Researching anything online can easily lead to information overload, including when you shop for electric providers in Texas. And when you consider that there are more than 130 electric providers Texas offers, there’s no time to check every single option.Researching anything online can easily lead to information overload, including when you shop for electric providers in Texas. And when you consider that there are Texas offers more than 130 electric providers, there’s no time to check every single option.
While budget is certainly important, the best electricity provider in Texas for you may not be the one with the lowest prices. This guide will explain why and help you navigate Texas electric providers to determine the best fit for you.
Texas Electric Providers: Why Do They Matter?
We exercise choice in our purchases on a daily basis, from our favorite coffee spot to the brand of toothpaste we use. Decisions are based on a number of factors, including cost, availability, and convenience.
Many of us spend a good part of our time in and around our homes yet we frequently ignore the freedom to shop around for the best deal from electricity providers. These electric companies that vie for our business are just a call or a click away, yet many people delay or don’t switch energy plans.
Energy deregulation means that most residential customers in the Lone Star State can choose their energy company and electricity plan. Residential customers can benefit from low or flexible Texas electricity rates, from free nights to 100% renewable energy.
A lower electricity bill that suits your lifestyle sounds appealing. But how to start? Let’s decipher electric bills and energy plans to find the best electricity providers Texas has to offer.
What’s the Best Electricity Provider in Texas?
The answer is that there isn’t a “best” electricity provider to suit all Texans. Low energy rates are attractive, but what if you have to use a certain amount of power to get that deal? Or what if you get free nights of electricity but don’t make the most of them?
Understanding the energy plan and your electricity provider should help point you in the right direction.
Electric Company, Energy Provider, or REP?
There’s a lot of jargon around the deregulated energy market in Texas, including the numerous Texas energy providers. To be clear, an electric company, energy provider, electricity service, and energy company all mean the same thing.
Technically, in Texas, these are called retail electricity providers (REPs) and are approved by the Public Utility Commission of Texas (PUC or PUCT). Whichever title they are given, they do the same thing. They are the companies that sell electricity to you and send your monthly bill. (Or, in the case of prepaid electricity, they’re the ones that you pay.)
Know Before You Go: Switching Energy Providers in Texas
Before switching your Texas electric provider, it’s vital to understand your current energy usage. If you’re moving home, you need to know the estimated electricity usage for your new abode — ask your realtor for guidance.
Texas electric companies advertise prices in kilowatt-hours (kWh). The average United States home uses 893 kilowatt-hours (kWh) of electricity per month. However, in 2020, the average Texas household used 1,132 kWh of electricity every month.
There are three levels for electricity usage in Texas to reflect a household’s demands:
- 500 kWh (low usage)
- 1,000 kWh (average usage)
- 2,000 kWh (high usage)
You’ll need to know your energy usage so you can look at appropriate electricity plans. Here’s what else you’ll need to know.
How to Compare Texas Electric Provider Rates
Many privately-owned Texas electricity provider comparison websites offer plenty of information about electricity plans. They don‘t always have all the deals, though.
We recommend using Powertochoose.org to compare energy deals and electric companies. It’s an independent website provided by PUCT and only features approved deals from accredited companies.
Start by checking your ZIP code to see if you live in a deregulated area. If yes, we suggest familiarizing yourself with the site by looking at contracts for 12-36 months, fixed-rate, for 1,000 kWh monthly electricity usage. There are lots of filters to help you navigate the plans that appear.
Pro tip: Our Power to Choose guide will help you use the website.
Work out what offers interest you and suit your lifestyle. Then, visit the websites of companies you like and see if there are other offers that interest you. Note them down so you can find out more when contacting them.
Unpacking the Jargon of Electricity Providers
Here are some of the most common — and essential — electricity industry phrases to understand before switching suppliers.
Fixed-rate plan: A fixed kilowatt-hour (kWh) price that does not alter during your contract period.
Variable-rate plan: KWh electric rates are set by your retail electric provider (REP) according to market conditions and can change on any given day. Prices can go up and down, meaning your utility bill may vary monthly.
Early termination fee: Most electric companies charge a fee for ending contracts early, particularly fixed-rate deals.
Credit check: Companies may ask for a credit check before offering a deal. Some also require a deposit before electricity is supplied. However, Amigo Energy offers prepaid electricity, which requires no credit check, no long-term contract, and allows you to pay as you go.
Minimum usage levels: Take great care with minimum usage levels. Users agree to use a minimum amount of electricity to receive the advertised kWh price. It’s usually a high usage level rewarded with a low kWh price. However, failing to reach that minimum usage level every month could mean that all your electricity usage is charged at a much higher rate.
What Are Electricity Facts Labels (EFL)?
Electricity Facts Labels (EFL) are something every Texas electric provider must publish alongside every electricity contract. Steer clear of any electric company that does not provide one.
EFLs list all the details of the new contract. This includes termination fees, fixed or variable rate offers, deposits, hidden charges, and any minimum usage conditions. Keep and compare all EFLs and if you’re unsure about anything, ask the company or the PUCT to explain it before signing.
What Is a Transmission and Distribution Utility (DU)?
Transmission and Distribution Utilities (TDUs) are also known as utilities. TDUs deliver electricity to businesses and homes through a power grid and take care of the grid‘s poles and wires. They also restore power to service areas after power outages.
You’ll see a TDU charge on your electricity bill. You cannot choose or change your TDU. Switching electric companies won’t change the reliability of your electricity because the same TDU administers the supply.
The main TDUs, or utilities, in Texas, are:
- TNMP: Lewisville, Pilot Point, Leonard, and Glen Rose
- Oncor: Dallas, Fort Worth, and Arlington
- AEP Texas: Abilene and Corpus Christi
- CenterPoint: Houston
Texas Electricity Provider Comparisons
We’ll look at energy plans in more detail in a bit. For now, let’s introduce some Texas electricity companies you may already know or come across once you start looking at your electricity options.
Pro tip: Check out Powertochoose.org, which is the PUCT-run website that lists all accredited electric companies for the Texas area.
Note: All information is subject to change. Correct on July 1, 2022.
Gexa Energy
Gexa Energy claims to use 100% green power in its fixed and variable-rate deals. Established in 2002, Gexa Energy has many emissions-friendly incentives using modern technology. These range from installing smart meters to discounted energy plans for electric vehicle owners to helping homeowners with solar panels.
TXU Energy
TXU Energy came into being in 2002 yet has more than 100 years of history in the Texas energy market, starting life as Dallas Electric Company in 1882. They remain one of the largest electric companies in the state after deregulation.
TXU Energy has prepaid, fixed-rate, and variable-rate products, plus bill credits for homeowners who create excess solar energy.
Pulse Power
Pulse Power is part of Shell Energy’s portfolio and is relatively new to the market (established in 2018). It offers a “perfect plan guarantee” that gives new customers up to 90 days to change energy plans if the selected original isn’t appropriate.
Green Mountain Energy
Green Mountain Energy prides itself on being a carbon-neutral company with a sustainability focus. It claims to be the longest-serving renewable energy retailer, established in 1997, bringing 100% renewable energy fixed-rate and variable-rate options.
In 2020, Green Mountain Energy claimed its 100% renewable ethos helped customers avoid 90.2 billion pounds of carbon emissions. That’s equivalent to planting 10.7 million trees or taking 9.4 million cars off the road for a year.
Reliant Energy, part of NRG
Reliant Energy, part of its Fortune 500 parent company NRG Energy, has more than one million residential and business customers in Texas. It offers 24/7 customer service alongside its fixed rates or prepaid plans, plus free weekends, nights, or evenings.
Direct Energy
Direct Energy is one of North America’s largest energy providers, dealing in natural gas and electricity. It has its U.S. headquarters in Houston, Texas.
Direct Energy offers fixed and variable rates, free nights or weekends, and occasional switching incentives such as shopping vouchers.
Discount Power, part of NRG
Discount Power is Reliant Energy’s sister company and also part of the NRG family. It offers exact plans to customers, fixed and variable rates, with contract lengths of 12, 15, 18, and 24 months.
TriEagle Energy
TriEagle Energy prides itself on its low prices mixed with energy-saving incentives. The company, set up in 2003, focuses on energy plans that can include a pick and mix of renewable energy, bill credits, fixed rates, and incentives to install smart meters.
Just Energy
Just Energy is part of the large Just Energy Group, serving residential and commercial customers electricity and natural gas across North America.
In Texas, Just Energy has been operating since deregulation came to the state in 2002. Its plans include free nights powered by renewable energy, long-term fixed-rate contracts for 60 months, up to $200 in bill credits, and a free month of electricity every year.
Tara Energy
Tara Energy is also part of the Just Energy Group, serving hundreds of thousands of residential and commercial customers across the Lone Star state since 2002. Tara Energy offers fixed rates with free weekends, free nights from 9 a.m. to 7 p.m., and bill credits.
How to Interpret Online Reviews of Texas Electric Providers
Online reviews are notoriously difficult to navigate, with authenticity, trust, and usefulness issues. For instance, terrible reviews from seven years ago may have little to do with a company that has recently turned itself into a five-star operation. Similarly, positive but old feedback may not immediately reveal a company’s current level of service.
When scrolling through customer reviews, it’s important to remember:
- Many (if not most) reviewers are unhappy customers looking for somewhere to vent
- Long and negative reviews sometimes show the complainant in a poor light too
- All reviews are subjective, so one person’s complaint is another person’s compliment
- Reviews that simply state a company is “great” or “fantastic” could be spam
We recommend visiting company websites and reading about their values, such as community involvement and commitment to clean energy. Take a look at the pricing and consider why their energy rates are so high or so low.
Another consideration is a company‘s customer service, from its accessibility to hours of operation. For instance, do they have a phone number and email address as well as an FAQ page where you can troubleshoot issues?
Study Electric Providers in Texas to Get Better Electricity Rates and Terms
There are many electric providers in Texas with seemingly countless products to compare.
As you probably know through experience, low prices are only one part of something’s value. That’s why at Amigo Energy, we’re happy to talk about Texas’ deregulated energy market and our competitors.
The Amigo Energy family, which speaks English and Spanish, believes in adding value to the people and communities we have served for over two decades. For example, our energy blog is filled with useful information you can use — everything from energy-saving tips and scientific articles to money-saving strategies for energy bills.
Amigo Energy aims to be an electric provider that combines fantastic offers with top-notch customer service that keeps you, the customers, at its heart.
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