The Woodlands Texas Electric Rates

by Donny on January 20, 2009

Understanding the Woodlands Texas Electric Rate Plans

Check the Woodlands Texas Electricity Prices and Terms – Click Here
If you live in the Woodlands or will be relocating to this Houston Texas area city soon then you have several choices when picking an electric company. A few electricity providers in the Woodlands have been known to quote a very low “energy only” electric rate without including the non-negotiable pole and wires charges that are past through from the utility, Centerpoint Energy. This is not the normal way of quoting a residential Woodlands electric rate as most electric providers will quote an energy price that includes the pole and wires charges.

Unlike a commercial electric rate in the Woodlands Texas area a residential rate has the TDSP (pole and wires charges) fixed and so these charges can be past through and fixed as a part of the rate. A commercial electric rate in the Woodlands has the commercial TDSP charges passed through but they are variable charges that change each and every month based on the kWh usage and primarily the KW demand being used in a month. When comparing residential Woodlands rates with Commercial rates you will discover that you will receive a slightly cheaper electric rate by being on a residential rate if you use 50,000 kWh a year or less. If you use over 50,000 kWh a year you will likely save more money by being on a commercial electric rate.

Why are Longer Term Fixed Rates More Expensive

There are several different fixed electric rate terms to choose from when picking a Woodlands Texas residential electric rate. Sometimes a longer term fixed rate will be more expensive then a shorter term electricity price. This is not because the electricity provider is trying to penalize you for signing up longer term. The energy company selling you this electricity actually hedges the electric rates they sell you by buying energy commodities futures contracts. These contracts are sometimes more expensive for a longer term then they are for a short term. Sometimes a short term futures contract is more expensive. When these energy companies in the Woodlands buy these commodity futures they are protecting a slim profit margin while fixing the electricity price they sell you. This keeps their risk low and allows them to sell an electricity rate that will not fluctuate for the monthly term you choose. For instance, if you signed a 6 month fixed rate contract the rate would stay the same for exactly 6 months. Right now a 6 month fixed rate is a little cheaper then a 1, 2, or 3 year fixed electricity rate. This is not always the case as sometimes it is exactly the opposite. It all depends what the speculators on the futures market are forecasting.

Residential or Commercial Electricity Rate?

Unfortunately if your electric meter in the Woodlands Texas has been designated as a residential or commercial electric meter by Centerpoint Energy then you have no choice or ability to sign up for a commercial rate if you are a residential home and the same situation goes for the commercial business that wants a residential electric rate. This is not necessarily bad as for most home owners a commercial electric rate would end up costing you much more money then a residential rate. Most homes use about 20,000 kWh a year. The TDSP charges would end up costing a residential home a very large percentage of their bill. A commercial company who got their business on a residential electricity plan would find a situation where they were getting a sweet deal on their TDSP charges because they would be fixed. The Centerpoint Energy utility will not designate a commercial electric meter as a residential meter because they would lose money by charging residential TDSP charges to a business that has a larger demand for electricity then a typical residential household. Even if the kWh usage per month is about the same as a house the probability is that the commercial meter still demands more electricity during business hours. So for the small dentist office or Curves fitness studio in the Woodlands Texas area that would like to get on a residential electric rate you really do not have a choice. I would however check with several electricity providers in the Woodlands to see if they offer an option of fixing the TDSP charges for you. For the small business this may reduce your electric rate a few cents kWh instead of being on a fluctuating TDSP charge. Some electric providers will fix your TDSP charges for the small business so it is worth checking in to.

Working with a Texas Energy Consultant

If you would like to talk with a Texas Energy Consultant about your Woodlands Texas electric service needs then please feel free to give us a call. One of our energy consultants would be glad to put your commercial energy usage through a reverse auction process in an attempt to get you the best possible electric rate. We go out to about 15 different electric providers in the Woodlands Texas area and work the electricity rate down to its lowest point. We then put a detailed proposal together that has several different fixed electric rate choices and options. We email this over and you pick the electric rate, term, and company that works for you best. If you have any questions one of our energy consultants is there to explain the proposal and clear up any confusion about your current electric provider and charges.

Contact a Texas Energy Consultant to Begin the Energy Proposal Process – 1-800-971-4020

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