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Unlocking the Power of Energy Choice

Energy choice, a feature available in many deregulated energy markets, allows consumers to shop for electricity and natural gas suppliers. Instead of being limited to their local utility company’s energy supply, consumers can compare various offers and select the best rates and plans that fit their needs.

How Energy Choice Works

In deregulated markets, energy generation and distribution are separated. Here’s how it functions:

1. Generation: Independent companies produce electricity.
2. Transmission and Distribution: Local utility companies maintain the infrastructure (like power lines and pipelines) and deliver the energy to homes and businesses.
3. Retail Providers: These companies purchase electricity from generators and sell it to consumers. Consumers can choose among these retail providers based on price, service, and other preferences.

Consumers continue to receive reliable delivery and infrastructure maintenance from their local utility company, ensuring no service disruption when switching electricity companies. The primary change is in the billing and potentially lower rates or better customer service from the chosen provider.

Benefits of Energy Choice

• Cost Savings: Increased supplier competition can lead to lower consumer energy prices.
• Diverse Options: Consumers can access various pricing plans, including fixed-rate and variable-rate options.
• Innovative Products: Suppliers may offer green energy plans, free nights and weekends, loyalty rewards, and other innovative products that local utilities might not provide.
• Better Customer Service: Competition encourages providers to improve customer service to attract and retain customers.

Understanding Energy Deregulation

Energy deregulation began to break up monopolies in the energy sector and introduce competition. This shift allows consumers to benefit from competitive pricing and more choices. Deregulation policies were influenced by federal actions such as the Energy Policy Act of 1992, which encouraged states to open their markets to competition.

States with Energy Choice Programs

Energy choice is available in several states, including Texas, Ohio, Pennsylvania, New York, and Illinois. Each state has its platform to help consumers compare and choose energy suppliers:

• Texas: Power to Choose
• Ohio: Energy Choice Ohio
• Pennsylvania: PA Power Switch
• New York: New York Power to Choose
• Illinois: Plug In Illinois

These platforms provide consumers with tools to compare rates, read customer reviews, and select the best energy plan for their home or business.

Consumer Energy Choice Programs

For a comprehensive understanding of various consumer energy choice programs across different states, visit our detailed guide on Consumer Energy Choice Programs. This resource provides an in-depth look at how these programs operate, their benefits, and how to take advantage of them.

Understanding FERC’s Role in U.S. Energy Regulation

The Federal Energy Regulatory Commission (FERC) is an independent agency regulating U.S. energy markets.

FERC’s jurisdiction covers everything from electricity to natural gas and oil pipelines, ensuring that the U.S. energy markets operate efficiently and equitably.

Understanding FERC’s responsibilities provides insight into how energy policies are shaped at the national level and how these policies impact consumers and the energy industry.

The Scope of FERC’s Authority

Electricity: FERC regulates the transmission and wholesale sale of electricity in interstate commerce. By overseeing how electricity is sold and transmitted across states, FERC ensures that the market remains competitive and fair, preventing market manipulation and protecting consumers’ interests.

Natural Gas: FERC also oversees the interstate transmission of natural gas. This includes the physical infrastructure, such as pipelines, and the pricing and terms of natural gas transportation services. This regulation ensures that natural gas markets function competitively and transparently.

Hydropower: FERC licenses and inspects private, municipal, and state hydroelectric projects. This includes monitoring their operation to ensure they comply with environmental standards and do not pose a hazard to public safety.

Oil: While FERC’s role in oil regulation is less prominent than its role in electricity and natural gas, it does oversee certain aspects of the oil pipeline rates and services at the federal level.

Key Functions of FERC

Market Oversight and Enforcement: One of FERC’s primary roles is to oversee the energy markets. This involves monitoring market activities to identify and remedy market manipulation and other violations of FERC regulations. FERC’s enforcement authority enables it to impose penalties and sanctions on entities that violate rules.

Promotion of Reliable and Safe Energy: FERC ensures the reliability of the high-voltage interstate transmission system through mandatory reliability standards. It also oversees environmental reviews and engineering inspections to ensure that energy infrastructures such as dams and electric transmission facilities meet safety standards.

Support for Innovation and Infrastructure Development: FERC plays a crucial role in promoting the development of sustainable energy infrastructure. It encourages investments in grid modernization and supports initiatives to enhance the integration of renewable energy sources and emerging technologies like energy storage.

FERC’s Impact on Consumers

While FERC operates primarily at the wholesale and interstate levels, its policies directly impact the retail energy market and consumers.

By promoting competition and regulating market activities, FERC helps to maintain fair pricing and reliability in the energy services that reach consumers.

Furthermore, FERC’s emphasis on integrating renewable energy and improving infrastructure resilience contributes to more sustainable energy practices that benefit the public.

Challenges and Future Directions

FERC’s regulatory approach also adapts as the energy landscape shifts toward renewable energy sources and increased use of natural gas.

Challenges such as grid reliability in the face of changing energy production and consumption patterns, cybersecurity threats to critical infrastructure, and the need for streamlined regulatory processes are on FERC’s agenda.

FERC’s Role in Context

While FERC operates primarily at the wholesale and interstate levels, its decisions and policies significantly influence state-level energy regulations overseen by Public Utility Commissions (PUCs).

By ensuring fair practices and promoting competition at the interstate level, FERC sets a regulatory framework that PUCs often mirror or adapt to suit state-specific energy needs and consumer protections.

For those interested in understanding how state-level regulation complements federal oversight and impacts you as a consumer, our comprehensive guide on Public Utility Commissions offers a detailed look into each state’s regulatory body and its role in the broader energy landscape.

In Summary

The Federal Energy Regulatory Commission is integral to the functioning of the U.S. energy markets. By understanding FERC’s role and the scope of its authority, stakeholders and policymakers can better navigate the complexities of the energy sector and advocate for policies that align with their interests and needs.

Hey Texas, We’ve Got Your Back in the Electricity Search

We know searching for the right electricity company in Texas can be a real headache. With so many options out there, it’s tough to know where to start.

That’s where we come in.

We get it. You want a provider that fits your specific needs without the hassle of sifting through countless options.

You’re not looking for just a bunch of names thrown at you – you want the cream of the crop.

Quality Is Key

We do the heavy lifting for you by carefully evaluating each provider and highlighting only the ones that really stand out in the areas that matter most to you.

We’re all about quality over quantity. We pick the best of the best, so you can feel confident in the choices we offer.

No more feeling lost in a sea of options.

Our goal is to make your decision process a breeze with recommendations that feel like they’re tailored just for you.

All the Detail You Need

We gather all the info you could ever want on every provider out there, not just our partners. We’re talking plans, pricing, what customers have to say, awards they’ve won, and more.

To create our “Best For” lists that showcase the top companies in different categories, our team looks at all the important stuff to figure out who’s really hitting it out of the park.

Here are some of the things we consider:

• Green Energy – How much renewable energy is in their plans and the percentage of plans that are 100% green.
• Customer Service – When you can reach them, how often customers have issues, and any awards they’ve won for helping folks out.
• Moving In – How far in advance you can order a plan, different contract lengths, and guarantees to make sure you’re happy with your choice.
• Apartments – Competitive prices for lower usage and guarantees that you’re satisfied with your electricity pick.
• No Deposit – Options for no deposit, low deposit, or prepaid plans, credit check policies, and the lowest upfront costs before service starts.
• Prepaid – How many prepaid plans they have, what it costs to get started, how easy it is to pay and track usage online, and how their prices stack up against other prepaid providers.
• Month to Month – Availability of month-to-month plans, how the price compares to fixed-rate plans, and account management features.
• Free Nights & Weekends – Plans with free nights and weekends, how many free hours you get overnight and/or on weekends, and how competitive their prices are.
• Fixed Rates – Contract lengths, fees for ending early, and the lowest price at 1000 kWh.
• Low Rates – The cheapest prices on ComparePower at 500 kWh, 1000 kWh, and 2000 kWh.
• Usage Discounts – Special discounts for new customers.
• Low Usage – Competitive pricing for using less than 500 kWh per month.
• High Usage – Competitive pricing for using more than 2000 kWh per month.
• Most Charitable – How much money they donate and how they give back to the community.
• Same Day Service – The most hours each week for same-day service.

Honest Reviews

We know you want the whole story, not just the highlights.

That’s why we give you an honest take on each provider, including the good and the bad.

We promise to always give it to you straight. No sugarcoating here.

Fixing Mistakes ASAP

There’s nothing more annoying than finding out the info you’re reading is old news. We won’t let that happen to you.

If we goof up, we fix it ASAP. And we’ll always let you know what’s changed, so you’re never left wondering.

Always Up-to-Date

The energy market is always changing, and so are our reviews. We keep everything fresh, so you’re not stuck with outdated info.

Our Partner Companies

We only team up with companies that truly get what you need. They’ve got to meet our high standards and be willing to share all the details.

We check out their financials, customer service, and even how many complaints they’ve had.

Why Some Companies Aren’t Featured

Sometimes, a company just isn’t ready for the spotlight. Maybe they’re still working out some kinks or they don’t have the tech we need to give you the best experience.

Tell Us What You Want

We’re always looking for ways to improve, and your input is gold. If there’s a company you think we should check out, give us a shout.

Your suggestions help us create a service that truly works for you. So don’t be shy – we’re all ears. The more you tell us, the easier it is for us to find the perfect provider for your needs.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

New Electricity Plan, High Bill? Don’t Panic, Here’s Why

Don’t freak out if you recently switched to a new electricity plan and are now facing a higher-than-expected first bill.

We get it; it’s frustrating and confusing, especially when you were hoping to save money. But here’s the thing: there are several usual reasons why your initial bill might seem a bit off.

Let’s dive in and figure this out together, shall we?

Prorated Billing: It’s Not as Scary as It Sounds

Prorated billing is among the most common culprits behind a higher first bill. Here’s the scoop.

Billing Period Alignment

Unless you have magical powers that allow you to switch plans at the start of your billing cycle, your first bill will likely be prorated.

In plain English, you’ll only be charged for the days you were on the new plan, not the whole month.

So, if you switched halfway through a 30-day month, your first bill would only cover those last 15 days.

Bill Credit Plans and Prorating

If your shiny new plan comes with a bill credit for using a certain amount of electricity, prorating can make it trickier to hit that target in the first billing period.

Let’s say your plan gives you a $50 credit for using 1,000 kWh in a month, but your first bill only covers 20 days.

You might miss out on that credit this time, but don’t worry – you’ll have an entire month to aim for it next time.

Partial Month Charges

Some plans have fixed monthly fees, like a base charge or a minimum usage fee.

When your bill is prorated, these charges might be adjusted to match the shorter billing period.

To get the complete picture, look at your plan’s Electricity Facts Label (EFL), which will explain how these fees are calculated and prorated.

The key takeaway here? Switching to a new plan is all about long-term savings.

Don’t let a funky first bill make you second-guess your decision.

Comparing to Your Old Plan? It’s Not Apples-to-Apples

We know it’s tempting to look at your new bill and your old ones side-by-side but trust us, it’s not always a fair comparison. Here’s why:

Seasonal Changes: If you switched plans during a significant weather shift (think a scorching summer or a frigid winter), your electricity usage will probably be different than it was the month before, no matter your plan.

Fees Can Vary: Your old and new plans might have different fee structures. Maybe your old plan had lower base rates but higher fees, or vice versa. The total bill amount doesn’t tell you the whole story.

Still Scratching Your Head? Let’s Investigate Further

Okay, we’ve talked about prorating and fees, but what if your bill still seems way off?

It’s time to put on our detective hats and do some digging:

Rate Check: Double-check that the rate you’re being charged matches the one you signed up for. Mistakes can happen, even to the best of us.

Usage Review: Has something changed in your household that is causing you to use more electricity? Did you buy a new appliance or have guests staying over?

Meter Reading: Make sure the meter reading on your bill is accurate. If something looks fishy, call your electricity provider to investigate.

Customer Service Chat: If you’re still scratching your head, don’t hesitate to contact your new electricity company. They’re there to help; sometimes, a quick explanation is needed.

Keep Your Eye on the Prize: Long-Term Savings

We know a higher-than-expected first bill can be stressful, but remember: switching electricity plans is about saving money in the long run.

Here’s what you should focus on:

The Next Bill: Give your plan at least one full billing cycle to see how it performs under normal circumstances.

The Big Picture: Monitor your bills over the next few months. Are they generally lower than what you were paying this time last year with your old plan? If so, you’re on the right track.

Let ComparePower Help: We can analyze your usage and predict which plans will save you the most money, so you don’t have to play guessing games.

Stay on Top of It: Don’t just set it and forget it. Make a habit of regularly reviewing your plan and comparing it to other options. That way, you’ll always know you’re getting the best deal.

Bonus Tips: Small Changes, Big Impact

Adopting some energy-saving habits can help lower your bills, no matter your electricity plan.

Here are a few easy ones to try:

1. Tinker with your thermostat: Increase it a few degrees in summer and decrease it in winter to save on heating and cooling costs.
2. Opt for energy-efficient appliances: When replacing an old appliance, look for the ENERGY STAR label.
3. Flip the switch: Turn off lights and electronics when you’re not using them. It might seem small, but it adds up!
4. Embrace natural light: Open your curtains and blinds during the day to reduce your need for artificial lighting.

Don’t Let a Bump in the Road Derail Your Savings

Changing electricity plans is a smart move for many Texans.

Don’t get discouraged by a slightly confusing first bill. Understanding the reasons behind it and focusing on the big picture will put you firmly on the path to lower energy costs.

By staying informed, proactive, and open to making adjustments as needed, you can confidently navigate the world of electricity plans and find the one that best fits your needs and budget.

You’ve Got This

We know that switching electricity plans and then seeing a higher first bill can feel like a real kick in the pants.

But don’t let it get you down. You’ll be back on track by understanding its reasons (like prorating and fees) and focusing on your long-term savings goals.

The bottom line? Stay informed, stay proactive, and don’t be afraid to make adjustments as you go.

You’ve got the power to take control of your electricity costs.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Become a Bill Detective: Don’t Let Sneaky Errors Overcharge You

You know that gut-wrenching feeling when you open your electricity bill and see a number way higher than you expected?

Yeah, we’ve all been there. It’s like a punch to the wallet.

Sometimes, it’s not just the Texas heat or your kids leaving the lights on that’s to blame.

It could be a sneaky little billing error throwing off your total.

But here’s the good news: you don’t have to grin and bear it.

With some know-how and sleuthing skills, you can spot these errors and fight back.

What to Look For: The Anatomy of a Sneaky Billing Error

Alright, detective, the first step to catching billing errors is knowing your bill inside and out.

Here are the key areas to put under the magnifying glass:

Meter Readings

This is often where the trouble starts. Your bill should show your current meter reading and last month’s reading.

If the difference between these numbers seems far from your usual usage, or if you see an “E” (which means they estimated your reading instead of checking), it’s time to put on your detective hat and investigate.

Rate Charges

Grab your contract and flip to the Electricity Facts Label (EFL).

Your rate should match what’s listed there.

You might have caught an error red-handed if you see a higher rate.

TDU Charges

These are your Transmission and Distribution Utility (TDU) fees for keeping the power lines in tip-top shape and delivering electricity to your home.

While these charges are separate from your Retail Electric Provider’s (REP) fees, they can still be a hiding spot for errors.

Compare them to your previous bills and watch for any wacky increases.

Random Fees

Electricity bills are like the Wild West of weird charges. Service fee? Admin charge? It’s like they’re just making stuff up.

If you see a charge that makes you go, “Huh?” then it’s time to whip out the magnifying glass and ask questions.

The Grand Total

Even if all the little charges look okay, bust out your calculator and ensure they add to the total at the bottom.

How to Take Action: Resolving Billing Errors Like a Pro

Think you’ve spotted an error on your bill? It’s time to roll up your sleeves and get down to business.

Here’s your step-by-step game plan:

1. Gather Your Receipts: And by receipts, we mean evidence. Round up all your bills, your contract (pay extra attention to that EFL!), and any old emails or chats with your REP or TDU. The more proof you have, the stronger your case will be.
2. Ring Your REP: Call your REP and lay out the issue, relaxed and calm like a cucumber. Point to the exact charges you’re side-eyeing and whip out your contract to back it up. Let them know how you want this sorted out (a new bill? or a refund?), and give them a reasonable deadline to make it happen.
3. Write It Down: Every time you talk to your REP, jot down the date, the time, and the name of the person you spoke to. If they promise you something, make sure you get it in writing.
4. Pay the Rest: While fighting over the error, remember to pay the part of your bill that’s not in question. You don’t want to get slapped with late fees or risk having your power cut off. It might feel icky, but trust us: better safe than sweaty!
5. Take It Up the Chain: If your first few calls don’t get the job done, it’s time to pull out the big guns. Ask to talk to a supervisor or someone higher up the food chain who has the power actually to fix this thing.
6. Bring in the Pros: If your REP is ghosting you or straight-up refusing to fix the error, it’s time to call for backup. File an official complaint with your state’s Public Utility Commission (PUC). These folks are here to protect consumers and ensure providers play by the rules. You can usually find the form on your PUC’s website.

The Last Resort: Testing Your Meter

Okay, so it’s super rare, but sometimes, a faulty meter can cause a billing error.

If you’ve tried everything else and you’re still smelling something fishy, you can ask your TDU to test your meter.

Heads up: you might have to pay a fee for this, but it could be worth it for the peace of mind.

And hey, if they find out the meter was on the fritz, the TDU might refund you the testing fee and fix up your old bills. Not too shabby.

To get a meter test, call your utility:

• Oncor
• Centerpoint
• TNMP
• AEP Texas

The Bottom Line: Knowledge is (Billing) Power

The best defense against billing errors is knowing your stuff. The more you understand your bill, the easier it’ll be to spot something shady.

Make it a habit to review your monthly charges, and don’t be shy about calling up your REP or the PUC if something seems off.

And if you’re in the market for a new plan, ComparePower offers honest, no-BS recommendations.

Remember, you’ve got the power to fight back against billing errors. Don’t let them sucker you out of your hard-earned cash.

Channel your inner detective, stay persistent, and keep those bills in check.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

The Key to Predictable Bills

Picture this: you’re going about your day, minding your own business, when suddenly you open your electricity bill and do a double-take.

“How on earth is my bill so high?” you wonder.

“I haven’t been using any more power than usual!” Sound familiar?

You’re not alone if you’ve ever found yourself in this situation.

The culprit behind that unexpected spike might be your billing cycle.

As a fellow Texas electricity consumer, I’ve been there too. I know how frustrating it can be to feel like you’re doing everything right, only to be blindsided by a sky-high bill.

But here’s the good news: once you understand how billing cycles work, you’ll be much better equipped to understand your energy bills and avoid those unwelcome surprises.

What is a Billing Cycle?

Your billing cycle is simply the number of days between meter readings. Ideally, it should be around 30 days, but various factors can cause it to be shorter or longer. For example:

• Weekends and holidays: If your meter reading falls on a weekend or holiday, it may be postponed until the next business day, extending your billing cycle.
• Rough weather: Severe weather conditions can prevent reader access to your meter, leading to a longer billing cycle.
• Utility company staffing: If your utility company is short-staffed, meter readings may be delayed, resulting in an extended billing cycle.

Think of it like this: Even if you drive the same distance to work each day, you’ll burn more gas over five days than over four.

Similarly, a longer billing cycle means a higher bill, even if your daily electricity usage remains consistent.

TDUs, REPs, and Your Meter

To understand your billing cycle, it helps to know the key players in the Texas electricity market:

• Transmission and Distribution Utilities (TDUs): These hardworking folks maintain the power lines, deliver electricity to your home, and read your meter. They’re the infrastructure masters.
• Retail Electric Providers (REPs): This is the company you choose to supply your electricity. You pay your bill to them, and they offer various plans to fit your needs.
• Your Meter: Whether a traditional analog or a high-tech smart meter, this device constantly monitors your energy use. Smart meters automatically send your usage data to your TDU, but data processing takes time. That’s why billing cycle variations can still occur.

Your TDU must process and send the data to your REP, and scheduling variations can occur.

How Billing Cycles Can Impact Your Wallet

Variations in your billing cycle length can affect your bill in a couple of key ways:

Missed Credits

Some electricity plans offer juicy incentives, like bill credits, if you use a certain amount of energy within your billing cycle.

But if your cycle is cut short, hitting those usage targets can be tricky. Suppose your plan offers a $50 credit if you use 1,000 kWh in a cycle.

If your cycle is only 25 days instead of 30, you might miss that target and lose the credit.

Unexpected Spikes

Conversely, an extended billing cycle means more energy use days on your bill.

Even if you didn’t crank the AC more than usual, a longer cycle can lead to a higher total charge. Imagine your usual 30-day cycle includes 900 kWh of usage.

If your cycle stretches to 35 days, you might see 1,050 kWh on your bill, resulting in a higher-than-expected charge.

Need More Help?

If your bill still seems off despite checking your cycle, there might be other reasons for the increase.

No More Bill Surprises

Sometimes, the answer isn’t something you can fix yourself.

For example, your electricity plan might not fit your household’s needs well.

That’s where ComparePower comes in.

We’ll help you analyze past bills to uncover hidden costs and usage patterns. We’ll help you find a plan that’s the right size for you—no more billing surprises.

Take control of your electricity costs today by finding the perfect plan for your home.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

How One Late Bill Can Spiral into a Financial Nightmare

We’ve all been there. Life gets busy, and sometimes, a due date slips through the cracks.

But when it comes to your electricity bill, even one missed payment can trigger a cascade of consequences that can quickly turn a small oversight into a significant financial headache.

The Slippery Slope of Missed Payments

Just ask Sarah, a single mother from Houston.

“I had always been on top of my bills,” she shared, “but then my daughter got sick, and I had to miss a few work days. That one late payment turned into a nightmare. The fees kept piling up, and before I knew it, I was facing disconnection.”

Sarah’s story is all too common in Texas, where strict regulations and unique market structures can make it difficult for consumers to navigate the consequences of a missed payment.

Consequences of a Missed Payment

In Texas, Retail Electricity Providers (REPs) can charge a late fee of up to 5% on the delinquent balance.

That might not seem like much, but remember that fee applies to your entire past-due amount, not just what was originally due.

Here’s an example: Your original bill was $100, but you missed the payment.

With a 5% late fee, you now owe $105.

If you can’t pay that and your bill remains unpaid after the 16-day grace period, your REP can pay another 5% penalty.

Now you’re looking at a bill of $110.25, and that’s not even counting your next month’s charges.

Accumulated Charges

Each month your bill goes unpaid, it grows.

Late fees, penalties, interest (which REPs are allowed to charge), and your original unpaid amount feed into each other.

A missed payment can quickly escalate into hundreds of dollars owed.

This is especially devastating for lower-income households.

A 2020 report by the National Energy Assistance Directors’ Association (NEADA) found that the average low-income household in Texas pays 12.6% of their annual income on home energy costs, compared to just 3.7% for non-low-income households.

Service Disconnection

If your bill remains unpaid, your REP can request to have your electricity shut off. However, there are some restrictions:

• Notice: Your REP must provide a written disconnection notice, generally at least ten days before potential shutoff. Check your provider’s specific terms; some may offer more extended grace periods. [PUC Substantive Rule §25.483].
• Weather Protection: Disconnections are usually prohibited during extreme weather advisories.
• Medical Necessity: You may qualify for disconnection protection if someone in your household relies on electricity for a critical medical device. Contact the Texas Public Utility Commission (PUC) for details.

Getting the lights back on if your service is disconnected isn’t as simple as paying your overdue balance.

You’ll likely have to pay a reconnection fee, ranging from $25 to $50, plus a deposit to reestablish service.

For anyone struggling, coming up with these extra funds can be an insurmountable challenge.

Resources and Rights: You’re Not Alone

If you’re facing mounting electricity bills and the threat of disconnection, knowing you have rights and options is important.

Payment Plans

Texas law requires REPs to offer deferred payment plans to customers who request them.

These plans allow you to spread your overdue balance over several months, making your debt more manageable.

Don’t be afraid to ask your REP about this option. They are required to offer it.

Assistance Programs

There are programs available to help households struggling with energy costs.

The PUC: Your Ally

If you can’t reach a fair resolution with your REP, the PUC’s consumer protection division will help. You can file a complaint here, and they’ll investigate.

Strategies for Staying on Top of Payments

The best way to handle the consequences of a missed electricity payment is to avoid missing payments in the first place.

Here are a few strategies to help ensure you stay current on your bills:

• Set reminders: Mark your due date on your calendar, set a reminder on your phone, or sign up for email alerts from your REP.
• Enroll in autopay (with caution): Many REPs allow you to have your payment deducted automatically each month. Ensure you have sufficient funds in your account to avoid overdraft fees.
• Budget and prioritize: Treat your electricity bill like your rent – a non-negotiable expense that you budget for each month.
• Communicate early: If you anticipate having trouble paying, contact your REP immediately. Many providers offer hardship programs or payment plans to help you avoid missed payments and the associated fees.

Breaking the Cycle

For many Texas households, a single missed electricity payment can create a chain reaction of fees, accumulated debt, and the looming threat of disconnection.

But you’re not powerless. If you’re struggling, contact your provider, explore assistance programs, and consider shopping for a more affordable plan.

With the right support and a proactive approach, you can break the cycle of electricity bill debt and regain control of your finances.

Remember, you’re not alone in this. There are resources and people ready to help.

Don’t be afraid to reach out and advocate for yourself. You’ve got this.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Shocking Electricity Bill? Don’t Blame Your Usage Just Yet

If you’re reading this, chances are you’ve experienced that sinking feeling when you open your electricity bill and see a number way higher than expected.

Trust me, you’re not alone. Before blaming your AC for working overtime, let’s look at what might be happening.

Believe it or not, those high bills aren’t always due to excessive energy use.

Sometimes, billing and payment issues are the culprits.

Late Fees: The Snowball Effect

You missed a payment, thinking you’ll catch up next month.

But did you know that even one missed payment can trigger a chain reaction?

In Texas, Retail Electric Providers (REPs) can tack on a one-time late fee of up to 5% on overdue bills.

It might not seem like much, but trust me, those fees add up quickly.

Understanding Billing Cycles

Did you know your billing cycle doesn’t always align perfectly with the calendar month?

That’s because your electric billing cycle is the time between meter readings and can vary in length.

Weekends, holidays, and even meter accessibility can all impact when your meter gets read.

And here’s the kicker: a longer billing cycle means more usage on your bill, even if you didn’t use more electricity.

Billing Errors: When the Math Doesn’t Add Up

While billing mistakes are rare, they can happen.

Misread meters, incorrect rates, and even simple calculation errors can all lead to a higher-than-expected bill.

The good news is that Texas law requires REPs to correct overcharges within three billing cycles.

Here are two common types of errors to watch out for:

• Calculation Errors: Double-check the math on your bill. If your rate is 10 cents per kWh and you used 500 kWh, your usage charge should be $50.
• Changes to Charges: Watch for changes to fees from your Transmission and Distribution Utility (TDU). These rates can change twice a year and impact your overall bill, even if your REP plan hasn’t changed.

How to Spot Billing Errors

Carefully review every charge. Your bill should include a clear breakdown of the following:

• Charges from your REP (energy usage, plan fees)
• Charges from the TDU (delivery charges, etc.)
• Any applicable taxes or additional fees

Verify that the rate per kWh you’re being charged matches the terms of your agreement with your REP.

Know Your Rights

Are you feeling overwhelmed? Don’t worry. As a Texas electricity consumer, you have rights. Here’s a quick overview:

• Timely Bills: Your due date must be at least 16 days after the bill is issued.
• Payment Assistance: REPs must inform you about payment options and assistance programs.
• Average Billing and Deferred Payment Plans can help you manage seasonal bill spikes or pay off balances over time.

Take Action

If you suspect that billing issues are behind your high electricity bills, here’s what you can do:

• Review your bill carefully, checking for any unusual charges or discrepancies.
• Contact your electricity provider if something seems off.
• Explore your options. If you think your plan might be the problem, seeking a better rate and plan that fits your needs can help you control your energy costs.

Remember, you don’t have to face high electricity bills alone. We’re always here to help answer any questions you might have.

Understanding the common causes of billing issues and knowing your rights are the first steps to taking control of your energy costs and saying goodbye to bill shock.