Choosing an electric company in Texas can feel overwhelming with so many Texas energy options in a deregulated market. Whether you’re new to Texas or looking to switch providers, this guide simplifies the process. We'll help you understand how to choose an electricity provider, what to compare, and how to confidently select the right plan for your household.
Texas Electricity Basics
Before you decide how to pick an electricity provider, it helps to understand how the system works:
- Public Utility Commission of Texas (PUCT): The PUCT regulates the state’s electricity market and ensures that customers have access to reliable, reasonably priced electricity. They also enforce regulations to protect customers and manage consumer complaints.
- Electric Reliability Council of Texas (ERCOT): ERCOT manages the flow of electricity to millions of homes and businesses in Texas. It ensures that supply meets demand and maintains the reliability of the grid.
- Power to Choose (PTC): The official comparison site from the PUCT where Texans can compare different retail electricity plans and providers in Texas. It’s a useful tool to see all your options in one place.
- Transmission and Distribution Utilities (TDUs): Local TDU companies like Oncor, CenterPoint, AEP Texas, Texas-New Mexico Power Company, and Lubbock Power & Light are responsible for delivering electricity to your home. They maintain infrastructure like power lines and are your point of contact for outages and repairs. You can’t choose your TDU, as each one serves specific areas across Texas.
- Retail Electricity Providers (REPs): These companies sell electricity plans to consumers. REPs buy electricity in bulk and compete with each other, offering various plans and prices. Some well-known REPs in Texas include Gexa Energy, Reliant Energy, and TXU Energy.
Choice Matters in Texas
Texas is unique in offering most residents the ability to choose their electricity provider. This freedom gives Texans the flexibility to shop around, compare plans, and find a company that fits their household needs. In a state known for independence, being able to choose a REP is one more way Texans can take control of their daily life. If you live in a deregulated area, you have the power to choose and compare plans to select the REP that works best for you, helping you avoid unexpected costs and choose an electricity plan that supports your lifestyle.
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What You’ll Need Before Shopping
Gathering a few details ahead of time makes it easier to compare plans:
- Your current usage: Check past bills or Smart Meter Texas data for your monthly kilowatt-hours (kWh).
- Contract preferences: Decide if you want a month-to-month plan or a longer-term contract.
- Home details: Note the size of your home and household factors such as pool ownership or EV charging.
- Special requirements: Think about whether you prefer free electricity plans, smart thermostat compatibility, or usage credits.
How to Choose an Electric Company in Texas
When comparing REPs, focus on the factors that affect your household the most. Here are key things to look at when deciding how to choose an electricity provider:
Price Structure
- Fixed-rate plans: Your price per kWh stays the same for the length of the contract, making it easier to budget.
- Variable-price plans: The price per kWh changes with the market. These can save money when rates drop but cost more when rates rise.
Plan Types
- Free electricity plans: Offer free electricity during certain hours or weekends, useful if you can shift usage.
- Usage credit plans: Apply a usage credit to your monthly bill when your usage meets a minimum usage threshold.
- Solar and EV plans: Some REPs offer credits for exporting solar power to the grid or plans designed for EV charging.
Contract Length
- Short-term contracts (month-to-month or six months): Flexible but often priced higher.
- Long-term contracts (12 to 36 months): Typically more competitive but require commitment.
Fees and Penalties
Be sure to read the fine print. Early termination fees, monthly service charges, or connection costs can all add up and affect your total electricity costs.
Tips for Comparing Texas Energy Options
When evaluating how to pick an electricity provider, keep these points in mind:
- Compare, don’t settle: Look at several providers and plan types before deciding.
- Ask key questions:
- Do I want fixed or variable pricing?
- What contract length fits my needs?
- Does this plan match my average monthly usage?
- Use trusted resources: Tools like Power to Choose, provider websites, and consumer forums can help.
- Know your terms: Understanding “base charge”, “TDU delivery charge”, and “usage credits” helps avoid billing surprises.
You can also build a personal checklist to guide your decision. Write down your typical usage, how long you plan to stay in your home, and your budget range. Then compare each provider against those priorities. For example, if avoiding bill surprises is most important, a fixed-rate plan may work best. If you use more electricity on weekends, a free weekend plan could save you money. Having your checklist in front of you keeps the process focused and simple.
Pro Tip: Don’t choose an electric company based only on the lowest price per kWh. Always check the contract details, fees, and whether the plan fits your household’s actual usage.
Moving to Texas or Switching Providers
Whether you’re new to Texas or switching from your current REP, the process for how to choose an electric company is similar. Learn how deregulation works in your area and compare plans across providers. If you’re already a customer in Texas, review your contract for early termination fees before making the switch. Once you know your options, follow these steps:
- Review your current plan and confirm when your contract ends.
- Compare providers and plans to find one that better matches your budget and usage.
- Notify your current provider. Inform them of your decision to switch.
- Set up service with your new provider to ensure a smooth transition without interruption.
Because your local TDU continues to deliver electricity, switching providers won’t affect reliability. That means the lights stay on while you change plans, making it easier to choose confidently and without disruption.
Choosing Your Electric Company Confidently
How to pick an electricity provider in Texas comes down to three things: knowing your household usage, comparing Texas energy options side by side, and reviewing contract details before you commit. By focusing on more than just the price per kWh, you can avoid common mistakes and feel confident about your decision. Whether you’re moving to Texas or switching providers, Gexa is here to help you pick a plan that supports your budget and lifestyle.
At Gexa Energy, we’ve been serving Texans since 2001, and we know every household is different. From families in Houston with high summer usage to small apartments in Dallas or townhomes in San Antonio, Texans rely on us for plans that fit real life. Our goal is to make electricity simple and transparent so you can feel confident that your home is powered by Texans who understand what matters most to you. Find your plan today here.
