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

Texas Electricity Provider Comparisons
Compare Electric Companies Side-by-Side So you’re searching for electricity provider comparisons. You’ve probably seen the same big names: TXU, Reliant, Gexa, Direct Energy, and are wondering who you should choose. But does it actually matter which one you choose? Spoiler:…

Direct Energy vs. Just Energy
Direct Energy vs. Just Energy: Which Company is Right for You? Feeling a bit overwhelmed by your electricity options? Don’t worry, we’ve got your back. Let’s talk about Direct Energy vs. Just Energy – two big players in our Texas…

Gexa Energy vs. Frontier Utilities
Gexa Energy vs. Frontier Utilities: Your Texas Power Guide Stuck between Gexa Energy vs. Frontier Utilities? Don’t worry, you’re not alone in this electric puzzle. We’re here to break it down and help you find the right fit for your…

TXU Energy vs. Gexa Energy
TXU Energy vs. Gexa Energy: Which One’s Right for Your Texas Home? Are you trying to decide on TXU Energy vs. Gexa Energy for your home’s electricity? Trust me, you’re not alone in feeling a bit overwhelmed by this choice….

Reliant vs. Gexa Energy
Reliant vs. Gexa Energy: Which Company is Right for You? Stuck between Reliant and Gexa Energy for your electricity provider? Trust me, we get it – choosing between power companies can feel overwhelming. But don’t worry. We’ve done the research…

Reliant vs. Cirro Energy
Reliant vs. Cirro Energy: Which Company is Right for You? Trying to decide between Reliant and Cirro Energy? We get it – choosing an electricity provider can feel like a real head-scratcher. But don’t worry, we’re here to help you…

Gexa Energy vs. 4Change Energy
Gexa Energy vs. 4Change Energy: Which Company is Right for You? Scratching your head over Gexa Energy vs. 4Change Energy? We know how overwhelming it can be to compare electricity providers. That’s why we’ve done the research for you. We’ll…

Direct Energy vs. Green Mountain Energy
Direct Energy vs. Green Mountain Energy: Which Company is Right for You? Checking out Direct Energy vs. Green Mountain Energy for your home’s power? Don’t worry, we’ve got you covered. These two providers are as popular as Friday night lights,…

Direct Energy vs. Constellation
Direct Energy vs. Constellation: Which Company is Right for You? Thinking about Direct Energy vs. Constellation for your home’s power? Don’t worry, we’ve got you covered. These two providers are popular choices, but they’ve got some key differences that might…

Green Mountain Energy vs. Constellation
Green Mountain Energy vs. Constellation: Which Company is Right for You? Trying to decide between Green Mountain Energy and Constellation for your home’s power needs? You’re not alone. Both of these providers have some great offerings, but they’ve got their…

TXU Energy vs. Green Mountain Energy
TXU vs. Green Mountain Energy: Which Company is Right for You? Checking the differences between TXU Energy vs. Green Mountain Energy for your home? You’re not alone. These two providers are both popular choices, but they’ve got some key differences….

Reliant vs. Direct Energy
Reliant vs. Direct Energy: Which Company is Right for You? Picking an electricity provider in Texas can feel like a hassle, right? Especially when you’re looking at big names like Reliant and Direct Energy. But don’t worry – we’re here…

Reliant vs. Green Mountain Energy
Reliant vs. Green Mountain Energy: Which Company is Right for You? Looking for the right electricity provider in Texas? You’re not alone. Reliant and Green Mountain Energy are two popular choices, but figuring out which one fits your needs can…

Gexa Energy vs. Constellation
Gexa Energy vs. Constellation: Which Company is Right for You? Are you trying to decide between Gexa Energy and Constellation for your home’s power needs? We’ve got you covered. These two providers are both solid choices, but they’ve got some…

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…