Electricity 101

How to Choose the Right Electricity Provider in Texas

Gexa Energy
April 26, 2023
minutes read
Gexa Energy
Publication Date:
March 8, 2024
Last updated:
March 14, 2024

Choosing the right electricity provider in Texas can seem daunting, especially with the state’s deregulated market offering many options. Whether you’re new to Texas or looking to switch providers, this guide aims to simplify the process. We’ll help you understand how to choose an electricity provider in Texas, what to consider when comparing plans, and how to navigate the electricity rate trends.

Before You Begin: Essential Information

Before diving into the world of Texas electricity providers, gather the following information to make your search efficient:

  • Your current electricity usage in kilowatt-hours (typically found on past bills).
  • Your desired contract length.
  • Your home’s size, type, and energy needs.
  • Any special requirements or preferences, such as green energy sources or flexible payment plans.

If you’re moving to Texas, you’ll need to set up electricity in your home, so it’s essential to know your new address and the date you’ll need service to start.


Understanding Texas Electricity

Before you shop for electricity in Texas, it’s crucial to learn more about deregulated power in Texas. In a deregulated market, utilities handle the infrastructure, ensuring how electricity gets to your home, while retail electricity providers deal with selling electricity plans.

How to Shop for Electricity in Texas: Key Considerations  

  • Rate structure: Some plans offer fixed rates, ensuring price stability, while variable-rate plans fluctuate with the market.
  • Contract length: Whether you’re looking for a month-to-month or a multi-year contract, providers cater to various needs.
  • Renewable energy: If sustainability is important to you, look for providers offering green, renewable energy plans.
  • Customer service: Ensure the provider has a strong reputation for addressing concerns promptly. Check customer reviews and ratings to gauge their customer service quality and reliability.
  • Fees and penalties: Be aware of hidden fees or early termination penalties.

Tips for How to Choose an Electricity Provider in Texas

  • Compare, don’t settle: Using your pre-gathered information, shop for electricity in Texas to compare providers and their offerings. Consider the variety of plans each provider offers. Some Texas electricity providers, like Gexa Energy, provide a range of plans so that you can choose one that aligns with your energy usage habits and environmental values.

  • Ask yourself key questions:
    • Do I want to lock in a rate or get rate adjustments with market fluctuations? You’re looking at a fixed-rate or variable-rate plan then.  
    • Do I want renewable energy sources?  
    • What’s my monthly budget for electricity?
    • How long of a contract am I comfortable committing to?  
    • What is my average monthly electricity usage?  
  • Leverage online resources: Utilize online platforms and forums to read reviews and learn more about Texas electricity markets.
  • Know your terms: Before finalizing, ensure you’re aware of every stipulation in your contract. Don’t hesitate to ask questions or seek clarity.

New to Texas?

If you’re new to the state, there are things to know before moving to Texas. Familiarize yourself with the unique nature of Texas’s electricity market and understand your rights and responsibilities as a consumer. Before you set up electricity in your home, thoroughly research to ensure you’re getting the best deal.  

In Conclusion

Making the right choice can help you save on your electricity bill and align with your values, such as supporting renewable energy. By following this guide, you’ll be better equipped to navigate the Texas electricity landscape and decide which of the Texas electricity providers is best for your home.  

FAQs About How to Choose an Electricity Provider in Texas

Who provides electricity to my address?

The utility company in your region is responsible for the infrastructure that delivers electricity to your address. Their role remains consistent, irrespective of which retail electricity provider generates that electricity.

Do I have a choice of energy provider?  

While most Texans can choose from a variety of electricity providers, there are some cities where you don’t get a choice—Austin, San Antonio, El Paso, Beaumont, and The Woodlands. These cities were set up with municipal or co-op electricity services before deregulation, so they were grandfathered in to stay regulated.  

What are the best electricity providers in Texas?

This largely depends on where you’re located in Texas. However, Gexa Energy is among the leading electricity providers in Texas, with a range of Gexa Energy electricity plans to suit various needs. You might also compare rates with Reliant Energy, TXU Energy, Direct Energy, and others.  

How long are electricity service contracts?

When comparing Texas electricity providers, it’s a good idea to know how long of a contract you’d be willing to sign and check whether a long-term contract would save you money. Typical electricity contracts range from month-to-month to two years. If you’re on a one-year lease in your home, you may not want to lock into a two-year contract.  

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.