Your zip code plays an extremely important role in your life. It will determine which schools your kids can go to, what sports teams they can play on, and the value of your home in some cases. In most of Texas, your zip code also determines which retail electric providers and plans are available to you. There are over 100 REPs in Texas and over 75% of the state has deregulated electricity, giving you the power to choose your own power provider. However, depending on where you live, not all of them are available to you.

You might not realize it, but your zip code plays a big role in what your electric rate will be. The zip code numbers themselves don’t mean anything, but the location where you live does. Heavily populated cities and municipalities typically have higher electric rates than rural areas. However, this doesn’t always hold true, and your specific zip code will determine which side of the spending fence you fall on. Contact us to find out which plans are available to you.

In general, there are three things that determine the going rate for electricity in your zip code. Keep in mind that rates are constantly subject to change on a monthly basis, but these principles hold true in most cases.

Deregulation in Texas effectively turned the electricity market into any other field of industry. Supply and demand play a huge role in goods and services, and electricity is no exception. If you live in a competitive zip code where dozens of REPs are vying for your service, the rates are likely to be slightly lower.

On the other hand, however, heavily-populated areas often go through much more electricity in rural areas, which can sometimes result in an energy shortage. To guard against this, many REPs have moderate to high prices to cover themselves in case they run out of electricity to supply to you.

Your TDU, or Transmission and Distribution Utilities, is the company that delivers electricity to your home or business. They work in conjunction with your REP and own and manage the power lines, electric poles, electric meters, and electrical wiring that takes electricity from point A to point B. Different TDUs charge different rates, which means that your REP will adjust their electricity rates accordingly.

Certain times of the year also result in higher electricity prices than others. Summer in particular sees an extremely high usage of electricity, which means that the rates will go up during the summer. REPs take this into account beforehand and adjust their prices accordingly.

The average price per kWh of electricity in Texas is right around 11 cents. Depending on which zip code you live in, your rate will be higher or lower. Keep in mind though, that the cheapest rate isn’t always the best rate. The only way to get the whole scope of the story is by digging into each individual plan until you find the one with the least hidden fees, the best starting rate, and the best ending rate.

Unfortunately, not everyone has hours or days for this type of exhaustive research. Contact us at EnerGenie if you’re at your wit’s end and need help finding the best and cheapest electric rate in your zip code.