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Although there is electricity running to the house, the account is not in the home owner’s name – it’s in the builder’s name since, technically, the builder owns the property until you’ve paid him in full. Another thing a lot of first-time home owners don’t realize is that Houston electricity retailers often give preferred rates to corporate clients like housing contractors. Like many other producers, Retail Electric Providers like bulk purchases and you can’t get much more bulk purchasing than trucks full of power tools, spot heaters, loud radios, directional lighting, hand tools, battery chargers, and so on! This means you can’t even gauge how much your electric bill will be based on prior bills because the usage pattern is not typical and, on top of that, you’re probably not going to get the same rate as your builder did.
On the other hand, month-to-month variable rate (no-contract) plans don’t have cancellation fees. You won’t be penalized if you find a better deal elsewhere and want to make another switch. And, you won’t be stuck paying more than you should be if the market rate for electricity trends down. But, if it goes up, you’ll be paying more than your in-contract neighbors, and you’ll likely want to shop around again for a better deal.