You can easily find a Texas electricity rate that works for you thanks to the fantastic Powertochoose.org website. In this guide, you’ll learn how to use the website to its maximum so you can compare electricity plans and electricity prices to help save money on your electricity bill.You can easily find a Texas electricity rate that works for you thanks to the fantastic Powertochoose.org website. In this guide, you’ll learn how to use the website to its maximum potential to compare electricity plans and electricity prices so you can save money on your electricity bill.
We’ll show you how to find the best electricity rates in Texas, explaining basic terminology from kilowatt-hours to variable-rate plans. You’ll also learn how to filter through energy plans and even find options offering free nights of electricity.
If you want to be a money and energy saver, then join us on the search for the best electricity plan in your service area.
Can Texas Residents Choose Their Electricity Provider?
Around 85% of Texas residents can choose their electricity supplier, also known as a Retail Electric Provider (REP), thanks to deregulation.
The Lone Star State has had a deregulated energy market, which means people in deregulated areas can shop around for energy rates and select their own energy provider. There are more than 120 REPs in Texas, each with a wide range of electric rates.
Pro tip: Use our guide on electricity companies and costs for more details.
Some 15% of Texas’ population cannot choose their electricity supplier. The Texas Public Power Association (TPPA) represents them instead, and local utility companies provide their electricity.
For our purposes, this guide is aimed at helping Texans in deregulated areas find low rates from Texas electricity providers. We won’t cover natural gas, commercial electricity or retail electricity.
How Much Do Texans Pay for Electricity?
When compared to the rest of the United States, Texans, on average use more electricity and accordingly pay higher bills.
According to the U.S. Energy Information Administration (EIA), in 2019, the average electricity price per kilowatt-hour (kWh) in Texas was 11.76 cents. The average home in Texas used 1,140 kWh per month, resulting in a monthly bill of $134.07.
By comparison, the average electricity price in the United States was 13.01 cents with only 877 kWh usage per month, bringing in average monthly bills of $115.49.
Texas residents who can choose an electricity supplier can save money on electric bills.
What Information Do I Need to Check Texas Electricity Rates?
While it’s straightforward to look for prices on the powertochoose.org, there are some basics you need to understand before switching your electricity supplier. This knowledge will help you compare Texas electricity plans.
Early termination fee: Will your current supplier charge a cancellation fee? If yes, how much will it be?
Energy usage: This is listed in kilowatt-hours on your bills. Check recent bills or call your current energy company to find your average monthly kWh usage.
A kWh is a kilowatt-hour and is defined as one kilowatt of power consumed or transferred in one hour. Energy companies charge people using this measurement.
Let’s use an example of an electric kettle to demonstrate kWh usage. If you boil a 1,500-watt cordless electric kettle for one hour, it would use 1,500 watts of power — that is, 1.5 kWh. When looking at your electricity bill, keep in mind that your consumption is listed in kWh.
Pro tip: Read our kilowatt guide to get a full understanding of this term and what it means for your bottom line.
Why Should I Trust Powertochoose.org?
The Public Utility Commission of Texas (PUCT or PUC) set up the powertochoose.org official website following energy deregulation. It is a one-stop price comparison website that aims to protect customers and maintain electricity delivery throughout Texas.
Only PUCT-registered Texas energy providers can advertise their deals. All listed retail electricity companies must comply with strict PUCT rules, too. The PUCT also oversees organizations like ERCOT, which operates much of the electrical grid in Texas.
Be wary of private price comparison websites. Some advertise very low prices that may not be accurate and some may push offers from specific energy companies. Only powertochoose.org is an independent and unbiased resource.
Always compare your current deal with any new ones, and weigh the pros and cons of switching.
Pro Tip: Learn how to use the Power to Choose tool so you can make the most of your options.
How Do I Search for Electricity Plans on Powertochoose.org?
To see energy plan options along with the Texas electricity rate offered on the official Power to Choose website, you’ll need to know:
- Your ZIP code
- Your average energy usage in kilowatt-hours (kWh)
- Whether you want a fixed rate or variable rate
- How long you want your contract to be (e.g., three months, one year, etc.)
The first step is to check if your area is in the deregulated energy market by entering your ZIP code. Big cities like Dallas and Houston are deregulated, but that’s not the case for every Texas location. For example, Austin and San Antonio are two notable Texas cities that are regulated.
Let’s use Houston ZIP code 77015 as an example (below). We can see many plans, with about 159 shown for us during our sample search.
Once you enter your ZIP code, we recommend choosing “Narrow Your Search.”
Over the next few screens, we’ll select 1,000 kWh as that is the closest to a Texas home’s average use, a fixed-rate electricity plan, and a 12-36 month contract.
When we entered those selections, it reduced our options to 116 offers within ZIP code 77105.
The offers are listed from the lowest kWh-price to the highest. We can move all these around, using various filters, to find the best deal.
Warning: The lowest kWh price you see may not be the best energy deal for your circumstances. Read on to find out more.
How to Use the Top Menu to Filter Results
The top menu bar allows you to change the listing order. You can change the order by clicking on the drop-down bar highlighted or clicking on Company/Plan Details/Price kWh.
By default, results show the lowest price per kWh to the highest. Click on “Price kWh” to toggle between lowest to highest or highest to lowest.
You can sort by the amount of renewable energy in plans either by low to high or high to low, or by the company (A to Z).
You can also compare plans. Tick the “compare” box as shown and then click “Compare” and a brief resume of the offers displays.
You can also change the number of deals shown on each page, between 10, 20, and 40 per page, or list them all.
Using the Left Hand Sidebar Filter on Powertochoose.org
The left-hand sidebar contains a lot of helpful information. You must click REFRESH RESULTS at the top or foot of the sidebar every time you change these filters to see the new results.
First, you’ll see the Transmission and Deliver Utility, called a TDU, or sometimes a local utility. In our search, the TDU is Centerpoint Energy. There are many TDUs in Texas, including Centerpoint, Oncor, Texas-New Mexico Power, AEP North, AEP Central, and Sharyland. You can use the PUCT website to search TDUs.
TDUs maintain the wires, poles, and electric infrastructure of the Texas grid — the TDU is not your electricity company or supplier. People call TDUs when there are power outages or problems with the grid.
You can change your estimated energy usage and choose between 500 kWh (low), 1,000 kWh (average), and 2,000 kWh (high) monthly totals.
There is a price range section if you prefer to search by price per kWh, and you can look for shorter or longer-term deals, too. Some companies offer plans from as short as one month up to four-year contracts.
What Do Pricing and Billing Mean on Powertochoose.org?
The Pricing and Billing section is crucial. Our original search excluded deals that include minimum usage levels.
Minimum usage deals are designed for people who understand their electricity usage well and know exactly how much they use every month.
If you ask the website to show all pricing deals, including those with minimum usage, you may see some lower kWh prices displayed. Some electricity companies offer lower prices for people who use more electricity, rewarding them for higher usage.
Be wary of signing up to high use and low price deals, especially if you’re unsure how much electricity you consume each month. Minimum usage deals obligate you to use at least the amount of electricity quoted.
Warning: If you don’t reach the specified minimum usage, you may be penalized and charged a higher rate for all the electricity you have expended.
Should I Choose a Fixed Rate or Variable Rate Electricity Rate?
There are three rate types to choose from: fixed, variable, and indexed.
A fixed rate means people pay the same kWh rate throughout the contract’s agreed term. A person’s bill increases if they use more electricity.
Variable-rate plan electric rates can go up or down — it depends on the retail price of electricity set by your electricity supplier.
Indexed rates also change but are linked to a pricing formula connected to a publicly available index.
Fixed-rate kWh prices are usually a little higher than variable or indexed rates. They offer protection from price fluctuations, and you always know what you are paying for the energy you use.
For example, during the Texas winter storm of February 2021, the state’s power rates leaped 7,400% from around 12 cents per kilowatt-hour (kWh) to $9 per kWh. Many Texas residents on variable-rate plans faced hefty electricity bills. Fixed-rate plans sheltered customers from the price spike.
If you need to rely on air conditioning to survive sweltering summers in the Lone Star state, you may prefer the certainty of a fixed-rate price when cooling down during heatwaves.
Does the Power to Choose Website Offer Pre-paid Electricity Plans?
Yes, you can find prepaid deals on powertochoose.org, as seen on the bottom half of the left-hand sidebar.
Prepaid plans suit people who know how much electricity they use each month and who like flexibility. Some prepaid plans are short-term contracts and may not require a credit check. Prepaid plans are usually more expensive on a kWh price basis than fixed contracts.
If you choose a non-prepaid plan, check each contract’s payment plans and make sure it fits your lifestyle. Some electricity companies take payments via cash, checks, over the phone, pay stations, or recurring card payments. They usually offer lower kWh prices for non-prepaid plans, also known as month-to-month plans.
What Are the Advantages of Time-of-Use Electricity Plans?
Time-of-Use electricity plans are ideal for people who know how much electricity they use and when they use it. There are a variety of energy plans available.
Energy prices fluctuate throughout the day and night. Electricity companies encourage people to use electricity during periods of low demand, usually at night when most people are sleeping.
A Time-of-Use product could offer very inexpensive electricity at night and more expensive electricity during the day. That’s perfect for someone who is out all day and a night owl at home. Some people limit their energy use to certain hours, using timers to switch on energy-heavy appliances at night, such as washing machines and dishwashers.
There’s even a company that offers free electricity at night. Yes, at Amigo Energy, we have a free nights electricity plan.
Any Other Tips for Finding a Great Texas Electricity Rate?
There are a few more ways to help you in your search. Company ratings, from one to five stars, show how well customers rate the supplier. The renewable energy toggle allows you to decide how much renewable energy is part of your deal. Finally, you can search by company name using a drop-down menu.
There are lots of electricity plans and electricity providers to browse. It pays to visit their websites to get a feel for the company and its products. You may spot something that catches your eye, such as a $100 bill credit for recommending a friend to join the same energy company. Or you may notice that they offer multiple payment options that make it easy for you.
That covers the initial search methods on powertochoose.org. There is another critical second step to take, which is to look at the details of each plan. Fortunately, help is at hand.
What Is an Electricity Facts Label (EFL)?
Finding the best electricity rates requires a little more than browsing through various Texas electricity plans.
The PUCT requires every Texas electricity provider to attach an Electricity Facts Label (EFL) to offers. You need to read these carefully because they contain essential information about the contract’s terms and conditions.
For example, the lowest kWh price showing on our search has an early termination fee of $150. If you didn’t read the EFL, you might not have noticed that.
Think about your lifestyle. High termination fees mean you need to complete the contract to enjoy its total value. But what if you need to cancel early or are moving out of Texas soon?
Pro Tip: Before switching electricity providers, check if there are any cancelation fees that might exist on your current deal.
When considering which electricity provider to choose, make sure the EFL stipulates a contract length that fulfills your needs. Be honest about whether you’ll be able to complete it.
Also, pay attention to any extra charges. These can add significantly to the advertised kWh price. Some of the additional costs you may need to pay include:
- Base charges
- Electric service charges
- An additional kWh rate may be listed under “general charges”
Remember to check minimum usage levels and your ability to fulfill the usage stated.
How Do I Enroll and Get My New Electricity Rate?
Enrolling with a new electricity company is not a decision to take lightly. You may be committing to three years or longer, depending on the contract.
Before signing up, it’s wise to go through the PUCT’s checklist of FAQs. Answer each question honestly, write them down, compare your answers, then decide.
Once clear, click the “Sign up” button next to the offer and follow the various steps. Some companies may require a phone call, your meter number, a credit check, or more. Most will be able to connect you the same day — depending on the time of your call — and help disconnect you from your existing electricity supplier.
What’s the Easiest Way to Get the Best Texas Electricity Rate?
The Power to Choose official website is the easiest and most secure way for Texans to browse energy deals from multiple companies.
Enter your ZIP code, average monthly electricity usage, contract length, and whether you want a fixed rate or variable rate. Then, use the various filters and compare plans to help narrow your options.
Please read all the Electricity Facts Labels (EFLs), compare them to your current deal, and work out which is best for you. Contact our helpful Amigo Energy customer support team today to see how you can get the Texas electricity rate that works for you.
Brought to you by amigoenergy
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