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Texas Energy Choice: What is It, and How Does It Work?

Written By: Jesse Shaver

Last Updated: 01/24/2024

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Depending on where you live in Texas, you may have the chance to choose your own electricity provider. This right, known as Texas energy choice or power to choose, applies to more than 80% of Texas, including Dallas and the surrounding area. If you’re curious and want to know more about Texas energy choice and how it applies to you, you’ve come to the right place.

What is Texas Energy Choice?

As the name implies, Texas energy choice refers to the fact that you have the power to choose your own electricity plan and provider. Also known as the Power to Choose, Texas energy choice came about in the early 2000s when the Texas government decided to deregulate its energy and electricity market.

Prior to this act, known as deregulation, electricity rates, and companies were regulated by the state and federal governments. As a result, all of the electricity companies in Texas were owned and controlled by the government. Additionally, everyone in Texas had to sign up for a plan with whatever company happened to operate in their area.

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Best Electricity Rates
ProviderPlan NameLengthRate Per kWh
At 1000kWh avg. usage
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4Change Energy
PUCT #10041
Maxx Saver Select 24
24 Mo.10.5¢Select
4Change Energy
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Maxx Saver Select 12
12 Mo.10.5¢Select
Frontier Utilities
PUCT #10169
Frontier Saver Plus 12 Plan
12 Mo.10.5¢Select
Rhythm
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Simply Select 6
6 Mo.13.2¢Select
Constellation
PUCT #10014
12Mo Usage Bill Credit + A/C Protection
12 Mo.13.9¢Select
PlanRate Per kWh
At 1000kWh avg. usage
4Change Energy
Maxx Saver Select 24

24 Months
10.5¢
Select
4Change Energy
Maxx Saver Select 12

12 Months
10.5¢
Select
Frontier Utilities
Frontier Saver Plus 12 Plan

12 Months
10.5¢
Select
Rhythm
Simply Select 6

6 Months
13.2¢
Select
Constellation
12Mo Usage Bill Credit + A/C Protection

12 Months
13.9¢
Select
  • 100% Renewable Sources
  • A/C Protection Included
See All Plans

How Does Texas Power to Choose Work?

When deregulation took place in the early 2000s, it turned the electricity market in much of Texas into a highly competitive one. Almost overnight, dozens of new electricity companies opened their doors and started buying and selling electricity to Texans. Deregulation, in addition to giving anyone the right to start their own power company, also introduced the Power to Choose.

Power to choose means that you can choose your own electric company if you live in a deregulated part of Texas. This is important because each power company can establish its own rates and set up its plans however they prefer. As a result, there are more than 120 REPs in Texas, many of which operate in Dallas and the surrounding area.

While the power to choose is great because it gives you freedom and flexibility about who your REP is, it has also resulted in a confusing, highly competitive electricity market.

Does Texas Energy Choice Apply to All Electricity Companies?

It’s important to note that Texas energy choice in Dallas only applies to retail electric providers (REPs) and not to other electricity companies. This includes power generators, which are the companies that create electricity, and utility companies, which are the companies that ensure the safe delivery of electricity to your home or business.

Because you can’t choose your own utility company or power generator, it has an effect on your retail electric provider. Although they can determine their own electricity rates, the rate will get impacted by how much the local utility company charges and how much the power generator charges them for purchasing the electricity. So, while Texas energy choice means that REPs can set their rates, they’re still impacted by external forces.

Deregulated Texas Utilities Map

What Does Texas Energy Choice Mean For Me?

Texas energy choice in Dallas means you can choose the perfect electricity plan and provider for your needs. Making the right decision can lead to massive savings that you can use in other areas of your life. Enter your ZIP Code into the free rate comparison tool to get started!

Texas Energy Choice: The Pros and Cons

While Texas energy choice has a lot of great qualities, not everyone thinks it’s a good idea. Here are some of the pros and cons that the power to choose has led to.

Pros

  • You have more liberty and freedom when it comes to your utilities.
  • You can choose an electricity plan with a low rate to save you money.
  • There are different types of electricity plans depending on your preferences.
  • It has led to a surplus of electricity companies that use renewable resources.
  • You can choose an electricity provider with values that match your own.

Cons

  • Before the power to choose, people didn’t have to put any thought or effort into their electricity plan.
  • Selecting the right company can take hours or days because of how many options there are.
  • While the power to choose can save you money, it can also lead to unexpected costs when you choose the wrong plan or provider.
  • In certain areas, the power to choose has led to higher electricity rates on average.

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How to Use Power to Choose to Your Advantage

The best way to use the power to choose to your advantage is by choosing the best electricity provider in Dallas. If you want to do that, your best bet is to utilize the electricity comparison services of ElectricityRates.com. We help you compare all of the best plans and companies in your area. You know your electricity needs better than anyone, so we want to provide you with all the details you need to make an informed decision. Here’s how it works.

  • Our intuitive search engine shops for the best rates based on your exact home address, location, home size, and actual usage.
  • A list of all the electricity companies in your area will pop up, giving you a personalized list of plans tailored to your home.
  • You can go through the list of plans and check things such as the listed rate, the tiered rates based on usage, your estimated bill, the REPs reputation, hidden fees, perks and benefits, and anything else you need to know about the plan.
  • Once you find the plan you like, you can select it and enroll immediately.
  • There won’t be any service interruptions while we switch you from your old plan to the new one.

When choosing the best electricity plan in Dallas, ElectricityRates.com is the way to do it. All you need to do is enter your ZIP Code into the free rate comparison tool at the top of the page to quickly see all the top plans in your area. From there, you can choose the right Dallas REP in minutes rather than hours or days.

ElectricityRates.com Dallas, TX Location

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