What are Electricity Fixed and Variable Rates?
- Fixed Rate – You can lock in a particular electricity rate when you sign a contract for 3, 6, 12, or 24 months. You pay that price for the length of the contract, even if the energy market wholesale price fluctuates.
- Variable Rate – This type of electric plan is month-to-month and does not have a contract. The rate changes as the energy market wholesale price changes.
What is a Deregulated Electric Market?
There are some states that have a deregulated energy market. Deregulation gives you the power to choose from different electric companies that service your area. This gives you the freedom to shop and compare energy rates until you find one that is within your budget. Even if you don't live in one of these deregulated electricity markets, you can still enter your address to find the regulated electric company in your area.

