Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
How to Choose Your Electric Provider
As a consumer advocate covering Texas electricity, I’ve witnessed countless struggles to navigate the complex world of retail electricity providers.
In this article, I’ll share my insights on choosing the best electricity provider for your needs and saving money on your annual electricity expenses.
TLDR: In Texas, choose the electricity provider with the best price for your usage. Retail providers don’t affect reliability, so find the cheapest plan that fits your needs.
Table of Contents
More Than Just Billing Companies
First and foremost, it’s important to understand the role of your retail electricity provider.
These companies primarily function as a billing service, purchasing electricity from generators at wholesale prices and reselling it to consumers at retail.
With around 100 retail electric providers in Texas, household names like TXU and Reliant compete for your business alongside smaller retailers, who often compete on price with the lowest rates.
Many Texans are wary of smaller retailers, wrongfully assuming that switching their retailer will affect the reliability of their electric service.
In reality, switching retailers will not impact your service reliability, and spending a few minutes comparing plans based on your home’s kWh usage can save you hundreds on your electric bills.
This is one of the easiest ways to save on your electricity costs in Texas, and it’s what energy deregulation was designed for – competition.
But you must use the free market and switch providers to realize these savings.
Learn how to switch electricity providers in Texas.
Are you moving in?
If you’re moving into a new home, you won’t have a usage history to rely on when choosing a plan.
A kWh calculator can help you estimate your usage and find the best plan for your needs.
Learn how to start service in Texas.
Electric Utility Companies
Many Texans mistakenly believe that their retail electricity provider is responsible for the reliability of their electricity service.
In reality, the utility company maintains the infrastructure, including the wires and poles that deliver electricity to your home.
If you experience a power outage, your utility company should be your first point of contact, not your retail provider.
Utility companies in Texas, along with their service areas:
- Oncor Electric Delivery – Serves the Dallas-Fort Worth metroplex and other parts of north, central, and west Texas.
- CenterPoint Energy – Provides electricity to the Houston metropolitan area and surrounding cities.
- AEP Texas – Serves southern and western Texas, including Corpus Christi, Abilene, McAllen, and Laredo.
- Texas-New Mexico Power (TNMP) – Operates in areas of Texas near Houston, Dallas, Fort Worth, and the Gulf Coast.
- Lubbock Power & Light (LP&L) – Serves the city of Lubbock and the surrounding areas in the South Plains region of Texas.
The Key Factor in Choosing a Provider: Price
When selecting the best electricity provider, price should be the primary consideration.
While some companies may tout their eco-friendliness or charitable contributions, your retailer does not determine the quality of your electricity service.
As a consumer, your goal should be to find the provider that offers the most competitive electricity rates for your specific usage profile.
Calculating the True Cost of an Electricity Plan
To find the cheapest plan for your household, calculate the total monthly cost of each plan you’re considering for an entire year.
This process involves using your previous year’s kilowatt-hour (kWh) usage data and the pricing information provided in each plan’s Electricity Facts Label (EFL).
You can manually calculate the cost of any electric plan using a spreadsheet by inputting your monthly kWh usage data, the plan’s base charge, energy charge, TDU delivery charges, and any applicable bill credits.
Following a step-by-step guide, you can determine each plan’s monthly and annual costs.
While this method is time-consuming, comparing plans based on your specific usage patterns is the most accurate.
As a shortcut, you can save hours using online tools like ComparePower’s savings calculator to compare plans quickly based on your usage.
Enter your zip code and compare plans tailored to your unique needs. Here’s how it works:
Making an Informed Decision
I advise Texas energy consumers to focus on price when choosing an electricity provider.
Be cautious of marketing claims and compare the projected annual costs of various plans based on your specific usage patterns.
Additionally, consider contract terms, cancellation fees, and customer service, as these can impact your overall experience.
Taking the time to understand the role of retail electricity providers, the importance of utility companies in maintaining reliable service, and calculating the actual cost of an electricity plan, you can make an informed decision and potentially save hundreds of dollars on your annual electricity expenses.
How to Choose Provider FAQs
Choosing the right electricity provider can be daunting, especially given the numerous options available in the Texas market. Here are some frequently asked questions to help you make an informed decision.
How do I start shopping for an electricity provider in Texas?
Start by understanding your energy needs. Look at your past electricity bills to determine your monthly usage.
Use tools like ComparePower.com’s proprietary usage history tool and kWh calculator to find the best-priced plan for your specific usage pattern.
What should I consider when comparing electricity plans?
Consider factors like price, contract length, renewable energy content, customer reviews, and additional features and benefits.
Remember, the cheapest plan isn’t always the best if it doesn’t suit your usage patterns or values.
What is the difference between fixed-rate and variable-rate plans?
Fixed-rate plans have a set price per kilowatt-hour that remains constant for your contract, providing stability and predictability.
Variable-rate plans can change from month to month based on factors like demand, fuel prices, and weather, offering potential savings when energy prices are low but can be unpredictable.
How do I choose between a fixed-rate and a variable-rate plan?
Consider your risk tolerance and ability to handle fluctuations in your electricity bill. A fixed-rate plan might be the best choice for stability and predictability.
A variable-rate plan could be a good fit if you’re comfortable with some risk and want the potential to save when prices drop.
Are there any green energy options available?
Yes, many Texas electricity providers offer plans that include energy from renewable sources like wind and solar.
Choosing a green energy plan can help reduce your carbon footprint and support the transition to a more sustainable energy future.
Make an Informed Decision
Armed with your usage information, you’re now ready to make an informed decision.
ComparePower lets you compare plans based on your specific usage, ensuring you find the best deal.
Whether you’re switching or starting a new service, we’re here to help you save time, reduce stress, and potentially save hundreds of dollars a year on your energy bills.
We provide the tools and information you need to make an informed decision and create a plan that will brighten your life.
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Texas Electricity Companies
TXU Energy vs. Reliant
TXU vs. Reliant: Does It Even Matter? You’re shopping for electricity in Texas and stuck between TXU Energy and Reliant. Both are big names, but does it really matter which one you choose? The truth? It doesn’t. Here’s why. Key…
Best Companies for Charitable Donations
Power Your Home, Empower Your Community Did you know that picking your electricity provider isn’t just about prices and plans? It’s also a chance to make a real difference in your community. Some electricity companies go above and beyond to…
Best Companies for High Usage
Get the Best Electricity Companies for Your High-Usage Texas Home Are you searching for the best electricity provider for your high-usage home? Whether you’re looking to save money, ensure reliable service, access green energy options, or find a company with…
Best Companies for Low Usage
Slash Your Bills: Find Electricity Companies Perfect for Low Usage Hey there, savvy energy saver. We get it – you’re all about keeping your electricity usage low and your bills even lower. You’ve come to the right place. We’re here…
Best Companies for Bill Credits
Find Electricity Savings With Bill Credits Searching for ways to save on your electricity bills? We hear you. Whether you’re looking to cut costs or get more value from your energy plan, usage discount plans might be the solution you’ve…
Best Companies for Low Rates
Lowest Price Texas Electricity Companies Looking for the best deal on electricity in Texas? We hear you. With so many providers and plans out there, finding the right fit for your budget can feel like searching for a needle in…
Best Companies for Fixed Rates
Discover the Best Electricity Companies for Unbeatable Fixed Rates If you’re feeling overwhelmed by the constantly changing Texas electricity market, you’re not alone. We get it – you just want a reliable, affordable plan without the stress of unpredictable rates….
Best Electricity Companies for Movers
Stress-Free Electricity Setup for Your Texas Move Moving can feel like a big challenge, but getting your electricity sorted in your new home can be a breeze. Choose a leading Texas electricity provider designed with movers like you in mind….
Best Companies for Free Nights & Weekends
Discover the Best Companies For Free Nights & Weekends Are you tired of high electricity bills and looking for a way to save some cash? It can be overwhelming to sort through all the different electricity companies and plans. But…
Best Companies for Month-to-Month Electricity
Unlock the Freedom of Month-to-Month Electricity Looking for a flexible electricity plan without the commitment? We get it – sometimes life calls for keeping your options open. No worries, we’ve got you covered. Let’s dive into the best month-to-month electricity…
Best Companies for Prepaid Electricity
Discover the Freedom of Prepaid Electricity Tired of unexpected electricity bills and looking for more control over your energy costs? Prepaid electricity plans offer a flexible, hassle-free solution. By paying for your electricity upfront, you can skip the monthly bill…
Best Companies for No-Deposit Electricity
Best No-Deposit Electricity Companies If you’re looking to get your electricity set up without the hassle of big deposits or tough credit checks, you’ve come to the right place. We know it can be stressful, so we’re here to walk…
Best Companies for Apartments
Best Electricity Companies for Apartments We know that finding the perfect place can be a challenge, and the last thing you need is the extra stress of figuring out electricity. Don’t worry, we’ve got your back. In Texas, you can…
Best Companies for Same-Day Electricity
Fast Electricity at Your Fingertips Moving into a new home or apartment? We get it – you need power now, not later. The good news is that in Texas, you’ve got options for fast, reliable same-day electricity service. Keep reading…
Best Companies for Customer Service
Customer Service Champions Are you fed up with being put on hold for ages and getting the runaround from your electricity provider? It’s time to find a company that actually cares about your needs. Let’s dive in and discover the…
Best Companies for Green Energy
Finding Eco-Friendly Electricity in Texas Want to switch to green energy in Texas? It’s easier than you might think. It all comes down to finding the perfect balance between being kind to the planet, keeping your budget happy, and getting…
Energy Texas
Energy Texas Energy Texas entered the deregulated Texas energy market in 2020 with the promise of straightforward, affordable electric plans. But are they the right fit for you? This analysis, based on real customer reviews and testimonials, aims to provide…
Tesla Electric
Tesla Electric in Texas Tesla Electric brings its trademark innovation to the Texas electricity market. But how do their rates, plans, and services compare to major providers in the state? While Tesla Electric plans are not listed on ComparePower, you…
Revolution Energy
Revolution Energy in Texas Revolution Energy is a Texas-based retail electricity provider offering a variety of innovative plans to meet the diverse needs of its customers. With options like free weekends and nights, green energy, and a strong focus on…
Ohm Connect
Ohm Connect in Texas OhmConnect is a unique energy provider in Texas, offering rewards for energy conservation. But is it the right choice for you? If you’re considering a switch, this post will help you understand what Ohm Connect brings…
OnPoint Energy
Onpoint Energy in Texas OnPoint Energy is a Houston-based electricity provider aiming to offer competitive rates, easy-to-understand plans, and quality customer service. Company Information OnPoint Energy focuses on residential, commercial, and industrial retail electricity solutions. Backed by Arclight Capital, they…
Chariot Energy
Chariot Energy in Texas Chariot Energy provides 100% solar electricity plans in Texas. But how do their pricing, service, and offerings compare to major providers in the state? While Chariot’s rates and plans are not listed on ComparePower, you can…
BKV Energy
BKV Energy in Texas BKV Energy is a Texas electricity provider focused on sustainable energy. But how do their rates, plans, and offerings compare to other providers in the state? While ComparePower does not list BKV’s specific plans, you can…
Good Charlie Energy
Good Charlie Energy in Texas Good Charlie is a Texas electricity provider with a unique approach. But how do their offerings compare to other companies in the state? While ComparePower does not list Good Charlie’s rates and plans, you can…
Shell Energy
Shell Energy in Texas Are you on the hunt for a 100% renewable electricity provider in Texas? Look no further than Shell Energy, a provider committed to cleaner energy choices and excellent customer service. TLDR: Shell Energy is a home…
Value Power
Value Power Texas Value Power Energy is a Texas-based electricity provider that is committed to offering great rates and great service, always. They pride themselves on their fair, transparent pricing and straightforward plans, making them a good choice for Texans…
Rhythm Energy
A Closer Look at Rhythm Energy Launched in 2021, this relatively new player has quickly built a positive reputation through their user-friendly online platform, attentive customer support, and unique offerings tailored to eco-conscious consumers. Rhythm Energy Plans Rhythm’s electricity plans…
Octopus Energy
Octopus Energy Octopus Energy, known for innovation and renewable energy commitment, now serves Texas. They offer a variety of energy plans designed to meet different customer needs from fixed rates to green energy plans. ComparePower does not list Octopus Energy…
Flagship Power
A Closer Look at Flagship Power Feeling lost in the Texas electricity maze? We hear you – picking a provider can be as tricky as predicting the weather. If you’ve stumbled across Flagship Power and are wondering if they’re the…
New Power Texas
A Closer Look at New Power Texas Feeling a bit overwhelmed by all the power plan options out there? Don’t worry, you’re not alone. If you’ve stumbled across New Power Texas and you’re wondering if they’re the right fit for…
Constellation
A Closer Look at Constellation Energy Are you searching for a reliable electricity provider in Texas? Look no further than Constellation Energy. With a stellar 4.5-star average on Google and a wide range of plans to choose from, Constellation is…
TXU Energy Plans & Rates
A Closer Look at TXU Energy Are you on the hunt for an electricity provider that truly has your back? Look no further than TXU Energy. With over a century of experience powering Texas homes and businesses, they’ve learned a…
Best Texas Energy Companies
Texas’ Best Electricity Companies Searching for the best electricity companies in Texas? We’ve cut through the noise to bring you the top providers, evaluated on price, service, green energy, and flexibility. Companies like TXU Energy, Reliant, and Gexa Energy often…
Frontier Utilities
A Closer Look at Frontier Utilities If you’ve been searching high and low for the scoop on Frontier Utilities, you’ve stumbled upon the right place. We’ve got all the juicy details you need to decide if Frontier Utilities is the…
Frontier Energy
Ready to find a no-deposit energy plan? 👉 Check out our No-Deposit Electricity page for no-deposit lights in Texas. Important Update: Frontier Utilities no longer offers no-deposit prepaid electricity plans. But don’t worry—you can still find great no-deposit and low-deposit…
Gexa Energy
Gexa Energy: A Closer Look Are you on the hunt for a provider that offers eco-friendly options, a variety of plans, and some pretty sweet perks? Well, you might want to take a closer look at Gexa Energy. In this…
Champion Energy
Champion Energy Rates & Plans Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Champion Energy and allows you to compare rates from other Texas energy companies to find the best solution…
First Choice Power
First Choice Power in Texas If you’re a Texas resident or business owner considering First Choice Power for electricity, this guide provides helpful information and tips. We’ll cover First Choice Power rates, plans, service areas, and more. You’ll also learn…
Pennywise Power Plans
Pennywise Power Energy Plans Whether new to Texas, a long-time resident, or a business owner, this guide provides electricity rates and useful information on Pennywise Power and instructions on how to shop for the lowest energy rates in Texas. Ready…
Reliant Energy
A Closer Look at Reliant If you’re shopping for an electricity provider in Texas, Reliant is definitely worth a look. They offer a wide variety of plans designed to fit different needs, whether you’re looking for a straightforward, low-cost option…