Since Texas has a deregulated energy market, there’s no shortage of energy plans and providers to pick between. Most energy plans vary in duration, cost per kilowatt-hour (kWh) and more. It’s important to shop around to find the plan that best fits your lifestyle. Unfortunately, navigating the variety of options can be overwhelming. We’re here to simplify the process of finding the best electricity plan for your McAllen home.
Electricity rates and plans across Texas are constantly evolving, and staying up-to-date is important to make sure you secure the best deal. The average energy rate in McAllen aligns very closely with the Texas statewide average of 15.60 cents per kWh (according to the U.S. Energy Information Association). You may be able to find a rate lower than the state average by selecting a pattern that matches your usage pattern.
Best McAllen Electricity Rates
When you choose an electricity plan in McAllen, the way to find the best plan is not only by looking at the price per kilowatt-hour but also by how well it matches your energy usage. You want a predictable monthly bill, so it’s important to remember that even though some plans advertise really low rates, your bill can increase or decrease drastically based on whether or not you meet the very narrow requirements to earn the discounts. This is most common on bill credit plans. For more predictable monthly energy costs, you should strongly consider a 12-month plan with no bill credits, times of use or tiered rates.
Provider | Plan Name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
Frontier Utilities | Frontier Saver Plus 12 Plan | $108 | 10.8 | 30% |
Gexa Energy | Gexa Eco Saver Plus 12 Plan | $108 | 10.8 | 100% |
Frontier Utilities | Frontier Budget Saver 12 | $153 | 15.3 | 30% |
Gexa Energy | Gexa Light Saver 12 | $166 | 16.6 | 100% |
4Change Energy | One Rate 12 | $164 | 16.4 | 9% |
Rhythm Energy | Simply Select 12 | $159 | 15.9 | 100% |
Frontier Utilities | Platinum 12+ | $180 | 18.0 | 30% |
TXU Energy | Simple Rate 12 | $183 | 18.3 | 26% |
Payless Power | 12 Month - Prepaid | $201 | 20.1 | 26% |
Frontier Utilities | Frontier Saver Premier 12 | $208 | 20.8 | 30% |
Rates in the above table are updated daily in the AEP Central service area. Monthly bill estimates are for 1,000 kWh usage.
Cheapest Electricity Rates in McAllen
You can find the cheapest electricity rates in McAllen below. Note, however, that these and many ultra-cheap energy plans use bill credits to advertise low prices.
Most bill credit plans have a minimum usage threshold, typically above 1,000 kWh. Others may include a maximum, perhaps 1,999 kWh. If your energy usage fluctuates and you don’t consistently meet the usage requirements, you won’t secure the account credit, and your energy rate can skyrocket.
We suggest checking the electricity facts label (EFL) before signing up for a bill credit plan to make sure your usage meets the credit requirements.
Provider | Plan Name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
Frontier Utilities | Frontier Saver Plus 12 Plan | $108 | 10.8 | 30% |
Gexa Energy | Gexa Eco Saver Plus 12 Plan | $108 | 10.8 | 100% |
Frontier Utilities | Frontier Budget Saver 12 | $153 | 15.3 | 30% |
Gexa Energy | Gexa Light Saver 12 | $166 | 16.6 | 100% |
4Change Energy | One Rate 12 | $164 | 16.4 | 9% |
Rhythm Energy | Simply Select 12 | $159 | 15.9 | 100% |
Frontier Utilities | Platinum 12+ | $180 | 18.0 | 30% |
TXU Energy | Simple Rate 12 | $183 | 18.3 | 26% |
Payless Power | 12 Month - Prepaid | $201 | 20.1 | 26% |
Frontier Utilities | Frontier Saver Premier 12 | $208 | 20.8 | 30% |
Rates in the above table are updated daily in the AEP Central service area. Monthly bill estimates are for 1,000 kWh usage.
How To Choose an Electricity Plan in McAllen
Start the process of selecting an electricity plan by reviewing the reputation and service capabilities of your retail electric provider (REP).
After you’ve found a reliable REP, think about more than just the advertised rate. The cost of electricity per kilowatt-hour is a major factor, but so are things like time of use clauses and bill credits. Remember, your electric company supplies your electricity, while the utility company, or TDSP, maintains the power lines, delivers electricity and handles outages.
With all of that in mind, your first step should be assessing your usage.
Step 1: Identify Your Energy Usage Needs
To pick the right plan, you should find one that matches your usage needs. If you have a smart meter, you can get detailed consumption insights through Smart Meter Texas. You can also review your past bills to determine your average monthly consumption in kWh. It’s a good idea to pull your usage history over an entire year to account for seasonal weather variations and how those changes impact your usage.
Step 2: Review Plan Details and Rates
After assessing your consumption, shop for plans in your McAllen ZIP code. Plans are often specific to where you live. When comparing plans, note that there are several common types: fixed-rate, variable-rate, green, prepaid and more. After picking a type of plan, you can narrow down your options based on contract length and provider. We recommend opting for straightforward fixed-rate plans with 12-month terms, as they offer stable pricing without the complexities of bill credits or “free night” gimmicks.
Step 3:Switch To your New Light Company
Once you’ve picked the right energy plan for your needs, you can sign up on the phone or online right here. Signing up online is easy and lets you switch without any disruption to your service. After signing up, your new provider will handle the transition, and your electricity will continue as usual. Just be sure to check your current energy plan for cancellation fees before signing up.
Plan Types Available in McAllen
You may have dozens, if not hundreds, of plans to compare in McAllen. Before picking one, do your homework to understand the difference between the different plan types and what they cover. Below are the most common plan types in McAllen.
- Fixed-rate plans
- Bill credit plans
- Time-of-use plans
- Green energy plans
- No-deposit plans
- Variable-rate plans
Top Energy Companies in McAllen
Based on our review of nearly 100 energy companies, we recommend Reliant Energy, Green Mountain Energy and TriEagle Energy if you’re looking for a new provider in McAllen, TX. All of these companies have high customer satisfaction, long business histories and a variety of plans available. On average, we found that the cheapest energy providers in McAllen are 4Change Energy, Frontier Utilities and Gexa Energy.
Retail Energy Provider | Our Rating | PUCT Score | BBB Rating |
|---|---|---|---|
Reliant Energy | 4.7 | 5 | NR |
Green Mountain Energy | 4.7 | 4 | A+ |
TriEagle Energy | 4.7 | 3 | A+ |
Rhythm Energy | 4.5 | 2 | NR |
Frontier Utilities | 4.4 | 4 | NR |
TXU Energy | 4.3 | 5 | A+ |
Champion Energy | 4.3 | 4 | F |
Direct Energy | 4.3 | 4 | F |
Gexa Energy | 4.2 | 4 | C |
Cirro Energy | 4.2 | 2 | A+ |
What To Know About Electricity In McAllen?
In any deregulated market, including McAllen, think about rates, contract length, discounts/promotions, rebates, and termination fees.
- Rates: This refers to the cost you pay per kilowatt-hour, regardless of your usage.
- Contract length: Pay attention to the duration of your contract. Shorter contracts may offer savings but will require you to shop more often. Meanwhile, long-term contracts offer stability for extended periods.
- Discounts and promotions: used to refer to things like like bill credits or sign-up bonuses.
- Electric vehicle plans (EV) and solar buyback: Some plans offer discounts for EV charging hours, while others allow you to use solar panels to sell excess energy back to the grid.
- Early termination fees (ETFs): End a fixed-rate contract early, and you may owe an ETF.
In general, we recommend opting for fixed-rate plans with a 12-month term to ensure stable pricing and avoid the risk of fluctuating bills.
Electricity Facts Label
Each electricity plan in the state of Texas comes with a standardized document called an electricity facts label (EFL). An EFL details the specific aspects of each electricity plan, including the rate, contract terms and any additional fees. Read your EFL before settling on an energy plan for an in-depth understanding of your monthly charges, as well as any discounts and how to secure the savings offered.
Free Nights and Weekends Energy Plans
Some time-of-use plans offer free nights and weekends, which can sound incredibly appealing to the average person, but they are oftentimes a gimmick to lure customers in. Rates during peak hours are often much higher than normal to offset the “free” energy, which in turn can lead to higher monthly bills. Chances are you should avoid most time-of-use plans unless you’re certain you will use the largest share of your electricity during the free periods. For most Texans, that simply isn’t feasible.
When To Switch or Shop
Try to switch or shop for a new electricity provider during the spring or fall. During these seasons, energy demand is typically at its lowest, bringing rates down. On the other hand, temperatures are at their most extreme during summer and winter, which can cause demand — and, therefore, prices — to skyrocket.
Ideally, you should start looking for a new plan one month before your contract ends. This way, you have enough time to research your options and make a decision without feeling overwhelmed or rushed.
How Does Deregulated Energy Work in McAllen?
In a deregulated market, customers pick their REP, but separate utility companies, known as transmission and distribution utilities (TDUs), are responsible for transmitting and distributing electricity.
Electricity companies purchase power from generators in wholesale auctions overseen by the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT). The prices electric companies pay during these auctions can have a direct impact on your retail energy price of electricity.
Which TDU serves McAllen?
AEP Texas Central is the TDU that serves McAllen. Utility companies charge delivery fees that show up on your bill. Additionally, utility companies manage the local power grid, including repairing power outages. If there’s an outage in your area, contact your local utility directly for the speediest service.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help Texans cut through the complexity and find the best electricity plan for their needs, whether they’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:
- Plan features (33%)
- Customer satisfaction and brand trust (27%)
- Plan rates and pricing (20%)
- Energy bill predictability (20%)
