If you have questions about your rate, payment options, government intervention in the form of FEMA funds, or anything else, you should contact your energy provider. This means if you are on an indexed variable rate you are probably going to receive a high electric bill for February. Even a very short period of time at high rates can result in bills being higher than normal. If you do not see that information on your bill, please contact your retail electric provider.ĭuring the winter storms, the real-time market price hit the system cap for the Texas market. If you are unsure if your contract has expired or when it expires, that information may be listed on your bill. It is essential to know that most electricity contracts default to index-based pricing at the expiration of their existing contract term. This type of rate may also be referred to as a “wholesale” rate. Index pricing can be very beneficial during normal weather conditions resulting in a low cost of power, but when demand increases in the hot summer months or cold winter months, rates can rise significantly with sometimes little to no warning. In Texas, the market settles every 15 minutes and the price per kWh can go up or down every 15 minutes. Index rates are based on real-time market prices. Indexed Variable Rate (Expired Month to Month) If you are on a variable rate electric plan you should look to find a new energy provider as soon as possible. Since your rate changes month to month, you should not see a large increase in February, but your March rate could be much higher. Since market rates have increased significantly it is very likely that your rate will increase next month. In the case of the recent winter storms, this is not ideal. Your rate can go up or down based on the market and the discretion of your energy provider. Variable rate plans have no monthly contract or cancellation fee, but the rate you pay per kilowatt-hour (kWh) can vary from month to month. In that case, you should search for a new energy provider. There is a chance some energy providers may even cancel contracts. If your energy provider changes your contracted fixed rate for any reason, you should contact your supplier to ask for clarification to the reason and ask for the exact calculation as to how any changes effected your contracted rate. Even customers on a fixed rate plan should keep an eye out for any communication for their energy provider related to the contract provisions of their agreement. However, many contracts have legal language around significant changes in cost and, or a change in law. So good news, if you are on a fixed rate electric plan then you will not see a huge spike in your bill. Most Texans are on a fixed rate plan that protects them from market fluctuations like the skyrocketing prices we are seeing now. This rate lasts the lifetime of the contract. Fixed Rate Plansįixed rate plans have a set price per kilowatt-hour (kWh) that is used. The main factor that will determine your electric bill after the winter storm is the type of energy plan you are on. Unfortunately, this is a real occurrence for some, but for the most part, these sorts of incidents are limited to a low percentage of Texans.
You’ve probably seen the horror stories of those who received an insane electric bill that rivaled the cost of a new car. Who Will Have a Shockingly High Electric Bill?
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