Power bill question: what's the highest $ per KWh rate you've ever encountered on a variable rate plan? (how much, buy)

[Zhang Fei]

Just wondering how high it has gotten in the past, presumably in the summer and during cold spells. A quick Google yielded a Chron article quoting 19 cents per KWh.

[City Love]

Originally Posted by Zhang Fei

Just wondering how high it has gotten in the past, presumably in the summer and during cold spells. A quick Google yielded a Chron article quoting 19 cents per KWh.

I forget exactly when, but sometime between 2007-2009, I remember paying .19 cents. In fact, other people where paying in the .20's.

[MIBS98]

Power prices in Texas are closely linked to natural gas prices, so if you take any natural gas price curve just look for when prices were highest and that is generally where you will also find the highest variable rates as well.

[piyf]

Why would you ever want a variable rate? Lock it in since the prices are low low low for 6 month and longer contracts. Unless you plan on living somewhere for less than 6 months.

[City Love]

Originally Posted by danieloneil01

Why would you ever want a variable rate? Lock it in since the prices are low low low for 6 month and longer contracts. Unless you plan on living somewhere for less than 6 months.

Agreed. Fixed is the way to go. The only time I see variable as a good option is you only need to have the account for a few months.

[HoustonRonnie]

Originally Posted by City Love

Agreed. Fixed is the way to go. The only time I see variable as a good option is you only need to have the account for a few months.

I usually don't disagree with you, Love, but I do here. Natural gas prices are the lowest they've been in a LOOOOOOOOONG time and they ain't goin' back up. So why buy fixed on the forward curve, when you can float with the low spot? I'm not fixing until the forward curve on natural gas is in a normal upward slope.

Ronnie

[Glucorious]

Originally Posted by City Love

Agreed. Fixed is the way to go. The only time I see variable as a good option is you only need to have the account for a few months.

Uh, no. I pay less than any of the fixed rate plans offer. You don't really think they'd push fixed rate plans if they lost money, do you? What's good for them is bad for you.

[travelguy_73]

OK, how much money are we really talking about? If you are hypothetically paying .11 variable on average, or .13 fixed, what is the dollar difference in your monthly bill? Sometimes I think we can really overanalyze the impact of these rates.

I'm all for paying a good rate, but I'm not going to overthink it.

[jasonamd]

Natural gas prices aren't the only thing that affect the price of electricity. I remember last summer during peak demand when they were warning about rolling blackouts that some people with variable plans got hit with huge bills because some companies increased the price of power due to the huge demand.

I'm on a fixed rate plan ($0.09/kwh at 2000kwh) I signed up for last August. At my current usage I'm paying 11.3 per/kwh. A variable rate plan right now for that usage is 10.9 per kwh. I would have saved $2.35 last month if I was on the variable plan. There have been months where I've saved a few dollars and spent a few more dollars...but overall, I haven't seen it vary a whole lot where it would make much more than a few dollar difference each month.

[Glucorious]

Originally Posted by jasonamd

Natural gas prices aren't the only thing that affect the price of electricity. I remember last summer during peak demand when they were warning about rolling blackouts that some people with variable plans got hit with huge bills because some companies increased the price of power due to the huge demand.

I'm on a fixed rate plan ($0.09/kwh at 2000kwh) I signed up for last August. At my current usage I'm paying 11.3 per/kwh. A variable rate plan right now for that usage is 10.9 per kwh. I would have saved $2.35 last month if I was on the variable plan. There have been months where I've saved a few dollars and spent a few more dollars...but overall, I haven't seen it vary a whole lot where it would make much more than a few dollar difference each month.

How much do you use? It's easier if you tell me than calculating it myself.

Originally Posted by travelguy_73

OK, how much money are we really talking about? If you are hypothetically paying .11 variable on average, or .13 fixed, what is the dollar difference in your monthly bill? Sometimes I think we can really overanalyze the impact of these rates.

I'm all for paying a good rate, but I'm not going to overthink it.

1000 KWH @ 0.11 = 110 Dollars. 1000 KWH @ 0.13 = 130 Dollars.
2000 KWH @ 0.11 = 220 Dollars. 2000 KWH @ 0.13 = 260 Dollars.