General Information on Katy Electricity Rates
The U.S. Energy Information Administration (EIA) holds Texas as the biggest producer of energy in the US. The state relies mainly on crude oil, coal, and natural gas for electricity generation. However, recently Texas has started seeing an increasing demand for renewable energy, especially in bigger cities such as Houston, San Antonio, and Dallas. As a result, more electricity companies are offering green energy plans, albeit at a higher per kilowatt-hour (kWh) rate.
For all Katy residents, your electricity bill is divided into two main categories – supply and delivery services.
The 'supplier service' is simply the process of electricity generation. The electric rates of suppliers depend on the cost of electricity generation, which, in turn, depends on the method of production. The retail electricity suppliers in Katy include Frontier Utilities, First Choice Power, TXU Energy, Payless Power, Champion Energy, 4Change Energy (Maxx Saver), Cirro Energy, Constellation, TriEagle Energy, Green Mountain Energy, Direct Energy, Reliant, and Gexa Energy. Additionally, Katy Energy provides renewable energy options to residents.
Each electric company offers various energy plans, plan lengths, and price structures.
A city's local utility company provides electric delivery. The utility company is also known as the Transmission and Distribution Utility (TDU) provider or Transmission Distribution Service Provider (TDSP). The local TDU handles power outages, and maintains power lines, on top of delivering electricity.
The primary charge for electric delivery is the TDSP Delivery Charge. Various other charges include the Gross Receipts Reimbursement Charge and the PUC Assessment. You may also find non-recurring fees for items such as new service commencement.
Customers in the City of Katy have Oncor Electric Delivery Company as their default local utility services provider.
You can learn more about Katy electricity rates and tariffs here.
Energy Deregulation and How It Affects Katy Electricity Rates
The State of Texas deregulated energy supply in 2002. Energy deregulation allows all Katy residents to choose a retail electric provider (REP). You can find different energy providers offering competitive energy rates via a number of electricity plans.
Due to commercial electric markets, Texas electricity prices have been reduced below the national average. However, Texas electricity rates for green energy plans are still higher compared to traditional plans.
If you don’t choose an energy company, you will receive Oncor’s standard offer delivery or a Provider of Last Resort (POLR) plan. Your default energy rate is your Price to Compare, which is regulated and approved by the PUCT.
You can use the Price to Compare to see what energy company is offering the best energy services, energy costs, and power plans.
Finding the Best Katy Electricity Rates
Every Katy customer can choose their REP for electric service. Some REPs attract customers by offering lower rates, while others provide additional (free) services, along with average energy prices.
In order to make an informed decision, customers can compare the energy plans, electricity service, and rates of each REP. You can try to shop for rates yourself, but look out for the fine print, hidden fees, and any possibilities of escalating rates (once your term ends).
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Katy electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the Arbor free savings calculator to find out how much you could save in each case.
Understanding Katy Electricity Rates and Plans
While all retail electricity providers offer different plan features, lengths, and rates, some offer additional benefits such as free nights, energy usage-based charges, discounts, etc.
Changing your REP is easy. Simply get a copy of your energy bill to check your current REP and electric rate. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
Furthermore, you can use Arbor to find the best rate in your area by using our free energy savings calculator.
In general, you will find different types of plans depending on the companies. These are the three plan options you’ll find in Katy.
- Fixed-Rate Plans: Fixed-rate plans are not affected by fluctuating energy market rates and require customers to pay the same rate throughout the duration of their contract. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
- Variable-Rate Plans: Variable-rate plans are charged based on the prevalent wholesale electricity prices. You may end up paying a different rate each month. When demand is high, you will be paying higher electricity rates, and when demand is low, you’ll have lower rates.
- Prepaid Plans: Prepaid plans let you pay for your electricity usage beforehand and save you the hassle of making monthly payments. When you ‘deposit electricity’, you can avoid credit checks and financial deposits.
Some plans may ask you for a deposit. However, plans available through Arbor never require a deposit.
How to Choose the Right Energy Supplier
As a residential electricity consumer in Katy, you will get delivery services from the Oncor Electric Delivery Company. However, you can choose from several REPs. In addition to that, you can use the Price to Compare or your current rate and compare it with energy plans offered by other REPs.
You should check what each plan offers in terms of benefits, savings, and additional services, as well as which plans offer a low rate.
Katy residents can take advantage of various savings programs such as Texas Saver, Saver Deluxe, and Maxx Saver.
As a customer, you can check out how to save on your energy bill with Oncor. However, bills and electric plans are complicated, which is why people trust Arbor to manage their electricity service for them, ensuring that they always pay the best electricity rate available in Katy.