You have the power to choose your electricity plan and energy rate in the Texas deregulated energy market.
But what plans can you trust? Who are the cheapest energy suppliers with the best electricity rates? How do you find the best energy plan for your home?
This guide will answer these questions to help you compare electric rates in Texas so you can save money and reduce the chances of a bill surprise.
Guide for comparing Texas electricity plans and energy rates
Here are the sections to this guide:
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- What do I need to know if I’m switching electricity plans, moving out, moving in?
- Why do I need to know my home’s electricity usage?
- What are the types of Texas electricity plans?
- Why should I choose a renewable energy plan?
- Why should I use Home Energy Club as an alternative to Power to Choose?
- Best electricity companies in Texas with phone numbers and reviews.
Compare Electricity Plans & Cheap Rates in Texas
Speak with Gexa about their cheap plans with a 60-Day “Happiness Guarantee” at 855-639-8212.
Speak with 4Change Energy, sister company of TXU, about their trusted no-gimmick plans at 888-366-7291.
Speak with a Reliant Energy operator about their “free electricity” plans at 866-735-1218.
Speak with Payless Power about their competitive “No Deposit” prepaid electricity plans at 833-926-9776.
What do I need to know if I’m switching electricity plans, or I’m moving out or moving in?
There are different things you’ll need to consider if you are simply switching electric companies at your current address versus setting up electricity for a new house you’re moving into, or moving to a new home.
A Switching to a new electricity plan:
If you’re switching electricity plans for your residence, compare Texas electricity rates by zip code from the best electric companies in Texas by entering your zip code on this page. Be sure to review the Electricity Facts Label (EFL) for any plan you are considering to match your home’s monthly energy usage levels (see section below for details).
The EFL will also include any early termination fees for the plan if you plan to cancel before the end of the contract term. If your current plan has a high energy rate, it’s possible that you can come out ahead by paying the termination fee and switching to a lower rate plan. By regulation, you can avoid the termination fee by waiting until 14 days of the contract end date to switch.
B Moving to another home and need an electricity plan:
If you’re moving to another home in Texas or from out of state, during the energy plan enrollment process you’ll be asked to provide a move-in date.
If it’s a brand new house, contact the transmission and distribution utility company (TDU) in the area to confirm your electric meter will be hooked up by your move-in date. You’ll also need for the TDU to assign an ESI number for your home address, which will be required during your online plan enrollment or operator-assisted enrollment.
For apartments, ask the manager or landlord whether you will be in charge of setting up your own electricity. If so, you may wish to enroll in a short-term electricity contract that has a term-length which corresponds with the length of your apartment term. You may also want to get “no deposit” energy from electric companies such as Payless Power. Click here to review Payless plans and rates, or speak with a Payless operator at 833-926-9776.
C Moving out and terminating your electric contract:
If you plan to cancel your electricity plan before the end date of your energy contract because you are moving to another home or apartment, there should be no early termination fee charged by the electric company.
If you are moving to another deregulated town or city in Texas, the energy provider will likely transition your current contract to your new address and not charge a fee.
Why do I need to know my home’s electricity usage?
When electric companies create energy plans, they set the lowest pricing at certain energy usage ranges, so you’ll want to select a plan based on your home’s kWh consumption. If you choose a plan that doesn’t fit your usage, you could pay a very high rate and experience ugly bill surprises. It’s a good idea to compare Texas electricity rates to determine which plan will be the best fit for your home.
In the EFL of each plan, you’ll find price points at various usage levels (500, 1000 and 2000 kWh) which are associated with different size living areas. For example, a monthly usage level of 500 kWh is generally associated with apartments, 1000 kWh for small to mid-size homes, and 2000+ kWh for larger homes. You review the historic usage levels for your home by month, visit Smart Meter Texas.
Estimate your home’s electricity usage based on the last 12 months
It’s best to review your home’s usage for an entire year when estimating future usage due to seasonal changes in temperatures and usage. In the summer your usage will likely be much greater than winter, and by knowing your usage per month and reviewing the EFL for each plan, you can estimate the amount of your bill by month.
There is no method to precisely predict your future usage, but historic data should provide a good indication.
What are the types of Texas electricity plans?
There’s an assortment of types of electricity plans that are based on lifestyles (such as home versus apartment), the time you wish to spend monitoring your rates (variable rates require monitoring), and other factors.
Below are some of the types of plans, and you can read our Texas Electricity Savvy Shopper’s Guide for more details:
Fixed-Rate Plans
These plans offer you the ability to lock in your rate for the term of the contract. Most popular terms are 6, 12, 24 and 36 months. These types of plans save you money when rates are increasing, and provide consistency in the amount of your bills. The downside is that they have early termination fees if you wish to cancel early to switch to another energy provider, and you can’t take advantage of lower rates it market pricing declines.
Variable-Rate Plans (Month to Month, also called “Flex Plans”)
You gain flexibility to cancel at any time with no early termination fee with month to month plans. The rate you pay will vary each month, and in warm months you are likely to pay much higher rates and be subject to price spikes. If you like to continuously shop around for lower rates, a variable plan may make sense.
Prepaid Plan (No Deposit)
There’s no deposit required, no credit check, and no long-term contract. You’re automatically approved for prepaid because you are prepaying for energy and the electric company is taking no risk on your credit.
Time of Use
These are the “free” electricity plans you’ve seen advertised, such as “Free Nights and Weekends”. They provide free electricity during certain days and times of day.
100% Renewable “Green” Energy Content
These plans are sourced with electricity generated from renewable “non-fossil” sources, such as solar energy and wind energy in Texas. They don’t require any investment in solar panels or other equipment, and some renewable plans now cost less than traditional fossil-sourced plans.
You’ll find electricity plan details for the best electric companies in Texas in our unique electricity rate chart.
Why should I choose a renewable energy plan?
Carbon dioxide (CO2) is the primary greenhouse gas causing climate change. You can reduce your personal carbon emissions and save money in the process.
It takes the same amount of time to enroll in a 100% renewable energy plan as it does in a fossil plan that supports polluting carbon sources of energy. You can now switch to a green plan from electric companies such as Gexa Energy and help both your planet and pocketbook.
How to cut your carbon and save money.
What is the Texas deregulated electricity market and why avoid Power to Choose?
Most Texas residents are able to take advantage of the benefits of energy deregulation, and the Texas Public Utility Commission (PUC) regulates light companies and utility companies in the state. The PUC also operates the Power to Choose Texas comparison website featuring electricity plans from many energy providers, but while the concept behind the site was noble, it has been the source of much controversy due to the bill surprises it has caused to thousands of citizens because of poor management and lack of quality control. Electric companies quickly learned how to “game” the site by offering gimmick rate plans, which resulted in a lack of consumer trust for the site.
Energy deregulation allows private electric companies to compete for customers, resulting in lower prices and better service. Under deregulation, there are three entities:
- TDUs: electricity is transmitted to homes by the transmission and distribution utility (TDU) that owns and maintains the wires, and corrects outages
- REPs: retail electricity providers (REPs) market the electricity and bill customers
- Generators: the power companies and plants that generate energy
In short, the REPs purchase blocks of energy and resell portions of it to customers, TDUs maintain the lines to your home, check your meter and correct outages, and generators produce the energy at power plants.
You can view a list of the best established electric providers on our Texas Electric Companies page. TDUs in Texas include:
- Centerpoint Energy
- Oncor Electric Delivery
- AEP North
- TNMP
- AEP Central
Electric Companies in Texas Phone Numbers and Reviews
| Provider | Toll Free Number | Year Founded | Reviews |
|---|---|---|---|
| Amigo Energy | 888-528-2672 | 2002 | Amigo Reviews |
| Chariot Energy | 844-978-6797 | 2018 | Chariot Reviews |
| Cirro Energy | 855-463-9960 | 2001 | Cirro Reviews |
| Discount Power | 833-275-0921 | 2008 | Discount Reviews |
| Entrust Energy | 800-871-8100 | 2010 | Entrust Reviews |
| Gexa Energy | 855-639-8212 | 2002 | Gexa Reviews |
| Green Mountain | 844-724-3211 | 1997 | Green Mt. Reviews |
| Just Energy | 833-871-5317 | 1997 | Just Reviews |
| Pulse Power | 888-853-4219 | 2018 | Pulse Reviews |
| Reliant Energy | 866-735-1218 | 2000 | Reliant Reviews |
| TriEagle Energy | 888-380-4813 | 2002 | TriEagle Reviews |
| TXU Energy | 800-818-6132 | 2002 | TXU Reviews |
Electricity Plans Frequently Asked Questions
Where can I compare electricity plans and rates in Texas?
The top-rated electricity plan comparison site in Texas, HomeEnergyClub.com, offering two simple ways to compare energy plans. No matter which of the two options you choose, you can trust that the information found at Home Energy Club is objective because the site never sells preferential treatment to electric companies. And there are no membership fees. To display their plans, energy providers pay a small fee, which is included the special discounted rates you receive. Conduct your electricity plan comparison by:
- Going to the top of the home page and entering your zip code to find each brand’s rates and energy plans; or
- Calling the phone numbers of the energy providers, shown next to each plan, and speaking directly with their operators.
A number of handy guides are on the site to equip you in your search for the cheapest electricity plan for your usage level. You can learn details regarding the process of comparing the best energy companies’ electricity plans and rates with the site’s Texas Electricity Savvy Shopper’s Guide guide found on the home page, and the Texas Electricity Glossary, which will help you gain new insights into Texas electricity terms and electricity basics.
To protect you from bill surprises and enhance customer satisfaction, Home Energy Club’s staff vets each energy to cut the ones that have deceptive gimmicks.
What energy provider has cheapest electricity rates in Texas?
HomeEnergyClub.com lists the top four trustworthy energy providers with the cheapest electricity rates in Texas, and they are currently Gexa Energy, Pulse Power,
Cirro Energy, 4Change Energy and TriEagle Energy.
It is recommended that when you consider enrolling in an energy plan, you refer to the resource at Home Energy Club called How to Read an Electricity Facts Label, which provides helpful insights that can assist you in avoiding bill surprises. If bill predictability is important to you, TriEagle consistently offers the most straightforward energy plans with pricing in the low to mid-range. Learn about more than 40 energy providers on Home Energy Club, where there is never a membership fee. Listings for the cheapest energy rates can change at any time throughout the year as electric companies make alterations to their electricity plans.
What is a good rate per kWh in Texas?
The best rates per kWh in Texas have dipped as low as 5-cents and 6-cents per kWh at HomeEnergyClub.com, though these rates fluctuate seasonally and will rise as energy commodity prices recovery from their slump. For example, in recent years in Texas the average rate per kWh was 11 cents. When per-kWh rates are low, it is an opportune time to enroll in a long-term fixed energy contract of 36 or 60 months to lock in your price. Enter your zip code on Home Energy Club to view the cheapest rates in your area for plans that are vetted by the staff to help you avoid gimmicks that cause bill surprises.
Why is my Texas electricity plan causing my bill to be so high?
Our goal at HomeEnergyClub.com is to cut high electricity bills with special low rates by using our bargaining power with electric companies, and to create a trusted shopping experience which protects consumers from electricity bill surprises by vetting each energy plan. To cut your bill with cheap rates, enter your zip code on the site to view plans in your area. When your electricity plan is the reason for unexpectedly high bills, the following are examples of potential causes:
- Your fixed price plan has expired. The benefit of fixed price plans is that they provide protection against increases in energy rates. If you do not switch to another electricity plan or renew the existing plan before your fixed-price plan ends, energy providers will usually enroll you automatically into a variable rate electricity plan-typically, their most expensive option in electricity plans, causing your bill to increase.
- Rates have been increased by your energy supplier. Your energy company can raise your electricity rates every month if you are on a variable rate plan. Use caution when considering low “wholesale price” plans with floating rates because the provider may increase your rate at any time, including in summer months when usage peaks, causing an ugly bill shock.
- The energy plan you chose was not a good match with energy usage patterns in your home. If you chose a plan targeted to consumers with usage levels exceeding 2,000 kWh per month but you use only about 500 kWh in an apartment, your electricity plan’s pricing may be extremely high in months when usage levels are less than 2,000 kWh.
Aside from the amount of your energy rate, the size of electricity bills is determined by such variables as the level of energy efficiency of your home, weather conditions (such as triple-digit summer temperatures), and your energy usage.
What are the types of Texas electricity plans?
The different types of Texas electricity plans are associated with various factors such as the amount of living space you have (house or apartment) and whether you want to spend time monitoring your rate of electricity (needed with variable-rate plans).
At HomeEnergyClub.com, refer to our Texas Electricity Savvy Shopper’s Guide to find additional details, but the following are examples of the types of Texas energy plans there are to choose from:
Fixed-Rate Plans
HomeEnergyClub.com has dozens of fixed-rate plans at special discount rates from top providers. Electricity plans with fixed rates allow you to secure your rate per kilowatt hour (kWh) until your contract expires. Homeowners frequently choose plans with terms of six months, one year, two years, and three years, and sometimes five years. Fixed-rate plans allow you to maintain the same rate when electricity market rates rise, and are popular among residents who prefer more predictable bills. Potential downsides of fixed-rate plans include:
- If you need to terminate the plan prematurely or if you wish to change your electricity provider or electricity plan, you may be charged an early termination fee; and
- If market prices decline, you cannot switch in order pay a lower price per kWh.
Variable-Rate Plans (month-to-month, aka Flex Plans)
With month-to-month or variable-rate electricity plans, you maintain the freedom to terminate your service at any time without being charged a penalty fee. In the meantime, your monthly rates will vary. For example, in summertime, your rates will probably be much higher due to an increase in energy demand. Also, electricity rates are prone to spike. The best way to ensure that a variable plan makes economic sense is if you search for cheaper rates continuously, and switch when it is advantageous. Monitoring the rate you are paying each month is highly recommended to avoid monthly bill spikes.
Prepaid Plan (No Deposit)
With a no-deposit prepaid plan, a credit check is not involved and you are not required to commit to a lengthy contract. Approval is automatic when you select a prepaid energy plan because you pre-pay for the energy you use and the energy company is not taking a risk, regardless of your credit standing.
Time of Use Plans
With time-of-use plans such as “Free Nights and Weekends”, “free” electricity is provided during specified times on certain days. These often-advertised “free” electricity plans can be tricky, and many Texas consumers have faced unpleasant bill surprises because of them. To offset “free” hours of electricity use, “paid” hours are typically charged at extremely high rates. For a time-of-use plan to work for you, read the Electricity Facts Labels carefully and compare them to your history of electricity use. Make sure that you do not engage in energy-intensive activities during times when you are being charged for electricity use. Such activities include using your clothes dryer or dishwasher. As needed, see our resource How to Read the Texas Electricity Facts Label (EFL) under “Helpful Guides” found in the footer of Home Energy Club pages.
100% Renewable “Green” Energy Plans
HomeEnergyClub.com now features 100% renewable energy plans that cost less than most fossil-sourced plans, such as plans from Gexa Energy, Pulse Power and TriEagle Energy. Renewable “non fossil” generation sources such as wind energy and solar energy in Texas produce the electricity used in 100% green energy plans. To take advantage of these electricity plans, no solar equipment investment is required. Some of the eco-friendly renewable energy plans now cost far less than traditional plans that use fossil fuel-sourced electricity due to advancements in technology and generation capacity.
How do I find the best electric plan in Texas?
The most reliable place to find the best electricity plans in Texas is at HomeEnergyClub.com, where unbiased details are provided on more than 40 electric companies in the state. To determine the energy plan that is best for you, an essential factor includes your home’s history of energy usage. Getting the electricity plan that offers you the best possible rate requires, first, that you choose the energy usage level that fits your home best, whether 500 kWh (typical for apartment living), 1000 kWh (small homes), or 2000 kWh (larger homes). Secondly, check your history of energy use when considering specific electricity plans at Smart Meter Texas (or by reviewing your electric bills) to be sure your pattern of usage is compatible with the plan you choose.
Can I switch energy plans if I’m renting an apartment?
You can compare many energy plans designed for apartments and condos on HomeEnergyClub.com, and it may be possible that you can switch to one of the energy plans if you are renting an apartment; however, it depends on where you live. Some tenants who rent condos and apartments are allowed to choose their own energy plan and electricity company. Others, however, pay electricity costs as part of the rent. If you are unsure whether or not you can choose your energy provider and plan, contact your apartment’s or condo’s management regarding their policy.
Why should I know my energy usage when choosing a plan?
When choosing an electricity plan at HomeEnergyClub.com, if you know your home’s energy usage, you are in a much better position to take advantage of electricity plans with the lowest pricing and avoid bill surprises as a result of choosing a plan which is not compatible with your household’s pattern of energy use.
Many electric companies offer their lowest pricing according to specific ranges of energy usage. The electricity plan that offers you the biggest bargain is one that corresponds with your home’s level of kWh consumption. When you are locked into a plan that does not fit your usage, you could unnecessarily pay hundreds or thousands of dollars more for electricity per year.
You will find various price points at the 500, 1000, and 2000 kWh levels noted the Electricity Facts Label (EFL) of each energy plan. The size of your living space is a major factor in which kWh level is your best fit. For example, Texas residents living in apartments or condos typically use about 500 kWh each month. Small to mid-sized homes generally consume about 1000 to 2000 kWh monthly, and large homes often use 2000+ kWh. Visit Smart Meter Texas to review your home’s historic usage by month, and check out our Smart Meter Texas Guide available at Home Energy Club.
If you are in the process of choosing your electricity plan, it is helpful to review an entire year of home energy usage. This can help you estimate future usage and changes during the different seasons, including energy peaks in summer and valleys when the weather is cool. If you compare historical monthly usage as you review the EFL for each plan, you can make a better estimate of the amount of your monthly bills.
Why should I choose a renewable energy plan?
While a desire to make an environmentally friendly choice is the main reason homeowner’s choose a renewable energy plan, now you can also pick up significant savings by enrolling in 100% green plans. Gexa Energy, for example, offers green energy plans with rates up to 40% cheaper than plans that utilize polluting fossil fuels containing carbon dioxide (CO2), the greenhouse gas primarily responsible for climate change. Enrolling in a green energy plan at HomeEnergyClub.com will mean that you reduce your personal carbon footprint and save on energy costs at the same time.
What’s a fixed-rate electricity plan versus a variable-rate plan?
When you compare the differences between a fixed-rate electricity plan and a variable-rate plan at HomeEnergyClub.com, you will find that fixed-rate plans produce more predictable bills and are less likely to cause unwelcome bill surprises. Some consumers, however, need short-term variable-rate plans because of their specific situation. For that reason, Home Energy Club offers these plans selectively and only if they pass our TrustPlan ™ test.
The term lengths for fixed-rate contracts are usually 12, 24, and 36 months, and sometimes 60 months. These electricity plans lock in your rate for the term of your contract. If you cancel before the contract has expired, you will be charged an early termination fee unless the reason for cancellation is that you are moving from your home.
Variable rate contracts should be considered with caution. The rates on these energy plans go up and down according to the most current wholesale energy prices. Electricity rates often skyrocket during times of peak demand such as summertime, resulting in high electricity costs. Low front-end rates on variable-rate plans are offered by some electric companies, but the costs often increase dramatically within a few short months and in times of peak demand.
