Everything you need to know about selecting an electricity plan in Texas
The deregulated energy market in Texas is a boon to its residents. Here, you are at liberty to choose the electricity generator as well as the supplier. You can choose a provider who offers the cheapest electricity rates in Texas. However, you can also opt for a company that gives better customer service instead of the cheapest electricity rates in Texas. You can also opt for companies that provide a certain percentage of renewable energy. If you are conscious about the environment, you may want 100% of your electricity to be drawn from renewable power producers like TXU Energy. This choice is available to you since Texas is a state where renewable energy makes up for about 18% of the total energy production. However, to select the best retail energy plan, you need to have a fair idea about the places in Texas where you have the authority to choose your energy provider because roughly 15% of the state still receives electricity from a fixed electricity company.
In what parts of Texas is electricity deregulated?
- About 85% of Texas receives deregulated electricity, including areas in southern, eastern, and western Texas. So you can get the cheapest electricity rates in most of the big cities in Texas, including Houston and Dallas.
- However, places like San Antonio, Galveston, etc. do not receive deregulated electricity.
What should one do before selecting an electricity plan?
- First, you need to select a TDU, i.e., Transmission and Distribution Utility. TDUs are the companies who procure electricity from the companies that generate it.
- You need to know which TDUs sell electricity in your area.
Which energy companies sell electricity in Texas?
- Texas has 5 TDUs that sell electricity at the cheapest rates. These companies are AEP, CenterPoint energy, Sharyland Utilities, Oncor, and TNMP.
- AEP provides electricity only in Central and North Texas.
- These companies have contracts with different energy generators in the Texas area such as 4Change Energy, TXU Energy, Direct Energy, Champion energy, Pennywise Power, Reliant energy, Bounce energy, etc.
- Most of these TDUs supply electricity from local power producers. However, most TDUs don’t leave you with much choice when it comes to deciding the power generator. You may not get to choose specific energy generators if you engage with some TDUs.
- For instance, if you wish to opt for Bounce Energy, you don’t have any option but to ink an agreement with Oncor.
How should one select the best electricity plans in Texas?
- The first step is to select a plan from a TDU. There are plans offered by all five TDUs, and each plan is linked with a different power generator. So you can choose power generators like 4Change Energy, TXU energy, Pennywise Power, Direct Energy, and Champion Energy if you want to procure electricity from CenterPoint. Each of these generators charges a different rate, though they don’t vary too much.
- The rates of Direct Energy and Champion Energy are higher than the electricity prices offered by cheap electric companies in Texas.
- However, if you ink a contract based only on the prices, you may not do justice to the system of deregulation.
- There are other factors that you need to take into account. Some plans provide more features and apps that help consumers plan their energy consumption better. They may also have 24-hour customer service.
Whom should you contact in case of apower outage?
- Even though you procure the energy from the electricity generating company, you need to call the transmission and distribution company with whom you have inked a contract.
- TDUs are responsible for the upkeep of the transmission and distribution system.
What type of electricity rates should one choose?
- To get the cheapest electricity rates in Texas, you need to choose your energy plans wisely.
- Users can choose from a wide range of options depending on the types of rates, prices, TDUs, and the generating companies.
- Energy companies provide different types of rates like variable rates, fixed rates, indexed rates, green rates, etc.
- In a prepaid rate system, you have to prepay the entire amount. In case you have a bad credit history, you can go for this option.
- Choose a plan and TDU that suits you depending on the reliability, service, and rates offered.