Are you trying to save money on your energy bills, moving to a new home, or hoping to do your bit for the environment by switching electricity companies? The good news is that in Texas you can change your electric company at any time.

Explore BKV Energy’s affordable plans by entering your zip code below:

Switching energy providers can feel like a daunting process (and let’s be honest, there is some paperwork and planning involved). Luckily, the cost savings and benefits can make the entire process worth your while.

Here’s how it works:

Texas has an extremely competitive energy market that offers consumers a host of exciting options, plans, and rates, and the power to choose the best provider is literally in your hands. In this article, we’ll show you how to switch providers and find the best deal.

Step 1: Determine what features matter to you

Before you begin your search for a new energy provider, it’s important to determine what features matter most to you.

For example, you’ll have the option to choose between simple fixed rates and time-of-use plans.

Simple fixed rate plans

Simple fixed rates are electricity pricing plans where the rate per kilowatt-hour (kWh) of electricity remains the same regardless of the time of day. In other words, the price you pay for electricity is constant, and you are charged the same rate for each unit of electricity you use. These plans are the easiest to understand, and don’t require customers meet specific usage requirements in order to get a good rate.

Time-of-use plans

Time-of-use plans offer different rates for electricity consumption based on the time of day. These plans typically have peak hours when electricity usage is highest, and the rate per kWh during those hours is higher than during off-peak hours when electricity usage is lower. So, if you consume electricity during peak hours, you will pay more per kWh than if you consume it during off-peak hours.

The seemingly lower pricing may lure you in, but if you work from home during the day or use electricity during peak hours, you may end up paying much more for electricity than you would have on the simple fixed rate plan.

You should also consider factors like loyalty programs (that can reduce your bill in the long term) and customer service, as well as the company’s values and commitment to the community, before making a decision.

Step 2: Compare rates and plans while avoiding expensive gimmicks

Some providers lure customers in with promotions, like free nights or weekends, low introductory rates that increase after a certain period, or plans with high usage thresholds. On the surface, these plans seem great, but they aren’t for everyone.

Pay close attention to the Electricity Facts Label (EFL) on these plans to understand what the company means by “free” and whether or not you’ll benefit from the incentive.

If the free hours run from 10 pm to 5 am, it’s not going to be easy to shift your high-usage activities to those hours in order to draw the benefit. You probably don’t want to load your dishwasher or dryer at midnight or move all of your energy-heavy chores to the weekend.

The gimmicks to watch out for are:

• Free nights and free weekends plans
• Plans with bill credits
• Plans with base charges
• EV charging plans

If you have trouble making sense of it all, speak to a knowledgeable provider, like BKV Energy. Our customer services can evaluate your current bill, talk you through the ins and outs of various plans, and provide an honest assessment of our plans to help you find the best rates and plans according to your lifestyle.

Step 3: Find your usage for comparison

You’ll need to do your research by examining your current electric bill and rate and comparing it to the cost of the new energy supplier. This will help you determine which plans will be the most cost-effective for your needs. It’s important to weigh up more than just the prices when making the comparison. Plans can vary dramatically, too.

Step 4: Review rour EFL for early termination fees and calculate the cost of switching mid-contract

When reviewing the details of a plan, be sure to carefully review the Electricity Facts Label (EFL) for early termination fees. If you switch to a new energy provider before your contract is up, you may be subject to an early termination fee. Calculate the cost of switching mid-contract to determine whether it’s worth it to make the switch. Long-term cost savings may make up for the initial penalty.

Step 5: Gather necessary documents (if applicable)

In most cases, no documents are required to switch energy providers. If you are moving, you may need to present proof of relocation to avoid a contract breakage fee. It’s a good idea to have proof of identification ready in case you are asked to validate your order.

Step 6: Make the switch

Once you’ve selected a new energy provider, the process of making the switch is typically very simple.

• Visit the new provider’s website
• Select a plan
• Enter in your account information
• Select a start date
• Submit the sign up form

Your new provider will handle the rest of the process, including notifying your current provider and arranging for the switch to take place. That’s it! After completing these steps, you will have successfully switched to a new energy provider in Texas.

Common questions about switching energy providers

Understanding energy provider switching: What does it mean to switch suppliers?

Switching electricity providers can be a game-changer for customers who are unhappy with their current provider or want to save money on their energy bills. In Texas, residents have the power to choose their electricity provider thanks to the state’s deregulated energy market. This means that consumers have the freedom to shop around and choose the provider that best meets their needs based on factors such as price, renewable energy options, and customer service.

First, it’s important to understand that in Texas the electricity network is served by several different groups and partners. Your bill will contain charges from both your retail electricity provider (REP) and your local utility company, or TDU. A retail energy provider is a company that sells electricity to consumers, while a utility company is responsible for delivering electricity to homes and businesses.

The retail energy provider purchases power on the wholesale market, (though some, like BKV, also produce power to sell to consumers), offering a range of plans and rates.

The utility company is responsible for maintaining the infrastructure and delivering power to consumers. They are regulated by state authorities and TDUs maintain exclusive service territories across different geographic areas. Retail energy providers operate in competitive energy markets, where customers have the power to choose among different providers. So, can you switch your energy provider? Yes, you can switch your electricity company (REP) in Texas, but you cannot switch your utility (TDU).

Is switching electricity companies worth it? Weighing the pros and cons

Whether or not it’s worth switching providers will depend on the needs of your household. Bear in mind that even a small saving on your electric bill will add up quickly over the course of the year, so comparing providers is always a useful exercise.

Of course, there are other benefits to switching providers aside from cost savings.

One of the most significant reasons why consumers consider switching to electricity companies is to obtain better service. While utility companies (also known as transmission and distribution utilities, or TDUs) are responsible for delivering electricity, retail energy providers are responsible for managing the customer experience.

A new energy company could potentially provide better customer service, more reliable billing. Do your research and read reviews before making a switch. Does the provider you are considering have a good reputation for responsiveness and helpfulness? Are they willing to assist you when you’re experiencing a financial crisis?

Some providers, like BKV Energy, prioritize customer service and offer assistance through email, phone, chat, SMS, and even social media to support their customers; others are far more hands-off, and some even charge for access to customer support!

Understanding the basics of how the power grid works can help you make informed decisions about switching providers and whether or not you may benefit from using a different provider. (Check out the Learning Center for more information on the Texas grid and ERCOT).

If your main motivation for switching plans is to save money, make sure that you understand the basics of the various rate plans. Some companies offer promotions or sign-up bonuses that may make switching providers worthwhile, but many of these promotions are little more than impressive-sounding gimmicks. You’ll also need to calculate your early termination fee (ETF) and any costly contract stipulations before making a switch.

If you’re currently locked into a contract with your energy provider, it might make more sense to wait until the contract ends to avoid breakage fees. You can also save money by switching during the off-season (spring and fall) when demand is down and rates are lower. Securing a contract in the off-season for either 12 or 18 months ensures that when your contract ends and it’s time to pick another plan, you’re not starting over in the expensive peak seasons of summer and winter.

What you should know before switching energy providers

Ready to make the switch? Consider these tips for a smooth transition.

• Check for Fees: Unless you’re on a month-to-month plan, most providers charge an early termination fee if you switch before the end of your contract. Make sure to read the terms and conditions of your current energy plan carefully to understand any potential fees. You will also need to go through a quick credit check before starting service (though you can skip it for a small deposit). Depending on your credit rating and history, you may be required to place a deposit before service can be established.
• Count Up the Total Cost: When comparing energy plans, pay close attention to the total cost, including any fees or charges. A plan with a lower apparent rate may end up being more expensive if it has additional charges or requires dramatic lifestyle changes to maximize its lower rate periods. Look for plans with transparent pricing and no hidden fees.
• Can You Switch Back to Your Old Provider?: Once you switch to a new energy provider, you may realize that the plan you chose isn’t the best fit for you. In some cases, you may be able to switch back to your previous provider, but this may come with fees or other restrictions. At BKV Energy, we provide a no hassle, 30 day trial period where you can cancel your service with no early termination charge – just pay for the electricity used and you’re done.
• When in Doubt, Opt for a Trial: Before switching, make sure to understand the terms and conditions of the new plan, including the length of the contract, the rates at different consumption levels and any bill credit or time of use tiers that have to be met, as well as any penalties for early termination. If you’re unsure about a plan, consider choosing a shorter contract term or a provider with a trial period, like BKV Energy.
• Address Debts: If you have an outstanding balance with your current energy provider, it’s important to address this before switching to a new provider. Some providers may refuse to start service if you have unpaid debt with a previous provider. In Texas, your current provider has the right to place a “switch hold” on the account to avoid customers from jumping from one company to the next without settling the bill. This can create some difficulty for customers with long-term, variable rate plans as it may lead to unpredictable bills. Fixed rate plans allow for easier budgeting.
• New Home, Past Due Bill: If you’re moving into a new home and the previous tenant had an outstanding balance with the energy provider, you may be subject to a switch hold. You’ll need to fill out some paperwork known as a New Occupant Statement and provide a copy of your lease, an affidavit from your Landlord and a few recently paid electric bills from your previous address to prove that you are a new tenant. Check with the energy provider to see if there are any outstanding balances tied to the address before switching service into your name. Keep records of all communications with the energy provider to avoid any disputes or misunderstandings later on.

What happens after you switch electric providers?

After you switch electric providers, you’ll receive a confirmation notice from your new provider acknowledging your enrollment, along with information regarding the terms and conditions of your new plan. Your old provider will send you a final bill which will include any outstanding balances or credits owed to you.

Your new provider will start providing electricity to your home on the date specified in your enrollment confirmation. It is important to review your new bill to ensure that the rates, fees, and terms are what you agreed to.

If you have any questions or concerns, you should contact your new provider’s customer service department for assistance.

Conclusion

Switching electric companies in Texas is easier than you may think. Sure, it requires a little research and shopping around to find the best possible provider, but the money you can save on your bill every month (and the peace of mind you’ll have knowing you have a supplier that is always ready to assist you) will make the entire process worth your while.

If you are interested in changing electricity providers, get in touch with BKV Energy. There are no hidden fees, no vague terms, no rate surprises, and no gimmicks. Just honest, reliable energy at affordable rates.

The post How to Switch Electricity Providers in Texas appeared first on BKV Energy.

With so many options available, knowing how to choose an energy plan can seem like a job by itself. The last thing you want is to get locked into a deal with an electricity provider that doesn’t work for your lifestyle, or worse, costs you more than it should.

In this guide, we’ll show you how to choose the best energy plan in Texas. Here’s what we’ll cover:

1. Rate types
2. Term lengths
3. Energy charge vs average price
4. Base charges and usage fees
5. Early cancellation fees
6. Bill credits and time-of-use plans
7. Other deciding factors

How to find the best electricity rates

There are a few different types of electricity rates in the Texas market, but there’s only one you should pay attention to—fixed-rate plans.

Fixed-rate plans are the best option because you’re locked into the same energy charge for the duration of your contract, even when market rates increase. That means you’re protected from the increased costs of electricity during summer months when demand on the grid is much higher.

When shopping for electricity, we always recommend looking for a fixed-rate plan.

Which term length is right for you?

Texas electricity providers offer a wide range of contract lengths, ranging from 1 month to 3 years. Sometimes you may even find a 4 or 5-year plan.

How do you know which one is right for you? Well, each term length has its pros and cons, and some are more appropriate for one shopper over another. Let’s dive into the details of commonly offered plan terms.

There’s no catchall-right answer for which term length is best because everyone’s circumstances are different. Weigh the pros and cons of each offering and select the option that best fits your needs and lifestyle.

Always check the energy charge

Most electricity provider and plan comparison websites show the average price of a plan based on a standard usage of 2000 kWh per month. This can be misleading, especially if your energy consumption tends to vary from month to month or if your household uses significantly more or less energy than average. As a result, you may not be seeing the true cost of electricity for your specific usage needs.

How can you know what you’ll actually be paying? This brings us back to BKV Energy’s timeless mantra—always, always, always check the Electricity Facts Label.

When you look at the Electricity Facts Label, you’ll find a table showing the average price of electricity at usage levels of 500, 1000, and 2000 kWh. This breakdown helps you compare how energy prices vary based on consumption. Below that, you’ll notice a line labeled “Energy Charge” — this is the key figure to focus on when comparing plans.

When comparing plans, don’t compare the average price. Instead, look for the lowest energy charge available.

Avoid base charges and usage fees

When reviewing a plan’s Electricity Facts Label, pay close attention to base charges and usage fees.

Many providers tack on these hidden costs, which can increase your bill by as much as $120 per year. These charges range typically from $4.95 to $9.95 per month or more. It’s best to avoid providers and plans that burden customers with these unnecessary charges.

Pay attention to early cancellation fees

Early cancellation fees or early termination fees are applied when you leave a contract before its completion date. There are generally two types of early cancellation fees.

• Fixed: This ETF stays the same throughout your contract regardless of how much months or days remain. They range from $150 to $300.
• Per remaining month: This ETF decreases as you get closer to the end of your contract. The most common cost of this type of ETF is $20 per remaining month on your contract.

Our recommendation? Choose a plan that has an early termination fee that decreases the longer you’re a customer. That way if you decide to leave for any reason, it’s easier to switch providers or plans.

Bill credit and time-of-use gimmicks

In Texas, many providers advertise benefits such as “free nights” or “free weekends” or $150 bill credits.

These are marketing ploys to grab your attention and lure you into expensive electricity contracts. We’ll remind you once again—always, always, always check the Electricity Facts Label.

Even with a bill credit or “free” electricity over night or on the weekends, these plans are often more costly than a simple fixed rate plan.

Why? They elevate the energy charge!

For example, a typical free nights plan will have an energy charge twice as high as a simple fixed rate plan. That means that even with free electricity at night, you’ll end up paying higher bills because most of your electricity consumption happens during the day.

More deciding factors

There are a few more factors to pay attention to when comparing electricity providers in Texas:

• Payment options: Some providers have more bill payment flexibility than others. Look for a provider that offers your preferred method: credit card, debit card, check, online, or in-person.
• Averaged billing: Want the same bill every month? Ask before you sign up if a provider offers averaged billing.
• Customer service: Have a specific way you like to interact with a customer support team? Look out for providers that allow you to get in touch via email, phone, text, Facebook Messenger, WhatsApp, and more.
• Plan benefits: A few providers go above and beyond for their customers by offering additional ways to save. Check for customer loyalty and rewards programs that include prizes such as gift card giveaways and exclusive shopping discounts if you want to make the most of your home’s energy.

Simple and affordable electricity with BKV Energy

At BKV Energy, we work hard to offer electricity plans that meet all of the above criteria to help Texans save big on their monthly energy bills. If you’re interested in switching to a provider with affordable fixed rates, no unnecessary fees, great customer service, a robust rewards program, and much, much more, then enter your zip code below.

The post How to Choose the Best Electricity Provider & Plan appeared first on BKV Energy.

While some may work in your favor, others will cost you more in the long run. In this article, we expose common plan Texas energy plan gimmicks and explain why they may not be the best choice for your budget:

• Free Nights and Weekends
• Bill Credits
• Bullseye Plans
• Variable Rates
• Wholesale Rates

Free or discounted nights and weekends

Free or discounted nights and weekends plans sound great in theory, but in practice, they’ll likely end up costing you more in the long run.

While the hours advertised as free or discounted really are, most electric companies charge inflated rates during the day to cover these costs, which can lead to higher bills overall.

Moreover, the definition of “nights” and “weekends” can be deceiving. Many customers are surprised to find out that the “night hours” aren’t always all night, and the “weekend” periods aren’t always the entire weekend, thus limiting the free or discounted time frame.

In other words, your “free” time could be from 7 pm to 7 am or from 11 pm to 5 am, depending on your contract. The time frame specified in your contract might make it more challenging to take full advantage of those discounted hours.  

Who can free nights and weekends rates work for?

These plans might work for those who can shift high-usage activities to the free periods, and who don’t work from home during the week. However, to ensure savings, it’s important to check the terms and be very flexible with energy use.

To save big, these plans require you to change your energy usage habits dramatically. Many Texans sign up for these plans but are not able to realize savings on electricity. In most cases, you are better off with a simple fixed rate plan.

Bill credit plans

Bill credit plans offer credits and rewards for using a certain amount of energy each month. But to make these plans worthwhile, you need to consistently be within a specific usage range. If your usage regularly falls outside that range, the plan could end up costing you more because the baseline rates are often higher.

Also, keep in mind that seasonal changes and extreme weather events can have a big impact on your energy usage and your bill. During low seasons, the average rate of use is around 700 kWh per month, while during peak seasons, it can easily double to around 1400 kWh. This means that customers can end up with a much higher bill when their usage falls outside the specified range due to external factors like weather.

Who can bill credit plans work for?

These plans can work for individuals who consistently use a set amount of energy each month. However, it’s important to keep in mind that external factors, such as seasonal changes and extreme weather events, can greatly impact your energy usage and bill. If your energy usage regularly falls outside the specified range due to these factors, a bill credit plan may not be the best choice for you.

Bullseye plans

With bullseye plans, your average price can vary significantly at different levels of energy usage.

If you use the right amount of energy, you can secure a low energy charge. However, if you go over or under the specified usage amount, you’ll be moved to a higher, more expensive tier. This pricing structure is quite common in the Texas energy market.

The defining feature of a bullseye energy plan is that there is no guarantee on the price you pay per kWh – the price changes dramatically based on your actual energy usage. These types of plans can include varying rates, flat fees, and usage credits.

Who can bullseye plans work for?

Tiered rates can work well for individuals and families who use a consistent amount of energy each month and are able to manage their usage within a specific range. If you can monitor your energy usage and stay within your tier, tiered rate plans can offer price stability and the potential for lower average rates. But keep in mind that shifts in energy usage from lifestyle changes or extreme weather events can push you into the higher-priced tiers, dramatically changing your bill.

Variable rates

Variable rate plans are known for their unpredictability, as they can change based on market pricing, which is influenced by a variety of factors, with demand being the main one, following a typical seasonal curve. Retailers have the discretion to alter pricing without notice, often leading to higher bills for customers.

Who can benefit from variable rates?

While they might work for those who are looking to save on their energy bills during certain seasons, these plans come with risks and aren’t for everyone. For those who are willing to take on more risk and monitor the market closely, variable rates may be worth considering, but it is generally recommended to opt for more stable rate plans to avoid surprises on your energy bill.

Wholesale rates

Real-time wholesale rate plans were common on the consumer Texas energy market prior to the winter storms of 2021, where they were featured as variable rate plans by a number of retail electricity providers such as infamous retailer Griddy. The fallout from the 2021 winter storms lead the Texas Legislature to ban wholesale electricity plans to consumers and small business customers.

While wholesale energy plans may seem to have some benefit for those who consume most of their energy during off-peak hours, these plans were extremely risky for the average user. The real-time rates are highly volatile, luring unsuspecting customers in with below-retail costs during off-season shoulder periods only to find summertime and wintertime price spikes quickly wiped out the savings accumulated over several months.

Which Texas electricity plan is best?

For the majority of Texans, a simple fixed rate energy plan will be the cheapest. You can rely on BKV Energy to offer the most affordable simple fixed rate plans.

We hope this guide has been helpful in showing you how to spot common energy plan gimmicks and find the best electricity rates. And if you’re looking for even more guidance, check out our other post on how to choose an energy provider and the right plan. With our expertise and range of options, we can guide you through this process and help you choose the best (and cheapest) electrical plan for your needs.

The post Texas Electricity Plan Gimmicks Exposed: How to Identify Them appeared first on BKV Energy.

Ever wondered what causes power outages and what you should do if you experience a blackout? Here’s everything you need to know. 

Why do power outages happen? 

Let’s take a more in-depth look at what causes power outages, considering a range of human, environmental, and mechanical failures.  

Your home circuit

Many homes experience “flickers,” where power is lost for an instant. Has this ever happened to you, leaving you wondering, “why did my power go out and come back on?” The most likely causes are internal. So, if you experience flickers regularly, it’s a good idea to have a trained electrician check your home for:

• Faulty wiring
• Short circuits
• Service panel damage
• Broken breaker switches

The weather

Heatwaves, thunderstorms, hurricanes, and winter storms are some of America’s leading power outage causes. For example, during the Texas winter storm of 2021, temperatures plummeted. The electric grid operator lost control of the power supply, leaving millions without electricity.

Natural disasters

Earthquakes, wildfires, and mudslides can cause significant damage to distribution towers and substations, resulting in long-lasting blackouts. As global temperatures continue to rise and adverse weather becomes more common, wildfires and flooding will remain common causes of power outages.

Human error

When maintenance workers disrupt cables with ladders or other equipment, power outages can occur. However, human error can also involve members of the public. Examples include power line disruption following vehicle collisions with power poles and when balloons from parties become lodged in overhead wires. 

Equipment failure

Old and aging equipment can push power plants to the uppermost limit of their operating capacity, leading to blackouts when the system becomes overloaded. For this reason, many power suppliers plan power outages during bouts of extreme heat or cold to ensure facilities can cope. 

Animal interference

Power suppliers protect electricity supplies by placing barriers around electric towers, cables, and utility poles. However, small creatures like squirrels, birds, snakes, and raccoons may still breach defenses. Squirrels are particularly problematic and are estimated to cause up to 30% of power outages. 

Power shutoffs

Sometimes, the answer to what causes power outages is the power company itself. Planned blackouts to conduct routine maintenance or upgrades are usually scheduled in advance. However, it’s also possible that companies may shut down operations to protect resources and reduce the chance of fire or equipment damage in periods of extreme weather. 

Fallen trees

Fallen trees and broken branches obstructing power lines are common causes of power outages. However, it’s not just mother nature that can uproot trees, which is why any felling or trimming should always be conducted by a professional. 

Excavation digging

Historically, most of Texas’s electricity supply has come from overhead sources. However, some areas have started to explore underground distribution methods. The cables sit just a few inches below the surface and are easily disrupted. That’s why Texas homeowners are required to contact 811 for approval before doing any digging.

What causes the most power outages in the U.S.?

Extreme weather conditions provide the most prominent reasons for power outages across the US. But, what about Texas specifically? Data shows that Texas ranks 2^nd in the country for power outages, and more Texans have been more affected by blackouts over the past 20 years than residents in any other state. So, why does the power go out more often here than elsewhere? Here is a comprehensive breakdown of what causes power outages in Texas. 

• High energy demand – Texas is the national leader in energy consumption. In times of high demand during heat waves or winter chills, the Texas power grid can become overloaded. 
• Cold snaps – In February 2023, Texans were left in the dark for the second time in two years due to ‘the oakpocalypse’, a sudden icy freeze causing electrical damage from overburdened trees.
• Hurricanes – Being close to the Gulf of Mexico, Texas is prone to more hurricanes than most other states. One of the worst on record was Hurricane Ike, which hit Galveston and Houston in 2008.  
• Thunderstorms – Moisture from the Gulf of Mexico combined with the state’s extreme heat makes Texas susceptible to thunderstorms. Thunderstorms bring lightning, which significantly increases the chance of blackouts. 
• Flash flooding – The central part of Texas has been dubbed “Flash Flood Alley” as it is particularly susceptible to sudden flooding that can take down power lines and disrupt the grid. 
• Tornados and high winds – Texas has a lot of flatlands, making it prone to tornadoes and high-speed winds. So much so, the areas around Lubbock and Amarillo in northern Texas have been named “Tornado Alley.” 

The process of delivering electricity

To understand the reasons for power outages, we must first learn more about how electricity is produced and distributed. There are three broad stages in generating electricity and distributing it to consumers. The underlying causes of power outages can derive from issues at any stage:

Power generation

Power plants generate electricity by converting one form of energy into electrical energy. At BKV, we generate power by combining natural gas with a stream of air, which combusts and expands through a turbine to make electricity. 

Because excess energy is expensive and difficult to store, electricity grids run at nearly a 1:1 ratio of demand to production, which means that only as much energy is produced as is being demanded by consumers at any given moment, and power plants are constantly adjusting their outputs to match. 

Natural gas is an increasingly popular source of electricity production because it burns cleaner than coal and oil, and production is easy to quickly ramp up or down in alignment with real-time grid demand needs, unlike other sources. 

Power transmission

Electricity is passed through step-up transformers before traveling long distances via high-voltage transmission lines — the large towers and pylons you see dotted across the natural landscape. 

Power distribution

Electricity is passed through step-down transformers to convert it to a lower voltage so it can enter the distribution network, traveling along lines between utility poles and into customers’ homes.

What to do when a power outage occurs

No matter what causes electrical blackouts, the actions you take to avert and deal with power outages should be the same: 

• Take preventative measures – Run household electronics through surge protectors to reduce fire risk, and always disconnect appliances when a blackout hits.
• Monitor alerts – Utilize the apps and alert systems available in your area to receive notifications and updates on planned and unplanned blackouts. 
• Stay connected – Use battery-operated radios and traditional corded telephones (which continue to operate on copper lines even during power outages), and invest in power banks to keep cell phones and computers running during outages. 
• Build a support network – Create a contact list of people who can help you stay safe at home or evacuate during an extended power outage. 
• Prevent Carbon Monoxide Poisoning – Install smoke alarms and carbon monoxide detectors throughout your home and test them monthly. 
• Plan for refrigeration – Always have coolers and plenty of ice on hand to keep food and medicines cold, and use a thermometer to monitor the temperature.
• Stockpile supplies – Aim to have enough non-perishable food and water supplies to last at least two weeks. 
• Make an evacuation plan – Decide how and when to evacuate, ensuring you always have adequate medical supplies and a full gas tank. 

The post What Causes Power Outages? appeared first on BKV Energy.

Fixed rate electricity plans are a better option for the majority of homeowners because with a fixed rate, you are locked into the same energy charge for the duration of your contract—no matter what happens to wholesale electricity prices. You are shielded from price volatility that occurs due to weather, seasonality, renewables, and other contributing factors.

There are a only few specific scenarios where a variable rate can be more affordable, such as if you are going to be living somewhere temporarily (1-2 months) and it happens to be spring or fall when weather is more mild.

By evaluating your energy usage habits, location, and market conditions, and comparing different providers and plans, you can make an informed decision and select the electricity plan that best suits your lifestyle.

Let’s dive into the pros and cons of fixed and variable rates energy plans so you can make the best choice for your wallet, your home, and your family.

What is a fixed rate electricity plan?

Fixed rate electricity plans are plans with a set rate per kWh that does not change for the duration of your contract, regardless of changes to market conditions like weather and demand. With your price per kWh locked in, you have the ability to predict your electricity costs. This allows you to budget with ease and eliminate financial surprises on your monthly bill. This is precisely what fixed rate electricity plans offer. Fixed rate plans are particularly beneficial for those living in extreme climates or anyone who prefers consistent budgeting.

Fixed rate vs flat rate plans

Fixed rate plans should not be confused with flat rate plans. Flat rate plans offer the exact same price (usually a very high base fee) each month for specific ranges of energy use. For example, if you use 0-500 kWh of energy, your bill may be $99. If you consume 501-1000 kWh, your bill may be $159. And if you were to use 1001-2000 kWh, your bill could be $259. While flat rate plans offer even more predictability, you can often be overcharged for power.

With a flat rate plan, it’s your price per kWh that remains the same at different levels of usage, not the final bill. That being said, it’s important to note that with a fixed rate plan, your bill will change month to month based on your usage. They are generally more predictable and manageable than those experienced with variable rate electricity plans. In essence, fixed rate plans provide stability and predictability in a world where energy prices can fluctuate wildly.

Pros of fixed rate plans

Fixed rate plans offer the following benefits:

• Consistent pricing. By locking in a rate per kWh, you are safeguarded from energy market volatility. Even if market prices soar, your electricity rate remains stable, allowing for more effective budgeting and potential savings over the long term.
• Eliminate the need for frequent comparison shopping.
• No need to constantly monitor energy rates and switch plans or suppliers.
• Save time and effort.
• Provide peace of mind.

Fixed rate energy plans are the best option for most people, but not everyone. If you prefer flexibility and the ability to switch plans when energy rates change, a fixed rate plan may not be the best option for you. Nevertheless, for those seeking stability and predictable costs, fixed rate plans are a solid choice.

Cons of fixed rate energy

While fixed rate plans offer stability and predictability, they also come with some drawbacks:

• Inability to take advantage of lower market rates when energy prices drop. If you’re locked into a fixed rate plan, you might miss out on potential savings during periods of low energy prices.
• Some fixed rate plans offer high early termination fees if you decide to end the contract before its completion. This can be a significant consideration for those who may need to move or switch electricity providers before their contract expires.

At BKV Energy, our early termination fee decreases the longer you are a customer – it’s only fair.

What is a variable rate electricity plan?

Variable rate electricity plans are plans with prices per kWh that fluctuate based on market conditions. This means you could potentially save money during periods of low demand or when market prices drop. However, the rate may also increase if market conditions drive energy prices up.

The main factors influencing variable rate electricity plans are current electricity market conditions. This means that with a variable rate plan, you get to ride the waves of the energy market, potentially benefiting from lower prices but also facing the risk of higher costs during price spikes.

In Texas, it’s very likely that market conditions will push prices higher throughout the same due to intense demand and high production costs across the state.

Pros of variable rates

Variable rate plans offer several advantages, including:

• The opportunity to capitalize on lower prices in the energy market. If energy prices drop, you can enjoy the benefits of lower rates without being locked into a higher rate, as is the case with fixed rate plans.
• Typically no cancellation fees. This provides you with the flexibility to switch providers if a better deal becomes available or if your energy needs change.
• Freedom from long-term contracts. This can be particularly appealing to those who prefer not to be tied down.

However, it’s essential to be aware of the potential drawbacks of variable rate plans. While they offer flexibility and the chance to save money during low-demand periods, they also come with the risk of unpredictable costs and potential budgeting challenges due to market fluctuations.

Cons of variable energy rates

The primary disadvantage of variable rate electricity plans include:

• Lack of predictability. Since rates fluctuate in response to market conditions, it can be challenging to accurately predict your monthly electricity bill. This can make budgeting more difficult, especially for those who prefer a stable and consistent monthly expense.
• Potential for higher rates if market prices rise. While variable rate plans offer the opportunity to save money during periods of low demand and falling prices, they also expose you to the risk of increased costs when market prices climb. This unpredictability can be a significant concern for those on a tight budget or with limited tolerance for risk.

Which type of electricity plan is right for you?

Generally, we always recommend Texans sign up for fixed rate plans due to the stability and predictability that comes with those plans. With our very long and hot summers, you are more likely to spend less on energy with a fixed rate plan.

But, ultimately, the choice between fixed and variable rate electricity plans depends on your personal preferences, risk appetite, and energy consumption habits. If you prefer flexibility and the potential for cost savings during low-demand periods, a variable rate plan may be more suitable.

Both fixed or variable rate plans have their pros and cons, and the best option for you will depend on your unique circumstances and priorities. By carefully considering your energy usage habits, location, and market conditions, you can make an informed decision and choose the electricity plan that best meets your needs.

Learn more about other types of electricity plans

• Free Nights and Weekends: Are They Worth It?
• How Bill Credits Lead to Higher Electricity Bills
• What Are Base Charges on Electricity Bills?
• What Are Indexed Electricity Plans?
• Prepaid Electricity Plans: Higher Costs, Higher Risk

The post Fixed vs Variable Rate Electricity Plans: Which is Best? appeared first on BKV Energy.

For the large majority of customers in Texas, we do not recommend signing up for a free nights and weekends electricity plan. You are likely to save more money on your electricity bill if you enroll in a simple fixed rate plan instead.

If you’ve ever been enticed by an electricity plan offering free nights and/or free weekends, you’re not alone. It’s easy to find yourself wondering if the plan is too good to be true. These plans can be both intriguing and confusing, leaving potential customers like you scratching their heads as they try to determine whether free nights or free weekends electricity plans can actually lead to savings on your monthly energy bills.

• Free nights and weekends electricity plans are a form of marketing that are most often not beneficial to customers.
• Careful evaluation of the plan’s terms and your personal energy consumption is required to determine if free nights and weekends plans offer potential savings, as they generally come with much higher rates during non-free hours.
• Consider a simple fixed-rate plan as an alternative, or significantly adjusting your energy consumption habits, before enrolling in a free nights and weekends plan.

Free Nights and Weekends plans are marketing ploys

Free nights and weekends electricity plans are not designed to help you save money. They are marketing strategies designed to draw in more customers. Due to higher rates during non-free hours, these plans often to lead to higher bills.

Are they really worth it? Likely not. While these plans claim to offer savings if you consume more electricity during the evening and less during the day, it’s very difficult to realize those savings. With free weekends electricity plans becoming more popular, it’s important to know exactly how these plans working before enrolling.

Higher kWh rates during the day lead to higher overall bills

Compared to a simple fixed-rate electricity plan, these plans typically charge higher kWh rates during the day to compensate the provider for the free electricity offered during nights and weekends. The rationale behind the higher rate for non-free hours is to incentivize customers to shift their usage away from peak hours. But making a significant enough change to your energy consumption, such that you actually end up with a lower electric bill, is not possible for the majority of customers.

You could pay 5 -10 cents more per kWh

While you may enjoy free electricity during designated hours, you could end up paying more than you bargained for during non-free hours. Depending on the plans you’re comparing, the difference in the kWh rates between a free nights and weekends plan and a simple fixed-rate electricity plan may be as much as an additional 5 to 10 cents/kWh.

70% of your electricity usage occurs during the day

It’s estimated that the average home consumes about 70% of their electricity during the day. To make a free nights or free weekends electricity plan worth it, you’d need to potentially move 35-50% of your electricity usage to the free hours. In Texas, that will be nearly impossible. Your air conditioning system consumes a very high amount of energy during the day for over half of the year thanks to our long, hot summers.

To determine if a free nights and weekends plan is suitable for you, it’s important to consider how much electricity you use during the day and if the higher rates during non-free hours would offset any potential savings from the free periods. If you find that your daytime usage is minimal, a free nights and weekends plan could be a viable option for you. However, if your energy consumption is high during the day, you would want to explore alternative plans.

Always check the Electricity Facts Label

It’s essential to read the Electricity Facts Label (EFL) before enrolling in any electricity plan to understand the plan’s fee structure, policies, and rates. The EFL provides detailed information regarding the fees, policies, and rates associated with an electricity plan. Look out for the following features of a free nights and free weekends EFL:

• Check the kWh rate during non-free hours and compare to the rate of a simple fixed-rate plan
• Check the time window when you receive free electricity as the length of time may be shorter than you would expect

By examining your past bills and energy consumption habits, you can compare your monthly energy consumption to the information on the EFL and evaluate if the new plan will be cost-effective.

Don’t be swayed by the allure of free electricity without fully understanding the terms and conditions of the plan. By consulting the EFL and assessing your energy usage, you can make a more informed decision about whether a free nights and weekends electricity plan is the right choice for your household.

Alternatives to Free Nights and Weekends

If you’re not convinced that a free nights and weekends electricity plan is the right choice for you, there are alternative electricity plans available from various electricity companies, such as a simple fixed-rate plan with or without renewable energy sources. You can explore BKV Energy’s simple fixed rate electricity plans by searching your zip code on our website.

Fixed rate plans

Fixed-rate plans offer a consistent price per kWh, providing stability and predictability in energy costs. With fixed-rate plans, fluctuations in energy prices are no longer a cause for concern. However, the primary disadvantage of fixed-rate plans is that you may incur a higher cost for your energy if the market rate falls below the rate you have fixed. To secure a lower rate, regularly check pricing from different providers as kWh rates may change often. At BKV Energy, we update our prices on a daily basis.

For customers who prefer a more stable and predictable energy bill, fixed-rate plans can be a more suitable option compared to free nights and weekends plans.

Renewable energy options

Fixed-rate plans can also be fueled by renewable energy sources. If you’re looking to reduce your carbon footprint, these renewable energy plans can be a good alternative to free nights and free weekends plans. Pay close attention to how the percentage of energy that comes from renewable energy sources impacts the kWh rate.

By investing in renewable energy options, you are not only contributing to a cleaner environment, but also potentially benefiting from long-term cost savings. It’s essential to consider your energy usage, budget, and environmental impact when choosing an electricity plan that best suits your needs.

Can you save money with Free Nights and Weekends energy plans?

Is it possible for anyone to save money with a free nights and weekends electricity plan? That depends. Saving money with free nights and weekends energy plans requires careful evaluation of your energy usage and making adjustments to your consumption habits. By tracking your energy usage over several months and changing your electricity consumption habits and schedule, you can maximize the potential savings offered by these plans.

Evaluate and track your usage

Look at the last 12 months of your energy consumption (total kWh usage) from your past energy bills. When looking at your total usage, you can calculate what your bill would be on a free nights and weekends plan and if that would be beneficial for your household.

By gaining a better understanding of your energy usage patterns and how they align with the designated free hours of a free nights and weekends plan, you can make an informed decision about whether this type of plan is the right choice for you.

Change your electricity consumption habits and schedule

Adjust your electricity consumption habits and schedule to take advantage of the free hours offered by these plans. By avoiding using electricity during peak demand times and shifting your usage to the free times of the plan, you can maximize the potential savings. Additionally, consider using energy-efficient appliances and devices, and taking advantage of natural light and ventilation.

By being mindful of your electricity usage and making adjustments to your consumption habits and schedule, you can make the most of the free hours offered by free nights and weekends electricity plans and potentially save on your energy costs.

Pros and cons of Free Nights and Free Weekends

Free nights and weekends electricity plans have both pros and cons, which should be considered before enrolling. Let’s take a closer look at the potential savings and higher rates during non-free hours associated with these plans.

On the plus side, free nights and weekends can offer significant savings for households that use them.

The pros: potential savings

Potential savings technically can be achieved if the majority of your energy usage occurs during the free hours. For the rare consumer, free nights and weekends electricity plans can provide a good deal if they are able to shift their energy usage to designated free hours.

However, it’s important to remember that the potential savings of these plans are difficult to realize depending on your electricity usage and the specific plan you choose. Always evaluate your usage patterns and compare different plans to determine the best fit for your household.

The cons: higher rates during non-free hours

While free nights and weekends electricity plans can offer potential savings, they often charge higher rates during non-free hours. These higher rates can negate any savings if you do not manage your energy consumption carefully during the non-free hours. It is advised to consult your electricity provider or review the terms and conditions of your plan to ascertain the elevated rates during non-free hours.

Understanding the rates during non-free hours and being mindful of your electricity usage during these times is crucial in ensuring that you can truly benefit from the potential savings offered by free nights and weekends electricity plans.

What to know before enrolling in a Free Nights or Free Weekends plan

Deciding whether to enroll in a free nights and weekends electricity plan depends on your energy usage habits, schedule, and willingness to adjust your consumption patterns to maximize savings. If the majority of your electricity consumption occurs during the designated free hours and you’re willing to adjust your habits to take advantage of these hours, a free nights and weekends plan may be a suitable option for you.

However, if your energy usage is primarily during the day or you are unable or unwilling to adjust your consumption habits, it may be worth exploring alternative electricity plans, such as fixed-rate plans or renewable energy options, to better suit your needs and preferences.

Frequently asked questions

Are free nights electricity plans actually free?

The energy you use at night will actually be free (depending on the terms and conditions in the Electricity Facts Label), but you pay a higher rate during the day which may actually lead to a higher monthly energy bill. No free nights plans are completely free.

Are free nights and free weekends electricity plans worth it?

This type of time-of-use plan could potentially be worth it for homeowners or renters that can successfully shift a large percentage of their energy consumption to the free hours, but keep in mind, these plans are designed so that is nearly impossible. Energy companies would not offer these plans if it were easy for all customers to make these changes because they would decrease their revenue and profits.

What time is electricity free for a free nights and free weekends plan?

The time that electricity is free depends on the retail energy provider and the specific terms listed in each Electricity Facts Label. Always check the EFL before enrolling in an energy plan.

What are some alternative electricity plans to consider?

We recommend looking into a simple fixed-rate electricity plan as an alternative to a free nights or free weekends plan.

What are the potential drawbacks of free nights and weekends electricity plans?

Free nights and weekends electricity plans may provide savings if managed carefully, however, higher rates may be charged during non-free hours, which could ultimately result in fewer savings.

Learn more about other types of electricity plans

• Fixed vs Variable Rates: Which is Better?
• How Bill Credits Lead to Higher Electricity Bills
• What Are Base Charges on Electricity Bills?
• What Are Indexed Electricity Plans?
• Prepaid Electricity Plans: Higher Costs, Higher Risk
• Are EV Charging Plans Worth It?

The post Are Free Nights and Weekends Energy Plans Worth It? appeared first on BKV Energy.

For most Texans, electricity plans with bill credits are not recommended. You are more likely to receive lower electricity bills when you opt for a simple fixed rate plan without a bill credit.

Every month, as you receive your electricity bill, you might wonder if there’s a way to save on those ever-increasing costs. One option that often catches the eye is enrolling in an electricity plan with a bill credit. But are bill credit electricity plans worth it?

• Bill credits are promotional strategies that do not always lead to energy bill savings.
• Evaluate the Electricity Facts Label before enrolling in a bill credit plan for an informed decision.
• Fixed rate plans should be considered as a primary option when selecting an energy plan.

How bill credits work

Understanding the workings of a bill credit electricity plan and its potential impact on your monthly payments is key when considering this option.

Here’s how a bill credit plan works:

1. The plan offers a fixed dollar amount credit on your energy bill when you utilize a specific amount of energy, either a minimum usage with no maximum, or a range with a minimum and a maximum.
2. To qualify for the bill credit, you must maintain electricity usage that satisfies the requirements laid out in the plan’s EFL.

Choosing an electricity plan solely based on a bill credit might not be the best decision for everyone. Factors such as your monthly kWh usage, the rate per kWh, and potential tiered rate structure of the plan play a crucial role in determining whether you’ll save money. Comparing electricity prices per kWh with other plans, evaluating your historical kWh usage, and understanding the plan details is necessary for an informed decision before enrollment.

Bill credits are marketing tools, not savings opportunities

Bill credits are used as marketing tools by electricity providers to attract customers. If you use the right amount of energy, you get money back on your bill, but that does not mean you’ll end up spending less overall compared to another plan.

These plans are typically marketed as fixed-rate plans, ensuring that the rate you pay for electricity will remain constant, even with market fluctuations. However, the energy usage charge for a bill credit plan is comparatively higher than other plans. This means that if your usage falls above or below the specified range of the bill credit plan, you will be subject to a higher rate for electricity than anticipated. To avoid this, it’s important to monitor your usage closely.

Identifying the optimal usage and staying within that range is key to maximizing the benefits of a bill credit plan. Should your usage fail to meet the standards set in the bill credit plan EFL, there will be no bill credit applied. Understanding your electricity usage before choosing a plan is vital, as going beyond the upper limits of the bill credit plan can lead to much, much higher bills.

Higher kWh rates lead to higher bills even with credits

Bill credit plans can lead to increased bills, compared to a simple fixed rate plan, even with the application of bill credits. This is because the price per kWh for a bill credit plan is comparatively higher than other plans. You can find that the price per kWh for your electricity usage can be 5 to 10 cents higher with a bill credit plan. As a result, even with the application of the bill credit, your total cost of electricity may still be higher than anticipated.

Evaluate the Electricity Facts Label before enrolling

The Electricity Facts Label (EFL) is an important document that provides essential information about an electricity plan, including rates, fees, and other associated details. Before enrolling in a bill credit plan, it’s crucial to review the EFL to understand the true costs and potential savings of the plan. This will help you avoid any surprises on your electricity bill, such as higher rates due to fluctuating usage or hidden fees. Here’s what to look for:

• The bill credit amount
• At what usage is the bill credit applied
• Look for increased prices per kWh at 500 and 2000 kWh levels

Alternatives to bill credit electricity plans

While bill credit plans might seem attractive initially, considering alternative electricity plans that match your needs and usage patterns is crucial. Two popular alternatives include fixed-rate plans and renewable electricity plans. Fixed-rate plans offer price stability and protection from market fluctuations, making them a popular choice for consumers.

On the other hand, renewable electricity plans are an eco-friendly option that can help reduce your carbon footprint. By exploring these alternative plan options and assessing your historical kWh usage, you can make an informed decision about the best electricity plan for your needs, taking into account the energy charge.

Remember, when looking for the right electricity plan, it’s important to consider the following factors:

• Understanding the true costs and potential savings
• Bill credits and incentives
• Your usage patterns and energy needs
• Alternative plan options available

Fixed rate plans

Fixed-rate plans are electricity plans that offer a fixed rate for the duration of the contract, ensuring that the rate you pay for electricity will remain constant, even with market fluctuations. This price stability can be particularly beneficial for consumers who want to avoid unexpected changes in their monthly electricity bills.

However, it’s essential to note that some fixed-rate plans may include termination fees, which are charged by the provider when a fixed-rate electricity plan is cancelled prior to the expiration of the contract.

Reviewing the contract terms and conditions, along with the Electricity Facts Label (EFL), helps understand any potential fees and the contract duration while considering a fixed-rate plan. By doing so, you can ensure that you’re selecting a plan that meets your needs and provides the desired level of price stability.

Renewable electricity plans

Renewable electricity plans are another alternative to bill credit plans, offering electricity sourced from renewable energy sources such as solar, wind, and hydroelectric power. These plans can help reduce your carbon footprint while providing reliable electricity. In addition to the environmental benefits, renewable electricity plans can also contribute to the growth and development of the renewable energy sector, supporting the transition to a more sustainable energy future.

Reviewing the Electricity Facts Label (EFL) and understanding the renewable content of the plan, along with any associated fees or contract terms, is important when considering a renewable electricity plan. By doing so, you can ensure that you’re choosing a plan that aligns with your environmental values and provides reliable electricity at a competitive price.

Is it possible to save money with bill credit plans?

While it is possible to save money with a bill credit plan compared to a simple fixed rate plan, those savings are difficult to achieve in Texas. The wide range of temperatures we experience across the state during the year lead to large variations in usage between cold and warm months, and extra high usage for most of the year thanks to our long and hot summers. If you carefully analyze your past kWh usage and thoroughly understand the plan’s terms, then you can determine whether a plan will help you find lower electricity bills.

Assess your historical kWh usage

Analyzing your historical kWh usage can help determine if a bill credit plan is suitable for your consumption patterns and if potential savings can be achieved. By reviewing your past electricity bills and comparing them to your current usage, you can identify any fluctuations in your electricity consumption and assess whether a bill credit plan is the most suitable option for you.

For example, let’s take the hypothetical example of a bill credit plan offers a $50 credit that applies when you consume between 1000 and 1500 kWh of electricity. If you look at your last 12 months of electricity usage and find that your electricity always fell between 1000 and 1500 kWh, then it’s possible this plan could be a good option for you.

Let’s take a look at another example of a hypothetical bill credit plan that offers a $30 credit when you consume more than 800 kWh of electricity. If you looked at your last 12 months of electricity consumption and found that your usage never exceeded 800 kWh, then you would not want to consider this plan. You’d never receive the credit on your bill.

It’s important to understand how your historical electricity usage impacts whether you’d receive a bill credit, but that’s not the whole story. You also need to compare the price per kWh between plans.

Compare rates and calculate bills

Determining whether you’d receive the bill credit at all is only half of the equation. You also need to factor in differing kWh rates at different levels of electricity consumption.

It is very common for bill credit plans to have a wide range of rates at different levels of usage. For example, we’ve found EFLs that list the following prices:

• 22.4 cents at 500 kWh
• 9.4 cents at 1000 kWh
• 15.5 cents at 2000 kWh

It’s the huge differences in prices per kWh when comparing bill credit plans and simple fixed rate plans that make the bill credit plans more expensive when you pay your monthly bill.

Pros and cons of bill credit energy plans

Weighing the pros and cons is important when considering a bill credit energy plan for an informed decision. The advantages of bill credits include the potential for savings for those with consistent usage patterns and the potential secure a lower electricity bill. However, the disadvantages of bill credits include the risk of higher bills due to varying usage, potential hidden fees, and the complexity of understanding the true costs of the plan.

By carefully evaluating the pros and cons of bill credit energy plans, you can determine if this type of plan is the right fit for your needs. Remember, the key to choosing the best electricity plan is understanding the true costs and potential savings, as well as considering factors such as bill credits, usage patterns, and alternative plan options.

Pros of bill credits

Pros of bill credits include:

• Potential savings for those with consistent usage patterns
• Eligibility for bill credits by maintaining consistent electricity usage within the specified range

These benefits make bill credit plans an attractive option for some consumers.

However, it’s important to note that these potential savings are not guaranteed, and success largely depends on your ability to manage your electricity consumption within the specified range. If your usage falls outside of this range, you may not reap the full benefits of the bill credit, and your overall costs may be higher than anticipated.

Cons of bill credits

Cons of bill credits include:

• Risk of higher bills due to fluctuating usage, hidden fees, and the complexity of understanding the true costs of the plan.
• Amount of the bill credit may not be sufficient to cover the entire cost of the electricity, potentially leading to higher overall costs.

To avoid these potential pitfalls, it’s crucial to review the Electricity Facts Label (EFL) before enrolling in a plan and to assess your historical kWh usage. By doing so, you can ensure that you’re making an informed decision and avoid any surprises on your electricity bill.

Making an informed decision on bill credit electricity plans

By considering factors such as bill credits, usage patterns, and alternative plan options, you can ensure that you’re selecting the most suitable plan for your needs and potentially saving money on your monthly electricity bills. Reviewing the Electricity Facts Label, evaluating your historical kWh usage, and comparing electricity rates among different plans is crucial for the best possible decision.

While bill credit electricity plans may seem like an attractive option, it’s crucial to weigh the pros and cons and consider alternative plan options such as a simple fixed-rate plans. By doing so, you can make an informed decision and choose the best electricity plan for your needs.

Learn more about other types of plans

• Fixed vs Variable Rate Plans: Which is Better?
• Free Nights and Weekends Plans: Are They Worth It?
• What Are Base Charges on Electricity Bills?
• What Are Indexed Electricity Plans?
• Prepaid Electricity Plans: Higher Costs, Higher Risk
• Should You Enroll in an EV Charging Plan?

The post How Bill Credit Electricity Plans Lead to Higher Monthly Payments appeared first on BKV Energy.

What are bill credit plans?

These electricity plans give you a discount—only if your energy usage lands in a specific range.

But here’s the catch: their kWh rates are typically much higher than standard fixed-rate plans. That means if you use too much or too little energy, you’ll pay more than you should.

How to spot red flags in bill credit plans

Before you sign up for a plan with flashy “savings,” check the Electricity Facts Label (EFL). Look for:

• Bill credit triggers: What’s the usage range?
• Rates at 500, 1000, and 2000 kWh: Higher rates at low or high usage?
• Hidden fees or penalties: Are there costs buried in the fine print?

Bill credits are marketing tools, not savings opportunities

Bill credits are used as marketing tools by electricity providers to attract customers. If you use the right amount of energy, you get money back on your bill, but that does not mean you’ll end up spending less overall compared to another plan.

These plans are typically marketed as fixed-rate plans, ensuring that the rate you pay for electricity will remain constant, even with market fluctuations. However, the energy usage charge for a bill credit plan is comparatively higher than other plans.

This means that if your usage falls above or below the specified range of the bill credit plan, you will be subject to a higher rate for electricity than anticipated. To avoid this, it’s important to monitor your usage closely.

Identifying the optimal usage and staying within that range is key to maximizing the benefits of a bill credit plan. Should your usage fail to meet the standards set in the bill credit plan EFL, there will be no bill credit applied. Understanding your electricity usage before choosing a plan is vital, as going beyond the upper limits of the bill credit plan can lead to much, much higher bills.

Why simple fixed-rate plans make more sense

Fixed-rate plans offer steady pricing with no gimmicks. You pay the same rate for every kWh you use, no matter what. No overcomplicated tiers, no surprises—just straightforward savings. Enter your zip code to explore more affordable energy plans.

The post Secrets Electricity Providers Don’t Want You to Know About Bill Credits appeared first on BKV Energy.

Peak hours occur during the time of day when demand for electricity is the highest. Off-peak hours describe the rest of the time when businesses and residential customers use less electricity.

During peak hours, increased demand for energy drives the price of wholesale electricity higher. The opposite plays out during off-peak hours, meaning wholesale electricity prices fall along with decreasing demand.

When are peak hours for electricity in Texas?

According to the Energy Information Administration, peak hours, when electricity demand is highest, vary based on the time of day, day of the week, and the season.

Summer peak hours

In the summer, peak hours occur between 3:00PM-7:00PM. These are the hottest hours of the day when air conditioners work overtime to keep businesses and homes cool. Demand is exacerbated when people return home from work in the evening.

• Time: 3:00PM-7:00PM
• Months: June to September

Spring and fall peak hours

In the spring and fall, when weather is milder, peak hours there is a smaller peak in the morning between 6:00AM-9:00AM and a larger afternoon peak between 4:00PM-8:00PM. The morning peak occurs when everyone is waking to get ready for work or school. The afternoon peak occurs when folks return home form work, but is usually less intense than peak hours during the summer.

• Time: 6:00AM-9:00AM and 4:00PM-8:00PM
• Months: March to May, and October to November

Winter peak hours

In the winter, peak hours are no longer tied to the use of air conditioning, but the use of heating. There can be two peaks during the winter. Between 6:00AM-9:00AM when people wake up and turn the heat on because winter mornings are colder. Then, again in the evening from 5:00PM-9:00PM when people return from work. Winter evenings are dark and cold, so more people are turning up the heat and turning on more lights.

• Time: 6:00AM-9:00AM
• Months: December to February

Weekends vs weekdays

During the week, peak hours are often more pronounced because society follows a routine of waking up, going to work or school, and returning home in the afternoon or early evening. Over the weekend, usage may be lower or more spread out.

How peak hours impact your electricity bill

Peak hours can significantly impact your electricity bill, depending on the type of plan you’ve selected. Time-of-use and variable plans are subject to the most impact from peak hours, while fixed-rate plans feel the least influence.

Time-of-use plans

Time-of-use plans offer different electricity rates throughout the day, typically with higher prices per kWh during peak hours and vice versa. That means, the more electricity you use during peak hours, the higher your bill will be.

Variable plans

On a variable pricing plan, your electricity rate can change month-to-month. During the summer, when peaks are the highest, variable rates can become rather unaffordable.

Fixed-rate plans

On a fixed-rate plan, you are locked into the same rate for the duration of your contract, meaning your price per kWh does not change during peak hours. However, it’s still important to be wary of your electricity consumption, especially during peak hours in the summer. If you set your thermostat to a low temperature, then you can expect higher bills.

Avoid high electricity rates with Bluebonnet

If you’re interested in an electricity plan that skirts increased prices for energy, look no further than BKV Energy. Our Bluebonnet plan offers an affordable fixed rate at all times of the day, every day, for the duration of your contract. Additionally, this plan has no base charges, no usage fees, and comes with a 30-day risk-free trial. Finally, enjoy our robust loyalty and rewards program, just for signing up. Enter your zip code to explore rates in your area.

The post What Are Peak vs Off-Peak Hours for Electricity? appeared first on BKV Energy.

There’s no immediate concern that humanity will completely run out of fossil fuels. Still, given current proven fossil fuel reserves and consumption rates, a day looms when there may be no natural gas, oil, or coal left.

This imminent deadline, as well as the immense increases in greenhouse gas emissions from burning fossil fuels in the last 50 years, highlight the growing need to transition to a more renewable and sustainable energy mix as quickly as we can.

What are fossil fuel reserves?

Fossil fuel reserves are those that are available for extraction and economically viable to extract. As reserves deplete, they become less available. Following economic principles related to supply and demand, lower reserves would drive up the prices of fossil fuels. If fossil fuel prices increase enough, then the companies that drill or mine for those fuels would be incentivized to tap into other basins of oil or coal that would not have made financial sense previously.

When will humanity run out of oil, coal, and natural gas?

The expected date for the end of our use of fossil fuels varies by consumption rate and proved reserves of each fuel.

Coal

According to the Energy Institute’s 2024 Statistical Review of World Energy, as analyzed by Our World in Data, there are 139 years left until we officially run out of coal. This estimate is based on current rates of coal consumption and known reserves, so the timeline is subject to change given serious adjustments to consumption rates and the discovery of new reserves around the globe.

Another estimate from Worldometer suggests that 133 years remain until the globe runs out of coal.

It must be noted that coal reserves are difficult to estimate because coal is mostly buried under the earth, so reserves could be higher than we assume. Additionally, burning coal emits an incredibly high amount of greenhouse gases, so there is a good reason for us to slow our consumption rate.

While the United States has significantly decreased rates of coal production and consumption in the last few decades, other countries around the globe (such as China and India) have scaled up their coal production and consumption as their populations and demand for energy grow.

Oil

The Energy Institute estimates that there are 56 years until oil reserves run out. Worldometer suggests an even shorter timeline of 47 years. Again, these timelines are based on current rates of consumption and known reserves of oil, so they are subject to change.

Unlike with coal, the United States shows little signs of slowing or halting the production of oil. Oil production in the United States has more than doubled in the last 20-odd years, from around 4,000 terawatt hours in 2000 to over 9,600 TWh in 2023.

Other countries around the globe are also scaling the production of oil, but the largest producers by far are the United States and Saudi Arabia.

Natural gas

Estimates for the depletion of natural gas reserves are similar to those of oil. According to the Energy Institute, about 49 years are remaining. Per Worldometer, there are 52 years left with our natural gas reserves.

The United States is both the largest producer and consumer of natural gas, with 38% used for electricity generation. In recent decades, the U.S. has shifted from coal to natural gas for energy production because natural gas is cheaper and cleaner burning.

Because natural gas burns so much cleaner than oil and coal, it is a great fuel to bridge the gap while we make the transition to more sustainable energy sources.

Can we transition away from fossil fuels before it is too late?

Yes, it should be possible for humanity to move away from fossil fuels. To transition away from fossil fuels, humanity must continue to invest in renewable energy, nuclear power, energy storage, and transmission infrastructure.

This transition will not be easy for several reasons:

Renewable energy sources have their downsides

While renewable energy sources are renowned for clean and efficient energy production, they are also intermittent (meaning they cannot always generate power) and expensive to install. There are also some pretty serious limitations on where they can be implemented.

If the sun were always shining and the wind always blowing, solar farms and wind turbines may be a near-perfect solution for the transition from fossil fuels. Unfortunately, that is not the case.

There’s also the issue that renewables are not net-zero on their own. The manufacturing and implementation of renewable power systems like solar panels require the mining of metals that can be harmful to the environment. For wind power, there is not yet a simple or cost-effective solution for turbine blades. Around the country there are several piles of hundreds of decommissioned wind turbine blades just sitting there, waiting to be recycled.

In the case of hydropower, there are some pretty significant geographic and logistical limitations to the implementation of hydroelectric dams, and wave and tidal power systems.

Locations for hydroelectric dams require specific:

• Topography
• Geology
• Climate
• Water flow
• Rainfall

Additionally, they cannot be located in areas that are more likely to be impacted by earthquakes, landslides, or other destructive natural disasters.

When it comes to wave power, the area must have consistent wind and waves, appropriate water depth and seafloor geology, and must not be in the path of regular severe weather such as hurricanes and tropical storms.

For tidal power systems, a significant height difference between high and low tides is required. This severely limits the viability of many coastlines.

Energy storage technology lacks scalability and affordability

Energy storage technology is essential for storing excess energy generated by solar and wind farms. At the moment, energy storage technology is expensive and difficult to scale.

• Raw materials (nickel, cobalt, lithium, and manganese to name a few) are costly and rare
• Mining of metals is resource-intensive and can be devastating to local environments
• Battery manufacturing requires significant financial investment in the construction of enormous factories
• Supply chain bottlenecks exist thanks to increased demand for raw materials for electric vehicles and consumer electronics
• Current energy storage technologies have relatively short lifespans and efficiency issues
• Decommissioned batteries are difficult to recycle

Further innovation and advancement in energy storage are crucial to the widespread adoption and implementation of utility-scale batteries.

Luckily, these advancements are happening right now. Lithium-ion batteries have improved significantly in recent years, but now scientists are developing storage solutions with higher energy density and longer storage duration such as solid-state batteries, flow batteries, and sodium-ion batteries.

Transmission infrastructure needs an upgrade

Energy storage is not the only thing holding back the further widespread adoption of renewable power generation. Grid operators around the globe will need to invest heavily in transmission infrastructure. Grids around the globe are not prepared to handle the intermittency and variability of renewable power sources, nor are there enough miles of power lines to deliver power from those sources long distances where the power is needed most.

Texas, for example, has begun to invest in upgraded energy infrastructure in recent years — largely as a result of the grid’s failure during the Winter Storm Uri in February 2021. Texas has implemented new winterization and weatherization standards with penalties for non-compliance. ERCOT has integrated smarter grid management into their processes, such as enhanced demand forecasting, scheduled power generation, increased reserves margins, and improved real-time monitoring. The state’s power grid is also a leader in solar and wind power and is slated to launch several more megawatts of energy storage capacity in the next few years.

Nuclear power plants are incredibly expensive

Nuclear power has pros and cons. The pros? Nuclear power plants are reliable, efficient, and clean. Plus, they are very well suited for generating baseload power. However, nuclear power plants are generally considered the most expensive to implement, with costs in the billions. Not only are the costs exorbitant, but they can take up to 15 years to begin generating electricity.

Money talks, loudly

The fossil fuel industry is deeply embedded in the world economy. Governments and organizations with a vested interest in continuing to invest in fossil fuels are resistant to the transition to renewables. Governments around the globe continue to offer subsidies that support the production and consumption of coal, oil, and natural gas.

There is a bright side to this. As renewable and energy storage technology continues to improve, becoming more efficient and affordable, the powers that be are more likely to begin investing in these fossil fuel alternatives. This, along with pressure from international organizations like the United Nations Framework for Convention for Climate Change (UNFCCC) and the Intergovernmental Panel on Climate Change (IPCC), environmental advocacy groups such as the Sierra Club, climate scientists and academia, and grassroots movements like the Sunrise Movement, can continue pushing things in the right direction.

How far along are we in the transition from fossil fuels to renewables?

In 2023, the world generated 30% of its electricity from renewable sources. That’s an increase of 10% since 2011. Per the International Energy Agency, renewables should make up over one-third of the global energy mix in 2024.

By 2028, the IEA estimates that just over 41% of all electricity generated will come from renewables.

How can you support the renewable energy transition from home?

There are several ways an individual can support the transition to renewable energy:

• Choose green energy plans to power your home, such as the 100% renewable Bluebonnet Green plan from BKV Energy.
• Install solar panels or solar water heaters at home. Thanks to federal tax incentives and state-level rebates, renewable installation for homeowners is becoming much more affordable.
• Improve your home’s energy efficiency by upgrading to Energy Star appliances, investing in better insulation, and switching to LED lightbulbs.
• Install a smart thermostat to enhance your control of and increase the efficiency of your heating and cooling systems.
• Change the way you move by riding your bike, utilizing public transportation, and switching to an electric or hybrid vehicle.
• Advocate for and donate to groups that support renewable energy legislation.
• Buy stocks to support renewable energy stocks or funds.
• Reduce your single-use plastic consumption and recycle everything that you can.

Interested in signing up for a 100% renewable home energy plan? Enter your zip code to find affordable fixed rates in your area. BKV Energy’s Bluebonnet Green plan is packed with benefits such as a 30-day risk-free trial, a loyalty and rewards program, and no unnecessary fees like monthly base charges.

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