Variable Electric Rates

by admin on February 5, 2009

A variable Texas electric rate has a few different variations depending on the electric provider you choose. The variable electric rate is also different when comparing commercial electric service to a residential electric service plan. On a commercial variable electric rate you are usually strictly on the market clearing price for energy as managed by the Electric Reliability Council of Texas. This is a historically low rate that is usually several cents cheaper then the going fixed electric rate.

For a residential home that chooses a variable electric rate you might be on a rate that follows natural gas, heat rate and MCPE. The electric rate may also change for unkown reasons for whatever reason the residential electric company you chose decides. Variable electric rate plans for residential consumers in Texas are often times unclear in the contract terms and conditions as to what criteria is used to adjust these rates. Many times a “fuel surcharge” will be listed as a reason your electric rate may go up. Fuel prices change daily so this might mean the rate will always go up with some electric companies. Be careful when choosing a variable Texas electric rate because you have no control over what the price might do.

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