There are scores of Texas energy providers offering a plethora of electricity plans throughout the Lone Star state.
Around 85% of Texas residents can choose their electricity provider thanks to the state’s deregulated energy market. The trick is knowing how to find the most appropriate electric company for your needs.
Some people use Texas energy comparison websites to assess energy companies. But not every electricity provider is listed on every Texas energy comparison website; neither are all their offers.
However, there’s no need to worry. We’ll guide you through the maze of Texas energy suppliers so you can research and find the best energy provider for your specific situation. You could be saving hundreds of dollars every year on your utility bill with just a few hours of your time.
How Can You Find the Best Texas Energy Supplier?
Looking at Texas electric companies and all the jargon surrounding utility bills, it’s easy to feel disorientated. The first step to finding the best energy supplier in Texas is understanding its deregulated energy market and power grid function.
Stage one is the creation of power. Natural gas, coal, and nuclear power plants create electricity that they load into the Texas power grid alongside renewable energy sources like solar and wind.
Stage two involves delivering the electricity via the grid’s poles and wires. Transmission and Distribution Utilities (TDUs) — also known as utilities — are responsible for this power grid and restoring power after an outage. There are TDU charges on people’s energy bills for the grid’s upkeep, and people cannot choose their utility.
The main TDUs in Texas are:
- TNMP
- Oncor
- AEP Texas
- CenterPoint
Stage three is where you, the customer, step in. Those among the 85% of people who can choose their electricity service provider need to choose an electric company. The technical name for these electricity companies is Retail Electricity Providers (REPS). Thanks to deregulation, there are more than 130 of them in Texas.
These REPS are the ones that Texans deal with when paying bills. In the background, what REPs do is buy wholesale electricity in the deregulated market and then sell it to customers in the retail market. Your electricity company, or REP, cannot improve or worsen your home’s electricity reliability — your utility controls that.
Like all markets, competition is fierce, and there are tricks of the trade to generate business. Here’s how to fight your way through the electricity deal jungle to find the energy rate that best suits you.
Remember: People who live in regulated neighborhoods cannot choose their electricity provider. Their power is supplied by a Public Utility Commission of Texas (PUC or PUCT) approved company or utility.
How Do You Choose an Energy Provider in Texas?
In simple terms, people can call an electricity company and ask to switch to one of their offers. However, we don’t recommend this route because you could easily end up paying more for your power. You may also be charged an early termination fee for ending your current contract early.
You need to keep yourself informed before delving into the world of Texas electricity rates.
Here’s how:
- Know your current average monthly energy usage in kilowatt-hours (kWh). Check your recent bills or call your current energy provider for figures.
- Understand the difference between fixed-rate and variable-rate plans — more on that below.
- Find out when your contract ends and if there’s an early termination fee for leaving your current electricity supplier.
- Ask your current energy supplier what your renewal rate will be if you stay with them.
- Be ready to read the energy plan details in the company’s electricity facts labels (EFLs) — more on that below.
- Finally, familiarize yourself with Powertochoose.org, the official Texas energy comparison website.
Many private Texas energy comparison websites show selected deals, but not all of them. Before switching, you must always contact your current electric company to settle any outstanding bills.
People moving homes within Texas should also contact their energy supplier to see if there are any termination fees when moving. Here are more details on the areas you need to research — don‘t worry, they don’t take long.
Know Your Kilowatt-hour Energy Usage
The average United States home uses 893 kilowatt-hours (kWh) of electricity per month. As such, Texas energy providers advertise three kWh hours:
- 500 kWh (low usage)
- 1,000 kWh (average usage)
- 2,000 kWh (high usage)
It’s important to know which option suits your energy usage. Check for minimum usage clauses, too. Higher usage deals like 2,000 kWh often offer lower rates, but if you don’t use at least that amount every month, you may be charged a much higher rate.
Also, consider if you want renewable energy plans, and if yes, what percentage of renewable energy you desire.
What Is a Fixed-Rate Energy Plan?
Fixed-rate electricity plans set a stable kWh price throughout an agreed contract, often 12-36 months. Your electric bill will rise if you increase your energy usage or drop if you use less. You gain protection from rising energy prices but lose access to the benefits of falling prices.
Fixed-rate plans often have early termination fees. Companies will switch you to a different rate, called a renewal rate, once your contract expires and if you don’t change suppliers or request a new deal.
What Is a Variable-Rate Energy Plan?
Energy companies set kWh prices that change according to market conditions. Like dollar prices at the gasoline pump, the amount you pay for electricity changes, either rising or falling. That means your energy bill could be higher or lower, even if your consumption is stable.
Variable-rate plans don’t usually have early termination fees, so people can shop around and move suppliers.
Some people prefer prepaid plans with no need for credit checks. The kWh price for prepaid deals changes throughout the year too.
What Is an Early Termination Fee?
Energy companies often offer competitive prices on fixed-rate deals to reward customer loyalty with potential savings. People who switch companies early may have to pay up to several hundred dollars to leave a contract.
According to PUCT, once your contract has fewer than 14 days left, you can switch providers without paying an early termination fee. Also, you usually don‘t need to pay an early termination fee if you move home within Texas.
What’s the Best Texas Energy Comparison Website?
The best Texas energy comparison website is PUCT’s Powertochoose.org because it shows all relevant offers in your service area. Only Texas electricity companies approved by the PUCT can advertise on the Power to Choose website.
Check your ZIP code to see if you live in a deregulated area. Many service areas benefit from deregulation, from Houston to Dallas and even parts of Austin.
Use the filters to choose the number of kWhs you want, whether you want a fixed rate or variable rate offer, and so forth. Read all the Electricity Facts Labels before making your choice.
Pro tip: Check out our Power to Choose guide to help you navigate the website. You could check every company’s website, but there are more than 130! As such, that’s not really the most practical way to go.
Remember: The lowest advertised kWh rate may not suit your lifestyle. A low electricity user (500 kWh) shouldn’t sign up for a 2,000 kWh a month minimum use deal, just as someone renting a home for six months probably shouldn’t sign a 60-month contract.
What Is a Texas Electricity Facts Label (EFL)?
All Texas energy suppliers must provide an Electricity Facts Label (EFL), which details all the terms and conditions of their offer to you, the customer.
Read these carefully and ask yourself the following questions.
- Is there an early termination fee on your current deal, and how much?
- Do you want a fixed rate or variable rate?
- Is there a minimum use condition?
- Does the company offer the payment options I want?
- Is a deposit required? If so, can I afford it? How quickly and under what conditions does the company return it to me?
- Are there any hidden charges?
- Does the contract length suit my circumstances?
Other considerations are if you need your service to start immediately, to include renewable energy, or renew with your current supplier. Some companies offer deals like free nights, which may suit your lifestyle.
What Are Some of the Main Electricity Providers in Texas?
We’ve listed some well-known Texas energy providers alphabetically below — there are a lot more — but it will give you a feel for the market.
4change Energy
Plan types: Offers bill credits, smart thermostat rates, and 12-36 month contracts.
Of interest: Gives a percentage of its profits to charitable causes.
Amigo Energy
Plan types: Amigo Energy offers free nights or weekends, renewable energy options, prepaid plans with no credit checks, and fixed and variable rates.
Of interest: Bilingual service in Spanish or English.
Cirro Energy
Plan types: Fixed and variable rates.
Of interest: Online and mobile account handling.
Direct Energy
Plan types: Fixed and variable rates, free nights, or weekends.
Of interest: Occasional incentives to switch, such as store vouchers.
Discount Power
Plan types: Fixed and variable rates.
Of interest: Precise contract lengths with options for 12, 15, 18, and 24 months.
Express Energy
Plan types: Fixed and variable rates.
Of interest: Returned deposits come with interest earned.
First Choice Power
Of interest: No longer taking on new customers — see Reliant Energy.
Gexa Energy
Plan types: Fixed and variable rates, with an emphasis on 100% renewable energy sources for homes.
Of interest: Smart thermostat and solar panel incentives. Gexa also owns Frontier Utilities.
Green Mountain Energy
Plan types: Fixed rates are given with 100% renewable energy in “pollution-free” contracts.
Of interest: Free night’s deals are available.
Just Energy
Plan types: Just Energy offers fixed rates that include free nights, bill credits, or even a month of free electricity.
Of interest: Long-term deals up to 60 months long for those who want energy security.
NRG
Plan types: Works with Reliant Energy in Texas.
Of interest: NRG is a Fortune 200 company.
Payless Power
Plan types: Prepaid or fixed rates over short periods.
Of interest: Deposits or credit checks are not always required.
Pulse Power
Plan types: Fixed rates.
Of interest: Autopay and paperless billing options.
Reliant Energy
Plan types: Fixed rates or prepaid with free weekends, nights, or evenings.
Of interest: Calls itself the “affordable electricity company” with contracts tailored for homes and apartments.
Tara Energy
Plan types: Tara Energy offers fixed rates with free weekends, free nights, and bill credits.
Of interest: Same-day connection possible, plus online account management.
TriEagle Energy
Plan types: Renewable energy, bill credits, fixed rates, and incentives to install smart meters.
Of interest: Weekly usage reports help you understand your energy usage.
TXU Energy
Plan types: Fixed rates, variable rates, and month-to-month plans.
Of interest: Often receives high customer ratings.
Even this summary highlights how many different suppliers and energy plans are available.
What’s the Best Texas Energy Provider?
The best Texas energy provider will be the one that offers a deal that best suits your lifestyle. Think about your energy usage, when you use electricity, and how.
Fixed-rate plans bring price security for those who like to budget while variable rates bring flexibility. Free weekends may suit those who stay home during those times and renewable energy products can help everyone reduce their carbon footprint.
Remember that most private Texas energy comparison websites don’t list all the offers from every Texas energy supplier. Use the Power to Choose website, ask family and friends for recommendations, and do your research.
And if you’ve stayed up late reading this guide, perhaps Amigo Energy’s free nights deal is perfect for you.
Brought to you by amigoenergy
All images licensed from Adobe Stock.
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