Texas What Power to Choose Your Electricity Provider Means for You

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

In the past, Texans 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, 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 or supplier will buy power on the wholesale market and sells it to customers. The utility 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.

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.

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:

Your service area. In a state as large as Texas, a retail electric provider may not offer services in every town or city.
Cost per kilowatt hour (kWh). Electricity use is measured in kilowatt hours, or kWh, and this is how your provider will share their rate.
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.
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.
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

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.
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.
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.

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.

Contact us when you are looking for affordable residential energy providers in the states of Pennsylvania, New Jersey, or Texas.

Oncor Service Area Selected

ELECTRIC PROVIDER

PRODUCT

TOTAL RATES(includes monthly fees)*

Frontier Max 12

12 Months / 2000 kWh

9.3¢ / kWh
2000 kWh
Monthly Usage

Electric Service