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If you live in one of the many deregulated electricity markets across Texas, the answer is, "Yes! You have a choice."
And when you’re shopping for an electric package, you'll find that your choices basically fall into three different categories — variable, indexed and fixed rate plans. In every case, rates are tied to the number of kilowatt hours (kWh) of electricity you use.
Which option is best for you depends on your situation, needs and budget, so it's important to know the basics of each electric package type.
Variable Rate Plans
With variable rate plans, you may start with a low rate, but the electric provider has the option to raise your rate, without giving you advance notice. This means that your electric bill could easily skyrocket from one month to the next — even if your household used about the same amount of electricity.
At TXU Energy, we don’t like surprising our customers. For this reason, we don’t offer variable rate electric packages. In fact, we’re so committed to providing our customers with a rate they can rely on that we’re the only major Texas electricity provider with a Safe Price Promise on popular month-to-month plans like TXU Energy SureStartSM. It's simple: We promise that your pricing formula won’t change for at least the first six months on this plan, except in the limited circumstance of a change in law or regulatory charges.
Indexed Rate Plans
With this type of electric package , you can choose a month-to-month plan in which your kWh rate is tied to a pre-defined formula and is disclosed to you before you sign up. The "indexed rate" comes from the fact that part of the formula is based on a public index or other publicly available information, like the price of natural gas. In this example, when the price of natural gas is going down, you'll enjoy a lower price. If it's going up, your rate may increase.
One of our electric packages with an indexed rate is called TXU Energy MarketEdgeSM. With this month-to-month plan, you’ll save when natural gas prices are low, but you can easily switch to a fixed rate plan should prices start to rise.
Fixed Rate Plans
With a fixed rate plan, you can secure your electricity rate for a given term. These electric packages generally have term lengths of six months or longer. Some benefits of fixed rate electricity plans are:
• You can avoid wild fluctuations in your kWh rate.*
• You gain important protection from rising power generation costs.
• You’ll get the security of knowing what you’ll pay during the term of your plan.
Look Beyond the Plan — See What's in Your Total Electric Package
Whichever option you choose, you're picking more than just a plan. You're picking an entire electric package that includes the credibility of the provider as well. So it's important to make sure your provider is one you can count on. As the #1 choice for electricity in Texas, we've built a reputation on doing what's right for our customers.
We understand that when you need assistance with your electricity — no matter how infrequently — you need that assistance ASAP. We’re here for you 24 hours a day, 7 days a week so your questions can be answered before they become concerns.
See which plans and offers are available from TXU Energy in your area today.
*Only a change in law or regulatory charges can affect your price.