If you are a typical American family, you are probably using over 1,000 kilowatts hours of electricity every month. The rate you pay is in the cents when it comes to the kilowatt hours, but when you multiply that over a thousand times, it gets to be expensive. Lowering that rate of kilowatt hours lowers your monthly electricity bill. If you live in Texas, you are fortunate because deregulation makes it so you can pick another energy provider that has a lower rate. You can click here to learn more about this subject.
You do not have to purchase electricity generated by your local electric company. Pretty much all of the electricity companies are pumping electricity into the nationwide grid. Each company has its own customers, and they know how much electricity they are generating as well as how much their customers are using. The meter readings all get put into a computer system. Instead of paying your local company, you pay another company.
Now the wires that serve your house or business are maintained locally. This is done across the state and in other states that have deregulated energy. Local companies each maintain the infrastructure to provide electricity service, and customers can choose who they buy their electricity from. What that does is create competition in pricing. No one local company has a monopoly on electricity service. You can choose to go green, go cheap or stick with the local company. Whatever you want to do you can do.
Just be sure to look at the fine print. This includes if you get your electricity from your local electric company. Make sure you are paying a low kilowatt hour rate. You might need to sign up with a company for a couple of years to get a really low rate. Fixed rates are often the best because they cannot fluctuate. A variable rate electricity plan can go up when the market goes up.