With a fixed-rate electricity plan, the rate you pay per kWh does not change month to month throughout your contract. For example, if you sign up for 12.5¢ per kWh for a 12, 24, or 36 month agreement, the rate will stay the same the entire time no matter what. You’re guaranteed that price.
When it comes time to renew with a new agreement, that price may change based on the current market conditions.
Many fixed-rate plans offer a tiered pricing model based on the amount of energy you consume. For example, if you use 500 kWh the rate may be 12.7¢ per kWh and if you use 1500 kWh of energy the rate may drop to 12.5¢ per kWh. Generally, the more energy you use, the higher your bill, but the lower the kWh rate.
Learn more about the difference between fixed and variable rate plans here.