Have you noticed that the electricity companies in Texas have a routine of changing electricity rates every month? If so, you are more aware than the majority of electricity consumers in Texas.
Every month, the electricity rates are updated during the first few days of the month. Electric companies move rates up or down, but the companies usually move in unison with one another.
For example, most electric companies in Corpus Christi lowered their electric rates 0.4 cents this month. They did this the first two days of the month, and the price decline was across the board.
Likewise, the electric companies in Plano dropped their rates by 0.2 cents at the same time. This is standard practice, and you can benefit by understanding the seasonal swings in the prices of Texas electricity.
Why Are Electricity Rates Cheapest in the Spring and Fall?
The reason for this is simple. There is more demand for electricity in the summer and winter. Families and businesses use more electricity during those months.
The spring and fall seasons bring mild temperatures. Because of this, people do not use as much electricity to cool or heat their homes. These months are called the “shoulder months”.
You can use this seasonality of electricity rates to your advantage. You should plan ahead so that your electricity plans are expiring during the cheaper shoulder months.
How Do I Make Sure My Electricity Plan Expires During the Shoulder Months?
Let’s say your current electricity plan expires in July. You can take steps to move that back to April. There are two ways to do this. One way is quicker, but there is an expense to it.
The quickest way is to pay an Early Termination Fee to end your contract in April. If you have a plan that only charges $20 per remaining months, that relatively cheap to do. But if you have a plan with an expensive ETF, use the following Strategy.
Generally, electricity companies in Laredo do not charge the ETF fee if you switch to a new provider within 2 weeks of your contract end date. So this year switch to a new provider two weeks early. Make sure to pick an plan with an ETF of $20 per remaining months. That way, you can move your renewal date back another month or two to take advantage of the cheaper electricity rates.
Which Electric Companies Have the Cheapest Early Termination Fees?
If you need to adjust when your electricity plans expire, it is important to choose an electric company with a cheap ETF. There are three electric companies in Texas that have cheap early termination fees. Those companies are Express Energy, 4Change Energy and TriEagle Energy.
By switching to one of these electricity providers, you can make an affordable strategy to move your contract end date. This will allow you to save money on your electric bills.