This type of setup accomodates competitiveness in the market to encourage the cheapest electricity rates in Texas. At the wholesale level power generators have an incentive to keep their charges as low as possible because the retail electric companies were given a motivation to sell electric power cheaper to end-users. This pressure goes down to the electricity producers..
Houston is a deregulated
area. That means that most end-users in the state have the freedom to select the electricity provider who has the lowest electricity rates.
The lenght of the plan will affect the rate. Many electric providers in Texas provide month to month electricity plans. Other plan terms include 12 month electricity plans, 24 month electricity plans, 36 month electricity plans, and occasionally 6 month electricity plans. The price range of these plans can vary based on expectations of future electric rates. In Dallas , 36 months is a common duration for an electric plan.
