How to Choose an Energy Provider & The Right Electricity Plan

woman reviewing electricity bill

Are you tired of feeling like you’re stuck with the same old energy plan that doesn’t quite fit your needs? We hear you. That’s why we’re here to help you navigate the world of Texas energy plans and find one that’s tailored to your lifestyle and budget.

In this guide, we’ll show you how to choose an energy plan in Texas. We’ll cover everything from different plan types to contract length and incentives, so you can make an informed decision that fits your lifestyle and budget. So let’s dive in and find the perfect energy plan for you!

Finding the Perfect Energy Plan: What to Consider in Your Search

When you’re looking for an energy plan, taking the time to consider all the factors that might affect your bill can make all the difference. After all, everyone is different, and what works for one person might not be the best fit for someone else.

So, we’ve created a list of key factors you should consider to help you choose the best electric plan, which we’ll explore in more detail in the following sections. This will help you make an informed decision on the perfect energy plan for your needs.

The Top Factors to Consider When Choosing an Energy Plan for Your Home

  1. Rates: Compare the rates of different energy plans to make sure you’re getting the best deal. Be sure to look at both fixed and variable rates, as well as any special promotional rates.
  2. Length of Term: Consider the length of the contract term, and whether it’s a good fit for your lifestyle and living situation. Keep in mind that shorter terms may offer more flexibility, while longer terms tend to offer more stability.
  3. Payment Options: Look at the different payment options available, such as prepaid or postpaid plans, and decide which one works best for you.
  4. Personal Elements: Choosing an electric plan that fits your unique needs and lifestyle requires careful consideration. Factors such as your living situation, preference for stability or flexibility, and overall lifestyle should be taken into account to ensure you find the right plan for you.

Navigating the energy market can be a daunting task, but you don’t have to do it alone. Our team of experts at BKV Energy is here to help you choose the perfect energy plan that fits your unique needs. Whether you’re interested in stable rates, renewable options, or short-term flexibility, we’ve got your back. Don’t hesitate to contact us today to learn more about how to choose the best energy plan for your needs and see how we can assist you in this process.

Energy Rate Plan Structures in Texas: Fixed Rate, Variable Rates, and Indexed Rates

When it comes to choosing an energy plan, it’s important to consider which rate structure will work best for you. You’ll typically have three main options to choose from: fixed, variable, and indexed plans. Each option has its advantages, disadvantages, and structures, which we’ll dive into now to help you find the best electrical plan for your needs.

Fixed Rate Plans vs Variable Rate Plans: Choosing Between Stability and Flexibility in your Energy Plan

Fixed rate and variable rate plans are the two most common types of energy plans offered by electricity providers in Texas, each with its own unique benefits (and drawbacks) to consider.

Fixed Rate Electricity Plans

When you choose a fixed-rate electricity plan, you’ll enjoy a stable energy bill with a set price for each kilowatt-hour (kWh) you use, which means you won’t have to worry about market conditions affecting your rate. While your bill may still change based on usage and utility fees, the consistency of the rate offers peace of mind for those who value predictability in their monthly expenses.

Benefits of Fixed Rate Electricity Plans:

  • Enjoy more peace of mind with a fixed rate plan, knowing that your monthly bill will remain consistent and predictable.
  • Lock in a low rate by signing up for a fixed rate plan during a seasonal low, potentially saving a significant amount of money over the course of your contract.
  • Fixed rate plans are simple and easy to understand, with a set rate that remains the same regardless of the time of day, day of the week, or season.
  • Unlike time-of-use plans that charge different rates based on the time of day, fixed rate plans offer the same rate all the time.
  • Avoid the complexity of tiered usage plans that require you to adjust your lifestyle to meet specific usage patterns to qualify for discounted rates.

Drawbacks of Fixed Rate Electricity Plans:
With fixed rate plans, you’ll miss out on potential savings during seasonal lows, but you’ll gain peace of mind knowing that your rate won’t change during times of high usage or extreme weather.

Variable Rate Electricity Plans

If you’re considering a variable rate plan, keep in mind that your energy bill will fluctuate with the market cost of electricity. While you could score some great savings during times of low demand, be warned: Rates can shoot up during peak periods. So before you sign on the dotted line, make sure to read the fine print and get ready to adjust your budget for the ups and downs. In fact, variable rate plans can be so costly, following the 2021 ice storms, the high costs of variable rate plans led to some consumers receiving bills of thousands of dollars and even the bankruptcy of some retailers. This in turn led to the Texas Legislature banning some types of variable rate plans, which just goes to show how tricky these types of plans can be.

Benefits of Variable Rate Electricity Plans:

  • Variable rate plans offer flexibility and the potential to take advantage of market lows.
  • You may save money during times of low demand, such as during seasonal or summertime rate hikes.
  • Variable rate plans have no contracts or breakage fees, making them a great choice for short-term power needs or if you plan to find a longer-term option later.

Drawbacks of Variable Rate Electricity Plans:
Variable rate plans can be as unpredictable as the Texas weather – one minute you’re basking in the sunshine, and the next minute you’re caught in the middle of a hailstorm! Prices can change suddenly, especially during seasonal peaks or extreme weather. So, if you value consistency and predictability in your monthly energy bills, a variable rate plan might not be the best fit for you.

Note: Pre-paid and month-to-month plans are always variable rate plans since they aren’t tied to a longer-term agreement.

Indexed Rate Plans: A Very Uncommon Rate Plan

If you’ve never heard of an indexed rate electricity plan, don’t worry, you’re not alone. These plans use a mathematical formula that factors in a commodity index, like the seasonal demand for Texas energy, to determine your cost. They’re relatively rare due to their complexity and lack of popularity.

Indexed rates may provide lower rates during certain seasons, as you’ll be charged based on the current market value of energy. But be aware that indexed plans come with some risk, so make sure to carefully review the terms and conditions before signing up.

Other Electricity Rate Plan Types in the Texas energy market

Averaged Billing

If you’re looking for a way to avoid surprises on your energy bill, averaged billing could be the perfect (and free!) option for you. With this feature, your monthly energy bills are smoothed out by averaging your usage and costs over the past twelve months and dividing them into equal payments throughout the year. This means you’ll pay nearly the same amount every month, regardless of seasonal usage spikes.

While your actual usage may vary slightly, the difference is tracked and kept in a deferred balance that’s credited back to you (if you used less electricity) or billed to you (if you used more electricity) at the end of your contract. Overall, averaged billing is a great choice for anyone who values a consistent and predictable bill. And the best part? You can apply averaged billing to your regular plan, so if you secure a low rate in the off-season, you get to keep it. 

Flat Rate Electricity Plans

If you’re someone who wants a predictable monthly energy bill and doesn’t want to worry about tracking your usage, a flat rate pricing plan might be a good fit for you. With a flat rate plan, you pay the same price for electricity each month, regardless of how much energy you use, with some reasonable usage restrictions.

These plans are sometimes marketed as “unlimited” plans, but similar to mobile data plans, there may be a soft cap, after which the rate can increase. Flat rate plans can work well if your energy usage is consistent (and if you only need a little extra energy occasionally), or if you need to ensure the same bill every month for budgeting purposes.

Tiered Rate Energy Plans

If you’re interested in tiered rate plans, keep in mind that your energy usage will be grouped into different buckets with designated flat fees. This can be beneficial for both you and the energy retailer because it allows rates to be locked in and the retailer can predict their energy demand needs, buying wholesale energy at lower prices.

However, if your energy usage falls outside of your tier, you may end up paying a higher fee for that usage. Some people find that these plans work well for their needs, but keep in mind that shifts in energy usage from lifestyle changes or extreme weather events can push you into the higher-priced tiers, dramatically changing your bill.

Time of Use Pricing

If you’re considering a time of use pricing plan, keep in mind that your electricity costs will vary depending on the time of day or week. While you could potentially save money during off-peak periods, be warned: if you don’t adjust your usage to take advantage of these reduced rates, you could end up with higher bills than before. Make sure to carefully review the plan’s requirements and assess whether they will work for your lifestyle before making the switch.

Bill Credit Plans

If you consistently fall into a certain energy usage range, bill credits might be a great way to earn discounts on future energy bills. Essentially, bill credit plans reward you for meeting specific energy usage requirements each month. But while these plans can be a good way to earn a lower apparent rate per kilowatt-hour, they have the same potential drawbacks as tiered rate plans: if you don’t meet the usage requirements, you may end up paying a much higher rate than expected.

How to Choose a Term Length

Finding the right energy plan term length isn’t just about getting the best deal. It’s about figuring out what works best for you, depending on factors like your lifestyle, living situation, and overall preferences. Whether you’re a student renting an apartment or a homeowner planning to stay put for the long haul, there’s a term length out there that’s perfect for your needs.


If you prefer flexibility or don’t want to commit to a plan, a month-to-month option may be best for you. This is especially true if you are on variable or indexed plans, as you can take full advantage of seasonal lows. But don’t forget to renew monthly!

3-months to 6-months

If you’re looking for short-term stability, a 3 to 6-month plan may work for you. This term will allow you to take advantage of seasonal prices and is an excellent choice for renters.


If you’re looking for moving protection or have a year-long lease, you may find that a 12-month plan is the best solution for you. With this plan, you’ll have the stability of a fixed rate for a full year, giving you peace of mind knowing that you won’t have to worry about price changes during that time.

24-months to 36-months

If you’re a homeowner and value long-term stability, a 24 to 36-month plan may be the best option for you. This plan provides long-term stability and ensures you won’t have to worry about shopping for an energy plan for a while.

Long-Term Energy Plans: What You Need to Know

If you’re looking to save on your energy bills, committing to a long-term plan with a low fixed rate can be a smart move. This type of plan provides price security and protection against market fluctuations. But, remember, the ideal term length for you will depend on several factors, including your budget, lifestyle, and housing situation. Take the time to carefully consider each factor to make the best choice for your energy plan.

Payment Options

Do you want to pay for your energy plan before or after you use it? That’s the decision you’ll have to make between prepaid and postpaid options. With prepaid plans, you can buy a set amount of electricity ahead of time, while postpaid plans bill you based on your usage each month. So which one is right for you? Let’s dive in and explore the pros and cons of each.

Postpaid Plans

With postpaid plans, you get flexibility and convenience in paying for your energy bill at the end of the month. This option allows you to select a plan that suits your unique energy needs, whether you prioritize price security or short-term savings. Plus, you don’t have to constantly monitor your usage or recharge your account since your energy provider will calculate your bill at the end of each month.

Prepaid Plans

If you prefer more control over your energy usage and want to avoid surprises on your bill, prepaid plans could be a great choice for you. These plans offer flexibility and price predictability, allowing you to pay for your energy usage ahead of time. They’re also a great option if you want to avoid deposits and credit checks.

However, it’s important to remember that if you run out of funds on your account, your electricity could be disconnected until you add more money. But with the right monitoring and planning, prepaid plans can be a smart and convenient way to manage your energy usage.

Get Expert Advice and Save Money with BKV!

Choosing an energy plan for your home or business can be overwhelming, but don’t worry! At BKV, we’re here to make it easy. We understand that everyone has unique needs and budgets, and our team of experts is dedicated to helping you find the perfect electricity plan. Whether you’re interested in stable rates, renewable options, or low-cost plans, we’ve got you covered. Contact us today and let us show you how to choose the best energy plan for your needs.