Texas has electricity consumption of $24 billion a year, the highest among the U.S. states. Its annual consumption is comparable to that of Great Britain and Spain, and if the state were an independent nation, its electricity market would be the 11th largest in the world. Texas produces the most wind electricity in the U.S., but also has the highest Carbon Dioxide Emissions of any state.[4] As of 2012, Texas residential electricity rates ranked 31st in the United States and average monthly residential electric bills in Texas were the 5th highest in the nation.[5]
Month-to-month electric plans are more commonly known as variable rate plans. With these plans the amount you pay per kilowatt-hour for your electricity each month will vary. This price is based on fluctuations in the market, so when the price of electricity falls you’ll pay less, but when it rises, you’ll pay more. In other words, you’re really gambling and should realize ahead of time that what you pay for your electric will change every month. This is why month-to-month electricity plans are only best for people who need electricity for a short amount of time.

There are two main types of pricing in contracts: fixed and variable. With a fixed contract, the electric rate price you sign up for cannot change for the duration of your contract. With a variable contract, the rate price is subject to increase or decrease each day or month, based on the time of year and price of electricity for the provider at that moment. Variable pricing is often higher, but may be a good choice for those that don’t want to be locked into a contract.
How does that work? Spark Energy buys electricity and competes in the market for the best price -- a competition that ultimately drives prices down and allows us to deliver more value for your money. In Texas, switching to a different electricity provider is kind of like changing to a different long distance company. When you switch to Spark Energy, the utility will continue to deliver electricity to your home but Spark Energy will handle all the billing, including the utility’s delivery fees and the electricity you actually use.
Compared to the rest of the nation, data from the U.S. Energy Information Administration which publishes annual state electric prices [8] shows that Texas' electric prices did rise above the national average immediately after deregulation from 2003 to 2009, but, from 2010 to 2015 have moved significantly below the national average price per kWh, with a total cost of $0.0863 per kWh in Texas in 2015 vs. $0.1042 nationally, or 17 percent lower in Texas. Between 2002-2014 the total cost to Texas consumers is estimated to be $24B, an average of $5,100 per household, more than comparable markets under state regulation.[9] [10]
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