The power to choose your retail electricity provider is a freedom that Texans hold near and dear. Whether you’re looking to save money with a cheap Texas electricity rate, or support green energy initiatives, there are dozens of electric companies fighting for your business. Some of them even offer prepaid plans that allow you to pay as you go. Getting the best Texas power plan for your unique needs is possible when you know what to look for and how to navigate the market.
Before the deregulation of the Texas electricity market, residents were required to purchase their power directly from their local utility. However, when the market was deregulated, it allowed retail electricity providers to enter the marketplace. These companies purchase electricity on the wholesale market, then sell it to residential and commercial customers. This allows for competition that can drive down rates, spur the creation of new electricity plans, and result in better customer service.
When deciding which Texas power plan to choose, many consumers focus on finding the lowest electricity rates. This is understandable, since lowering monthly expenses will result in significant savings over time. However, there are other factors to consider as well. For example, some people may prioritize a plan with a higher percentage of renewable energy, or they might prefer to work with a company that offers outstanding customer service.
Fortunately, the best way to find the right Texas power provider for your home or business is to compare options online. The Choose Energy marketplace allows you to do just that, with a single tool that lets you enter your zip code and search for retail electricity providers in your area. You can also read provider reviews, browse a variety of Texas electricity rates, and sign up for a plan all in one place.
Not all areas of Texas are open to competitive energy, though. If your home or business is served by a municipally owned utility or an electric cooperative, you won’t be able to switch providers. This is because the legal structure of deregulation only makes it mandatory for investor-owned utilities to participate, but not for municipal utilities or electric cooperatives (co-ops).
The ERCOT website can help you determine whether you live in an area that’s eligible for retail energy choice. If you do, the process is simple. Just provide proof that you’re moving to a new address, and your current retail provider will transfer your contract to your new location. Just make sure to keep your existing Electricity Facts Label (EFL) in order to avoid any early termination fees. This is a document that provides details on your energy use, average rate at various usage levels, green energy content, and any cancellation fees.
