Fixed vs. Variable Rate on Your Own Usage: What a Texas Audit Shows

Choosing between a fixed and a variable rate comes down to two questions: how much your current rate is costing you on your real usage, and how much a fixed plan would cost on that same usage. A WattTrim audit answers both with your own Smart Meter data, so you can decide with your numbers instead of a sample home.

For the basics of how each plan type works, read fixed vs. variable rate electricity plans in Texas on GridWise Audit. This article covers the next step: putting your own usage behind the decision.

Why the Answer Depends on Your Usage

A variable rate can look fine in a mild month and painful in August. The rate is applied to every kWh you use, so a home that runs the air conditioning hard all summer feels every change in price far more than a small apartment does.

That is why a general rule like "fixed is safer" or "variable is cheaper" only goes so far. The real question is what each option costs at the usage your home actually has, month by month.

What the Free Audit Does

The free WattTrim audit starts with two things: your current energy rate in cents per kWh, and your usage from Smart Meter Texas. You can upload a Smart Meter Texas usage file or authorize access so the data is pulled for you.

With those, the audit:

• Works out your effective rate from your own interval usage, so you can see what you really pay per kWh today.
• Prices plans in your area at your actual monthly usage, not just at the 500, 1,000, and 2,000 kWh sample levels on a fact label.
• Shows estimated annual savings for the best options compared with your current rate.
• Shows a month-by-month table of your usage and the estimated cost on the top plan, so you can see how summer and winter months change the bill.

If you are on a variable rate today, enter the rate from your most recent bill. The audit then shows how that rate compares with fixed-term plans on your real usage.

What the Audit Does Not Do

The audit compares plans with contract terms of three months or longer. Month-to-month variable plans are not part of that comparison, because their price can change every billing cycle and there is no fixed rate to price your year against.

The audit also cannot predict where a variable rate will go next month. It shows what your current rate costs on your usage, which is the number you need to judge whether locking in makes sense.

How to Read Your Results

Look at three things:

1. Your effective rate. This is your starting point. If you are on a variable plan, remember it reflects the rate you entered, which may change.
2. The annual savings on the top fixed plans. If the savings are meaningful, a fixed plan would have cost you less on the year you just had.
3. The monthly table. Check your highest months. Those are the months a rate increase would hurt most, and the months a fixed rate protects.

If you have a cancellation fee on your current plan, enter it along with your contract end date. The audit can then show your savings after the fee and whether switching now or waiting makes more sense.

Keeping an Eye on It After You Decide

A single audit is a snapshot of the past year. WattTrim Sentinel is a paid subscription, $4.99 a month or $44.99 a year, that keeps checking for you. Sentinel pulls fresh Smart Meter data every week, compares it with available plans, sends a monthly report, and alerts you when a better plan appears or your contract is getting close to its end date. These ongoing checks and alerts are Sentinel features and are not part of the free audit.