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Electric Companies in Houston

Updated: 11/04/2022

In terms of which cities in the United States have the most electric companies, Houston is at the top of the list. Houston is known for being America's capital when it comes to space travel, but it's also known as the energy capital of the US.

Part of the reason that so much electricity is produced in this city is because of the many electric companies in Houston. Not only are there power generating plants that create electricity, but there are also more than 130 retail electric providers who sell it to customers throughout Texas. If you're curious about what type of electric companies there are in Houston and how to choose the best one, you've come to the right place.

Who is the Best Electric Company in Houston?

Because of how many different types of electric companies there are in Houston, it's tough to put your finger on which one is the best. In truth, choosing the best electric company in Houston all comes down to your personal needs. The best REP for your friend or neighbor might not have the best plan for you.

For example, if you have a family member that's married with four kids and you're a single person living alone, you're going to want completely different electricity plans and possibly different companies. The best company for you all comes down to the plans, perks, benefits, and pricing structures that they offer.

Who Provides Electricity to Houston Texas?

While it's up to you to determine who the best electric company in Houston is for you, here are a few of the top ones based on product offering, customer satisfaction and reputation

Rhythm Energy

Rhythm is one of the newer retail electric providers in Houston, but they're making quite a splash. They offer electricity plans that operate on 100% renewable resources such as wind and solar power.

TXU Energy

One of the biggest and most popular REPs in all of Texas is TXU Energy. They have a wide variety of plans to accommodate most situations, and they have competitive prices.

Constellation

Constellation is another energy giant that has competitive plans and prices. They also offer a wide range of perks and benefits including a rewards program when you refer customers to them.

GoodCharlie Energy

The newest retail electric provider on this list is GoodCharlie Energy, and they're also one of the most unique. Their goal is to make Texas the best state for a dog to live and they're partnered with several rescue shelters. Many of their perks and benefits are also geared towards pet owners, including an emergency pet fund, 24/7 emergency video vet access, and more.

Reliant Energy

Along with TXU, Reliant Energy is perhaps the largest retail electric provider in Houston and Texas at large. The thing that sets Reliant apart from the competition is its outstanding customer service and response time to power outages.

While these are five of the top electric companies Houston has to offer, there are dozens more to choose from.

What Type of Electric Companies Are There in Houston?

While there are hundreds of electric companies in Houston, there are only three different types of companies.

Power Generators

Power generators are the companies that create electricity from another resource and make it available for use to residential and business customers in Houston. These companies include those that create electricity from solar power, wind power, nuclear power, or fossil fuels. Houston is noteworthy for receiving over 90% of its electricity from renewable resources.

TDUs

Transmission and distribution utility companies, TDUs, are the electric companies that make sure electricity gets from the power generating company to your home or business. They manage the wires, cables, poles, and meters that carry electricity, and there are only six different TDUs in all of Texas. CenterPoint is the TDU that serves most of Houston.

REPs

REPs, retail electric providers, are the electric companies that you purchase electricity from. They're also the company to whom you pay your monthly electric bill. While you can't choose your own power generating plant or TDU, you can choose your REP if you live in Houston. Choosing the right REP can save you hundreds of dollars per year when you use ElectricityRates.com to compare plans.

Why Are There So Many Electric Companies in Houston?

If this is the first time you've had to choose an electric company and plan in Houston, you're probably wondering why there are so many. The reason there are so many electric companies in Houston is because of deregulation.

Deregulation happened in the early 2000s and affects over 80% of Texas. Essentially, deregulation means that the electricity market in most of Texas is deregulated, which means that the state and government don't control it. It turned electricity into a resource to be bought and sold by private companies for a profit. Here's how the process works.

    1. Power generating plants create electricity.
    2. Retail electric providers buy this electricity from the plants that created them at wholesale value.
    3. Retail electric providers sell the electricity to residential and business customers at a resale value to turn a profit.
    4. TDUs make sure the electricity makes it to your home or business in a timely and uninterrupted manner.

Because of the complex and competitive nature of electricity, there are hundreds of different electric companies in Houston.

How to Find the Best Electric Companies in Houston

Even if you know the type of plan you want, the benefits you're looking for, and the type of company you want to enroll with, the hard work is just beginning. If you live in Houston, finding the best electric company can be difficult, you have dozens, if not hundreds of electricity plans to sift through. That's where ElectricityRates.com comes in.

We're an electricity plan comparison and our only goal is to make finding your next electricity plan as easy as possible. Tiler, Your AI-Powered Rate Assistant is the best way to compare Texas electricity rates and find the best plan for your needs. With Tiler, you can get a personalized recommendation tailored to your home and preferences, which makes it easy to find a plan that fits your usage and needs. Electricityrates.com is also a great resource for finding the best electricity rate comparison tools in the state of Texas.