Tiered Electricity Bills in Dallas Tiring You Out?
Tiered rate plans, like the example below, feature great, low priced deals for Dallas electricity customers. But while they seem to promise low electricity bills, the fact is they don’t all work out that way for everyone. Take a look at the prices for this electricity plan:
Monthly kWh Average Rate
500 17.4 cents per kWh
1,000 7.5 cents per kWh
2,000 12.1 cents per kWh
It should be a great deal, right? Just 7.5 cents per kWh for 1,000 kWh per month of usage. What could possibly go wrong?
Unfortunately, the two biggest mistakes you could make are those that most customers make when they shop for a new Dallas electricity plan. They don’t take time to fully understanding the plan’s Electricity Facts Label (EFL) and they don’t know their monthly usage.
Dallas electricity plan EFL
When we dig into the plan’s EFL, we find that the actual energy charge is 12.86 cents per kWh for ALL the usage levels. That means, when we add in the Oncor distribution charges ($0.038447 per kWh and $3.42 customer charge), the average rate for using 500 kWh is 17.4 cents per kWh:
(500 kwh x $0.1286) + (500 kWh x $0.038447) + $3.42 = $86.94
$86.94 / 500 kWh = $0.174 OR 17.4 cents per kWh
However, the plan has a $95 bill credit that kicks in only when your usage hits 1,000 kWh or above. At that point, the average price goes down:
(1,000 kWh x $0.1286) + (1,000 kWh x $0.038447) + $3.42 = $170.46
$170.46 – $95 = $75.46
$75.46/1,000 kWh = $0.075 OR 7.5 cents per kWh
So, in order to qualify for the $95 credit on your electricity bill, all you need to do is to use 1,000 kwh or more each month. That’s not a hard thing for the average home owner. But if you have an energy efficient home or you’re renting an apartment unit, then this kind of plan could cause you more trouble than it’s worth.
And that’s why you need to understand your energy usage.
Your Dallas Electricity Usage
Energy usage for your home not only depends on the size of your home but how well it’s insulated, the type and efficiency of the appliances you use, and how often you use them. For heating and cooling, your electricity usage fluctuates throughout the year. During the weather extremes of winter and summer, electricity usage in most homes tends to be high. And this is especially true for older, less insulated homes and those that don’t have programmable or smart thermostats. On the other hand, during periods with moderate temperatures, home energy use can be lower than average.
Better insulated and air-sealed homes with energy efficient appliances use less energy. While that’s good, if your home tends to use less than 1,000 kWh per month for 9 months out of the year, then this kind of plan will not be a good idea. After all, you’d be paying 17.4 cents per kWh and not getting the bill credit. However, if you do use more than 1,000 kWh for most of the year, then this kind of plan could save you money on your Dallas electricity bill. Unfortunately, the same case doesn’t usually apply to apartment units.
What’s the Best Electricity Plan for a Dallas Apartment?
According to EIA.gov data, single detached homes consumed three times more energy on average than an apartment unit. If the average Texas home consumes 1,000 kWh per month, than an average apartment (1 bedroom) might use 300 to 600 kWh per month depending on time of year, AC, location of the apartment in the building structure.
Now if you’re an apartment renter, seeing that 300 to 600 kWh per month usage range should be setting off alarm bells in your head. That’s because this kind of tiered rate plan isn’t designed to benefit customers with this level of low usage. If your monthly electricity usage in Dallas is less than 1,000 kWh per month, you’ll wind up paying that higher 17.4 cents per kWh rate and not getting the bill credit. In that case, stay awayfrom this kind of tiered plan. Instead, shop for a cheap Dallas electricity rate that better matches your monthly kWh usage.
Shop for the Cheapest Dallas Electricity
Finding the best electricity rate that fits your needs can be a confusing process. That’s why it’s important to stay informed and keep up to date on the trends in the Dallas electricity market. Bookmarking http://www.dallaselectricityrates.com will help make your shopping experience easier and your choices smarter with useful energy saving tips, news, and resources to help you stay ahead of Texas energy prices.