While many factors play a role in the cost of electricity in Texas, few will have a more significant impact than your zip code. No, the numbers themselves don't determine how much you'll pay. Depending on where you live, however, electricity might be more scarce, challenging to deliver, or in higher demand than in other places. Therefore, your zip code will majorly affect your electric rates.
- Does Your Zip Code Affect Your Electric Rate?
- Why are Your Electric Rates Affected by Your Zip Code?
- Which Zip Codes Have the Highest and Lowest Electric Rates?
- Things Other Than Your Zip Code That Will Affect Your Electric Rate
- How to Make Sure You Have the Best Electric Rates in Your Zip Code
Does Your Zip Code Affect Your Electric Rate?
If you live in a deregulated part of Texas, your zip code will significantly impact your electric rate. Each city in Texas has its own list of zip codes. Smaller cities may only have one or two zip codes, while larger cities can have dozens. If your zip code places you in a city where electricity is in higher demand, isn't readily available, or has a competitive market, there's a good chance your electric rate will be higher than the Texas average.
However, this principle only applies to zip codes in cities with deregulated electricity, which encompasses roughly 80% of the state. If you live in a regulated zip code, your electric rate is determined by the state and federal government, and your zip code has little impact.
Why are Your Electric Rates Affected by Your Zip Code?
While the numbers of your zip code don't play a factor, the location they indicate most certainly will, and here's why.
Supply and Demand
Because electricity is largely deregulated in Texas, there isn't an even distribution of supply and demand. For instance, larger cities like Houston and Dallas have a nearly unlimited electricity supply, while smaller cities in rural areas will have a more limited supply. Therefore, electricity is often more expensive in smaller cities than in larger ones.
Difficulty of Delivery
Another reason that electric rates by zip code are a very real thing is that it's more difficult to deliver electricity in certain areas than in others. Larger cities like Houston and Fort Worth have many utility companies and a well-maintained electrical grid, so there aren't as many delivery difficulties. Rural areas, however, where utility companies are scarce, and delivery is difficult, will have higher electric rates.
Limited REP Options
You also have more retail electric providers in larger cities and zip codes to choose from. More options make for a more competitive energy market, making companies less likely to jack up their prices. However, this is only sometimes the case, and more REP options can lead to higher rates and trickier plan structures.
Who Your TDU Is
The final reason that your zip code will play a role in your electric rate is because of who your Transmission and Distribution utility company is. While you have the power to choose your own REP, you don't get to choose your TDU. Instead, TDUs are pre-established in zip codes, and your REP is forced to work with whoever is in the area. Depending on who that is, they may charge more for delivery than other TDUs.
Which Zip Codes Have the Highest and Lowest Electric Rates?
Because the electric rates in Texas are subject to change at a moment's notice, there isn't always a zip code with the highest or lowest rates. However, on average, zip codes in Dallas, Abilene, and San Angelo have the lowest rates, while zip codes in Houston, Laredo, and Midland have some of the highest electric rates.
Things Other Than Your Zip Code That Will Affect Your Electric Rate
While your zip code affects your electric rates, much more goes into the equation.
Time of Year
No matter where you live or who your REP is, electric rates will be higher at certain times of the year. Specifically, summer and winter have some of the highest electricity rates. During these times, the electricity demand is higher than the supply, which makes it more expensive. The best way to avoid this is to contact us at GoodCharlie Energy and lock yourself into a fixed-rate plan where your rates won't skyrocket.
The Type of Plan You Choose
As we briefly mentioned, the type of electricity plan you choose will also affect your electric rate. You can choose between various plans, including prepaid, variable-rate, and fixed-rate.
Variable-rate and prepaid
With prepaid and variable-rate plans, your electric rate can change monthly. If you have this type of plan during winter or summer, you'll pay a much higher rate regardless of your zip code. Your rate could jump from 13 cents/kWh in March and April to 25 cents/kWh in June and July because of the increased electricity demand in summer.
Flat-rate
With a flat-rate electricity plan, your rate doesn't change from month to month. Instead, it's constantly high, and you'll always overpay.
- Fixed-rate
If you want your zip code, the weather, and other factors to play as little a role in your electric rates as possible, choose a fixed-rate electricity plan. Enrolling in a fixed-rate plan when the rates are low, you can avoid rate hikes, unexpected increases, and other nuisances that result in higher electric rates.
The REP You Choose
Finally, the REP you choose to enroll with will play a massive role in your electric rate. Many providers have hidden rates and fees that make their rates higher than they appear. Others simply have higher rates off the bat but say their discounts and benefits will outweigh the cost. If you want the best of both worlds, where you have a low rate, no hidden fees, and outstanding benefits, contact us at GoodCharlie Energy.
How to Make Sure You Have the Best Electric Rates in Your Zip Code
Regardless of your zip code and the types of plans and companies available in your area, there's one surefire way to ensure you have the best electricity rates in your area - sign up for a fixed-rate electricity plan with GoodCharlie Energy. GoodCharlie is one of Texas's newest retail electric providers, and we're taking the state by storm. We offer quality fixed-rate electric plans with competitive rates and outstanding customer service.
We also offer our pack benefits which is one of the most unique rewards packages in the industry that caters specifically to dog and cat owners. We aim to turn Texas into a "no-kill" state and are partnered with numerous rescue shelters. Our benefits include 24/7 access to emergency video vets, a $750 pet emergency fund, and a monthly donation from us to a local rescue shelter when you sign up. Contact us for more info or to join our pack today!
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