Fixed-Rate Plan: Pros and Cons

The fixed-rate plan is an energy supply plan in which the price per kWh remains the same for a certain period of time. This plan is great for people who like to keep things simple and steady or if you are in-between homes/apartments and not living at your current location year-round. There are no threats of rate hikes in this plan, but you do still have to deal with the threat of fluctuating energy prices.

Fixed-Rate Plan: Pros

The fixed-rate plan offers the most stability when it comes to knowing what your energy costs will be each month. This can be helpful if you’re trying to create a budget for yourself.

Fixed-Rate Plan: Cons

Although you get stability with this type of plan, there are some inherent downsides. If the price of energy goes down, you’ll miss out on the opportunity to keep more money in your pocket. Also, if the price of energy goes up but not by enough to change your current rate plan, you’ll still be stuck paying more for your electricity than you need to.

Variable-Rate Plan: Pros and Cons

The variable-rate plan also has its pros and cons. The biggest pro is the opportunity to save money by paying a lower price per kWh than your fixed-rate plan allows. This can be especially helpful if you’re trying to stick to a budget, as it’s possible that you’ll never have to pay as much as you would have under a fixed-rate plan.

Variable-Rate Plan: Pros

When energy prices drop, those who are on variable rate plans have the opportunity to save money. In addition to having the ability to lower your energy price per kWh at any time throughout your contract, another pro of this plan is that if the energy prices in your area suddenly rise, you can opt-out of your contract with no early termination fees.

Variable-Rate Plan: Cons

First off, if the price of energy suddenly drops overnight, you’ll be stuck paying a higher price per kWh than your neighbors who are on Reliant Energy fixed-rate plans. Another downside is that any money you save during the contract period isn’t yours to keep, as it will be used to offset early termination fees in the event you decide to opt-out of your contract.

Time-of-Use Plan: Pros and Cons

The next plan is the time-of-use plan, which offers both pros and cons. One of its biggest pros is that it can help you save money if your home or apartment has one or more electric heaters. This type of plan allows you to use energy during certain times of day at a lower cost than other times, which means you’ll be able to save.

Time-of-Use Plan: Pros

One of the benefits of entering into a time-of-use plan is that you’ll be able to save money on your electricity bill if you use an electric heater at home. The cost per kWh during off-peak hours (typically anytime between 9:00 pm and 7:00 am) is lower than it would be during peak hours (typically anytime between 5:00 pm and 9:00 pm).

Time-of-Use Plan: Cons

While the time-of-use plan can provide a lot of savings, some downsides come along with it. If you don’t have an electric heater at home, you’ll be missing out on one of the biggest pros of this plan. The other unfavorable aspect of this plan is that if you don’t adhere to it closely, you could end up paying more than you need to for your electricity each month in Houston energy plans or Dallas energy plans, or if you’re looking for Pulse Power reviews, or even home insurance plans. No matter which type of plan you choose, there are always benefits and downsides associated with every plan.