Compare McAllen Electricity Rates - ElectricRateSelect.com

McAllen Electricity Rates

Contents

1 McAllen Electricity Rates
2 AEP Texas Central Utility Serves McAllen
3 Contact AEP Texas Central for Power Outages
4 Choosing an Electric Supplier
5 What is the Electricity Facts Label (EFL)?
6 Is There a Cancellation Fee?
7 Short Term vs. Long Term
8 How Does the Switch Process Work?
9 What Happens at the End of my Term?
10 Take Advantage of Energy Choice
11 View by City
12 Clean Energy
13 Electricity Rates

McAllen is one of the many cities in Texas located in a deregulated service area. McAllen electricity rates fall under the AEP Texas Central utility service area. Legislation passed in 2002, known as Texas Senate Bill 7 (SB7), unbundled the responsibilities of the utility companies and opened the door for competing electric suppliers to provide a choice for consumers. If you live in McAllen, you can shop around for a lower supply rate and save money on the electric bill. Texas is home to well over a dozen electric suppliers that provide services throughout the state. The increase in competition has the effect of pushing down energy prices. This is good news for residents of McAllen.

The city of McAllen is located in the south tip of Texas and has a population of just under 150,000. The city is located just 70 miles west of the Gulf of Mexico. Given its geographical location, McAllen consists of a subtropical climate with hot humid summers and warm to cool winters. The city is constantly ranked as one of the safest cities in Texas.

AEP Texas Central Utility Serves McAllen

If you are planning on moving to McAllen, then you will need to set up an account with AEP Texas Central. AEP Texas Central is the utility company in McAllen that is responsible for maintaining the power lines to deliver the electricity to its customers. This charge is known as the Transmission and Distribution Utility (TDU) charge and represents the regulated section of the electric bill. The TDU charge is overseen by the Public Utility Commission of Texas. Given the logistics involved with the power lines, it will be impossible to change to another utility company.

Contact AEP Texas Central for Power Outages

If you recently switched electric suppliers and experience a power outage or any disruption of service, then you will need to report the issue to AEP Texas Central. AEP Texas Central manages the power lines that deliver the power to its customers. Thanks to advancements in technology, power outages can usually be detected and fixed within hours. However, if you experience a prolonged outage then you will need to report it to AEP Texas Central.

AEP Texas Central contact information: 1-866-223-8508

Choosing an Electric Supplier

The electric bill is split up between two sections that include the TDU charge and supply charge. As mentioned above, the TDU charge represents the regulated section of the electric bill. The supply charge represents the deregulated section of the electric bill. This charge represents the costs of generating the electricity the customer is estimated to use during the term of the agreement. Energy choice has allowed consumers to shop around for a lower supply rate.

Before selecting an electric supplier, it is important to understand the energy plan offered by the supplier. You don’t want to get stuck with hidden fees! Here are just a few questions to ask yourself before committing to a plan.

What is the Electricity Facts Label (EFL)?

The Electricity Facts Label (EFL) is the terms and conditions that lay out the details of the energy plan. The EFL includes the energy rate, term length, any early cancellation provisions, along with additional charges included in the energy plan. Understanding the EFL will allow the consumer to compare energy plans and choose the best one for their needs.

Is There a Cancellation Fee?

Most energy plans will have an early cancellation fee if the customer changes electric suppliers before the end of their term. Any early cancellation fee will be listed in the EFL of the provider’s energy plan. Some energy plans will charge a flat fee, while others will charge based on how many months are left in the contract. If you want the freedom to change electric suppliers at any time without worrying about paying a penalty, you may want to consider variable rates. Variable-rate plans tend not to have a cancellation fee associated with them.

Short Term vs. Long Term

There are a few things to consider when considering whether to lock in a short-term or long-term rate. The energy market can be extremely volatile with a large swing in prices. If the market takes a dip, it will be smart to lock in a long-term rate. This will protect you against any spikes in the energy market during the term of the agreement. However, if you lock in a long-term rate and the market dips, you may be stuck paying a higher rate.

Short-term rates can be attractive when the market is high. Nobody wants to be stuck paying a high rate for several years. Short-term rates give the customer the freedom to change energy suppliers when the market drops without having to worry about paying an early cancellation fee. However, short-term rates don’t offer protection in a rising market.

How Does the Switch Process Work?

When you sign up with a new electric supplier, you will not have to notify your current electric supplier. It will be impossible to be billed twice by two separate electric suppliers for the same billing period. The local utility company (AEP Texas Central) will be notified by the new electric supplier. The local utility company will then notify your current supplier and will oversee the switch.

What Happens at the End of my Term?

Most electric suppliers will change their customers to a month-to-month variable rate after the expiration of the original term. Once this happens, don’t be surprised to have the electric bill double or even triple in a single billing period. Unless you plan on moving to a new location, it will be a good idea to stay on top of the expiration date and lock in a new rate before the expiration of the term.

Take Advantage of Energy Choice

Whether you already live in the city of McAllen or you plan on moving there, finding the right electric supplier can save you a tremendous amount of money on the electric bill. You can expect the same quality of service and won’t experience any power outages during the switching process. Thanks to energy choice, Texans enjoy some of the lowest rates in the country.