Variable rates energy plans are generally higher than fixed-rate contracts in Texas. The majority of energy consumers in Texas choose fixed-rate electricity plans over variable-rate as they are more predictable and easier to budget. Variable-rate plans take into account the current market price for electricity which can fluctuate throughout the year with market and weather conditions.  A fixed-rate plan reflects the cost of wholesale electricity over 12 months of service. Rates may be higher or lower than variable rates depending on the time of the year.