Guide to Choosing the Right Electricity Plan in Texas

This comprehensive guide explains how Texas residents can select the best electricity plans, discussing deregulation, provider options, rate types, and how to manage outages. It highlights key areas and important factors for choosing reliable, affordable, and eco-friendly energy services in Texas's deregulated market, helping consumers make informed decisions tailored to their location and preferences.

How to Select the Ideal Electricity Plan in Texas

Your Complete Guide to Picking an Electricity Plan in Texas

Texas's deregulated energy market offers residents the flexibility to select both their energy provider and generator. This freedom allows you to opt for the lowest rates or prioritize customer service quality. Additionally, there are options for 100% renewable energy, suitable for eco-conscious consumers, with providers like TXU Energy leading the way. Texas generates roughly 18% of its power from renewable sources, giving consumers many choices based on their preferences and locations.

This flexibility depends on Texas's geography since about 85% of the state benefits from deregulated electricity markets, including major cities such as Houston and Dallas. Conversely, areas like San Antonio and Galveston still have regulated service.

Before you choose an electricity plan, what should you do?

Select a Transmission and Distribution Utility (TDU). These companies distribute electricity from generators to consumers.

Determine which TDUs serve your area.

Which companies sell electricity in Texas?

Top five TDUs offering competitive rates include AEP, CenterPoint Energy, Sharyland Utilities, Oncor, and TNMP.

AEP operates mainly in Central and North Texas.

Generators like 4Change Energy, TXU Energy, Direct Energy, and Reliant provide power to these TDUs through various contracts.

While most TDUs source power locally, your choice of specific generators may be limited depending on the provider. For example, choosing Bounce Energy might mean being served exclusively by Oncor.

How to pick the best plans in Texas?

Start by selecting a plan from your TDU, each linked with different energy providers. You can opt for companies like Pennywise Power, Champion Energy, or Direct Energy based on your preferences.

Compare rates among providers; newer options like Direct Energy and Champion Energy might have slightly higher prices compared to the cheapest Texas energy firms.

Keep in mind that other factors like customer service, plan features, and apps for managing energy use are important considerations beyond just price.

Who do you contact during an outage?

While your energy is supplied by the generator, service disruptions are managed by your TDU. Contact them for outages or system issues.

What rate type should you choose?

Consider your needs carefully to pick from variable, fixed, indexed, or green rates. Prepaid plans are also available, which can be useful if you have credit concerns.

Select a plan that balances affordability, reliability, and customer support based on your specific requirements.