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Which Houston Power Company is Right for Me?

Updated: 02/28/2023

There are more power companies in Houston than in any other part of the state. For this reason, Houston is considered the energy capital of North America. As such, Houston is the place to be whether you’re referring to retail electric providers, power generators, or utility companies.

However, Houston is especially popular when it comes to retail electric providers. The city offers plenty of space, land, and opportunity for anyone and everyone who wants to start their own REP. Because of the many options, it takes time to know which Houston power company is right for you. If you need help finding the right Houston power company, enter your ZIP Code into the free rate comparison tool at the top of the page, and we’ll help you in your search!

Why are There so Many Houston Power Companies?

Aside from Alaska and California, Texas has more land mass and people than any other state in the country. Its size, population, and land diversity make it the ideal place to set up shop as a REP. While many cities in Texas would make a suitable spot to start a power company, Houston is the best, and here’s why.

Energy Capital of North America

As we said before, Houston is the energy capital of North America and the world at large. There are more than 1,100 companies that service the oilfield, over 600 energy production firms, and just under 200 oil pipeline transportation establishments in Houston. Additionally, most of the 130+ retail electric providers in Texas have their headquarters in Houston.

Finally, more than 3 million engineers and workers call Houston and the surrounding area home because of how popular electricity and energy are in Houston. Truly, in every aspect across the board, Houston is the energy capital of the world.

Access to Electricity

Thanks to the massive number of workers and companies operating in and around Houston, REPs have ready access to electricity. This ready access makes it easier to form a startup and start buying and selling power.

Great Location

In addition to being an excellent location for buying, selling, creating, and working with electricity, Houston is a great city. You can easily access the Gulf of Mexico, oil fields, shipping lanes, transportation, and everything else you need to buy, sell, and produce electricity. Aside from natural resources, Houston is also an excellent location for generating electricity from the sun, wind, and water.


The main reason there are so many Houston power companies is because of deregulation. Deregulation took place in Texas in 2002 and effectively turned the electricity market into a competitive market. Rather than having electricity prices regulated by the government, deregulation turned them into a free-for-all.

In addition to unregulated prices, the companies themselves were also deregulated. This means that anyone with the means and desire can start their own Houston power company and start buying and selling electricity as they please.

Who is the Best Houston Power Company?

Because there are thousands of gas, oil, and electricity companies and more than a hundred REPs in Houston, it’s tough to say who the best Houston power company is. This is especially true regarding REPs because everyone’s needs and situations differ. For example, if you need a prepaid or flat-rate electricity plan, you’ll need to go through a different Houston power company than you would for a fixed or variable-rate plan.

Additionally, every Houston power company can establish its own rates, plans, and pricing structures thanks to deregulation. These rates and plans are subject to change anytime, especially if you sign up for variable-rate or prepaid plans. As a result, the best Houston power company varies depending on your needs, lifestyle, household size, income, and other factors.

What to Consider When Choosing a Houston Power Company


Every Houston power company is only as good as the reputation that accompanies it. No matter how good the plans they’re offering or how tempting the perks are, you should only sign up for an electricity plan with a Houston power company of good rapport. When you use to compare plans, we show you every company’s ratings and reputation.

Perks and Benefits

Perks and benefits are other things that set REPs apart from others. While most power companies will offer incentives, you should make sure these incentives benefit you. At, we show a comprehensive list of perks and benefits with every plan in our database.

Hidden Rates and Fees

Electricity companies like to sneak hidden rates and fees into their plans. Whether it’s hefty tiered rates, early cancellation fees, minimum usage fees, or others, hidden rates, and fees can spike your electricity bill. When you utilize, however, we display all of the company’s rates and fees for all to see.

Type of Electricity Offered

Finally, the fourth thing you should consider when choosing a Houston power company is the type of electricity they offer. You can choose your plan based on whether they provide electricity from renewable resources or fossil fuels, and can help.

How to Choose the Right Houston Power Company

If you have yet to learn by now, the best way to find a Houston power company is to use Unlike other online comparison tools, we don’t pick the company for you. We believe that you know your needs better than anyone, so we want to provide you with all the details you need to make an informed decision. Here’s how the process 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 Houston, is the way to do it. Houston, TX Location

  • Address: 4201 Main St Suite 200, Houston, TX 77002
  • Phone: (832) 476-8721