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The Power to Choose Your Electricity Provider What It Means for You

In the past, Texans did not have electric choice they bought their electricity from a local utility that was often the only choice in town. Utilities had very little incentive to keep rates low or go the extra mile for customers. Today however, Texas is one of a growing number of states with a competitive energy market that allows residents to purchase power from retail electricity providers or suppliers. Competitive markets are also referred to as deregulated energy markets. A competitive marketplace can have positive results for customers as competing energy providers offer a variety of plans and rates, so you have the power to choose among them.

Retail Electric Providers vs. Utilities in Texas

A retail electric provider (REP) or supplier will buy power on the wholesale market and sells it to customers. The utility (TDSP) is still responsible for delivering energy to your home, tracking your energy usage and maintaining the electric wires. With a choice of retail electric providers in one market, competition is possible that would not be with a single utility selling power to homes and businesses.

Which Texas Electricity Plan Should I Choose?

Energy choice gives Texans the opportunity to purchase an electric plan that works for them. A fixed-rate plan includes signing a contract and is ideal for those looking to lock in the price per kilowatt hour to have energy budget certainty. Variable rate plans are on a month-to-month basis with no long-term contract but leave you open to price fluctuations.

Which Texas Electricity Plan Should I Choose?

Energy choice gives Texans the opportunity to purchase an electric plan that works for them. A fixed-rate plan includes signing a contract and is ideal for those looking to lock in the price per kilowatt hour to have energy budget certainty. Variable rate plans are on a month-to-month basis with no long-term contract but leave you open to price fluctuations.

Types of Electricity Plans to Choose From in Texas

There are two popular types of electricity plans in Texas:

Fixed-rate electricity plans:

Customers lock in the price per unit of energy for the duration of the contract. In other words, you pay a fixed price for each kilowatt hour regardless of when you use it. These plans can protect you from price fluctuations due to demand, seasonality, and other factors beyond your control.

Power to Choose - Variable-rate electricity plans:

The price per kilowatt hour can change on a variable rate plan. That means you may pay more for power during periods of high demand, such as a hot Texas summer. Variable-rate plans usually run month-to-month which may make it difficult to estimate or budget for your energy costs.

How are Electricity Rates Calculated?

Electricity is measured in kilowatt hours (kWh), which is a figure that corresponds to the kilowatts used by an electric device or appliance in an hour. Your monthly electric bill reflects the number of kilowatt hours used multiplied by the rate per kilowatt hour. Read your provider’s EFL, or Electricity Facts Label, for detailed information about your rates per kWh. What’s a kilowatt? It’s simply another name for 1,000 watts of electricity. You can learn more about kilowatt hours by reading our Understanding Energy Costs and Bill page.

Considerations when shopping for an electric provider:

  1. Your service area. In a state as large as Texas, a retail electric provider may not offer services in every town or city.
  2. Cost per kilowatt hour (kWh). Electricity use is measured in kilowatt hours, or kWh, and this is how your provider will share their rate.
  3. Fixed-rate plans. You can lock in the price per unit of energy by signing up for a fixed-rate plan. This guards against energy price fluctuations due to market forces such as demand.
  4. Additional costs and fees. Your new energy provider should disclose costs and fees before you sign up for service. Pay attention so that you can get a good estimate of what your monthly electricity costs will be and how they compare to what you’re currently paying.
  5. Reputation. It’s always a good idea to perform your due diligence when purchasing any product, and the same is true when choosing an electricity supplier in Texas.

Switching Texas Electricity Providers

  1. Check the terms of your current contract. You can sign up with a different electric retail provider at any time; however, you may be charged an early termination fee, or ETF, if you switch suppliers before your current contract ends. Check your original agreement to see when you can opt out of your service without having to pay a fee.
  2. Evaluate your energy needs. Your electricity consumption will vary based on the size of your home and family. Other variables, such as the efficiency of appliances, can be harder to pin down. Review your previous energy bills to get a better understanding of your average monthly usage. Knowing your energy needs can help you choose the best electric plan for you.
  3. Sign Up. Visit our Residential Sign up page to get started. You can also call us at the to free number to speak to a representative.

Choosing a New Electricity Provider When Moving in Texas

When you move into a new apartment or house in Texas, you can choose your electricity provider. You may be able to keep your existing contract if the new address falls within the company’s service area. If not, you’ll need to make a choice. The process is like that described above, with one major exception: there are no early termination fees for canceling your retail electric contract if you provide proof you’ve moved.

Compare Electricity Companies with a Click of a Button

While our company isn’t an energy provider, we are your best source for comparing the providers in your area. Utilize the state-of-the-art tools we have available for you to work with and you will find it as easy as a few clicks of your mouse to find the best deal in town and begin the process of changing over your electric service.

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Electricity Rate Guide

Please note that the electric rates displayed on Power To Choose One are for comparison purposes only and are subject to change without prior notice. The final rates will only be determined once you have completed a service agreement with your chosen electricity provider. We offer electric choice in select cities within our service areas, and our pricing varies based on the rates applicable to each area.

For your convenience, we display the average price per kWh for each of our retail electric providers, based on monthly usage of 1,000 or 2,000 kWh. The displayed price includes both fixed and variable local charges and is an example based on average usage patterns. However, your actual average price for electric service may vary based on your actual electricity usage.

Our “Power to Choose” rates, also known as Power To Choose One™, are collected from the “Electricity Facts Label” of each retail electric provider. Please note that electricity service offers may be fixed or variable, and a variable rate may change during your contract term. A fixed rate, on the other hand, is guaranteed for the entire contract period.

Please be aware that PowerToChoose.org, which is operated by the PUC of The State of Texas, is a separate entity with a different set of companies, rates, and plans. We are not associated with PowerToChoose.org in any way.

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