Why Ambit Energy Quotes Average (Bundled) Rates in Texas

Figuring electricity rates in Texas is fairly simple, but some companies can be misleading in how they go about quoting these rates. It's always best to find the average rate, also known as a bundled rate. The average rate is calculated using three things: 1. The energy charge rate, which is the rate your retail provider is charging per kilowatt hour (kWh). 2. The delivery charge, which is from the local delivery/utility company. 3. The estimated kWH usage. Calculating electricity rates in Texas using these three factors will give you the average rate so you can do a true apples-to-apples comparison. Here's how it works: Energy Charge The energy charge is set by the retail provider, such as Ambit Energy, TXU, Reliant, etc. Let's say that amount is 8.0 cents per kWh. Delivery Charge The delivery charge can be tricky, because some companies will move money over to the delivery charge and quote a smaller energy charge rate. That is why we have to consider the average … [Read more...]

TXU Free Mornings and Evenings vs. Ambit Energy

TXU Energy has been coming up with a lot of "free" electricity plans in Texas recently. The latest is called the TXU Energy Free Mornings & Evenings plan. Let's examine this plan to see just how free it is and compare it to a normal Ambit Energy 12-month plan. We have compared other TXU free energy plans before. We searched rates in the Texas zip code of 75040. The first thing we noticed was that the Free Mornings & Evenings plan is an 18-month contract plan with a $295 early cancellation fee. This plan does not charge the energy charge or TDU delivery charges during the hours of 7-10 a.m. and 7-10 p.m. every day. The plan also requires an AMS-enabled smart meter. Call today to check lowest rates in your area: 469.207.1595 Now we dig into the actual price of this plan. Looking at the Electricity Facts Label (EFL), the plan shows an average rate of 14.6 cents per kWh based on 1,000 kWh usage. This average is factoring in the free nights and evenings (six total hours per … [Read more...]

Texas Electricity Rates: Ambit Energy’s Bundled Rate vs. Unbundled

Do you know how much you are paying for electricity? If the answer is “yes,” how sure are you? Many top electricity providers in Texas will advertise a certain rate, but many times that might not be the actual rate you end up paying. Why? In Texas residential rates are either “bundled” or “unbundled.” The company that owns the delivery equipment, such as Oncor in North Texas, charges a fee, which will appear on your bill. This fee is either included (bundled) or not included (unbundled) in the rate. Many providers only tell you the unbundled rate, which of course makes it difficult to calculate what your bill will be depending on your electricity usage. For example, if TXU shows a rate of 7 cents per kwhr, but the Oncor delivery charge is listed on the bill as $60, that is a unbundled rate. If you use 2,000 kwhr during a given billing cycle, your bill would be $200 before taxes (2,000 kwhrs X 0.07 + $60). In this case, the actual rate is 10 cents per kwhr. If it is a bundled … [Read more...]