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Fixed vs. Variable Rates

Learn about fixed and variable rate electricity in Texas and find a plan that's right for you.

  • Compare Power
  • Fixed-Rate vs. Variable-Rate Electricity
compare power author
Graham Griffin
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Which is Better: Fixed-Rate or Variable-Rate Electricity?

Those of you who have lived in Texas for more than a year may recall when winter storm Uri hit the state over Valentine’s Day weekend in 2021.

Millions of people in Texas were left without power by a storm that brought freezing temperatures and widespread outages, causing billions of dollars in damage.

Some Texans also paid a high financial price and learned the hard way the importance of having a fixed-rate energy plan in Texas. 

Texas residents enrolled in variable-rate electricity plans, such as Griddy (now out of business), had rates increase by as much as an eye-popping 18,000 percent.

These large bills were especially difficult during the recession, which primarily affected low-income Texans.

There were reports of bills as high as $10,000, which could bankrupt households already struggling financially as a result of the pandemic.

Texans with fixed-rate contracts, however, did not have to pay hefty electricity bills. Their fixed-rate contracts protected them from the changing market conditions. 

Winter storm Uri highlighted the importance of fixed-rate energy plans in Texas. 

Enroll today! Fixed-rate plans are as low as $0.10 per kilowatt-hour (kWh) on ComparePower.

Electricity providers in the state offer both variable-rate plans and fixed-rate plans. 

Knowing the differences can help you choose the right plan for your household.

Shopping rates for your business? Get a custom quote here in minutes.

Instantly find your best electricity rate.


Table Of Contents
  • Which is Better: Fixed-Rate or Variable-Rate Electricity?
  • What is a Fixed-Rate Electricity Plan?
  • Fixed-Rate Electricity Plans
  • What is a Variable-Rate Electricity Plan?
  • Benefits of Variable-Rate Energy Plans 
  • Is a Fixed-Rate or Variable-Rate Plan Right For You? 
  • Switching Electricity Rates
  • New Home Electricity Rates
  • Green Renewable Electricity Rates
  • Apartment Electricity Rates
  • High Bill? Find a Lower Rate
  • Fixed & Variable Electricity Rate FAQ
  • ComparePower Texas

What is a Fixed-Rate Electricity Plan?

Fixed-rate plans are fixed terms, typically 3, 6, 12, 24, or 36 months. You sign a contract with your electricity provider in order to get a fixed rate.  

Most Texas households have fixed-rate electricity plans which offer stable, predictable pricing. 

You will need to sign and commit to a contract but with that, you pay a fixed rate that does not change or fluctuate with market conditions.  

A fixed-rate energy plan does not mean your electric bill will always be the same. You still pay per kilowatt-hour.

The total kilowatt-hours you use, the rate you pay for that energy, and additional fees from the utility will determine your monthly bill. 

The Benefits of Fixed-Rate Energy Plans 

The benefit of a fixed-rate plan is peace of mind and predictability of your future electricity bills.  

The drawback is that you are committed to staying with your electricity company for the remainder of your contract term.

Even if market prices drop you will not be able to take advantage as you’ll be locked in a contract with your provider. 

While this may seem like a burden, most Texans enjoy the peace of mind that comes with fixed-rate contracts. 

Fixed-Rate Electricity Plans

Plan Name Plan Length Rate
TriEagle Energy - Eagle 1212 months10.0¢ / kWh
TriEagle Energy - Eagle 2424 months9.8¢ / kWh
TriEagle Energy - Eagle 3636 months9.6¢ / kWh
TriEagle Energy - Green Eagle 1212 months10.3¢ / kWh
TriEagle Energy - Green Eagle 2424 months10.1¢ / kWh
TriEagle Energy - Green Eagle 3636 months10.0¢ / kWh
Champion Energy - Champ Saver-1212 months10.4¢ / kWh
Champion Energy - Champ Saver-2424 months10.2¢ / kWh
Champion Energy - Champ Saver-3636 months10.1¢ / kWh
Champion Energy - Champ Silver-2424 months10.1¢ / kWh
First Choice Power - You Got This"! 2424 months12.9¢ / kWh
First Choice Power - You Got This"! After Hours 1212 months15.6¢ / kWh
Cirro Energy - Smart Lock 24 Online24 months18.7¢ / kWh
Cirro Energy - Smart Lock Saver 3636 months16.7¢ / kWh
Cirro Energy - Smart Saver 1515 months20.1¢ / kWh
Cirro Energy - Smart Value 12 Online12 months18.6¢ / kWh
Cirro Energy - Smart Saver 1818 months19.1¢ / kWh
Cirro Energy - Smart Secure 1212 months19.9¢ / kWh
Discount Power - Value Plus 1212 months19.7¢ / kWh
Discount Power - Value Plus 1818 months18.1¢ / kWh
Discount Power - Value Plus 2424 months17.1¢ / kWh
Discount Power - Value Plus 3636 months15.7¢ / kWh
4Change Energy - Maxx Saver Select 1212 months14.9¢ / kWh
4Change Energy - Maxx Saver Select 2424 months13.7¢ / kWh
4Change Energy - Cash Money 1212 months16.9¢ / kWh
4Change Energy - One Rate 1212 months18.5¢ / kWh
Green Mountain - Pollution Free e-Plus 24 Preferred24 months19.7¢ / kWh
Green Mountain - Pollution Free e-Plus 18 Preferred18 months21.1¢ / kWh
Green Mountain - Go Local Solar 12 Preferred12 months22.7¢ / kWh
Payless Power - Easy Choice1 months19.7¢ / kWh
Payless Power - Premier 1212 months19.2¢ / kWh
Amigo Energy - Amigo Web Plan 1212 months17.9¢ / kWh
Amigo Energy - Amigo Web Plan 2424 months15.9¢ / kWh
Amigo Energy - Nights Free Plan 1212 months19.5¢ / kWh
Just Energy - Simple Choice 1212 months18.5¢ / kWh
Just Energy - Simple Choice 2424 months16.5¢ / kWh
Just Energy - Simple Choice 3636 months15.5¢ / kWh
Just Energy - Just Assured 1212 months18.5¢ / kWh
Just Energy - Just Assured 2424 months16.5¢ / kWh
Just Energy - Just Assured 3636 months15.5¢ / kWh
Just Energy - 100% Green Nights Free Plan 1212 months19.9¢ / kWh
Just Energy - Nights Free Plan 1212 months19.9¢ / kWh
Tara Energy - Tara Web 1212 months17.9¢ / kWh
Tara Energy - Tara Web 2424 months15.9¢ / kWh
Tara Energy - Nights Free Plan 1212 months19.5¢ / kWh
TXU Energy - Clear Deal 2424 months14.9¢ / kWh
TXU Energy - Flex Forward1 months17.5¢ / kWh
TXU Energy - Free Nights & Solar Days 1212 months17.9¢ / kWh
TXU Energy - Saver's Discount 2424 months21.2¢ / kWh
TXU Energy - Season Pass 1212 months17.9¢ / kWh
TXU Energy - Ultimate Summer Pass 1212 months17.9¢ / kWh
Constellation - 12 Month (No Min Usage Fee)12 months19.9¢ / kWh
Constellation - 12 Month Usage Bill Credit12 months18.4¢ / kWh
Constellation - 36 Month Usage Bill Credit36 months14.9¢ / kWh
Reliant - Basic Power 20 plan20 months19.1¢ / kWh
Reliant - Basic Power 24 plan24 months18.7¢ / kWh
Reliant - Basic Power 36 plan36 months16.7¢ / kWh
Reliant - Conservation 20 plan20 months18.9¢ / kWh
Reliant - Conservation 24 plan24 months18.5¢ / kWh
Reliant - Truly Free Nights 100% Solar 24 plan24 months19.7¢ / kWh
Reliant - Truly Free Weekends 100% Solar 24 plan24 months19.7¢ / kWh
Direct Energy - Live Brighter 1K+ 2424 months17.7¢ / kWh
Direct Energy - Live Brighter 1K+ 3636 months16.7¢ / kWh
Direct Energy - Live Brighter 3636 months18.4¢ / kWh
Direct Energy - Live Brighter Lite 1818 months18.2¢ / kWh
Direct Energy - Live Brighter Lite 2424 months17.6¢ / kWh
Pulse Power - Texas Fixed 1212 months20.0¢ / kWh
Pulse Power - Texas Fixed 2424 months16.9¢ / kWh
Pulse Power - Texas Fixed 3636 months15.4¢ / kWh
Pulse Power - Texas Green 1212 months20.5¢ / kWh
Pulse Power - Texas Green 2424 months17.4¢ / kWh
Pulse Power - Texas Green 3636 months15.9¢ / kWh
New Power - Power of Credit 1212 months15.6¢ / kWh
New Power - Power of Credit 2424 months14.2¢ / kWh
New Power - Power of Credit 3636 months13.8¢ / kWh
New Power - Power of One 1212 months23.6¢ / kWh
New Power - Power of One 2424 months23.8¢ / kWh
New Power - Power of One 3636 months24.0¢ / kWh
Frontier Utilities - Beat the Heat 1212 months14.9¢ / kWh
Frontier Utilities - Frontier Super Value 1212 months13.7¢ / kWh
Frontier Utilities - Frontier Max 1212 months20.2¢ / kWh
Frontier Utilities - Frontier NHF 12+12 months18.0¢ / kWh
Gexa Energy - Gexa Energy Saver 2424 months16.6¢ / kWh
Gexa Energy - Gexa Saver 1212 months14.1¢ / kWh
Gexa Energy - Gexa Saver Advantage 1212 months16.9¢ / kWh
Gexa Energy - Gexa Saver Deluxe 1212 months13.9¢ / kWh
Gexa Energy - Gexa Saver Premium 1212 months20.8¢ / kWh
Gexa Energy - Gexa Saver Value 1212 months18.1¢ / kWh
Gexa Energy - Gexa Superb Saver 1212 months21.7¢ / kWh

These live rates for Oncor Electric Delivery service area were updated on May 27, 2022 at 3:19 pm CST. Pricing shown is based on an exact usage of 1000 kWh.

Compare the best electricity rates for your home.

What is a Variable-Rate Electricity Plan?

Variable-rate plans can change with weather and market conditions and are tied to the fluctuating price energy providers pay to buy electricity from power generators. 

Variable-rate plans can be enticing because they offer cheaper power when the state’s electricity supply is abundant, but more expensive rates when demand is high. 

Some households with variable-rate plans may not even realize they are being billed on a variable rate. 

Consumers are often switched to variable-rate plans by retail energy providers when their fixed-rate contracts expire.

Check your electricity bill for your contract end date. If your contract has lapsed it’s time to shop for a new rate. 

Learn how electricity contract renewals work in Texas.

Benefits of Variable-Rate Energy Plans 

Variable-rate plans do not require a contract, so you are not locked into a long-term commitment.

The disadvantage of a variable rate electricity plan is that the rate can vary from month to month according to market conditions. 

Plans with variable rates are best suited to consumers who need electricity on a short-term basis or understand the risks associated with them.

Is a Fixed-Rate or Variable-Rate Plan Right For You? 

Although variable-rate plans seem enticing, do your homework before you choose a variable-rate plan over a fixed rate for electricity service. 

Variable rates always carry some level of risk. Understanding the risk you’re taking is critical when dealing with variable-rate energy plans.

Our recommendation is to choose a fixed-rate plan to avoid the uncertainty that comes with variable rate plans. 

For short-term power needs or if you absolutely do not want to be locked into a contract, choose a variable rate. But be aware that the cost may fluctuate significantly from month to month.

Compare the best fixed-rate electricity plans for your household

Switching Electricity Rates

Check the expiration date on your electricity bill. If your contract has lapsed, consider switching energy providers, as you could be leaving money on the table.

We’ll show you how to make an informed decision when it comes to choosing the best energy plan for your home. 

Learn how to switch energy providers to get a lower rate in Texas.

New Home Electricity Rates

Moving into a new home and need to set up electric service?

The best way to shop for an energy plan in Texas is still by estimating your anticipated monthly usage.

This Online Electricity Usage Calculator will help you estimate your new home’s approximate energy usage so you can make an informed decision.

Find the best energy company for your new home.

Green Renewable Electricity Rates

By choosing renewable energy you’re also making a statement to use 100% clean electricity to power your home.

Make a commitment to using clean, renewable energy in your own life with a green electricity rate.

Find the best green energy plans on ComparePower.

Go green and save with a fixed rate energy plan.

Apartment Electricity Rates

Have proof of service for your leasing office or landlord instantly. 

You will need an electricity account number prior to moving into your apartment in Texas.

Your landlord or leasing office requires proof of service prior to your move-in date.

Enroll for electric service with ComparePower and have proof of service in a matter of minutes.

Learn how to shop apartment electricity rates.

Instantly find your best electricity rate.

High Bill? Find a Lower Rate

Is your electricity bill too high? If you’re confused by all the different energy companies and electricity plans in Texas, you’re not alone.

Don’t overpay for electricity when you can put that money in your bank.

Learn how to avoid how electricity bills in Texas.

Fixed & Variable Electricity Rate FAQ

What Causes Variable Electricity Rates to Change?

Variable-rate plans can change with weather and market conditions and are tied to the fluctuating price energy providers pay to buy electricity from power generators. 

If I Choose a Variable Rate, will my Electricity Bill Increase?

Variable rates can vary from month to month according to market conditions. 

Should the Size of My House/Apartment Influence My Electricity Plan Choice?

Yes, electricity is priced by kilowatt-hour. Larger homes use more energy than smaller ones. When looking for an electricity rate, you need to know how much electricity you use.

Is this information helpful?

Does this page help you make a more informed energy decision?

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