Why?
The majority of Texas residents are on a fixed-rate plan, where the price per kilowatt hour (kWh) is locked in, and the bill is based on usage. However, some are on what s called a variable-rate electricity plan, where the price paid per kWh used fluctuates based partly on the wholesale price of electricity, could see sky high bills in the next month or so due to the sharp escalation of wholesale electricity prices during last week s winter storm.
According to the plan comparison website ElectricityPlans.com, market watchers estimate 25-30% of Texans are on a variable-rate plan. People on a fixed-rate plan have made the conscious decision to sign a contract with a retail electricity provider, said Rebecca Bridges with ElectricityPlans.com, and to maintain that contract year after year, or to shop every year for a new provider.