Find the Best Texas Electricity Rate With the “Power to Choose” Tool

by | Power to Choose

There are pros and cons to Texas being in a deregulated energy market. Energy deregulation has made it possible for energy providers to compete for your business and give you the best Texas electricity rate. The Lone Star state has dozens upon dozens of retail electric providers (REPs) who can provide electricity to households and businesses. 

While Texans are spoiled for choice when it comes to electric plans, the challenge is that you have to wade through a myriad of Texas electricity rates and plans to find one that best suits your needs. The process can become a bit overwhelming. 

Fortunately, the Public Utility Commission of Texas (known as PUC or PUCT) has created the Power to Choose website where you can evaluate and compare electricity providers, electric rates, and electricity plans before committing to a particular company. 

Whether you’re new to Texas, own a business, or simply want to switch electricity providers to save money, the Power to Choose tool will give you all the information you need to make the best decision for your particular circumstances. 

Join us as we show you how to use the Power to Choose tool to find the best Texas electricity rate for your energy usage needs. From Dallas and Fort Worth to Houston and Sugar Land, you can compare electricity plan prices from REPs in the state with the click of a mouse. 

How Can You Get the Best Texas Electricity Rate? 

Before you start meaningfully comparing electricity prices, you need to know your total energy usage. People can waste money by picking a plan that is not suitable for their lifestyle. Electricity plans are based on your usage levels, so you need to know this information. 

The U.S. Energy Information Administration (EIA) reports that the average electricity consumption for a U.S. residence is about 877 kilowatt hours (kWh) per month. Bigger houses and larger families may be closer to 2,000 kWh. You can use these figures as a gauge when choosing your retail electricity provider. Generally speaking, low energy usage is 500 kWh per month, average use is 1,000 kWh per month, and high usage is 2,000 kWh per month. 

Good to Know: The price of your electricity is charged per kilowatt-hour (kWh). Overall, Texas homes consume 26% more electricity than the national average, but that doesn’t mean you can’t find a good Texas electricity rate.  

In addition to knowing what your average monthly usage is, you need to work out what you are paying per kWh. To do this, divide your monthly electricity bill by the number of kWh used. This helps you to determine how much you are currently paying per kWh. 

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Once you have determined your electricity rate, you can use the Power to Choose tool to browse available electricity plans. This tool presents all the necessary details from a particular electricity provider, including: 

  • Price per kWh 
  • Type of rate fixed (unchanging over a set period of time, regardless of usage), variable (changing rate depending on either a defined time period or amount of usage), or indexed (priced based on fluctuating hourly rates of available electricity) 
  • Contract length (e.g., one month, one year, three years, etc.) 
  • Energy source breakdown (e.g., the percentage of electricity that comes from renewable energy sources) 
  • Cancellation fees or early termination fees 

With this tool, you can compare different energy providers and narrow down your search to those with the best electricity rates and plan terms that suit your needs.  

How Does the Power to Choose Save You Money? 

Power to Choose Saving You Moneysource

The best way to lower your energy costs and save money is to compare electricity rates from competing energy providers. Power to Choose allows Texas residents to do just that. 

It’s good practice to evaluate your electricity rates regularly. If you have an annual contract, start comparing rates a month or so before your term is up. Check with your current provider to find out if there will be any price increases if you renew your contract. If you are on a month-to-month plan, you can easily evaluate your rates every month by using the Power to Choose platform. 

You can sometimes save hundreds of dollars by switching service providers. All too often, an energy provider will take the end of a contract as an opportunity to increase the electricity prices it’s charging you. If the company can’t match low rates from other providers you find on Power to Choose, it could be time to switch to a new electricity company. 

Good to Know: Check out our guide on electricity companies and costs to decode the energy landscape in Texas.  

It’s not difficult to switch providers, so don’t let the process stop you from shopping around for the best Texas electricity rate. You could literally be saving money within minutes. 

 

Things to Remember When Switching Energy Providers 

  • Energy providers must notify you in writing at least 30 days or one billing cycle prior that your contract expiring. Some energy plans allow you to arrange your next contract two months before your current contract ends. This allows you to plan ahead without feeling overwhelmed.  
  • If an energy company offers an electricity rate that is low enough, it could make the penalty you pay for canceling a contract worthwhile. 
  • No matter who your retail electricity provider is, they all use the same poles and wires managed by your local Transmission and Distribution Utility (TDU). The TDU charges a fee that is reflected on your Electricity Facts Label (EFL). Texas electricity providers have no influence on this fee as it is passed on by the company that manages your power lines, meters, and power outages. Their charges are simply reflected on your electric bill sent by your energy provider. These charges are sometimes subject to adjustments due to regulatory changes. 

Power to Choose Texas: A Guide for Texas Electricity Rates

 

Power to Choose Instructions: Step-by-Step 

Power to Choose Instructions | Chart Screenshot

 All energy providers are allowed to list their electricity plans free of charge and the Public Utility Commission does not promote one retail electricity provider over another. You can rest assured that the results on the official website of Power to Choose are unbiased and comprehensive. 

For our example, we entered the Houston ZIP code of 77005. If you enter your ZIP code and no results are found, you are not in a deregulated energy market and cannot choose your provider. However, most Texans will be able to use the tool. 

The results on the platform are neatly presented in a table of columns that include: 

  • Company: This includes the company name, history, and customer star rating 
  • Plan Details: Name of the plan, rate type (fixed, variable, or indexed), contract length, percentage of renewable energy, and any new customer incentives 
  • Price per kWh: This lets you know your rate based on 500 kWh (low usage); 1,000 kWh (average usage); and 2,000 kWh (high usage) 
  • Pricing Details: This includes any cancelation fees and links to the Electricity Facts Label (EFL) which appears as Fact Sheet and the Terms of Service.  

With this free platform, the Public Utility Commission of Texas hopes to help consumers make an “apples to apples” comparison of offers from various energy providers.  

You can filter your results by using the sidebar by area, type of plan, average energy usage, retail electricity rate, and more. This makes it easy to narrow down the choices. 

Start by entering your ZIP code on the Power to Choose homepage. The tool will automatically search for plans for your service area.  

Narrow Your Search 

If you are in a rush, click NARROW YOUR SEARCH to speed up the process. This brings you to three questions regarding your average monthly use, plan types you are interested in, and contract length. To help you out, there are even facts on the side to help you answer your questions. By answering these questions, you can further focus your search to find a Texas electricity rate and plan based on your requirements.  

View Results 

If you would like to review all the plans in your area, click VIEW RESULTS and continue. You can sort through the results based on price per kWh, company, or renewable energy percentage.  

Estimated Use 

On the left side of the page, you can refine your search based on your estimated monthly energy consumption. A small apartment does well with 500 kWh while an average household would be best at 1,000 kWh.  

Contract Length 

You can also choose your contract length. Shorter plans allow you more flexibility to switch but it only guarantees your energy rate for that length of time. A longer contract term locks in your rates but may subject you to a cancelation fee if you decide to end your contract early.  

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Pricing and Billing 

This option enables you to view plans that have no recurring fees included in the average per/kWh rate. It also excludes plans that change its per kWh rate based on the amount of energy consumed.  

Plan Type 

This option allows you to choose between fixed rates, variable rates, and indexed rates. As a reminder, a fixed-rate plan charges the same rate per kWh no matter how much electricity you use. A variable-rate plan changes its per kWh rate every month. (Your provider has to publish next month’s rate to tell you what rate you will be paying.) An indexed-rate plan is similar to a variable-rate plan. The difference is the formula where indexed-rate electricity is reliant on various factors such as the cost of natural gas 

Prepaid Plans 

Prepaid plans offer a pay-as-you-go service and usually don’t involve a credit check. These plans require close monitoring to avoid having your service disconnected.  

Time of Use Plans 

Opting for a Time of Use plan allows you to enjoy certain incentives such as free nights of electricity. The average prices for these plans depend on energy usage during discounted and undiscounted times. As such, your monthly electric bill will vary every month.  

Company Rating 

Select plans according to ratings. This is a feature unique to Power to Choose where customer satisfaction is indicated according to the percentage of official complaints made to the PUC. 

Renewable Energy 

You can select what percentage of your electricity you would like to come from renewable energy sources such as wind, solar, hydroelectric, geothermal, and more, as well as from which company. 

Electricity Companies 

If you have a preference for specific energy companies, you can select a specific energy provider to only see plans from the particular electric provider. 

Once you have completed all these steps, click REFRESH RESULTS, to see the suggested electric plans for your unique needs.  

You Have the Power to Choose on Your Own Terms 

Power to Choose Electricity Texas | Happy Workersource

While the Power to Choose tool provides the necessary information to choose the best Texas electricity rate, the responsibility is on you to read the small print before entering into any agreement. Make sure that you are getting the electric service you need on your own terms. 

If you’re still feeling overwhelmed with choosing your local provider, Tara Energy could be the one for you. Here at Tara Energy, we offer green energy plans that help you become a money saver and planet saver. Customers have the option to add renewable energy for only $9.99 per month, which gives you up to 100% green energy to power your lifestyle.  

We also have an Advanced Metering option that enables you to track your energy consumption by the hour. Talk to one of our helpful customer service experts to see if making the switch to one of Tara Energy’s Texas electricity plans is the right option for you. 

The Power to Choose | FAQ’s – Your Questions Answered

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