When I first moved down south, I was surprised that I had my choice between power companies in round rock, tx. I never had this power to choose in any of the former cities I had lived in, and I have to admit that I liked having the decision in my own hands for a change. I didn’t take this lightly and just choose the first company that I found. Instead, I went online and looked at the different companies that offer this service, and then I researched each one individually.
My biggest issue was whether I wanted to have a fixed rate or a variable rate. Both had their pluses and minuses, so I had to consider each one. With the fixed rate, my price for electricity would never increase for the length of my contract. It wouldn’t matter if the prices doubled, I would still pay one price for the remainder of my time with them. While that was very attractive, it also meant that I would continue to pay the same price even if electricity prices went down. Even if they decreased by half, I could end up paying the higher price for years.
On the flip side, the variable rate was the same. I would pay a different amount each month. If prices were good, then mine would be lower. If prices went up though, I could pay higher. I looked at the price history of the different companies, and I realized that it would be extremely rare for the price to increase or decrease by a huge amount. That is why I chose a company and went with the fixed rate price. I like knowing that I am protected this way, and I think I made a really wise choice. I can always change when my contract expires if it turns out differently!