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 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 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 find a plan that lights up your life.
Support You Can Count On
Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.
Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.
With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.
Texas Electricity Companies
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
Flagship Power Hey, Texas! Feeling swamped while navigating the complex energy industry landscape in search of a reliable retail electricity provider? Maybe you’re asking, “How do I pick the right energy plan that fits my needs without breaking the bank?”…
New Power Texas
New Power Texas Whether new to Texas, a long-time resident, or a business owner, this guide provides electricity rates and useful information on New Power Texas, and instructions on how to shop for the lowest energy rates in Texas. Any…
Constellation
Constellation Energy in Texas Looking for a reliable energy provider in Texas? Meet Constellation Energy. They offer a wide variety of electricity plans, and they’re known for their transparent billing and strong community ties. TLDR: Constellation Energy stands out with…
TXU Energy Plans & Rates
Compare TXU Energy Rates & Plans Get the right plan for you – guaranteed.¹ As one of Texas’ longest-running energy companies, TXU Energy provides electricity to more homes and businesses than any other retailer. With so many great TXU energy…
Best Texas Energy Companies
Best Texas Energy Companies Looking for a great energy company for your Texas home or business? You’re in the right place! We’ve compiled a comprehensive guide to the top Texas energy companies, showcasing their unique offerings, customer reviews, and competitive…
Frontier Utilities
Frontier Utilities Whether new to Texas, a long-time resident, or a business owner, this guide provides electricity rates, helpful information on Frontier Utilities, and instructions on how to shop for the lowest energy rates in Texas. Ready to enroll? Call…
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 Whether new to Texas, a long-time resident, or a business owner, this guide provides electricity rates, useful information on Gexa Energy, and instructions on how to shop for the lowest energy rates in Texas. Find the right energy…
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
Reliant Energy Plans & Rates Learn about Reliant Energy in Texas and how to get the right electricity plan for your home or business. Whether you are new to Texas or a long-time resident, this guide has Reliant Energy special…
Direct Energy
Direct Energy in Texas Whether you’re new to Texas, a long-time resident, or a business owner, this guide provides an in-depth look at Direct Energy’s electricity rates and services, and why it might be the right choice for you. Ready…
Pulse Power
Pulse Power Texas Pulse Power is a leading provider of electricity and energy services in Texas, offering a wide range of electricity plans and services to meet the needs of residential and commercial energy consumers. Whether you’re moving in, switching…
Green Mountain Energy
Green Mountain Energy Whether new to Texas, a long-time resident, or a business owner, this guide provides electricity rates, useful information on Green Mountain Energy, and instructions on how to shop for the lowest energy rates in Texas. Ready to…
Cirro Energy
Cirro Energy Whether you’re new to Texas, a long-time resident, or a business owner, this guide provides electricity rates and information on Cirro Energy and shows you how to find the lowest rates. Ready to enroll? Call Cirro directly at…
Discount Power
Discount Power Part of the NRG Energy family, Discount Power is an electricity provider in Texas. They offer a range of plans with fixed and variable rates to residents throughout the state. One of the company’s key selling points is…
Griddy Energy
We gave Griddy a try…read our latest review: Griddy Energy Reviewed – I Gambled with Griddy and Here’s What I Learned Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Griddy…
G-Power Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on G-Power and allows you to compare rates from other Texas energy companies so that you can find your best solution to power your…
Hello Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Hello Energy and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
Heritage Power
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Heritage Power and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
Infuse Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Infuse Energy and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
LifeEnergy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on LifeEnergy and allows you to compare rates from other Texas energy companies so that you can find your best solution to power your…
My Quest Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on My Quest Energy and allows you to compare rates from other Texas energy companies so that you can find your best solution to…
NOW Power
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on NOW Power and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
OnPAC Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on OnPAC Energy and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
Penstar Power Plans
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Penstar Power and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…
Shyne Energy
Whether new to Texas, a long-time resident, or a business owner, this guide provides useful information on Shyne Energy and allows you to compare rates from other Texas energy companies so that you can find your best solution to power…