The Gexa Premium Plus 12 plan is a fixed-rate electricity plan that offers a unique benefit for high-usage customers, but it comes with a notably high base rate. This plan is designed for households with significant energy demands, where the potential savings from the plan's usage credit can offset the high energy rate. However, if your energy consumption is lower, this plan might not be the most economical choice.
How the Plan Works:
At its core, the Gexa Premium Plus 12 plan charges a fixed energy rate of 16.93¢ per kWh. What makes this plan different is the Usage Credit: if you use 2,000 kWh or more in a billing cycle, Gexa will credit $125 back to your account. This credit can significantly reduce your effective cost per kWh, but only if you consistently reach or exceed that 2,000 kWh threshold.
Pricing Breakdown:
- Energy Charge: At 16.93¢ per kWh, this plan has one of the higher base rates in the market. It’s important to recognize that this high rate can lead to costly bills if you don’t hit the usage credit mark.
- TDU Delivery Charges: In addition to the energy charge, you’ll incur standard TDU (Transmission and Distribution Utility) fees, which include a fixed charge of $4.23 per billing cycle and 4.6384¢ per kWh used.
- Usage Credit: The $125 credit kicks in when your usage reaches 2,000 kWh in a month. This credit effectively lowers your average rate, making the plan more affordable for heavy users. For example, if you use exactly 2,000 kWh, this credit can reduce your average cost to approximately 15.5¢ per kWh.
Is This Plan Right for You?
The Gexa Premium Plus 12 plan is designed for high-usage households. If your home regularly uses more than 2,000 kWh per month—perhaps due to multiple air conditioners, a large household, or heavy appliance use—this plan could save you money despite the high base rate. The more electricity you use, the more the $125 credit works in your favor, making the effective rate more competitive.
Key Considerations:
- High Base Rate: The energy charge of 16.93¢ per kWh is relatively high, which could lead to substantial costs if your usage falls below 2,000 kWh in any given month. It’s essential to assess your typical monthly usage to determine if you’ll consistently qualify for the usage credit.
- Risk of Higher Costs: If your monthly usage dips below 2,000 kWh, you won’t receive the credit, making this plan significantly more expensive compared to others with lower base rates.
- Fixed-Rate Protection: While the plan’s rate is high, it is fixed, which means your energy charge won’t change during the 12-month contract period, providing some stability in your monthly bills.
- Early Termination Fee: Be aware of the $150 early termination fee if you need to cancel the plan before the end of the contract. This fee is waived if you’re moving and can provide proof of your new address.
- Paperless Billing: This plan requires you to receive bills and communications electronically, so keeping a valid email address is crucial.
Renewable Energy:
Another positive aspect of the Gexa Premium Plus 12 plan is that it’s 100% renewable, meaning all your electricity usage is matched by renewable energy credits. This is an attractive feature for those looking to reduce their carbon footprint while managing their energy needs.
