Fixed-rate, long-term (contract) plans provide stability in electricity rates. If market energy costs suddenly trend upward where you live, you can rest assured that you won’t have to pay more out of pocket. However, if you want to switch to a different, lower-cost plan before the end of the contract term, you’ll likely have to pay a cancellation or early termination fee.
Legislation deregulating the energy market for most of the Lone Star State, including Dallas, took effect in January 2002. This means that, while a single utility provider will continue to deliver the electricity, consumers now can compare prices offered by several suppliers. Customers also can choose from different variable-rate and fixed-rate plans. Energy deregulation in Dallas has stimulated competition between providers. This has led to lower rates relative to the national average. Check rates out here.
Unlike with long-term plans, monthly, variable rate (no-contract) plans have no cancellation fees. You won’t have to pay a penalty if you decide to take your business elsewhere because you found a better deal. Plus, you won’t be left paying more than you should if the market rate for energy trends down. However, if the market prices rise, you’ll have to pay more than those who are in-contract.