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How to Find a Cheap Electricity Company in Dallas, TX

Written By: Jesse Shaver

Last Updated: 03/27/2023

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When choosing an electricity company, most people first consider the price. Nobody wants to overpay for their utilities. Most people think that by looking at the listed rate, they can tell a cheap electricity company in Dallas, TX, from an expensive one. However, while this sounds good in theory, the process is often much more complicated, and you need to look at more than just the rate when choosing a Dallas electricity provider.

Who are the Cheapest Electricity Companies in Dallas, TX?

Dallas, like many other cities in Texas, has deregulated electricity. Because of this, every electricity company providing power to Dallas can set their own rates and structure plans however they please. As a result, the cheapest electricity company today might not be the cheapest tomorrow.

In general, Frontier Utilities and 4Change Energy are two of the cheapest electric companies in Dallas. They typically have plans with rates that are less than 12 cents/kWh, far below the Texas average. While other REPs have the option of offering competing rates, many of them don’t and try to entice customers in different ways.

What to Consider When Choosing a Cheap Electric Company in Dallas, TX

In addition to the listed rate on your plan, you should also look at a few other things when choosing a cheap electric company in Dallas, TX.


The reputation of a REP is one of the most important things to consider when selecting a cheap electric company in Dallas, TX. As with all things in life, reputation is everything. It’s much better to pay several cents more per kWh for electricity and choose a reliable plan from a reliable company than a cheaper one from an unreliable REP.

Perks and Benefits

Next, you should look at a company’s list of perks and benefits. Because of the stiff competition, most REPs will offer several bonuses when you sign up for their plans. This could mean free electricity, a smart thermostat, or even gift cards!

Hidden Fees

While most REPs offer perks and benefits, they also have hidden fees built into their plans. Hidden fees include early termination, overuse, late payment, underuse, and restart fees. Let help you choose your electricity plan to avoid these unwanted payments.

Electricity Facts and Labels Sheet

If you want to find all the information listed above and much more, you should always check the electricity facts and labels sheet (EFL) attached to your plan. The EFL will tell you everything you need to know about an electricity plan and will serve as an excellent guide as you’re making your decision.

Does a Low Rate Always Mean Cheap Electricity?

You need to look at more than just the rate when choosing a cheap electric company in Dallas, TX because a low rate doesn’t always mean cheap electricity. As we said before, electricity companies can structure plans however they please. This means they can use something known as tiered rates when they set up their plans.

We’ll give you a detailed description of tiered rates in the next section. Suffice it to say, however, that tiered rates are based on electricity usage and allow REPs to charge more than the listed rate on the plan.

How Do Tiered Rates Work?

As we said before, tiered rates are one of the biggest things to watch out for when choosing a “cheap” electric company in Dallas, TX. Tiered rates are based on electricity usage and allow power companies to charge different rates depending on how many kWh you use. Here’s how tiered rates work with electricity plans.

Tiered Rate Example

Let’s say you see an electricity plan advertising an electricity rate of 10 cents/kWh. This would make the plan nearly four cents cheaper than most other plans in Texas, which seems too good to be true. Unfortunately, that’s probably because it is.

While the plan has a listed rate of 10 cents/kWh, this rate is based on using a minimum of 2,000 kWh of electricity. Unless you have a large home with lots of family members, there’s a good chance you’ll never use that much power.

What you don’t see on the electricity plan is the rate you’ll pay when you use less than 2,000 kWh of electricity. If you use between 500 and 1,000 kWh, you’ll pay 25 cents/kWh, and if you use between 1,000 and 2,000, you’ll pay 15 cents/kWh. Here’s how the plan is actually structured.

As you can see, your rate jumps substantially depending on how much electricity you use. For that reason, you must check your EFL for details about the tiered rates of a specific plan because every plan is different.

How to Find a Reliable, Cheap Electricity Company in Dallas, TX

Even if you know the type of plan you want, the benefits you’re looking for, and the company you wish to enroll with, the hard work is just beginning. If you live in Dallas, you’ll still have dozens, if not hundreds, of electricity plans to sift through. That’s where comes in.

We’re an electricity plan comparison company, and our only goal is to make finding your next electricity plan as easy as possible. All you need to do is go to our website and enter your ZIP Code into the free rate comparison tool at the top of the page, and we’ll display all of the plans you’re eligible for. We lay out each of these plans in a way that’s easy to read and understand, making it easier for you to make the right choice.

While it will still be up to you to choose and monitor your plan, we make the process as easy as possible. In addition to the rates of each plan, we also display the fine details, electricity facts label sheet, and overall reviews of the company in question. Using us to help you choose your next electricity plan, you can save hundreds of dollars annually! Dallas, TX Location

  • Address: 2919 Commerce St, Dallas, TX 75226
  • Phone: (972) 585-7858