Risks Associated with 3 Month Electricity Plans

Should you enroll in a 3-month plan?

When shopping for electricity in Texas, you can find plans as short as 1 to 3 months long.

3-month plans in particular may offer an enticingly low rate.

But is that the right plan for you? Depending on the time of year, a 3-month energy plan may be an incredibly risky decision.

Here’s why:

You may enjoy cheap prices temporarily, but get stuck with super-high summer prices later.

Seasonal price fluctuations

The cost of energy production during summer is typically much, much higher compared to spring and fall. Winter prices vary based on Texas’s erratic weather patterns.

Energy production costs have a direct impact on customer pricing. The higher the cost to produce energy, the higher prices per kWh customers will see when shopping for available plans.

This means that energy prices are generally higher during the summer compared to the rest of the year.

Difficulties with plan renewals

Thanks to changes in prices as a result of seasonality, renewing a plan at an affordable rate can become significantly more difficult when a 3-month plan ends in June, July, or August.

Those summer months typically see the highest energy rates throughout the year, and by enrolling in a short-term plan during the spring, you can put yourself between a rock and a hard place when it comes time to renew.

12-month plans are the best option

12-month plans naturally balance out any changes in seasonality. That makes it easier to find an affordable plan when it is time to renew.

BKV Energy has the solution

When you enroll in the Bluebonnet electricity plan with BKV Energy, regardless of the term length, you are automatically enrolled in our BKV Energy Plus benefits program at no additional cost.

This program includes a revolutionary service called Reduce Your Rate. Our system automatically searches to find you a lower rate. If we find one, we’ll give you the opportunity to switch to the new lower rate for free!

Enter your zip code to explore plans in your area and take advantage of Reduce Your Rate today!

Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.