Everything‘s bigger in Texas, so they say, and that‘s true when it comes to Texas electricity providers too. There are many electricity providers in Texas, which means many Texas electric companies to choose from.
For many Americans, your list of available electricity providers begins and ends with your local utility. However, Texas has a deregulated energy market, which means no single Texas electric provider can dominate the market.
In fact, in the Lone Star State, Texas electricity providers compete for your business. Because there are so many options, you have the ability to shop for electricity providers in Texas.
Naturally, if you’re shopping for something you’ll want to know what the best option is. We’ll walk you through all of that, so you’ll know more about the best electricity providers in Texas — and how you can get the perfect electricity plan for your home or business.
Why Are There So Many Texas Electric Providers?
First things first, let’s figure out why there are so many Texas electric providers, when most states only have a handful of electric companies.
In 1999, the state of Texas deregulated its energy market. In regulated markets, customers typically have just one electric company to choose from. However, deregulation means that most Texans have plenty of choices for their retail electricity providers (often abbreviated as REPs).
How Many Electric Providers Are There in Texas?
There are more than 100 Texas electric providers, according to the Public Utility Commission of Texas (PUCT). All of these retail electricity providers cover different service areas, so depending on where you live, you’ll have a smaller subset of these electricity providers in Texas from which to choose.
How Can I Make a Texas Electricity Provider Comparison?
Now that we’ve learned just how many electric providers there are in Texas, it’s time to figure out the best way to compare them.
Texas electric companies are all different, and there are a number of things to look out for as you’re trying to pick the right one for your business or household. Here are some of the best ways to make that Texas electricity providers comparison.
Read Electricity Facts Labels
One of the best ways to quickly get an idea about the kind of service you‘ll receive from your local Texas electric company is to read their Electricity Facts Label.
Every electric provider in Texas is required to produce an Electricity Facts Label to customers upon request. This label is standardized, and provides a wealth of information that can help you make an “apples to apples” comparison between Texas electricity providers.
You can think of the Electricity Facts Label like the nutritional information you might find on your cereal box. In this case, the label provides the customer with the contract length the Texas electricity provider is offering, the electricity rate they charge, information about how that Texas power company generates their electricity, and information about the REP’s emissions compared to the Texas state average.
If you’re trying to decide between a number of different electricity providers in Texas, comparing their Electricity Facts Labels is a great place to start.
Compare Electricity Rates
Shopping for the best electricity rate is relatively simple: Everything else being equal, you’ll want to choose the lowest energy rate for your home or business, because that will mean the lowest energy bill at the end of the month.
Compare Contract Lengths
Don’t forget to consider the length of the contracts on offer from your local Texas energy providers. Whether you’re operating a business or you’re a residential customer, the length of the contract can end up being important down the road.
This is because many Texas energy providers will charge you an early termination fee if you cancel your electricity service before the end of your contract.
If you know that you’re not going anywhere for a while, a longer contract length might not be an issue. On the other hand, if you’re considering moving from, say, Dallas to Houston later this year, signing a long contract could be setting yourself up for a termination fee.
Compare Electricity Plans
We mentioned before that Texas retail electricity providers have to compete for your business, thanks to deregulation. One of the ways these different Texas electric companies try to set themselves apart from the rest is by offering attractive electricity plans to their customers.
Most of the information about these electricity plans is easy to understand, but we can walk you through some key terms to look out for, and explain to you what they mean.
Fixed Rate Plans
Fixed rate energy plans are the easiest to understand, because they tell you up front the single rate you’ll be paying for your electricity for the duration of your contract.
Fixed rate plans are good for those of us who like to know what we’re getting: You can have a better idea what your electric bill will look like with a fixed rate plan, because the only thing that it’ll depend on is your monthly electricity usage.
Variable Rate Plans
Variable rate plans are an interesting alternative to fixed rate plans, because they charge the customer a different Texas electricity rate depending on market conditions.
If electricity supply is particularly high, or demand is particularly low, then variable rate plan customers are in luck! They’ll pay a lower than average amount for the energy they use during these times.
Conversely, if energy demand spikes, or the electricity supply is disrupted (outages being one possible disruption), then variable rate plan customers will pay a higher than average amount for their power.
There’s more risk to variable rate plans, which should be taken into account when choosing them.
Free Nights Plans
Some Texas retail electricity providers offer free nights plans to their customers. These plans are great! With a free nights plan, customers aren’t charged for the energy they use during the evening.
Some electric providers in Texas will also offer a free weekends plan, which operates the same as a free nights plan: Customers aren’t charged for their energy usage over the weekend.
Both free nights and free weekends plans are great examples of the kind of innovative electricity plans Texas providers have had to come up with to compete for business in the deregulated energy market.
Renewable Energy Plans
If you’re a customer that’s concerned about where and how your electricity is generated, then you might be interested in renewable energy plans. Typically offered for a surcharge, renewable energy plans provide homes or businesses with power generated from renewable energy sources.
What Is the Best Way to Shop for Electricity Providers in Texas?
Comparing Electricity Facts Labels is a great way to make the “apples to apples” comparisons between Texas electricity companies, but there’s another tool that makes shopping for energy providers in Texas a breeze.
PowertoChoose.org is a website set up by the Public Utility Commission of Texas (PUCT) that allows Texans to quickly look up the best electric companies in their area, and compare those energy companies, their energy rates, and their different electricity plans.
Because you already know what to look out for as you shop for Texas energy providers, all you have to do now is navigate to the PowertoChoose.org website and enter in your zip code. You’ll then be provided with a comprehensive list of your options. Easy!
Who Is the Best Electric Provider in Texas?
We’ve saved the most frequently asked question for last: Who is the best electric provider in Texas?
There are a number of Texas electric providers that serve many satisfied customers across the Lone Star State. In no particular order, here’s a quick run-down of some of the options available to Texans: Just Energy, TXU Energy, Reliant Energy, Gexa Energy, Amigo Energy, Green Mountain Energy, Constellation Energy, Oncor, Tara Energy, Discount Power, Pulse Power, Reliant Energy, Direct Energy, NRG, and Trieagle Energy.
The best electric provider in Texas will depend on you, though: where you live, the kinds of electricity plans you’re interested in, and the value you place on customer service.
Talk to your friends and neighbors to get an idea of who they think the best electricity provider in Texas is. A recommendation from someone you trust can be a great way to find the best electric provider in Texas for you.
Online reviews are another great way to look for the best electricity service providers in Texas near you.
Finally, consider how long your local Texas electricity service provider has been serving customers in your area. Tara Energy has been providing their customers top-notch electricity and customer service for more than 20 years. If that’s something important to you, then Tara Energy could be the best electric provider in Texas for you.
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You’re Ready to Shop!
At this point, there’s not much more you need to know in order to shop for the best Texas electricity near you. Whether you’re looking in Fort Worth or Arlington, Corpus Christi or Dallas, you’re ready to make the right choice.
You know how to compare Texas electric providers, how to compare electricity plans, the importance of contract lengths and service areas, and the names of some of the best electricity providers in Texas.
If you’d like to learn more about energy, or how to effectively shop for electricity in Texas, head over to the Tara Energy blog. You’ll find plenty of resources there that can help you make the best decisions about your Texas power for yourself, your business, and your family.
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