Compare Plano Electricity Rates, Plans, and Providers

Plano, Texas, is a vibrant city with a competitive electricity market. This means residents and businesses have the power to choose their electricity provider and plan, potentially leading to significant savings. Understanding how to navigate this market is important if you want to find the best rates for your home or business.

Understanding Your Electricity Options

In most of Texas, electricity is deregulated (aka competitive), allowing numerous Retail Electric Providers (REPs) to compete for your business. This contrasts with regulated markets where a single utility company serves all customers. Competition offers flexibility but also requires consumers to be proactive in comparing plans.

Key Electricity Terms to Know

• Retail Electric Provider (REP): The company that sells you electricity. They are responsible for billing and customer service. Well-known examples include TXU Energy and Reliant Energy.

• Transmission and Distribution Utility (TDU or TDSP): The company that owns and maintains the power lines and infrastructure. They deliver the electricity to your home and charge a fixed fee, which you can see on your electricity bill, regardless of your REP. Oncor and CenterPoint Energy are the main TDUs for the greater Dallas and greater Houston areas, respectively.

• Kilowatt-hour (kWh): The standard unit of electricity consumption. Your bill will be based on the number of kWh you use.

• Fixed-Rate Plan: Your electricity rate per kWh remains the same for your entire contract. This offers price stability and is the recommended option.

• Variable-Rate Plan: Your electricity rate per kWh can fluctuate based on market conditions. While potentially offering lower rates at times, it also carries the risk of higher rates.

How to Find the Best Electricity Rates in Plano

Finding the ideal electricity plan involves more than just looking at the lowest advertised rate. Consider these factors:

• Understand Your Usage Habits

  • Knowing your typical consumption is crucial. Review past bills for average monthly kWh. Many plans advertise great rates within specific consumption ranges (e.g., 500-1,000 kWh), but rates become more expensive if your monthly usage falls outside these ranges.

• Compare Different Plan Types

  • Fixed-Rate: Generally recommended for most consumers, as it provides price predictability and protection against market volatility. Contracts typically range from 6 to 36 months.

  • Variable-Rate: Can be risky due to fluctuating prices. Only consider if you are comfortable with potential price changes and closely monitor market conditions.

  • Prepaid: For those who prefer not to pay a deposit. This type of plan is not recommended because the rates are usually more expensive.

  • For more information on what type of plan to pick, see our blog “How to Choose Between Types of Electricity Plans in Texas.”

• Read the Electricity Facts Label (EFL)

  • Every electricity plan offered in Texas must come with an Electricity Facts Label (EFL). This document is essential for understanding the true cost of a plan. It includes:

    • Average price per kWh: Shown at 500 kWh, 1,000 kWh, and 2,000 kWh.

    • Base charges: Any fixed monthly fees or usage-based credits.

    • Contract length: The duration of your plan.

    • Early Termination Fee (ETF): The penalty for breaking your contract before its expiration.

• Utilize Comparison Websites

  • Several reputable websites allow you to compare electricity plans from various REPs side-by-side. These sites often allow you to filter by contract length, renewable energy options, and average usage. Be sure to input your actual average usage to get the most accurate comparisons.

• Consider Customer Service and Reviews

  • While price is important, a good customer experience is also valuable. Look for REPs with positive customer reviews and strong ratings for service and responsiveness.

• Look for Promotions and Incentives

  • Many REPs offer sign-up bonuses, gift cards, or other incentives. Factor these into your overall decision, but don't let them overshadow the core rate and plan structure.

• Try Out Energy Ogre

  • Energy Ogre was specifically designed for Texans who are having trouble finding electricity plans or just don’t want to have to look for a new one every year. 

  • We search through thousands of plans available from 100+ different companies to find the plan that is estimated to be the most cost-effective for you. We’re able to determine this by seeing your actual usage history or estimating your usage based on your home’s details.

Why Do Electricity Rates Fluctuate?

Plano electricity rates (or electricity rates in general) can change due to several factors:

• Fuel costs: Natural gas and other fuel prices impact wholesale electricity costs.

• Weather: Extreme temperatures and events increase demand and can drive prices up.

• Grid upgrades and maintenance: Investments in infrastructure to support stronger demand are passed on to consumers.

• Market competition: More providers and plans can lead to lower rates.

When Is the Best Time to Shop for Electricity in Plano?

Pinpointing the absolute best time is challenging. However, generally favorable periods occur after the peak summer heat or the coldest winter temperatures. 

This is attributed to reduced electricity demand during these milder months. For more information, see our full guide, “When Is the Best Time to Shop for Texas Electricity Rates?”

Step-by-Step Guide: How to Switch Electricity Providers

1. Compare plans and rates using your actual usage.

2. Check your current contract for early termination fees.

3. Select a new provider and enroll online or over the phone.

4. No service interruption: The switch is seamless, and you’ll get your first bill from the new provider at the next cycle.

For a more detailed guide on how to switch providers properly, see our blog article “How to Switch Electricity Providers in Texas.”

Frequently Asked Questions About Plano Electricity Rates

Why are electricity rates high right now?

Rates can spike due to increased demand, fuel price volatility, or extreme weather.

Will electricity get cheaper?

Cheaper periods tend to occur after the peak summer heat or the coldest winter temperatures. However, it’s not guaranteed.

How do I avoid hidden fees?

Always read the EFL and check for base charges, minimum usage fees, and early termination fees. Or join Energy Ogre and we’ll review the contract for you!

How do I compare plans?

Use comparison sites, input your actual average usage, and look beyond just the advertised rate.

Are there special plans for businesses?

Yes, many providers offer customized commercial plans. You can contact providers directly or visit Energy Ogre’s specialized business electricity site to secure competitive rates for your commercial location. 

How do I switch electricity providers in Plano?

Simply sign up with a new REP or use Energy Ogre; they’ll find the best plan for you and handle the switch with no service interruptions.

Are there renewable energy options available?

Yes, many providers offer green energy plans. Use comparison tools to filter for renewable options.

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