Plano Electricity Rates and Plans (September 2024)

With Texas’s deregulated energy market, you have the power to choose your retail electricity provider (REP) and save money on your monthly utility bills. The cheapest electricity rate in Plano is the PTC 3 Month plan from Payless Power, with a rate of just 13.3 cents per kWh.

The table below shows 20 of the cheapest electricity plans in Plano, listed from least expensive to most expensive. Since our goal at EcoWatch is to promote environmental friendliness and reduced carbon footprints, please note that we’re only including plans here that provide 100% renewable energy.

*Rates will vary based on your TDU. 

How To Choose the Best Electricity Plan in Plano

When searching for the best electricity rates in Plano, keep in mind that rates and the average cost of electricity can vary based on numerous factors, so you may be given a different electric rate than that of your neighbors. Here are a few things to consider:

Types of Electricity Plans

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

Fixed-Rate vs Variable-Rate Plans

With a fixed-rate plan, your price per kWh is set from the day you sign and remains the same for your entire contract. Your monthly bill amount will change based on your consumption, but the cost per kWh never will. That means you’ll avoid unexpected spikes during times of high demand.

With a variable-rate plan, your price per kWh is set based on the market value of electricity, which means it will fluctuate constantly. In some cases, it could fall below what you’d pay with a fixed-rate plan, but in other cases, it could climb significantly higher if demand increases.

Based on recent market activity, customers who chose a fixed-rate plan would have saved more on electric bills. The average rate for variable-rate electricity plans in Plano sits around 17.18 cents per kWh, which is above the fixed-rate plan average price of 15.68 cents. Variable-rate plans are always a risk — while you could save money if market prices go down, you’ll also spend more if market prices go up.

Green Energy Plans

Green energy plans are becoming increasingly popular in Plano as more Texas residents seek to switch to clean energy. Green energy plans guarantee that a certain percentage of the power you pull from the grid will come from renewable energy sources, usually solar or wind, in Texas. Plans can either include 0% to 25%, 26% to 50%, 51% to 75%, 76% to 99% or 100% clean energy. Of course, we strongly recommend going with a 100% renewable energy plan to maximize your positive impact on the environment.

Green energy plans are a great way to support the clean energy movement without having to spend thousands on a rooftop solar array. Provided there’s one available that’s in line with or slightly below the average electricity rate in the area, you spend no more than you would on another electricity plan, but you effectively get the same reduced carbon footprint you would if you went solar.

You can check out the video below from Green Mountain Energy to see how solar energy can contribute to eco-friendliness:

Your Energy Usage

An important thing to consider when choosing an electricity plan in Plano is your electricity consumption. With any electricity plan, your total monthly bill will increase as your consumption increases, as you pay on a per-kWh basis. However, there are a few nuances to think about here.

First, all energy plans in Plano have different rates based on your average monthly electricity usage. Most have the highest prices for customers who only use 500 kWh, average prices for 1,000 kWh and the lowest rates for customers who consume 2,000 kWh or more per month. For example, the cheapest electricity plan in Plano has rates of 13.3 cents per kWh if you consume 1,000 kWh per month, but your price goes up to 13.7 cents if you consume 500 kWh, and it drops to 13.1 cents if you consume 2,000 kWh or more. Your bill will still be higher with more energy consumed, but your per-kWh rate will always be lower.

I recommend you look at your consumption to see which tier you fall in and then compare plan prices based on that rate. The average consumption in Plano is around 1,172 kWh per month, so most customers will receive the average rate based on 1,000 kWh consumed monthly.

You may also want to consider when you consume your electricity if you have a time-of-use (TOU) plan. These plans include different rates for energy consumed at different times of the day. If you have a TOU plan with lower rates for overnight use, you can usually save money by prioritizing consumption at that time — for example, you may benefit from a TOU plan if you charge an EV overnight or tend to run laundry and air conditioning through the night instead of the daytime.

Contract Length

Another thing to consider when choosing your electricity plan is the length of the contract. Contract terms in Plano are typically 12, 24 or 36 months, but there are exceptions, such as Payless Power’s three-month contracts.  

Your contract length can affect your pricing in two opposite ways, depending on the REP you choose. Some REPs will offer lower rates on longer contracts because they get a longer commitment from you. However, some do the opposite and offer lower rates on shorter contracts because they aren’t locked into a rate for as long, so they don’t need to plan as far ahead for rising electricity rates in Texas.

You can choose your contract length based on what works best for you and the REP you choose. You can prioritize long contracts if you want more of a set-it-and-forget-it power plan, or you can choose a shorter length if you want to be able to change REPs in the near future and continuously search for the lowest prices. I suggest you check all of the plans from a given provider before choosing to see which pricing trend that particular REP follows.

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. Here’s an example of what that’ll look like:

Watchouts

Unfortunately, there are some scams to look out for when it comes to energy companies in Plano. One of the more prevalent scams involves a door-to-door salesperson claiming to be from your REP or utility company. They usually seek out personal information or even payment to reduce your electric bill or install energy-efficient products in your home at a later date for an up-front fee. To be safe, never give out personal information or even a copy of your bill to a door-to-door salesperson.

Another scam involves a phone call from a supposed representative from your utility provider, who may demand immediate payment or they’ll shut your electricity off. REPs may have their collections department make calls for past-due balances, but rest assured that they won’t use pressure or urgency to get immediate payment. If you do receive a call like this, sign into your online account to check to see if your balance is past due and pay there.

Understanding Deregulated Energy in Plano

Most states have regulated energy markets, which means every company involved in the production and distribution of electricity is heavily regulated by the government. Homeowners in those states can’t choose their provider, and they have no options when it comes to electricity plans or prices.

Texas, however, deregulated its energy market in 1999, so the structure is a bit different. Power production facilities — called power plants — are still heavily regulated in Plano, as are the distribution companies — called transmission and delivery utilities (TDUs) — that own and maintain the power lines. You can’t choose which production facility or TDU serves your home, and the prices per kWh they charge aren’t negotiable.

However, deregulation comes into play in Plano with the retail electricity providers or REPs. These companies act as intermediaries between the TDUs and your home. They create, market and sell energy plans, and they handle payments and collections on all accounts. In Plano, you can choose your REP, which means these companies compete with each other, and, at least in theory, that competition helps drive down the cost of electricity for consumers.

In practice, there is some debate about whether or not energy market deregulation actually helps keep electricity prices lower. In my opinion, competition does drive down the price over time, and the average price available from REPs is below the average price you’d pay if you simply got electricity service directly from your TDU.

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

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

The term “utility company” usually refers to your TDU, which is Oncor for most Plano residents. This is the company that owns and maintains the distribution systems, including the electrical poles and lines. The utility company is also responsible for responding to power outages. Even in Plano, where the electricity market is deregulated, you cannot choose your utility company.

An electricity provider, on the other hand, is the company that creates and markets energy plans and handles payments and customer service. REPs do compete with one another, and you do have a choice of REPs in Plano.

Instead of choosing an REP, you can also opt to buy energy directly from Oncor, your TDU. In many cases, the price from your REP will be lower than what you’d pay to Oncor because the REPs buy electricity at wholesale rates from Oncor.

Plano Electricity Rate Trends

Editor’s note: Information for the above table comes from the Federal Reserve Economic Data (FRED)

Electricity prices in Plano have been on the rise over the past decade, and experts agree that prices are likely to continue rising in the future. From 2014 to 2024, the average cost of electricity in Plano went up 52.9%. The largest jump during that time was between 2021 and 2022, with a 22.9% increase over that year alone. This may have had something to do with the unexpected winter storm that created a severe dip in production due to frozen pipelines, and the high demand caused the spike in the per-kWh price.

There was also a noticeable dip in the average electricity price in Plano throughout 2020. This could have been a result of the COVID pandemic, which led to homeowners being home more often and using more electricity. Higher consumption rates often come with lower prices per kWh, as mentioned previously, and production costs also drop in times of high demand because the fixed operating costs for power plants remain static.

As for the general upward trend in energy costs, it’s possible that the gradual move to renewable energy is one contributor. Customers moving to clean energy means those same fixed costs for operating power plants lead to higher per-kWh prices when there’s less demand overall.

Choosing an Electricity Plan When Moving to Plano

If you’re moving to Plano from out of state — especially from a state with a regulated energy market — you might feel overwhelmed by having to sift through REPs and choose one of the more than 100 electricity plans available. Keep in mind that you can just get service from Oncor, your TDU, but shopping around a bit for an REP is likely to save you money and doesn’t take too much work.

In the next section, I’ll include a comprehensive list of steps to follow to choose an electricity plan that works for you. Be prepared to provide personal contact information and either your social security number (for a no-deposit plan) or payment information (for a traditional plan that requires a deposit). I recommend picking a company with positive customer reviews, an affordable rate and a low early cancellation fee in case you want to switch after doing some more research.

I also recommend contacting your preferred REP a few days in advance of your move, as most will take three to five business days to activate your account and start providing power. The only exception is if you find a company that offers same-day electricity plans, in which case you can contact the REP the day you’re moving in.

Switching Electricity Plans in Plano

If you already live in Plano, are served by a local REP and want to switch providers to save on your electricity costs, the process of signing up with your new provider will be the same. You can follow the steps below to get started.

There is one additional thing you should consider if you’re switching providers, though. Find out if your current REP will charge an early cancellation fee if you’re backing out of your contract before the end of the contract term. Some REPs offer to pay your cancellation fees for you, so check with your new REP if you’re canceling your old plan early.

Some REPs will also offer to cancel your existing contract for you, while others will require that you handle the cancellation process yourself. Check with your new provider about their process, and plan on calling your old REP to cancel. In either case, the actual transition should be seamless, so you don’t have to worry about any interruptions to your service.

How to Choose Electricity Plans in Plano

Switching to a new electricity plan in Plano 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 Plano 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.

Best Electric Companies in Plano