Most Texans have the freedom to choose their electricity provider, unlike residents in many other states where a single utility company provides all electricity services. This system, known as deregulation, was introduced in Texas in 2002 to create competition and give consumers more flexibility in their electricity rates.
In Texas’s deregulated market, two types of companies work together to get electricity to your home. Transmission and Distribution Utilities (TDUs) own and maintain the power lines, poles, and meters that physically deliver electricity to your house. Retail Electric Providers (REPs) are the companies you actually choose between and pay your bill to – they buy electricity and create different plans for you to choose from.
When you sign up with a REP, they handle your account and billing, while your local TDU (which you don’t choose) makes sure the electricity reaches your home safely. It’s similar to how internet service works: one company provides the physical connection to your home, while various internet providers compete to sell you service packages.
With dozens of electricity providers and hundreds of plans available in Texas, choosing the right one can feel overwhelming. At Home Energy Club, we created this detailed rating system to help Texans make sense of their options. Whether you’re moving to Texas for the first time or just looking to switch providers, our goal is to help you understand what you’re buying and find the best electricity company for your needs.
Our rating system takes into account plan features, customer satisfaction, and provider plan costs to score the provider on a scale from 0 to 5 stars. Here’s how we rated Texas electricity providers:
Plan Options (33%)
We believe having choices is crucial when selecting an electricity provider, which is why plan options account for a third of a provider’s rating. Our scoring system rewards companies that offer a diverse range of plans to meet different customer needs. We evaluate:
- The variety of plan types offered, including fixed-rate, variable-rate, green energy, and time-of-use plans
- The range of contract term lengths available to customers
- Additional perks and incentives like autopay discounts, gift cards, or sign-up bonuses
- Solar/green buy-back options
Customer Satisfaction (27%)
We assess customer satisfaction through multiple channels to give you a complete picture of the customer experience. Our evaluation includes:
- Results from our April 2024 survey of 1,000 Texas electricity customers
- Customer reviews and ratings from trusted sources like the Public Utility Commission of Texas (PUCT), Better Business Bureau (BBB), and Trustpilot
- Our own firsthand experience with each provider’s website usability and customer service responsiveness
Bill Predictability (20%)
Nobody likes surprise charges on their electricity bill. We analyze how consistent a provider’s costs remain across different usage levels (500 kWh, 1,000 kWh, and 2,000 kWh) by:
- Tracking price stability across all usage levels
- Evaluating how much bills might fluctuate as your usage changes
- Considering factors that could impact monthly bill variability
Cost (20%)
While price isn’t everything, we know it’s a crucial factor for most Texans. Our cost analysis looks at:
- Electricity rates across all common usage levels (500 kWh, 1,000 kWh, and 2,000 kWh)
- Total cost comparisons between providers for similar plan types
- Price competitiveness in different service areas
Each provider receives a score in these four categories, which we then combine to create our overall provider rating out of 5 stars. This systematic approach helps you make an informed decision based on what matters most to you, whether that’s finding the lowest rates, the most predictable bills, or the best customer service.
