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 customers 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) buy electricity and create different plans for you to choose from. In short, Texas electricity companies are the entities you actually choose between and pay your bill to.
When you sign up with a light company, it handles your account and billing, while your local utility company, 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 is shaped by real customer data from our February 2025 survey of more than 1,600 Texans. Using thousands of data points from actual customers, we score the provider on a 5-star scale across four key categories: customer satisfaction, customer retention, customer service, and online experience. Here’s a detailed breakdown of how we rated Texas electricity providers for each category.
Customer Satisfaction (30%)
We believe Texas customers deserve clear pricing and honest communication from their electricity provider. To see which companies deliver on both service and transparency, we asked Texas customers:
- On a scale of 1-10, how would you rate your overall satisfaction with your current electricity company?
- On a scale of 1-10, do you feel that your provider was transparent about how additional fees (utility delivery fees, taxes, usage fees, daily charges, etc.) would affect your energy bill when you signed up?
- How satisfied are you with the level of communication you receive from your provider?
- Do you believe you’re paying a fair rate for your current electricity plan?
- Which elements do you like about your current electricity company?
- Which elements do you NOT like about your current electricity company?
- Would you recommend your current provider to a friend?
We also included data on the year founded and Google Reviews for each provider in this customer satisfaction score.
Customer Retention (30%)
When scoring Texas electricity companies, we look closely at how many customers stick with them over time. To understand why customers stay or leave, we asked:
- When the contract with your current electric company expires, how likely are you to switch to a different company?
- How much in savings would cause you to switch providers?
We also considered the number of survey respondents from each company as a part of our retention evaluation because popularity indicates a large and loyal customer base.
Customer Service (20%)
Customer service excellence stands at the heart of what makes an electricity provider exceptional. To assess service quality and issue resolution, we asked these questions:
- On a scale of 1-10, how would you rate the customer service of your current electricity company?
- Have you ever had to reach out to your provider about an issue? If so, how satisfied were you with the way your issue was handled?
Our team also looked into complaint scores for each company from the Public Utility Commission of Texas to evaluate problem-resolution capabilities.
Online Experience (20%)
Because bill pay and signing up occur online for the majority of customers, we asked the following questions about customers’ online experience:
- On a scale of 1-10, how would you rank the online experience of your current electricity company?
- Is it easy for you to see your monthly bill and make payments?
When calculating the online experience score, we also accounted for the number of ways customers can contact the provider or cancel a plan.
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 customer service, transparency, online experience or straightforward billing.
