Types of Electricity Plans

In Texas, all electricity plans fall into one of three categories which are defined by the Public Utility Commission of Texas (PUCT). Different electric plan types means different contract terms for your electric service.

1) Fixed rate electric plans have a minimum service term of three months or more and a rate that remains the same for the length of the term. Fixed rate terms can protect you from fluctuations in energy prices. Common term lengths are 6, 12 and 24 months, and typically carry fees for canceling service before the end of the term.

2) Indexed electric plans can be either month-to-month or term electricity plans and have a rate determined by a predefined formula that is disclosed to the customer and based on a public index or other publicly available information. For example, when a rate indexed to the price of natural gas is going down, you'll enjoy a lower price. If it's going up, your rate may increase.

3) Variable rate electric plans have month-to-month rates that can be changed at any time by the retail electric provider (REP) based on their sole discretion and without notifying customers in advance. That might mean some surprise rate changes on your electric bill. Learn more about unpredictable variable rate plans.

TXU Energy doesn't offer any variable rate electric plans. We always provide plans with straightforward pricing and transparent terms, because we don't think you should worry about what you're going to pay for electricity each month.