Arlington Electricity Rates and Plans (December 2024)

The cheapest electricity plan in Arlington is currently the PTC 3 Month plan from Payless Power, which includes a fixed rate of 13.3 cents per kWh, the lowest in the city and a full cent below the next cheapest electricity plan. The table below includes all of the most affordable Arlington electricity plans that use renewable energy. At EcoWatch, we prioritize clean energy and eco-friendliness, so we’re only including plans that provide 100% renewable energy to customers.

*Rates will vary based on your TDU. Pulled from https://powertochoose.org/en-us/Plan/Results using largest zip code in Arlington by population (76010).

How to Choose the Best Electricity Plan in Houston

When searching for the best electricity rates in Houston, keep in mind that rates and the average cost of electricity can vary based on numerous factors. That means you may be given a different electric rate than that of your next-door neighbors. Here are a few things that factor into the cost of electricity in Houston:

Types of Electricity Plans

When choosing an energy provider in Arlington, you’ll be presented with a few plan options. Here’s an overview of the types of electric plans offered in Arlington, as well as their pros and cons, so you can pick which plan works best for you.

Fixed-Rate vs Variable-Rate Plans

There are two primary types of electricity plans in Arlington that differ in how your rate is determined. With a fixed-rate plan, you sign a contract that includes a set rate per kWh you’ll receive for the length of the contract. That rate will never change, so you’re not subject to unexpected spikes during times of high demand, and you’ll always know what you’re paying for electricity.

Time-of-use (TOU) plans fall under fixed-rate plans because your rates are predetermined. However, with a TOU plan, your rate will be different based on the time of day. You should carefully review the price at different times of day and consider your electricity consumption habits to make sure those price fluctuations align with your consumption. Still, those rates are static for your entire contract, so there won’t be any surprises.

With a variable-rate plan, your per-kWh price can rise and fall based on the market price, which means you could see spikes in your costs during periods of high demand. In recent history in Arlington, variable-rate plans would likely have cost you more, as the only one available at the time of writing is set at 18.9 cents per kWh, which is above the average cost of fixed-rate plans.

Green Energy Plans

Green energy plans work just like those that don’t use clean energy, but they guarantee that a certain portion of the electricity you pull from the grid will come from renewable energy sources, like solar or wind. In Arlington, you have options for plans that guarantee 26%, 50%, 75% or 100%, with 100%, of course, being the most proactive in terms of supporting the clean energy movement.

Green energy plans can use fixed or variable rates, and they can also be TOU plans, so I recommend first looking for green energy plans and then ruling out rate options that don’t work with your consumption habits.

Green energy plans are an outstanding option overall because they let you support the clean energy movement without the high upfront costs of adding solar panels to your roof. According to our research, the average solar array in Texas costs around $38,295 before any incentives, so green energy plans provide an easy way to do your part to reduce climate change and emissions from burning fossil fuels.

You can check out the video below for a comprehensive discussion on green energy technology and how it’s positively changing the energy industry:

Your Energy Usage

It’s important to consider your electricity consumption when choosing an electricity plan in Arlington because your monthly utility bills will depend on how much electricity you consume and also when you consume it.

As you already know, your electric bill will go up or down based on how much electricity you use. Whether you have a fixed-rate or variable-rate plan, each additional kWh you use will push up your costs.

What you might not know is that your price per kWh—even with a fixed-rate plan—varies based on your monthly consumption. Most Arlington electricity providers (REPs) have tiers for consumption, with the highest prices per kWh being charged to customers who consume 500 kWh or fewer per month, average prices for 1,000 kWh per month and the lowest prices for 2,000 kWh per month. Note that the typical monthly usage in Arlington is 1,172 kWh, so you’ll likely fall in the middle tier.

Additionally, TOU plans have varying rates based on when you consume your electricity, so they often come with higher prices per kWh in the peak hours—early afternoon through the evening—and lower prices over night and in the early morning. If you have a TOU energy plan, you could save a significant amount of money by planning on higher consumption during the off-peak hours. Even if you use the same total amount of energy per month, you could spend less on that energy if you use most of it in the early morning or over night.

Contract Length

All fixed-rate plans include a contract term, which is the amount of time you agree to be locked into your rate and REP. Most fixed-rate electricity plans have terms of 12 months, 24 months or 36 months, with the longer contracts typically coming with higher prices per kWh because your REP is taking more of a risk that the market price won’t go up over that time period. Some plans come with terms of just 3 months, and some are longer than 36, but these are uncommon.

Note that variable-rate plans in Arlington typically don’t include a contract and instead are on a month-to-month basis.

Electricity Facts Label

When shopping for an energy provider, always ask for an Electricity Facts Label (EFL). Similar to a nutrition label you see on packaged foods, an EFL will give you all of the information about a company’s electricity prices, contract lengths and terms, sources of generation, and emission levels.⁵ Here’s an example of what that’ll look like:

If you’re interested in seeing the best energy rates you’re eligible for in Houston, you can start comparing prices and plans here. As a trusted energy information source, EcoWatch is often able to secure discounted rates for our readers.

Watchouts

There are a few things I recommend watching out for when choosing an electricity plan in Arlington. Not paying attention to these three things could end up in you needlessly paying more for your electricity:

• Fixed vs. variable: Make sure you understand whether your rate is fixed or variable. Variable rates can change with demand and can lead to unexpected spikes in your price per kWh.
• Rate and structure: Of course, the rate per kWh is important, but make sure you understand the rate structure, too. If it’s a TOU plan, make sure the fee structure aligns with your consumption habits and that you can prioritize electricity usage during the off-peak hours.
• Early cancellation fees: Most REPs in Arlington charge an early cancellation fee for backing out of your fixed-rate contract, but some charge exorbitant fees. Anything around or under $100 is standard, but look out for fees topping $200 and nearing $300.

There are also some electric company scams in Arlington to watch out for. Some homeowners have reported people calling and stating they’re from their electric company and need immediate payment over the phone to avoid a shut-off. Others have reported door-to-door salespeople claiming to be from the power company and then asking for personal information to lower their electric bills or install energy-efficiency equipment. Always make sure you’re speaking with a genuine company representative, and never provide personal information over the phone or to a door-to-door salesperson.

Understanding Deregulated Energy in Houston

In most states, the energy market is highly regulated, which means homeowners don’t have any choice when it comes to who provides their power and the rate they pay per kWh. Texas, however, passed legislation in 1999 to deregulate its energy market, and ever since, homeowners have had a choice of REPs.

There are still portions of the local energy industry that are heavily regulated, including the companies that produce the power and those that distribute the power and maintain the distribution system, including poles and power lines. However, the companies that create electricity plans, set rates for consumers and handle marketing—collectively called retail electricity providers (REPs)—are deregulated, and it’s here that Arlington residents have choices.

There’s some debate as to whether or not energy deregulation saves homeowners money overall, but the option to choose from providers that compete with one another for your business generally does lead to the option for lower prices. And if you compare the lowest rates from deregulated REPs, they’re lower than the standard rate you’d get if you purchased power directly from your regulated local distribution company.

Read Also: What Are the Best Energy Rates in Texas?

What’s the Difference Between Utility Companies and Electricity Provider Companies in Houston?

There are three parts of the energy market from production to usage in your home: production companies, distribution companies and REPs. Production companies operate power plants that burn fossil fuels or utilize solar panels and wind turbines to produce power. Then, a distribution company—typically called the “utility company” or the transmission and delivery utility (TDU)—delivers the electricity via its distribution system, which it maintains.

Finally, your REP is the company that sells you electricity that it buys wholesale from the other two pieces of the puzzle. The REP creates plans and contract terms and handles payments, marketing and collections.

Production and distribution companies are heavily regulated, even in Arlington, so you can’t choose your company. Most customers in Arlington are serviced by Oncor Electric Delivery Company. If you don’t choose a plan through an REP, you’ll default to buying power directly from Oncor.

Arlington Electricity Rate Trends

*This information comes from the Federal Reserve Economic Data (FRED)

The average electricity price per kWh in Arlington has gone up by 6.3 cents per kWh over the past decade, representing a bump of over 50%. The rate has more or less been steadily climbing, with a notable dip between January 2020 and January 2021, followed by the largest spike in rates over the following year.

It’s likely that the COVID pandemic had something to do with the drop in prices throughout 2020. With people at home and consuming more electricity than usual, prices could have dropped for two reasons. First, some homes may have pushed past 2,000 kWh per month, in which case the built-in discounts for higher consumption rates would have kicked in, driving down the average prices. Second, when overall consumption is higher, the fixed operating costs for power plants remain the same while output climbs, meaning higher profits and the chance for lower rates.

The spike between 2021 and 2022 likely had to do with the unexpected winter storm that occurred in February 2021. The high demand and low supply led to higher costs across the board. Between February 2021 and December that same year, the average electricity cost in Arlington jumped from 13.1 cents per kWh to 15.4 cents per kWh, and the rate continued to climb in the 12 months that followed.

Choosing an Electricity Plan When Moving to Arlington

If you’re moving to Arlington for the first time from an out-of-state area with a regulated energy market, it can be overwhelming to have to choose an REP and shop around for plans. First off, note that you always have the option to buy electricity directly from Oncor, the TDU in Arlington. This will likely result in higher prices per kWh, but not having to worry about finding a reputable REP while you make the move can help decrease stress a bit.

With that being said, it is usually financially beneficial to choose an REP with a per-kWh rate that’s below what you’d pay Oncor directly. We’ll include a detailed guide in the following section on how to compare electricity rates in Arlington and what to look for in a plan. You’ll need your contact information, payment information—unless you’re choosing a no-deposit plan—and your social security number if you’re looking to forego a deposit.

For new residents, though, I recommend prioritizing the company reputation and customer satisfaction ratings, as well as choosing a shorter contract of 12 months or fewer with a low rate. This will give you a chance to save over going with direct electricity service from your TDU, but it will also give you the opportunity to change providers in a relatively short time frame. During that year, you can speak to neighbors and other locals about different providers and their experiences with them to find one that you’re comfortable signing a longer contract with.

Switching Electricity Plans in Arlington

If you already live in Arlington and are currently served by an REP, you’ll follow the same steps to compare and choose a new one, which we’ll detail in the following section. There are some additional considerations to make, though.

I still suggest prioritizing a company with positive customer reviews and low rates, but you should also consider your current REP’s early cancellation fees and the time you have left in your current contract. Some REPs will offer to pay your cancellation fee if you switch to them, so look out for those deals when comparing providers.

Additionally, since you have a good handle on your consumption habits specifically in Arlington, you might want to consider a TOU plan, which could save you money on your monthly energy bills if you can prioritize your consumption for off-peak times, like charging your EV or doing laundry during the overnight.

When you’re switching REPs, you’ll need your basic contact information, your current REP information, and a credit card to make payment or your social if you’re choosing a no-deposit plan.

How to Choose Electricity Plans in Arlington

Switching to a new electricity plan in Arlington is simple and should only take you a few minutes. You can use the detailed guide below to help find and choose the best plan for your specific needs.
Just follow the steps below to find the best provider and electricity rate for you:

1. Scroll to the top of this page and enter your zip code.
2. Choose whether you’re switching providers or if you just moved to Arlington and need new service. If you’re getting new service, then you don’t need to worry about paying a cancellation fee for your current provider. If you’re currently enrolled in a contract with a different provider, you should contact them or check your contract for information on cancellation fees.
   Some providers don’t charge an early cancellation fee, and others charge $200 or more. In the next step, if you choose to have a live advisor help you, they can do the necessary research for you and potentially even help you reduce the cancellation fee.
3. You have three options to choose from. Advisor Plus+ is a paid service, but a live representative will help you choose the best plan for your needs. This is beneficial, as the cheapest plan isn’t always the best. The advisor will consider fixed and variable-rate plans, go over when you tend to use electricity to get the best time-of-use rates, check your bill to see how much electricity you use per month to secure the best prices and more.
   EnergyBot Advisor is a free service, and a plan is chosen for you based on criteria that you enter. This option delivers a less customized selection, but it should still meet the needs of most customers.
   Standard View is also a free service, but it requires the most work on your part, as you’ll need to look at the plan options and choose one manually. You’ll see the contract term, rate, discounts, renewable energy percentage and more for each plan available in your area.
4. If you chose one of the first two options in the previous step, you’ll get on-screen prompts to help you make the switch from your current provider to the new one selected for you. If you chose the Standard View prompt, you’ll get a list of providers with plan rates and terms, and you can simply click on Select Plan to move forward.
5. Finally, you’ll be prompted with a button that will take you to the provider’s site. You’ll also be told what plan to look for once you’re there to sign up and lock in your new rate.