We got hit with a big electric bill last month. It turns out that we were on a variable rate electricity plan, and we were not fully aware of what that even meant. I am very happy that we are free to choose Texas power companies that we want rather than having one assigned to us based on where we live. However, it is our responsibility to know the contract we are getting into. If I had only read the documentation rather than just listening to what was told to us. Do not get me wrong. The variable rate utility bill may work for some. You can have months or even years of lower bills, but if the market goes up for your electricity, then the price will on a variable rate plan.
What we picked after our one month of a quite large electric bill was to switch to a company that offered a lower fixed rate electric plan. This way the per kilowatt hour price cannot fluctuate based on market whims. Yes, you can save a few more cents per kilowatt hour if you go for a variable rate electricity contract, but you run the risk of the rate trending upward. There are not a lot of wild fluctuations to my knowledge. However, it does happen on occasion. That was what happened to us. Prices soared and so did our bill.
Now that we are on a fixed rate per kilowatt hour electricity plan, our rates will not go up. We can expect the same electric bill every month. Of course it will fluctuate based on usage, but here in Texas we expect to use more electricity in the summer to run the air conditioning when it is hot. That is not a rate increase. That is an increase in usage.