The short answer: for August 26 2022 is a 12 month fixed contract is anywhere from 16.5 – 17 cents per kWh on the cheaper side.
Now let me tell you how to think about what makes a good electricity rate in Dallas because you can be fooled by the advertising that is out there.
I’m going to tell you some negative things to consider with Dallas electric rates and then point you towards the good considerations so you will be equipped to pick a good electricity rate in Dallas.
For current residential rates from the Texas government sponsored site please visit: https://powertochoose.org
As of June 2022 you can see what the best Dallas residential electric rates looked like in a comparison. It’s really shocking they got this high. They have come down since then but it begs the question if this is going to be the new normal: June 2022 Dallas residential average of best rates
Let’s start with some negative considerations that make electric rates bad
A good electricity rate is based upon transparency, the clarity of the advertising and what you see over time on your electric bill. How comfortable have you been in the past about what your electric rate really was? Did you consider all the charges that go into it and what may have been left out of the advertised price?
An added variable is that TDSP pass through charges vary based on how much kilowatt hours you use. The demand charge part of this pass-through charge from Oncor Electric Delivery gets pricier the more energy you use during the day.
Peak demand time gives you higher peak demand charges. When you contract at a low rate and take advantage by cooling your house at a lower temperature you may face the consequences of the TDSP charges eating into whatever savings you may have thought you were getting.
Adding to the problem faced by TDSP charges making your rate higher than you anticipated the retail electric provider can sell you a straight variable rate or hybrid rate that changes a month or two later.
The retail electric provider is under no legal requirement to disclose the formula they use to lower and raise your variable or index price for electricity.
Here are some helpful considerations when choosing a good Dallas electric rate
Fixed rates that start at 6 months, 12 months, 24 months or even longer are going to be a good way to go when choosing a Dallas electric rate. The reason these long term fixed rates are good is they have the benefit of insurance. Your electric company has insured the rate stays at a certain price and will not change on you.
The commodities market is an “anybody’s guess” as to which way it will go next. The experts cannot even agree and often get it wrong. By choosing a fixed rate you can take advantage of the retail electric providers expertise in hedging the commodity of energy and offering it as a retail product for the end consumer. They are the expert and they are giving you a premium service.
You have more important things to do in your life like working in your career and raising a family than to go through snowmageddon and receive a $16,000 electric bill from Griddy.
If you are not aware in February of 2021 people who chose variable prices saw historically catastrophic Texas electricity prices. Many of these peoples electric bills were in the 4 figures and some went into 5 figure territory for one month.
The fixed electric rate avoids this dilemma of outrageous electric bills that hit you with little to no notice. Electric providers don’t have to tell you how their variable price formula works so you are ultimately in the dark about a product like this.
The fixed price is definitely the way to go for your home. I as an energy broker and consultant have been on a fixed rate since to 2002 and I don’t plan to change.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.