Common energy questions

Energy deregulation

What is an electricity provider?

A retail electricity provider (REP) sells energy to customers in deregulated areas. In many regulated states, residents can only buy energy from the local utility company. But in Texas, residents can choose their REP from a variety of available companies. There is no option to buy energy from your utility company, although the utility will deliver the electricity to your home or business.

What is a utility, and how do I know which one is mine?

Utility companies work with your REP to deliver energy to your home or business. The utility is also responsible for maintaining the electrical infrastructure in your area (including power lines, wires, and pipelines). If you have a power outage, you should contact your utility company, not your REP.

Utilities are assigned based on location and cannot be switched or chosen by the consumer. To learn which utility company serves your area, explore our utilities hub.

Buying electricity

How much does electricity cost?

Electricity rates fluctuate based on location, time of year, and energy demand. Last year’s average Texas electricity rate for residential customers was 14.94 cents per kilowatt-hour (kWh), according to the Energy Information Administration. Our marketplace average for last month was 15.3 cents per kWh. Enter your ZIP code to explore current Texas electricity rates in your area.

Why do electricity rates fluctuate?

Electricity rates fluctuate due to changes in wholesale electricity costs. During winter storms or summer heat waves, when electricity is at peak demand, rates can spike suddenly. Because of the variability of wholesale prices, it’s best to sign up for a fixed-rate energy plan. Fixed-rate plans let you lock in a stable rate, protecting you from market changes while you’re under contract.

What is the difference between a fixed-rate and variable-rate plan?

With a fixed-rate plan, customers can lock in a stable energy rate for a specified contract length, typically one to three years. These plans protect you from frequent energy market price fluctuations. While your rate remains the same during your contract, your energy usage will still affect your monthly bill. Fixed-rate plans charge an early termination fee (ETF) if you cancel before your contract ends.

A variable-rate plan offers less protection from price changes but allows more flexibility. Your electricity rate changes monthly depending on the market and energy demand. Rates often dip when demand is low and rise as demand increases. Variable-rate plans don’t require a contract, so you can switch to another plan at any time without paying an ETF.

How do I compare electricity rates?

An easy and straightforward way to compare energy rates from different providers is to use the Choose Texas Power marketplace. We built our free comparison tool to help Texans explore plans and sign up all in one place, cutting out the hassle of checking multiple provider websites.

The Choose Texas Power marketplace is free to use, thanks to many years of cultivating relationships with Texas REPs. Enter your ZIP code on our site or call our experts to compare current Texas energy plans and rates.

Can I choose an energy provider for my business?

Yes, businesses also have the freedom to choose their energy provider in Texas. If you are interested in building a customized commercial electricity plan, fill out our commercial energy form, and a Choose Texas Power team member will get in touch with you.

Are there green energy plans available in Texas?

Many REPs offer green energy plans and purchase renewable energy certificates (RECs) on your behalf to offset your usage and support renewable electricity generation. Enter your ZIP code on this page and filter for green energy plans to find the best renewable options for you.

Will I have to pay a deposit when I sign up for an energy plan?

Energy providers set deposit requirements based on your credit score. If your credit score is lower than the set threshold, you may have to pay a deposit before the provider will begin service. Each REP has different deposit requirements for its customers. Some providers offer no-deposit energy plans, such as prepaid electricity.

Where can I find details about my energy plan?

All your plan details, including information about your energy rate, term length, and additional fees, will be listed in your confirmation email. Additionally, all REPs in Texas are required to provide their customers with an Electricity Facts Label (EFL) that discloses the details of the plan.

If you did not receive a confirmation email, check your junk folder and call the number on this page.

How can I lower my electric bill?

A majority of your electric bill is made up of supply charges, which are calculated by your rate times the kilowatt-hours of electricity you consumed. Your usage is the part of this equation you can control while locked into a plan. Simple changes can make a big difference, such as washing clothes with cold water or changing your thermostat settings. Try some of our suggested strategies to lower your bill, or consider shopping for a less expensive rate when your plan term is up.

Choosing an energy provider

How do I choose an electric company?

There are many factors to consider when choosing an energy provider, including the contract length, rate type, energy price, renewable content, bill credits, and more. For more information on the shopping process, explore our guide to choosing a provider.

Can I choose my utility company?

You cannot choose which utility serves your home because it’s assigned based on location. Your utility will charge a monthly fee (which you can find on your energy bill) for delivering electricity to your home.

Switching energy providers

Which energy provider has the cheapest electricity rate?

Electricity prices vary by location and can change daily. The best way to compare current energy rates in your area is to enter your ZIP code on this page. We’ll show you a list of current energy prices near you, starting with the cheapest rates.

Can I switch to a different energy provider?

Yes, you can switch energy providers in Texas. If you are currently enrolled in a fixed-rate plan, you may need to pay an early termination fee (ETF). Before switching, check your EFL to confirm whether your provider will penalize you.

How do I switch providers?

Once you’ve checked your contract for early termination fees, switching providers is simple. Enter your ZIP code on our marketplace, and we’ll show you electric rates and energy companies in your area. Once you are satisfied with your choice, you can sign up online or give us a call to set up your plan over the phone. A confirmation email will be waiting in your inbox, and your work is done.

Service and outages

Who do I contact during a power outage?

If you experience a power outage, you should contact your utility company. Your electricity provider cannot assist you because the utility is in charge of delivering your power.

Why does my utility charge a monthly fee?

Every utility company charges a fee to deliver electricity to homes and businesses. This fee is regulated by the Public Utility Commission of Texas (PUCT) and cannot be changed. Everyone in your service area pays the same fee for delivery, which is listed on your bill as TDSP or TDU charges.