Do Mild Temps Cost Houston Fixed Rates Customers More?
Houston’s hot weather could last well into fall. That matters for customers in the CenterPoint area who are shopping for electricity. Hot weather means more AC use. Then, mild fall days can cut power use before winter heating sends it back up. So, will fixed rate plans in Houston cost more this winter? Based on current TruBill estimates, the cheapest fixed rate plans cost more than the cheapest bill credit plans.
That may sound odd. Bill credit plans can cost more when mild weather causes your power use to fall below the level needed for a credit. But that is only part of the story.
TruBill Shows Bill Credit Plans Cost Houston Customers Less
The three cheapest bill credit plans have TruBill monthly estimates between $147 and $148. The cheapest is the Simple Saver Smart Credit 9 from APG&E. The 12-month version of this plan comes in $1 per month higher, as does the Pepper Tree 12 from BKV Energy.
The three cheapest fixed rate plans are $162, $165, and $167 per month. In order, they are True Classic 11 from APG&E, Champ Saver-9 from Champion Energy Services, and True Classic 12 from APG&E. That is a gap of $15 to $20 each month.
TruBill helps explain why. It looks at how average power use changes during the year. Then it uses the plan’s rates, fees, delivery costs, and bill credits to estimate a monthly bill.
This gives shoppers a better view than the advertised rate alone. As a result, a cheap rate at 1,000 kWh does not mean a plan will stay cheap when your power use changes.
What Happens When Winter Gets Cold?
Bill credits can lose some value during mild weather. The reason is that a home may use too little power to reach the plan’s credit level. Without that credit, the monthly bill can jump.
Cold weather can turn that around. Many Houston homes use electric furnaces. On cold days, heating can push power use back above the bill credit level. That makes the credit easier to earn.
But, a shorter mild season could also help customers. If Houston moves from late-season heat into colder weather faster, families may spend fewer months below their credit level.
Look Beyond the Advertised Rate
This energy comparison does not mean a bill credit plan will save money for every home. Your power use still matters. Families that often miss the credit level may get a very different result.
But shoppers asking whether fixed rates could make Houston cost more this winter have a clear answer from TruBill. Right now, the cheapest bill credit plans have lower monthly estimates than the cheapest fixed rate plans.
Before choosing a plan, look at how its costs change with your power use. Compare Houston electricity plans and TruBill estimates at http://www.texaselectricityratings.com/electric-rates.