How to Choose a Provider
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A guide to choosing a retail electricity provider (REP)

Since 2002, residents and businesses throughout Texas have had the power to choose their electricity plan and provider. Many Texas cities have a deregulated electricity market, which allows residents and business owners to shop for rates and plans from various retail electric providers (REPs) rather than only buying from their local utility.

That choice makes it possible for you to save big on your energy costs, but exercising your power to choose an electricity provider can be a daunting process. Choose Texas Power makes sorting through your options less overwhelming — we’ll walk you through electricity comparison and answer any questions you may have. Here’s how it works:

  • Know your energy usage. Before you begin shopping for an electricity provider, review a past energy bill to calculate your average electricity consumption, as this information is essential in determining the rate and plan that’s best for your household. Be sure to consider factors like the size of your home, the number of occupants, and any energy-efficient appliances you have installed.
  • Enter your ZIP code. Because there are so many Texas energy plans and providers, it’s important to do your research to find the provider that fits your needs. To begin, enter your ZIP code on this page to see a list of the available Texas electricity providers in your area. You can filter your options by home size, contract length, type of rate, and more. If you have questions, our energy experts are standing by to help.
  • Sign up and enjoy. Once you’ve found a provider and plan that meets your needs, you can sign up online or over the phone in just a few minutes.
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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.

Available electricity providers

Deregulation in Texas allows for energy companies to compete for your business. Comparing them all can be overwhelming, which is where Choose Texas Power comes in. We vet and partner with REPs that offer quality features, affordable pricing, and reliable service. Once you enter your ZIP code, we’ll provide you with a list of the available plans and providers in your area all in one place, so you can quickly and easily compare your options.

Our trusted partners include TXU Energy, Reliant Energy, Gexa Energy, Frontier Utilities, and Direct Energy, among many others.

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FAQs about choosing a provider

How soon will my power be turned on?

You can schedule a start date when you sign up for a plan. Some energy companies allow you to schedule your plan activation up to 90 days in advance. If you need your electricity turned on immediately, some providers offer same-day service within certain time windows. If you’re interested in a fast setup, give us a call at the number on your screen.

What do I do if my power goes out?

If you experience an outage, you’ll need to call your utility company (which delivers your electricity) not your energy provider. Find out which utility services your area on our Texas utility company page.

What happens when my plan ends?

REPs in Texas are required to give customers at least a 30-day notice before their current electricity plan ends. After that, you can sign up for a different plan with the same provider, switch providers entirely, or re-enroll in your current plan.

I don’t like my provider. What should I do?

If you are dissatisfied with your current provider, you can switch to a REP that better fits your needs. However, be sure to verify whether your current plan includes an ETF before switching electricity providers (though many providers allow you to switch plans with no penalty within 30 or 60 days of signing up). If you have further questions, check out our guide to switching energy companies.

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Let us put the power in your hands with a new electricity plan.

Or call us today:  1-877-425-9108
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