Texas Electric Choose

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Power to Choose - Electric Choice

The “power to choose” refers to the ability of Texans to select their electricity provider in a deregulated market. It allows residents to compare and select from various retail electricity providers, plans, and rates. This competition promotes better pricing and customer satisfaction. The Public Utility Commission of Texas operates powertochoose.org, providing a platform for Texans to exercise their power to choose their electricity provider. All providers in the state are not listed on that site.

What "The Power to Choose or Electric Choice" Means to You

Since the enactment of Senate Bill 7 on January 1, 2002, Texans have had the “Power to Choose” or “Electric Choice” their electricity provider, thanks to the state’s deregulated electricity market. Instead of being limited to a local utility with no competition, residents can now select from a range of retail electricity providers offering different plans and rates. This increased competition can lead to better pricing and improved customer satisfaction. The Public Utility Commission of Texas operates powertochoose.org, and texaselectricchoice.org two independent websites where Texans can compare electricity rates and plans from various providers. It’s important to note that the rates on the site are regulated and may differ from those on the REPs official websites.

In Texas, Retail Electric Providers vs. Utilities: What's the Difference?

In the electricity market, a retail electricity provider (REP) or supplier sources power from the wholesale market and then resells it to customers, while the utility (TDSP) handles the delivery of energy to your home, monitors energy consumption, and maintains the electric infrastructure. With multiple retail electricity providers in the market, competition is possible, which wouldn’t be possible if a single utility were the only provider of electricity to homes and businesses. Opting for a competitive energy plan can help you save on your electricity bills.

How to Choose the Best Texas Electricity Plan for You?

Texans have the power to choose their preferred electricity plan that caters to their unique requirements with energy choice. Opting for a fixed-rate plan is ideal for those who want to keep their energy expenses predictable as it involves signing a contract and provides a stable price per kilowatt-hour. On the other hand, variable rate plans operate on a month-to-month basis, without any long-term obligations, but the prices may fluctuate. Hence, it’s essential to select the plan that aligns with your budget and preferences. Enjoy the freedom to choose the best energy plan that suits your needs.

Types of Electricity Plans to Choose From in Texas

In Texas, you’ll come across two widely popular types of electricity plans:


Fixed-rate electricity plans:

Fixed-rate electricity plans provide customers with a set price per unit of energy for the duration of their contract, regardless of when the energy is consumed. This type of plan helps protect against sudden price changes due to market demand, seasonality, and other uncontrollable factors. By opting for a fixed-rate plan, you can safeguard yourself from unexpected energy expenses and ensure budget predictability.


Power to Choose - Variable-rate electricity plans:

Texans have the power to choose their preferred energy plan that aligns with their unique needs. Variable rate plans in Texas can be unpredictable, resulting in fluctuating prices per kilowatt-hour during high-demand periods, such as hot summers in Texas. Since these plans operate on a month-to-month basis, it can be challenging to predict or budget for energy costs, leaving you exposed to unexpected and unpredictable expenses. If you prefer stable and predictable energy bills, it’s advisable to consider a fixed-rate electricity plan that offers price stability per kilowatt-hour. With the power to choose, select the plan that best fits your budget and energy requirements

Calculating Electricity Rates: What You Need to Know

To calculate your electricity bill each month, multiply the number of kilowatt hours (kWh) used by the rate per kWh, which is outlined in your provider’s Electricity Facts Label (EFL). Kilowatt hours are a measure of the amount of electricity used by an electric device or appliance in an hour, with one kilowatt equal to 1,000 watts of electricity. Understanding kilowatt hours and energy costs is crucial in managing your electricity expenses, and you can enhance your knowledge further by checking out our “Understanding Energy Costs and Bills” page.

Key factors to consider when looking for an electric company:

  1. Your service area. Due to the vast size of Texas, not every town or city may have access to services provided by a retail electric provider.
  2. Cost per kilowatt hour (kWh). Electricity usage is measured in kilowatt hours (kWh), and your provider will use this metric to share their rate with you.
  3. Fixed-rate plans. By subscribing to a fixed-rate plan, you can secure a fixed price per unit of energy, protecting you from energy price fluctuations caused by market forces, including demand.
  4. Additional costs and fees. Before signing up for energy services, it’s crucial to ensure that your new energy provider discloses all costs and fees associated with their plans. Paying attention to these details can help you estimate your monthly electricity costs and compare them to your current expenses.
  5. Reputation. Performing due diligence is essential when selecting any product, including electricity suppliers in Texas. 

How to Switch Texas Electricity Providers

  1. Examine the terms of your current contract. You have the liberty to switch to a different electricity retail provider whenever you wish, but be mindful that an early termination fee (ETF) might be charged if you make the switch before your present contract ends. To dodge these fees, check your initial contract to determine when you can exit your existing service without facing penalties.
  2. Evaluate your energy needs. Your electricity consumption is influenced by your home’s size and the number of occupants, while gauging appliance efficiency may be more complex. Reviewing your past energy bills can provide insight into your average monthly usage, aiding in a clearer comprehension of your energy requirements. This data is vital for selecting an electricity plan that best fits your circumstances.
  3. For registration, kindly visit our Electric Sign-up page or reach out to us through our toll-free number for assistance from a customer service representative.

Switching Texas Electricity Providers

  1. Review the terms of your existing contract. You are free to switch to a new electricity retail provider at any time, but be aware that an early termination fee (ETF) may apply if you switch before your current contract expires. To avoid these charges, consult your original contract to know when you can leave your current service without incurring penalties.
  2.  Assess your energy requirements. The amount of electricity you use depends on the size of your home and the number of people living in it, while factors like appliance efficiency can be harder to gauge. Analyzing your previous energy bills will give you an idea of your average monthly consumption, helping you better understand your energy needs. This information is crucial in choosing the most suitable electricity plan for your situation.
  3. To sign up, please visit our Residential Sign-up page or contact us via our toll-free number to talk to a customer service representative.

Choosing a New Electricity Provider When Moving in Texas

Texans have the power to choose their preferred electricity provider when moving into a new house or apartment. If your new address falls within the service area of your existing provider, you can continue with your current contract. However, if your new address falls outside their service area, you’ll need to choose a new provider. The process of selecting a new provider is similar to the one described earlier, with one major difference: if you provide evidence of your move, you can cancel your retail electric contract without incurring early termination fees. With the power to choose, select the best provider that meets your energy needs and budget.

Compare Electricity Companies with Just One Click

Although we are not an energy provider, we are your best resource for comparing electricity providers in your area. Utilize our state-of-the-art tools to find the best deal in town, making it as easy as a few clicks of your mouse to begin the process of changing over your electric service.

Texas Electric Choose

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Electricity Rate Guide

With the power to choose, our site offers a limited and distinct choice of electricity rates and plans under the PUC of the State of Texas. It’s important to note that the electric rates provided on our site are for comparison purposes only and are subject to change without notice. The rates are only considered final when a service agreement has been completed with your chosen electricity provider. Additionally, not all cities within our service areas have electric choice, and the pricing is based on rates in each area.

The average price per kWh displayed on our site for each retail electric provider is based on a usage of 2,000 kWh per month and includes fixed and variable local charges. However, it’s important to keep in mind that the price disclosed is an example based on average usage patterns, and your actual average price for electric service may vary based on your electricity usage. All rates displayed on our site are gathered from each provider’s “Electricity Facts Label.”

It’s important to note that electricity service offers may be fixed or variable, with variable rates potentially changing throughout your contract. However, fixed rates are guaranteed for the duration of the contract. Please use our site as a tool to compare plans and rates and select the best option that fits your energy needs and budget. Note that our site is not affiliated with PowerToChoose.org.

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