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.
The Hidden Costs Driving Up Your Texas Electricity Bill
When Diane, a hard-working single mom from Houston, opened her electricity bill, she was stunned. Her monthly statement had skyrocketed from $120 to an eye-watering $185 – and she had no idea why. Diane felt frustrated, confused, and worried about how this unexpected expense would impact her tight budget.
Unfortunately, her story is all too common in Texas. Countless residents pay “holdover rates” without even realizing it. In this article, we’ll explain holdover rates, why they exist, and—most importantly—how to protect yourself from falling victim to this costly trap.
Table of Contents
What Are Holdover Rates?
In the Texas electricity market, a holdover rate is a variable rate that your Retail Electricity Provider (REP) automatically applies to your account when your fixed-rate contract ends and you are in electricity limbo (i.e., between contracts).
These rates are inextricably tied to the real-time market price of electricity, which can fluctuate wildly and soar during high demand.
While holdover rates are legal, many Texans find this practice misleading and unfair, taking advantage of their busy lives and limited time.
In the Lone Star State, power generators are paid for the electricity they produce in an energy-only market. You (the consumer) don’t purchase electricity directly from power generators. Instead, you rely on a Retail Electricity Provider as an intermediary.
Your REP is tasked with forecasting demand and purchasing the right amount of electricity in advance, often through fixed-rate contracts, to meet projected needs. When your fixed-rate contract with your REP expires, and you haven’t chosen a new plan, you may unknowingly be placed on a holdover rate.
For REPs, holdover rates safeguard against the uncertainty of not knowing how much electricity to purchase for customers whose contracts have expired. By switching these customers to a variable rate, REPs can adjust their purchases based on actual consumption, minimizing their risk of buying too much or too little power.
However, this risk-mitigation strategy comes at a steep cost for consumers, who are left exposed to the volatile whims of the real-time electricity market.
Your Electricity Plan
If you’ve ever been shocked by a sudden spike in your Texas electricity bill, you might be one of the many Texans who have been switched to a “holdover rate” without realizing it.
So, how can you tell if you’re on a holdover rate? Start by scrutinizing your latest electricity bill or logging into your REP’s online portal. Look for terms like “variable rate” or “month-to-month” in your plan details. Also, look for the contract expiration date. If your contract has expired, you’re likely on a holdover rate.
The good news is that you can take control of your electricity costs and avoid falling victim to holdover rates. To protect yourself from the financial burdens of holdover rates, start by marking your contract expiration date on your calendar and setting a reminder to begin shopping for a new plan at least a month in advance.
As your contract nears its end, dedicate time to researching and comparing plans from various REPs. Utilizing comparison tools, like those offered by ComparePower, can help you find the most competitive plan based on your unique usage patterns.
In Texas, you can switch electricity providers without incurring early termination fees within 14 days of your contract expiration date. Make your switch within this window to avoid being rolled onto a costly holdover rate. Repeat this process annually to ensure you always secure a competitive electric rate for your home.
Stuck in a contract? Schedule a reminder, and we’ll help you find a better plan before your contract expires.
How ComparePower Helps
We empower you (the Texas energy consumer) with the tools and information to make informed decisions and avoid costly pitfalls like holdover rates. ComparePower gives you access to:
Transparent pricing information: We break down the costs of each plan, including hidden fees and discounts, so that you can make apples-to-apples comparisons.
Personalized recommendations: Our algorithm analyzes your unique usage data to identify the plans that will save you the most money based on your electricity consumption.
Unbiased advice: As an independent platform, we’re not beholden to any particular REP. Our sole focus is helping you find the best plan for your needs and budget.
Step-by-step guidance: Our friendly Texas-based customer service team will walk you through the switching process and ensure a seamless transition to your new plan.
Reminders when it’s time to switch: Get effortless reminders from ComparePower to switch plans at the right time.
I prefer simplicity over sales tactics.
By sharing my needs, I swiftly received tailored options and could enroll hassle-free. No unexpected hitches, just efficient email correspondence. Keep it straightforward and streamlined for a seamless experience, please!
After reading about the shocking truth behind holdover rates and how to avoid them, you may wonder how to choose the best electricity provider in Texas.
Switching electricity providers is one of the easiest ways to save money on your energy bills in Texas. Don’t let holdover rates drain your wallet for another month. Start comparing plans today and take control of your energy costs with ComparePower.
Take Control of Your Energy Costs
The following article will guide you through selecting the best provider and plan for your home. You’ll learn:
The role of retail electricity providers and how they differ from utility companies
Why price should be the primary factor in choosing a provider
How to calculate the true cost of an electricity plan based on your usage
The difference between fixed-rate and variable-rate plans
How to use ComparePower’s tools to compare plans and find the best deal
With this knowledge, you can confidently shop for a new electricity plan and take control of your energy costs.
Don’t spend another month overpaying for electricity. Take control of your energy costs today by comparing plans and making the switch with ComparePower.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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 Shop with Your kWh Usage on ComparePower
Are you tired of paying high electricity bills? Do you want to take control of your energy costs? Look no further!
Shopping with your kWh usage is the ultimate way to save on electricity bills.
This comprehensive guide will show you how to shop with your kWh usage and unlock significant savings on your electricity bills.
Follow our step-by-step guide to learn how to leverage your energy consumption patterns and make informed decisions.
Table of Contents
Save Money with Your Usage
Shopping for electricity in Texas doesn’t have to be a daunting task.
By leveraging your kWh usage, you can confidently navigate the energy market and find a plan that perfectly suits your needs.
In this step-by-step guide, we’ll walk you through shopping with your kWh usage, empowering you to make informed decisions and maximize your electricity savings. Let’s dive in!
Learn how to shop with your kWh usage and unlock significant savings on your electricity bills.
Total Time:10 minutes
Step 1: Gather Your Usage History
The first step in shopping with your kWh usage is to gather your usage history.
This data provides valuable insights into your energy consumption patterns and helps you make accurate comparisons among different plans.
You can collect your past electricity bills or access your online usage history to retrieve the kWh usage for each billing cycle.
Once you have your usage history, take some time to understand your consumption patterns.
Look for any noticeable trends, such as seasonal variations or spikes in usage during specific months.
By recognizing these patterns, you’ll have a clearer picture of your energy needs and can narrow down the options that align with your usage profile.
Step 3: Visit ComparePower.com
Now it’s time to visit ComparePower, the go-to platform for shopping with your kWh usage.
Enter your ZIP code to access the plans available in your area. ComparePower’s user-friendly interface and powerful tools will make the process seamless and efficient.
Step 4: Input Your Usage
On ComparePower, you’ll find a section where you can input your kWh usage.
Take advantage of this feature and enter your historical usage data.
The platform will then analyze your consumption patterns and generate a personalized list of plans tailored to your specific needs.
This ensures that you get accurate pricing based on your energy usage.
Step 5: Explore Plan Details
Once you receive the list of plans that match your kWh usage, take the time to explore the details of each plan.
Consider factors such as the rate structure, contract terms, renewable energy options, and additional fees.
This thorough evaluation will help you make an informed decision and choose the plan that aligns with your priorities and budget.
Step 6: Compare and Select
With all the information at your fingertips, it’s time to compare the plans.
Evaluate the rates, plan features, and any special promotions or benefits offered.
Consider your energy consumption patterns, budget, and preferences to select the best value for your kWh usage plan.
Step 7: Enroll Online
Once you’ve decided, the final step is to enroll in the selected electricity plan.
ComparePower simplifies enrollment with a seamless online system that guides you through the necessary steps.
Fill in the required information, review the terms and conditions, and complete the enrollment.
Congratulations, you’ve successfully shopped with your kWh usage!
Estimated Cost:0.00 USD
Supply:
Past electricity bills or access to online usage history.
Tools:
ComparePower’s platform for electricity plan comparison with your kWh usage history.
Materials:Computer or mobile phone with internet access.
How to Shop with Your Usage FAQs
Navigating the electricity market can be overwhelming, so we provide clarity and guidance.
Whether you’re new to usage-based shopping or looking to switch plans, we’ve got you covered.
From understanding how to determine your kWh usage to exploring the flexibility of switching plans, we’ll answer your burning questions and equip you with the knowledge to make informed decisions.
How do I determine my kWh usage?
You can find your kWh usage on your electricity bills or by logging into your current electricity provider dashboard.
Is it necessary to have exact kWh usage information?
While having exact usage information is beneficial, you can still get started by estimating your monthly usage based on the size of your home, the number of occupants, and typical energy-consuming appliances.
Can I enroll in a usage-based plan if I move to a new home?
Absolutely! If you’re moving and starting a new service, usage-based shopping can still be beneficial. You can estimate your usage based on the size and characteristics of your new home to find a plan that suits your anticipated energy needs.
Your Turn to Save
Shopping with your kWh usage is the key to finding an electricity plan that matches your energy needs and helps you save money.
By following this step-by-step guide and utilizing ComparePower’s innovative platform, you can confidently navigate the Texas energy market and secure a plan that maximizes your savings while providing reliable and efficient electricity.
Start shopping with your kWh usage today and take control of your energy costs!
Remember, this guide is a starting point; you can adapt the steps to fit your specific needs and preferences. Happy shopping!
Compare Rates Near You👇
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
Stay Ahead of Rising Prices
Hey there, energy-savvy Texan! Are you wondering when is the best time to switch electricity providers in Texas?
Timing is key to maximizing your savings and avoiding potential price hikes.
In this guide, we’ll explore factors you should consider to help you stay one step ahead of rising prices.
TLDR: The best time to switch electricity providers in Texas depends on various factors, including contract expiration, promotions, usage patterns, and life changes.
Timing your switch to anticipate price increases, particularly before the summer or winter season, can help you secure a better rate.
Stay informed about market trends, carefully review plan details, and switch providers before your contract expires to maximize your savings.
Table of Contents
The Best Time to Switch
The best time to switch electric providers in Texas depends on your specific situation and goals. Here are a few factors to consider:
Contract Expiration: If your current contract is nearing its expiration date, it’s a good time to explore your options and compare electricity plans from different providers. This allows you to take advantage of potential savings and benefits offered by other providers.
Rate Comparison: Regularly comparing electricity rates is a smart practice. Keep an eye on the market and compare the rates offered by various providers. If you find a plan with a significantly lower rate or better terms than your current provider, it might be a favorable time to make the switch.
Promotions and Special Offers: Keep an eye out for promotions and special offers from electricity providers. They often introduce competitive rates or additional perks to attract new customers. When you come across a compelling offer that aligns with your needs, it could be an opportune moment to switch providers.
Change in Usage Patterns: If your energy usage has significantly changed, such as an increase or decrease in consumption, it’s worth considering switching providers. Some providers offer plans tailored to different usage patterns, so finding a plan that aligns with your current energy needs can help optimize your savings.
Life Changes or Moving: Life events such as moving to a new home or a change in personal circumstances can be an ideal time to evaluate your electricity provider options. Take advantage of these moments to review your energy needs and seek out providers that offer plans suitable for your new situation.
Anticipating Price Increases
Timing your switch to anticipate price increases is crucial to securing a better rate. Keep an eye on news and rumors about possible electricity price hikes.
As the summer or winter season approaches, there’s often speculation and buzz surrounding potential increases.
Energy experts and industry insiders may start forecasting higher prices based on factors such as increased demand, fuel costs, or regulatory changes.
By monitoring these indicators, you can gain valuable insights into when prices are likely to rise, signaling the ideal time to switch providers.
Lower Prices in Shoulder Months
Traditionally, the summer and winter periods are characterized by heightened electricity usage due to air conditioning and heating demands.
As a result, energy prices tend to be higher during these peak-demand seasons. Therefore, switching providers just before these periods can be a strategic move to secure a more favorable rate.
By switching during the shoulder months leading up to summer or winter, you can take advantage of lower prices before they surge with increased energy consumption.
Frequently Asked Questions
What time of year is electricity cheapest in Texas?
Electricity demand is lowest in the spring and fall, so electricity usually costs less during these seasons.
Electricity market rates are higher in the summer and winter when people use more electricity for air conditioning and heat.
Rates also go down at night and on weekends, with the lowest rates occurring on Sunday morning between 7 a.m. and 10 a.m. Off-peak electricity hours in Texas typically fall between 10 p.m. and 6 a.m.
This is when electricity demand is at its lowest, so utilities can offer cheaper rates to encourage customers to use power during these times.
You can also consider switching Texas electricity providers between December and March/April.
Can I switch electric providers before my contract expires?
Yes, you can switch providers before your contract expires. However, keep in mind that there may be an early termination fee. In Texas, you have up to 14 days prior to your contract expiration date to switch providers without being assessed an early termination fee.
How far in advance can I schedule electric service in Texas?
Most providers offer the option to sign up at a preferred rate and schedule service to begin in 30, 60, or 90 days, but this may vary by provider.
What if I enroll in an odd-number contract like 3 or 9 months?
Enrolling in odd number contracts like 3 or 9 months may seem tempting due to their low rates.
However, it’s important to note that these plans may place your future switch date on a month when electricity demand is high and prices are typically higher.
To avoid potential price spikes, it’s generally recommended to switch providers just before the summer or winter period when prices are more likely to increase.
It’s Your Turn to Save
Remember, at ComparePower, we’re here to help you navigate the electricity market and find the best plan for your needs and budget.
Explore our website, compare rates, and take control of your energy future. Start saving today!
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
Why wait? Lock in a Favorable Rate Today
Hey there, energy-savvy Texan! Are you wondering if you can lock in a favorable electricity rate for a future start date?
Planning ahead can be a smart move when it comes to your electricity service.
By starting or switching your electric service in advance, you have the opportunity to lock in a favorable rate before prices potentially change.
How far in advance can I schedule electric service in Texas?
Most providers offer the option to sign up at a preferred rate and schedule service to begin in 30, 60, or 90 days, but this may vary by provider.
Enrollment Timeframe by Electric Company
Check out the enrollment timeframes of popular providers in Texas.
Electric Company
Days Out
4Change Energy*
45 days
TXU Energy*
90 days
Amigo Energy*
60 days
Tara Energy*
60 days
Just Energy*
60 days
Cirro Energy*
60 days
Discount Power*
60 days
Green Mountain Energy*
60 days
Reliant*
60 days
Direct Energy*
60 days
Frontier Utilities*
90 days
Gexa Energy*
90 days
Constellation*
60 days
Payless Power*
60 days
Pulse Power
60 days
New Power Texas
60 days
Flagship Power
60 days
Please note that these timeframes are subject to change and may not encompass holidays or weekends.
*Providers with an asterisk offer service on Saturdays.
Frequently Asked Questions
Why schedule electricity service in advance?
This proactive approach allows you to secure a competitive rate and enjoy long-term savings.
Whether you’re moving to a new home or considering a switch from your current provider, taking action ahead of time can help you take control of your energy costs and ensure you’re getting the best deal possible.
So, don’t wait until the last minute – start or switch your electric service in advance to lock in a favorable rate and enjoy peace of mind.
Can I sign up for electric service before my current contract expires?
Yes, you can sign up for electric service before your current contract expires.
However, it’s important to note that if you switch providers prior to the 14-day window before your contract expiration date, you may be subject to an early termination fee.
Review the terms of your current contract to understand any potential fees or penalties involved.
When is the best time to switch electricity providers in Texas?
The best time to switch electricity providers in Texas depends on various factors, including contract expiration, promotions, usage patterns, and life changes.
Timing your switch to anticipate price increases, particularly before the summer or winter season, can help you secure a better rate.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
Electricity Contract Expiration Guide
Imagine your A/C humming along on a scorching Texas day…then your electricity bill arrives and knocks the wind out of you.
An expired contract and a holdover rate could be the culprits. These rates can double your electricity costs overnight.
So, if you’re feeling anxious because your electricity contract in Texas is about to expire, you’re not alone.
Many Texans are in the same situation, unsure of the next steps and worried about potential cost increases.
But what if I told you this could be a golden opportunity for savings?
TLDR: This article is your guide to managing your electricity contract expiration in Texas. I’ll explain why you should consider switching providers, how ComparePower can assist you in the process, and why you should start comparing providers today. By following this guide, you can navigate your contract expiration smoothly and potentially save money on your electricity bill.
Understanding Your Electricity Contract Expiration
In Texas, Retail Electric Providers (REPs) must notify you at least 30 days before your contract expires.
This gives you time to review their renewal offer, compare other options, and decide whether switching providers could benefit you.
However, the process can seem daunting and confusing, especially if you’re worried about early termination charges or finding a new provider that fits your needs.
What Happens if I Don’t Switch Providers?
If you stick with your current provider out of convenience or fear of change, you might pay more than necessary.
When you’re nearing the end of your electricity contract in Texas and haven’t chosen a new plan or provider, there’s no need to worry about your power being shut off.
Instead, your current provider will typically place you on what’s known as a “holdover” rate.
The Most Expensive Way to Get Electricity
A holdover rate is a variable rate your provider will charge you once your contract expires and until you sign a new contract or switch providers.
This rate can be higher than what you paid under your contract, as it often reflects current market conditions.
While being on a holdover rate ensures your electricity service continues uninterrupted, it’s usually a good idea to shop for a new contract or provider as soon as possible.
Because holdover rates change monthly, your bill becomes a rollercoaster, destroying your budget.
This is because holdover rates can be more expensive and change from month to month, making your electricity bill unpredictable.
The stress of fluctuating bills isn’t just about money; it adds a layer of anxiety to everyday life.
Switching to Savings on ComparePower
Comparing providers and plans can seem time-consuming and complex, adding to your stress, but don’t worry.
This is where ComparePower comes in. Here you can compare rates and plans from different providers in one place.
We provide clear and detailed information about each plan, helping you make an informed decision with confidence and ease.
When is the best time to switch electricity providers in Texas?
You can switch providers without incurring an early termination charge if the switch is no earlier than 14 days before the contract expiration date provided in the notice.
If you switch before this period, you may have to pay an early termination fee.
What happens to my electricity service when I switch providers?
If you switch providers, your electricity service will continue uninterrupted.
Your new provider will start supplying your electricity once your current contract ends.
Ready to get started? We’ve prepared a comprehensive guide on how to switch energy companies for you. It’s your roadmap to a smooth and hassle-free switch.
Compare Electric Rates & Save👇
Compare and Switch Today
Don’t let your contract expiration date catch you off guard. Compare electricity providers today with ComparePower, and switch to savings.
Remember, the power to choose is in your hands. Make the most of it with ComparePower.
You can avoid an early termination charge if you switch providers no earlier than 14 days before your contract expiration date. However, if you switch before this period, you may have to pay an early termination fee.
When choosing a new provider, consider factors such as the rates they offer, the terms of their contracts, their customer service reputation, and whether their plans fit your energy usage habits.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
TLDR: Maximize winter energy savings by using your home’s historical kWh usage to find the best energy plan. Comparing energy plans with your electricity usage can lead to lower energy bills and more informed decision-making. Learning energy-saving tips and regularly reviewing your plan can also help reduce costs.
Maximizing winter energy savings
Winter months can bring great joy with the festive season, but they can also be harsh on your wallet due to increased energy consumption. Heating homes and offices can consume a lot of energy and significantly increases energy bills. With energy prices constantly fluctuating, finding an energy plan that fits your usage and budget is more important than ever. This is where your historical kWh usage comes in.
Understanding historical kWh usage
A kilowatt-hour is a unit of energy used to measure electricity consumption. Your historical kWh usage data records how much energy you have consumed over a specific period, typically one year. This data lets you find the perfect energy plan by comparing energy plans according to how you use electricity.
To access your historical kWh usage data, check your monthly energy bills or log into your energy provider’s account dashboard. Understanding this data is important in finding an energy plan that fits your usage and reduces energy bills.
How to use historical kWh usage to find the perfect energy plan
Comparing Texas electricity rates based on your historical kWh usage is easy. Start by collecting your historical kWh usage data monthly for one year. Enter your usage history on ComparePower’s historical usage calculator. Compare plan prices based on your historical kWh usage.
Comparing energy plans with your historical kWh ensures that you select a plan that fits your consumption pattern, reduces energy bills, and helps you make an informed decision based on your actual usage rather than just an estimated average.
Check out this short 2-minute video to learn how shopping with your usage works on ComparePower.
What length plan should I choose?
A common question we get when switching is the term length of the contract.
Is it best to choose a 12, 24, or 36-month plan? The length of your energy plan depends on your individual needs and preferences.
A 12-month plan offers stability, predictability, and the flexibility to shop again in 12 months.
A 24-month plan provides a longer period of stability in energy rates, but you may miss out on lower energy bills if rates go down.
A 36-month plan offers the longest period of rate stability. This term is ideal if you find a rate you like and prefer to lock that in for an extended period.
It can be difficult to predict electricity prices as supply and demand, fuel prices, government regulations, and weather conditions influence them. The energy market is highly dynamic and constantly changes, making it challenging to predict future prices accurately.
Ultimately, assessing your energy needs and considering the current market rates is best before deciding on a plan length. You may also want to consider the plan’s flexibility and the penalty fees for early termination.
When can I switch providers?
While you can switch electricity plans at any time, it is important to note that some providers may charge an early termination fee (ETF) if you end your contract before the end of the term.
The ETF is designed to compensate the provider for any losses they may incur from ending the contract early.
Before switching plans, be sure to review the terms and conditions of your current contract and consider the ETF fees involved.
In some cases, the potential savings from switching to a new plan may outweigh the ETF fees, so it’s important to do the math and weigh your options carefully. You can quickly do the math with ComparePower by plugging in your kWh usage and letting us crunch the numbers for you.
It is also worth noting that some providers may offer ETF-free plans, so be sure to consider all your options and choose the plan that best meets your needs and budget.
Starting service for a new home
If you don’t have access to the previous usage history for your new home, you can estimate your electricity usage. You can also ask the previous landlord for a copy of their kWh usage history for 12 months.
Tips to maximize savings this winter
Aside from finding the perfect energy plan, several other tips can help you maximize your energy savings this winter.
First, familiarize yourself with the different types of energy plans and rates available. There are fixed-rate, variable-rate, and prepaid plans, each with advantages and disadvantages.
Conserving energy and reducing usage during winter is another way to reduce energy bills. Simple changes, such as lowering your thermostat, sealing drafty windows, and using energy-efficient lighting, can help you save electricity.
Finally, it’s important to regularly review and adjust your energy plan to ensure you are always getting the best deal.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
If you’re reading this, your electricity provider in Texas likely went out of business, and you are now with another provider known as a Provider of Last Resort or POLR.
Here is what you need to know to make an informed energy decision for your household.
POLR transitions usually default to variable market rates, also called holdover rates.
Your Provider of Last Resort could honor your previous rate with your former electric company, but that is not guaranteed. Check the details of your new contract to find out exactly what you are paying.
In most cases, you are paying the Provider of Last Resort an expensive holdover rate.
Holdover rates are subject to changes in market conditions and are significantly higher than those for a fixed-rate contract.
Switch providers on ComparePower to a fixed-rate plan that will be easier to budget and cheaper than a holdover rate.
Get a fixed-rate contract with a low rate in minutes.
What is a Provider of Last Resort, or POLR?
POLR service, or Provider of Last Resort, is a safety net for you when your preferred retail electric provider (REP) cannot maintain service.
Instead of utilities providing backup electric service to customers, the POLR structure requires competitive REPs to fill the service gap if any REP exits the market.
This temporary service should be used only in exceptional circumstances, such as when a REP goes out of business.
The Public Utility Commission of Texas (PUC) appoints certified REPs to provide POLR service in each service region every two years.
Large REPs must participate as POLRs, and smaller providers may volunteer.
Find a low rate and switch energy providers instantly.
What are my options if my electric provider goes out of business?
Getting dumped to a POLR is not ideal. There’s no getting around that, but you can now find a great new rate for your home.
You do not have to stay with your provider of last resort. You can choose your provider on ComparePower.
Shop with your usage, compare pricing for your home, and checkout with the right plan in as little as five minutes.
We’ll show you all-inclusive pricing, so you know exactly what your bills will look like.
Find plans that match your needs and avoid all the gimmicks that providers throw at you.
Will my power go out?
There is no interruption of power during a POLR transition. If you are in good standing, which means you’ve paid your electricity bills on time, your utility company will continue to deliver power to your home.
When do you get POLR electric service?
Retail energy is a high-risk commodity business, and REPs must purchase electricity ahead of time to support electricity demand.
If a REP has not purchased enough electricity to serve their customers, they are forced to purchase real-time electricity to meet their customer’s needs.
And if the Electricity Reliability Council of Texas (ERCOT) views the upcoming market prices as risky, they may demand more collateral from your REP to cover the costs.
If your REP cannot cover the costs of real-time electricity or put up enough collateral, they can quickly go out of business, and you’ll be placed on a POLR plan.
This is precisely what happened after Winter Storm Uri when demand skyrocketed, and real-time electricity prices hit all-time highs.
Who is your Provider of Last Resort?
The PUCT determines the Texas POLR list and updates it every two years.
The largest providers are required to serve as a POLR, and smaller providers may choose to take part to share the burden.
Current POLR providers are listed below by delivery area:
– Oncor: TXU Energy – Centerpoint: Reliant Energy – TNMP: TXU Energy – AEP: TXU Energy
How does POLR electric service work?
If you end up on a POLR plan, don’t worry. The POLR system was implemented to keep your lights on so you won’t be stuck in the dark.
The first thing that will happen is that you’ll be notified that your electricity service has been transferred to a POLR.
You’ll receive a notice from the PUCT letting you know that your REP is no longer servicing your home, and soon your POLR will send information about the plan you are being placed on.
Your contract with your former REP will be terminated, and your contract details will likely not be carried over.
Any payment or billing arrangements on your old electricity plans, such as average billing or Auto Pay, are also terminated.
The new POLR plan you are placed on will be month-to-month with no contract and will have a variable rate.
This means that the cost of your electricity will change each month and can be extremely expensive.
If you are hearing warning bells going off, you are right to assume that you don’t want to stay on a POLR plan for long.
The good news is that you can shop for a new electricity plan without any penalties.
When you’re transferred to a POLR, you have 15 days to switch to another plan with that POLR, or you can shop to find the best rate for your home.
Don’t wait. Switch providers here in as little as 5 minutes and enjoy savings on your energy bill month after month.
Search for a low electricity rate and enroll online in minutes.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
Are you staring at an electricity contract renewal offer in Texas and wondering if it’s time to switch companies?
You’re not alone. Many Texans grapple with this decision every year.
But here’s the good news: we’ve got your back.
In this comprehensive guide, we promise to answer all your questions about switching electricity companies, offer you quick and easy answers, and show you how to do it effortlessly using ComparePower.
TL;DR: This guide simplifies electricity contract renewals in Texas. With ComparePower, you can understand your contract’s end date, identify the best time for renewal, and switch providers easily.
Is It Time to Switch Electricity Companies?
When your electricity contract in Texas nears its end, you’re faced with a decision: should you stick with your current provider or switch to a new one? This decision can be daunting, especially with the multitude of electricity companies in Texas to choose from.
Consider the service you’ve received, the cost of your current plan, and whether you’re satisfied with your current provider. If you’re unhappy or you find a better deal elsewhere, it might be time to switch.
Understanding Your Electricity Contract End Date
In Texas, your electricity provider will send you a notice when your contract is about to expire.
This is your cue to take action. Ignoring this notice could mean being switched to a variable rate plan, which could be more expensive.
Knowing your electricity contract end date is the first step in taking control of your energy costs.
If you’re unsure when your contract ends, check your account online or call your provider.
They’re required to provide this information to you. Keep track of this date so you can start shopping for new plans in advance.
When is the Best Time to Renew Electricity Contracts?
The best time to renew your electricity contract in Texas is up to 14 days before it ends.
This gives you a two-week window to lock in a new rate if you find a better deal elsewhere. And with ComparePower, finding that deal is easier than ever.
Electricity rates fluctuate throughout the year based on demand.
Typically, rates are lower during seasons when demand is low, such as spring and fall. Keep this in mind when shopping for new plans.
How to Compare Renewal Offers
First, find your historical usage history. You can access your historical usage by logging into your provider’s account dashboard.
Ideally, you should get at least 12 months of usage or as many months as you have.
Now you can review the total annual cost of the plans on the ComparePower marketplace based on your home’s historical usage profile.
This is how much you will pay for your electricity for an entire year of usage if you choose any of the plans on ComparePower.
Compare your past bills with the estimates you find to see what your best electricity plan is.
You should switch if the total annual cost you paid your provider exceeds the lowest cost plan on ComparePower.
Not ready to compare options? Schedule a reminder here and we’ll let you know when it’s time to shop and switch.
The ComparePower Advantage
ComparePower is your trusted partner in navigating the Texas electricity market. We offer a comprehensive platform where you can compare rates from different electricity companies in Texas, helping you find the best deal based on your usage and preferences.
Our platform is easy to use and provides all the information you need in one place. You can see the rates, contract lengths, and customer reviews for various plans, helping you make an informed decision.
12-Month Energy Plans and More
Whether you’re looking for 12-month electricity plans, 24-month plans, or no contract electricity, ComparePower has got you covered. We provide a wide range of options to suit your specific needs.
12-month plans are great for those who want stability in their electricity costs for a full year. 24-month plans offer the same stability for a longer period. No contract plans offer flexibility, allowing you to switch plans or providers without penalty.
Making the Switch
If you’re switching providers for the first time, don’t worry. The process is straightforward.
After you choose a new plan, your new provider will handle the switch. There’s no interruption in service, and you don’t need to contact your old provider.
Don’t let your electricity contract renewal catch you off guard. Start comparing plans today and take control of your energy costs.
Planning ahead is key. Start shopping for new plans as soon as you receive your contract expiration notice. If you find a better deal, don’t hesitate to switch. If you’re happy with your current provider, try negotiating a better rate.
Your Next Steps
Ready to take control of your electricity contract renewal? Here’s what you need to do:
Enter your zip code: This allows us to provide you with accurate rates for your specific area.
Compare plans: We provide detailed information about each plan, including the contract length, rate, and any additional fees.
Choose your plan: Once you’ve found a plan that fits your needs, you can sign up right on our website.
Start saving: Enjoy the peace of mind that comes with knowing you’ve made a smart decision for your electricity needs.
Ready to save time and money on your electricity bill?
Frequently Asked Questions
Texas has no single electricity provider known for the most competitive rates. In Texas, the price of your energy depends on how much energy you use each month. Shop electricity plans with your home’s annual usage profile to find a low rate and avoid gimmicks. Enter your home’s historical usage on ComparePower.com, and you’ll be on your way to savings in minutes.
In general, the cheapest times of the year for electricity are during the spring and fall months when there is less demand for electricity. Do not let your contract expire before switching providers. Doing so can be costly. ComparePower.com can help you find the best rate with your home’s annual usage profile. It is the best way to shop for electricity in Texas if saving time and money is essential.
Texans paid an average of 12.56 cents per kilowatt-hour in 2021. You can find rates on ComparePower that are much less than the Texas average when you shop with your home’s historical usage profile. The best way to shop energy plans and save money is by using your historical usage profile on ComparePower.com
In Texas, you have 14 days before your contract expiration date to shop the market and switch to a new provider without penalty.
Yes, ensure you’re within your 14-day grace period to avoid any early termination penalties. Then, enroll for electricity service with a new provider on ComparePower.com, and we’ll handle the break-up call for you.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
Lower Your High Electricity Bill in Texas
Are you tired of sky-high electricity bills? We’ll help you cut costs and keep more money in your pocket.
For the past 15+ years, Texans have asked us for guidance on understanding their electricity bills and finding ways to save.
Along the way, we’ve gained valuable insights into the most common reasons behind high bills and the most effective strategies and tools for lowering them.
The Bottom Line: Slash high bills by identifying energy hogs, improving efficiency, and comparing rates to find a better plan. We make it easy to find the best rates and switch providers in just a few clicks. Take control of your electricity costs today.
See How Your Electricity Rate Compares to the Best Deals in Your Area
Are you curious how your current electricity rate stacks up against the competition?
We’ve made it incredibly simple to determine if you’re overpaying on your electricity bills and how much you could save by switching plans.
Compare Your Current Bill to Market Rates in 30 Seconds
Locate your most recent electricity bill and find the following information:
Your total monthly charges
Your electricity rate (price per kWh)
Your monthly kWh usage
Enter your zip code below for your area’s most competitive, up-to-date electricity rates.
Compare the rates and total charges of the plans displayed to your current bill.
If the rates shown are lower than your current rate, you may be overpaying for electricity.
If the total charges for your usage are lower than your current bill, switching plans could save you money.
Sample Electricity Bill
Sample bill showing the Average Rate, Monthly kWh Usage, and Total Monthly Charges
How It Works
It’s simple – enter the kWh usage from your bill for a straightforward comparison of your potential savings.
Take Control of Your Electricity Costs
By comparing your current bill to the most competitive rates in your area, you can confidently determine if switching plans could lower your monthly expenses.
Don’t leave money on the table – enter your zip code now and see how much you could save on your electricity bills.
Check Your Savings Potential
Please note: If you are currently under a contract with your electricity provider, switching plans before your contract expires may result in an early termination fee. Review your contract terms carefully before making any changes to your service.
Why is My Electric Bill So High?
You’re not alone if you’re shocked by a high electricity bill. Many Texans experience bill spikes, especially during extreme weather months.
There are two leading causes of high electricity bills:
Increased Usage Due to Weather
Your heating and cooling systems work harder to maintain a comfortable indoor temperature during the hottest and coldest months.
This increased usage can cause your energy consumption to surge by 20% or more compared to milder months, leading to higher bills.
Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
If you don’t take action to renew or switch plans when your contract ends, your provider will automatically move you to a “holdover” variable rate plan.
These holdover rates can be significantly higher than fixed rates, often leading to bills that double overnight.
Understanding the causes behind your high bill is the first step toward finding a solution.
You can take targeted actions to reduce energy consumption and lower your bills by identifying the main culprits.
We can help you find better rate plans tailored to your specific usage patterns, ensuring you’re not overpaying for electricity.
Enter your zip code below to compare rates and find the best plan for your needs.
Get Rates Near You
Strategies to Lower Your High Electric Bill
The causes behind most electricity bill spikes can be narrowed down to two key factors: increased usage and expired contracts.
Manage Your Usage During Extreme Weather Months
During the hottest and coldest months, increased usage of heating and cooling systems can cause energy costs to skyrocket, often more than 20% higher than in milder months.
Implement strategic tweaks to reduce your energy consumption:
Adjust your thermostat slightly higher in summer and lower in winter to trim 15% or more from your heating and cooling costs each billing cycle.
Use ceiling fans to circulate conditioned air more efficiently.
Close blinds and curtains during the hottest parts of the day in summer and open them to let in natural heat during winter.
Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
Suppose you don’t renew or switch plans when your contract ends. In that case, your provider will automatically move you to a “holdover” variable-rate plan, leading to unpredictable rate hikes and bills that double overnight.
Protect yourself against these price spikes by locking in a new fixed-rate contract before your term expires.
If your contract expires soon or has recently expired, enter your zip code below to see how much you can save based on the lowest rates available for your home.
Use ComparePower’s user-friendly platform to compare rates from multiple providers and switch to a more affordable plan that fits your usage patterns.
Understanding the causes of high electric bills and implementing these strategies can significantly reduce your electricity costs regardless of the time of year.
Switch Electricity Providers in 5 Easy Steps
If you haven’t switched providers in a while or your contract has expired, switching to a new provider with a lower rate can be the quickest way to save on your electricity bill.
We make comparing rates and switching electricity providers easy, helping you save money on your bills. Our user-friendly platform simplifies the process.
Take control of your electricity costs today:
Determine your usage requirements
Compare rates and switch to a better plan
Implement energy-saving tips and strategies
We’re dedicated to providing straightforward answers, helpful resources, and genuine support to help you manage your electricity bills effectively.
Begin your savings journey with ComparePower today. Compare rates and switch providers in just minutes.
Compare Rates & Start Saving on Your Bills
Next: Shop with Your kWh Usage & Save
Comparing electricity rates based on your home’s specific kWh usage can help you save money on your Texas electricity bill.
Learn how shopping with your kWh usage in Texas can help consumers save money and how ComparePower’s tools make it easy to find the best plan based on your specific usage.
If you’re struggling to pay your electricity bill in Texas, help is available. Explore our comprehensive guide on assistance programs, including Senate Bill 1976, Lifeline, Link-Up, and the Weatherization Assistance Program.
Discover eligibility requirements, application processes, and valuable tips to secure the support you need. Don’t face your utility challenges alone – learn how to access these vital resources and regain control of your energy expenses.
High Electric Bill FAQs
Looking for more ways to lower your electricity bill? Check out these frequently asked questions.
How can I reduce my electric bill?
The most effective way to reduce your electricity bill is to find a plan that best matches your home’s usage profile. By entering your historical usage data, you can quickly find the ideal plan for your needs.
What is a typical electric bill in Texas?
According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.61 ¢/kWh. The typical Texan uses an average of 1,132 kWh per month; at 14.61 ¢/kWh, the average electric bill would be approximately $165.04.
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.
We’re Here to Help!
Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.
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.
What is a switch hold?
A switch hold is put in place by a retail electric provider (REP) to prevent customers from switching companies before paying their bills or if they detect your meter has been tampered with.
You can remove a switch hold by paying any outstanding bills or submitting a New Occupant Statement (NOS) if you just moved in.
Navigating the Switch Hold Process
Are you in Texas, considering switching your electricity provider, but a switch hold is standing in your way?
Many Texans are in this predicament, unsure how to navigate the switch-hold process. But don’t worry. We’ve got you covered.
We’ll demystify the switchhold process and provide you with all the information you need to make a smooth transition.
Understanding the Switch Hold Conundrum
A switch hold is implemented by REPs in Texas to prevent customers from switching to another provider before settling their past-due bills.
It safeguards electricity companies, ensuring customers fulfill their financial obligations.
But what does this mean for you, and how can you navigate it?
How do you get a switch hold?
A switch hold prevents attempts to switch providers. If you cannot pay your electricity bill, your electric company may offer a deferred payment plan, enabling you to pay the outstanding balance in installments.
When you enter these agreements, the electric company can impose a switch hold on your meter to prevent you from changing providers to evade the due balance.
A switch hold may also be placed if your utility company detects meter tampering at your location.
Interfering with your Transmission and Distribution Utility meter is illegal and can result in a switch hold being applied.
Are You Facing a Switch Hold in Texas?
If a switch hold is placed on your address, you have a few different ways to deal with it.
Can I switch electricity companies with a switch hold?
You can switch electricity providers in Texas even if you have an outstanding balance, provided no switch hold is already in place.
If you already have a switch hold, you need to work with the electricity company to pay off your outstanding balance before the switch hold is removed.
Once it is removed, you can switch companies.
If your electricity is disconnected due to non-payment, contact your current provider and request a payment plan to pay off the outstanding balance gradually.
By agreeing to a payment plan, you acknowledge that a switch hold will be placed on your service address.
Do not enter a payment agreement with your electric company to avoid a switch hold. Instead, try to pay your bill in full if possible.
How to get electric service with a switch hold?
Lifting a switch hold requires settling any outstanding balance with your electricity company. After paying the balance in full, removing the switch hold may take up to 72 hours.
If your service has been disconnected due to non-payment, you must settle your outstanding balance with your current provider to restore your electricity.
Can I get prepaid electricity with a switch hold?
No, you cannot get prepaid electricity with a switch hold. A switch hold is typically implemented by the current electricity provider to restrict customers from switching to a new provider until certain conditions are met, such as clearing any outstanding balance or resolving specific issues.
As long as the switch hold is in place, you will not be able to enroll in a prepaid electricity plan. It is necessary to resolve the hold with your current provider before exploring prepaid electricity options.
What if I am a new occupant facing a switch hold?
You can have it removed by reaching out to the electricity company you want to establish services with and completing a New Occupant Statement (NOS).
The NOS must be accompanied by at least one of the following supporting documents: – A copy of the signed lease – A notarized affidavit from the landlord – Closing documents – Certificate of Occupancy; or – A utility bill in the customer’s name, dated within the last two months, from a different address
Assistance Paying Your Energy Bill
If you find yourself struggling to manage your energy bills there are supportive programs available to lend you a hand.
Check out the Low Income Home Energy Assistance Program (LIHEAP) at acf.hhs.gov, a federal program that aids families in need with their energy costs. Or, visit benefits.gov to navigate various government benefits that might suit your specific situation.
