A fixed-rate electricity plan locks in your agreed-upon electricity rates, including the energy charge per kilowatt-hour, for a set contract term, subject to limited exceptions under Texas rules. It does not guarantee a fixed monthly bill. Your electricity use, fees, credits, and permitted delivery-charge changes still affect your total.
At Pogo Energy, we believe you should understand an electricity plan before signing up. Here is what “fixed rate” means for residential customers shopping in deregulated areas of Texas, and how it compares with other plan labels.
What stays fixed on a fixed-rate electricity plan?
A fixed-rate plan locks in the agreed-upon price for the term of your contract. Texas defines fixed-rate products as lasting at least three months, with price protection that covers recurring charges. Your provider cannot simply raise the agreed-upon energy charge because wholesale electricity becomes more expensive.
The plan’s Electricity Facts Label (EFL) explains the energy charge, recurring fees, contract length, and permitted price changes. Read it with the Terms of Service to understand what you are agreeing to.
Why can my bill go up if my electricity rate is fixed?
Your bill can increase when you use more electricity, even if your rate stays the same. A kilowatt-hour (kWh) measures electricity use. Running your air conditioner longer during a Texas summer can add kWh to your bill.
For example, imagine a plan with a fixed energy charge of 10 cents per kWh. Using three times as much electricity produces three times the energy cost:
| Monthly electricity use | Energy charge | Energy cost |
| 500 kWh | 10 cents per kWh | $50 |
| 1,000 kWh | 10 cents per kWh | $100 |
| 1,500 kWh | 10 cents per kWh | $150 |
*Illustration only. These are energy charges, not complete bills or Pogo Energy rate quotes. Delivery charges, applicable taxes, and any other plan charges would also affect the total.
Can any charges change during a fixed-rate contract?
Yes. Texas rules allow limited changes, such as actual changes to transmission and distribution utility charges, certain grid administrative fees, and specified costs resulting from changes in law. The EFL explains which exceptions apply. These exceptions do not give a provider unlimited permission to change its price.
Your transmission and distribution utility, or TDU, operates the local poles and wires and delivers electricity to your home. Its delivery charges help cover the cost of that service. A fixed-rate retail plan can still pass through permitted changes to those charges.
How does fixed-rate electricity compare with other plans?
Electricity plan labels describe different things: how pricing works, how long you commit, and when you pay. A single plan can have more than one of these features.
| Plan or billing label | What it describes | What to check |
| Fixed rate | Agreed pricing for a set term, with limited exceptions. | Contract length, fees, and permitted changes. |
| Variable rate | Pricing that can change under the provider’s disclosed method. | Current rate, price history, and change terms. |
| Month-to-month | A short contract with no early termination penalty. | Pricing and payment terms. |
| Prepaid / pay-as-you-go | Payment before you use electricity. | Rate type, balance alerts, and recharge requirements. |
| Postpaid | Billing after you use electricity. | Rate type, due dates, and any deposit requirements. |
Common questions about fixed rate billing
Will my fixed rate fall if market prices drop?
A fixed rate does not automatically adjust downward with market prices. The agreed-upon pricing remains in effect under your contract. If you consider switching to another offer, include any applicable early termination fee when comparing costs.
What happens when a fixed-rate contract expires?
Read your renewal notices before the contract ends. If you take no action after the required notices, Texas rules provide that service will continue on a default month-to-month product. Its price may differ from your expiring fixed rate. You can also choose a new plan.
Why does the advertised average price vary by usage?
The advertised average price per kWh can differ from the energy charge alone. It includes applicable recurring charges at a stated usage level. Texas residential EFLs show average prices at 500, 1,000, and 2,000 kWh per month.
A monthly base fee spreads across fewer kWh when usage is low. A usage-based bill credit may apply only when you reach a specified threshold. Either feature can change your average cost per kWh while the underlying pricing terms stay the same.
For a hypothetical $10 monthly base fee, the fee alone adds 2 cents per kWh at 500 kWh, but only 1 cent per kWh at 1,000 kWh. That difference does not mean the provider changed the fee.
Is prepaid electricity the opposite of fixed-rate electricity?
Prepaid electricity and fixed-rate electricity describe different aspects of a plan. Prepaid tells you when you pay; fixed rate tells you how pricing works. Paying in advance does not, by itself, indicate whether the price is fixed or variable. Likewise, receiving a monthly bill does not guarantee a fixed rate.
With Pogo Energy’s prepaid service, you add funds before using electricity, receive daily usage and account updates, and recharge as your balance gets low. Check the EFL for the pricing terms of the specific offer.
Is a fixed rate the same as average billing?
Average billing spreads electricity costs into smoother monthly payments, usually using past bills or usage. Depending on the program, a deferred balance or later adjustment accounts for the difference between payments and actual charges. Average billing changes payment timing; it does not automatically lock your electricity rate.
Find electricity that fits how you pay
Understanding your rate is one part of choosing electricity. You should also feel comfortable with the payment schedule and commitment.
Pogo Energy offers prepaid electricity in eligible deregulated areas of Texas with no deposit, no credit check, and no long-term contract. Daily updates show your electricity use and account balance. An initial account deposit ( Pogo’s initial charge-up is $60), covers your electricity use; it is separate from a security deposit.
If prepaid electricity is right for you, check your address and sign up today.
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