re not overpaying for the electricity you’re using. With this in mind, here’s what you should expect:
- 5.57¢/kWh for manufacturers – about 16.49% less than the national average of 6.67¢/kWh
- 8.16¢/kWh for businesses – about 19.13% less than the national average of 10.09¢/kWh
- 10.98¢/kWh for residents – about 7.58% less than the national average of 11.88¢/kWh
Understanding Terms Electricity Companies in Dallas Use
Understanding what you can expect to pay for each kWh of electricity you use is only the starting point of finding the best electricity rates in Dallas, Texas. You’ll also need to understand the terms they’re using, so that when you read through the contract you’ll actually know what they’re trying to convey about their electric rates. Some of the most commonly used terms energy providers use to tell you about their diverse energy plans, include:
- Fixed rate plans: These lock you into a set price for a set amount of time.
- Variable rate plans (a.k.a. month to month plans): These don’t have a fixed rate, so you’ll pay a different amount per kWh each month. This is locked in with what’s known as “guaranteed price protection.”
- Renewable energy: Green energy comes from solar and wind power.
- Smart thermostats: These will help you earn credit for using less electricity during certain times of the day.
- Cash-back rewards: This gives you a percentage of cash back on the electricity you purchase.
- Introductory rates (a.k.a. promotional rates): These are offered for first-time buyers and/or the first month of service. However, they tend to turn into a higher rate after this period.
Contract Lengths for Your Electric Rates in Dallas, Texas
There are a variety of types of contracts that Dallas’ energy providers offer. These include; short, monthly, no contract, and long-term plans. All of these have very distinct advantages and disadvantages to them.
The nice thing about choosing a fixed, long-term contract is that your electric rates are more stable. This means that if there’s a sudden rise in energy you won’t find yourself responsible for a higher bill. However, you do need to realize that the opposite is also true: If electricity rates suddenly decrease, you’re locked into a contract and can’t switch to a lower rate plan without paying either a cancellation or early termination fee.
Monthly, variable rate plans don’t have you sign a contract. Therefore, you never need to worry about paying any cancellation fees. So, when the cost of energy decreases you’ll pay less money. However, it’s also true that when these rates increase you’ll pay more money.
Finding the Right Dallas Electric Provider to fit Your Needs
Now that you know what all these terms mean, it’s time to consider all your options. There are a few things you’ll want to have at your disposal when comparing electricity companies in Dallas, TX:
- Your zip code will tell you what electricity companies you can choose from.
- Your approximate current consumption as shown on your previous bill will tell you how much energy you’re using and when you’re using it.
- Your current energy plan will give you a point of comparison as you look at other companies.
With all this information in hand, you’ll want to start comparing the various energy plans available in Dallas, TX and the electric rates they offer. As you look at these plans here’s what you’ll want to compare:
- As you look at the various plans that are available for you, make sure you pay attention to the rates/tariffs. This is the pricing that’s available – either fixed (a set price per kWh for a pre-set time) or variable (a fluctuating price that’s based on current market conditions).
- When you find electricity rates that are suitable, look at the service options. These tell you when you’ll be billed and how you can pay this bill (e.g. direct debit, prepaid, credit cards, or cash).
- Read through the contract types. There consist of standard (includes set terms and conditions that the supplier can’t change because it’s set by the government) and market retail (terms and conditions that are independent of the government’s control).
- Check to see if there are any special offers available. Some electricity companies offer you a special discount if you sign up for a long-term contract or continually pay your bill on time. Some companies also offer freebies (e.g. high-tech thermostats, restaurant gift cards, sports team apparel) for customers who enroll in particular plans. You should never choose a plan based on these things, because such gimmicks are rarely worth it – they don’t save you money. This is also true of plans that offer free nights or weekends, because you won’t receive the best electric rates throughout the rest of the week.
- If green energy is important to you, you’ll want to look for green add-ons too. Usually you’ll pay more for alternative, green energy plans though.
- On the other hand, penalties also exist. You’re typically penalized for things like late payments and exiting your contract early.
- Transfer, connection, and disconnection fees are also important considerations.
Once you have everything you need to make comparisons, you should be able to choose a company that’ll work well for you.
Understanding Fees Associated with Your Electric Bill
Even when you think you’ve found the best Dallas electricity rates there’s still one more thing you’ll want to look at: Make sure the energy company doesn’t charge you if you don’t use a specific amount of electricity (usually 800 – 1,000 kWh per month). If anything, you’ll want to choose a company that offers you a discount for exceeding this amount. You just need to be careful to make sure that you don’t end up paying for electricity you don’t use. This is just one of the fees you need to watch for though. Other things that you may pay extra for, include:
- Making payments through the phone
- Talking to a customer service agent on the phone
- Receiving a paper copy of your bill
- Running a credit check to set up electricity in your name at your residence
Getting to Know Your new Energy Provider
With all this information in mind, you’re ready to search for the “right” electric company. Never settle for a company just because their name is familiar to you. This doesn’t mean that you can trust them to offer you low electric rates or that they’ll quickly restore your electricity if there’s an outage. (Remember, all electricity is delivered through the same company, so it’s up to this company to restore your electricity when there’s an outage). Instead, you’ll want to base your choice on things like pricing and the company’s customer service record. In this regard, you’ll want to learn about how many complaints people have made regarding the company you’re thinking of choosing. It may surprise you to find that some well-known Dallas electricity companies have poor scores, while companies you’ve never heard of before score quite well.
Thanks to deregulation you now have a lot of say about your electric rates in Dallas, TX. You need to choose the company who will best meet your needs. Although it’ll take you some time to figure out who this company is, when you do your “homework” you’ll be able to decide this for yourself.