Whether you’re exercising your power to choose in Houston, Dallas, or a smaller Texas community, choosing an electricity provider involves more than just selecting the plan with the lowest rate. To make an informed decision, consider the following factors and determine your top priorities:
1. Plan type
Most Texas electricity providers offer a variety of plans, including fixed, variable, and no-deposit, each with different pros and cons depending on your budget and needs. Since not all providers offer all plan types, it’s important to closely compare electricity providers and plans.
2. Contract length
Depending on how long you plan to live in your current location, you may want a month-to-month plan or a longer-term option. Since Texas electricity providers offer various short- and long-term contract options, you should consider how long you want to be on your plan when exercising your power to choose in Texas.
3. Renewable energy plans
Every energy plan in Texas includes some percentage of green energy like solar or wind power. You can find the exact percentage of each plan’s renewable energy content in its Energy Facts Label (EFL). If you’re looking to further reduce your carbon footprint, a few top providers even offer 100% renewable energy plans, such as Gexa Energy and Green Mountain Energy.
4. Fees
It’s important to have a general idea of how much you’ll be paying each month, which is why you should take a look at the fees included in each plan before signing up so you don’t get an unpleasant surprise. If a plan has any fees or other limitations, it will be noted on its EFL, which you can find on each plan on the Choose Texas Power marketplace.
Here are a few of the most common types of fees to look out for:
- Early termination fees (ETFs): Variable-rate plans (where your rate fluctuates depending on the electricity market) typically do not impose an ETF, while fixed-rate plans (where your rate is stable for the length of your contract) do. You won’t be charged ETFs for moving to a new address, but you will likely have to pay if you cancel your plan before the contract expires.
- Monthly fees: Some providers may list their rates but exclude monthly fees, which can lead customers to pay more than the advertised rate. At Choose Texas Power, we show rates that include all fees (except local government taxes) for full transparency.
- Minimum usage fees: Some energy companies require customers to use a specified minimum amount of electricity each month. If you don’t meet the minimum, you may have to pay a penalty. The best way to avoid higher rates is by looking at past energy bills to see what your typical consumption is and avoiding plans that fall outside of that range.
5. Paper vs. paperless billing
Paperless billing is now the norm for most energy providers, and you may be able to get a discount for the paperless option. Keep this in mind if you prefer to receive a paper bill.
6. Size of your home or business
Some plans are better for specific levels of energy usage. You may be comparing electricity providers that offer 12-month fixed-rate plans, but one may provide incentives for using 2,000 kilowatt-hours (kWh) of electricity while the other penalizes you for exceeding 1,500 kWh. Your typical energy usage will determine which plan is a better fit.
7. Additional options
REPs may offer additional options, including bill credits, prepaid plans, and home bundles. Some offer free or discounted electricity during specific periods of the day or week. These extra features can make one plan or provider more attractive, even at a higher electricity rate.
Switching electricity providers is about much more than the price or brand name. It’s essential to consider the plan type, rate structure, and additional choices that align with your energy needs. To learn more about the different features available in energy plans near you, check out our guide to picking a plan.