Signing up for an electricity service can be confusing due to the inherent terms and pricing options available across different plans. There are multiple utilities and service providers which makes it even more difficult for you to pick the right plan.

A steady increase in the electricity rates due to many coal-fired plants in the country being shut down has also affected everyone in Texas. With summer right around the corner, a power cut is the last thing you need.

It is difficult to understand the fine print when it comes to comparing some of the cheapest electricity plans in Texas. The term all-inclusive doesn’t necessarily include everything, as there are additional fees charged to your bill. Here are some tips that will help you compare the cheapest electricity plans in Texas.

Find out your monthly usage
You can estimate your monthly usage based on your home size or check and compare average usage of your previous bills to find out how much is needed. Kilowatt-hour (kWh) is a standard unit for measuring electricity. All electricity companies offer kWh plans for a monthly rental.

Variable or fixed rate plan
The type of plan is crucial after you have managed to ascertain your approximate monthly usage. In a fixed plan, the monthly rate will not change irrespective of the duration of the plan. However, if you are okay with the rates fluctuating, a variable duration will offer you plans for some of the cheapest electricity rates in Texas.

Duration of the contract
Electricity providers offer plans that can be purchased on a monthly rental basis with no contract. There are long-term plans that range from 3 to 36 months depending on the service provider. If you are anticipating a rate fluctuation, it is advisable to take a long-term contract for a year or two. You can lock in long-term plans at a lower rate today to save in the future. Alternatively, you can take up a short-term contract with a variable plan with fluctuating rates.

Consider green energy plans
Green energy is generated with the help of renewable sources that include solar, wind, and hydro-electricity. You also play a big role in saving the earth’s ecosystem by purchasing green energy plans. Green energy plans are also beneficial for you in many other ways. For example, the amount of energy used in a particular billing cycle is added back to the energy grid through renewable sources when you elect to purchase a 100% green energy plan.

Trusted electricity companies in Texas
For some of the cheapest electricity plans in Texas, you should buy plans from trusted electricity companies. Reliant, TXU energy, 4CHANGE energy, Direct energy, Cirro energy, Pennywise power, and Green mountain energy are a few reliable companies among many others.