Since Texas deregulated its electricity market in 2002, millions of Texans have benefitted from Texas Energy Choice, also referred to as the power to choose your electricity provider. By eliminating the monopoly that local utilities once had over the supply of electricity, Texans with power to choose can compare the best electricity rates and plans and choose the best one for their home.
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Shop Texas Electricity Rates
| Plan | Rate Per kWh At 1000kWh avg. usage |
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| 4Change Energy Maxx Saver Select 24 24 Months | 9.2¢ Select |
| Energy Texas Come & Take It 12 12 Months | 11.0¢ Select |
| Energy Texas Bigger Than Texas 24 24 Months | 12.0¢ Select |
| GoodCharlie GoodEnergy 36 36 Months | 12.0¢ Select |
| Constellation 12Mo Usage Bill Credit + A/C Protection 12 Months | 13.9¢ Select |
- 100% Renewable Sources
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Like many other states in the country, Texas has a deregulated electricity market. A deregulated electricity market, also known as deregulation, means that over 80% of Texans have the power to choose their own electricity plan and provider. In states without deregulation, homes and businesses are forced to sign up with whatever electricity company happens to be operating in their area.
If you have the power to choose your electricity plan in Texas but don't know where to start, you've come to the right place. ElectricityRates.com alleviates the confusion that customers may experience while using the official Power to Choose site when comparing electricity rates in Texas.
You'll find only great rates from leading and reputable providers in the ElectricityRates.com Marketplace so that you can be confident in your choice and avoid hidden fees and gimmicks found on some other electricity shopping sites.
What is the Texas Power to Choose?
Texas power to choose can refer to one of two things. First, the power to choose refers to the fact that Texans have the "power to choose" their own electricity plan. The reason for this is because of deregulation which took place in the early 2000s.
Deregulation turned the electricity market in Texas on its head by transforming it into a competitive, capitalistic business. Seemingly overnight, dozens of retail electric providers formed and started purchasing electricity from power plants and selling it to residential and commercial customers throughout the Lonestar state. To date, there are more than 120 retail electric providers who are all competing for your business.
The second thing that power to choose can refer to is the Power to Choose website founded by the Public Utilities Commission of Texas. The Power to Choose website was the very first online tool that was meant to help Texans choose their electricity plan. It's sole purpose was to include as many electricity plans as possible and the companies that were offering them.
Power to Choose was necessary because of how many different electricity companies formed and started selling plans. However, the original Power to Choose was far from perfect and power companies learned how to manipulate the system in their favor, which led to thousands of customers choosing the plan that wasn't right for them.
Does My Texas Utility have Power to Choose?
Most, but not all, Texans have the power to choose. Whether you have it or not depends on your local utility provider. There are four main utilities that participate in the Texas Energy Choice program.
- AEP Texas – Serves wide areas of central and southern Texas, including cities like Abeline and Corpus Christi.
- CenterPoint– Delivers electricity to the greater Houston area.
- Oncor – Serves Dallas and Fort Worth, along with many other areas of northern and eastern Texas.
- Texas-New Mexico Power (TNMP) – Smaller utility provider that serves areas sporadically throughout the state, including the northeast, west and southern areas.
All four of these utility providers are subject to oversight from the Public Utility Commission of Texas (PUCT) and work with ERCOT to maintain grid reliability across the state.
Is the Power to Choose a Good Thing?
Whether you're talking about the power to choose your own electricity plan or the Power to Choose website, there are pros and cons to both.
Pros of the Power to Choose Website
When the PUC first came out with the Power to Choose website, it was the only online tool that helped make choosing your own electricity plan attainable. Before it, people were forced to call and shop around to inquire about different electricity plans and rates. It helped save people a ton of time by making electricity plan comparisons much easier.
- Saved residential and business customers tons of time.
- Put all the information that Texans needed to choose their electricity plan in a single location.
- Made it easier to understand what the power to choose was and why it was implemented.
Cons of the Power to Choose Website
- Electricity companies learned how to manipulate the Power to Choose website to give inaccurate rates.
- It wasn't a comprehensive website with every detail about every electricity plan.
- The website is slightly outdated and difficult to understand compared to newer websites and comparison tools.
Pros of the Power to Choose Your Electricity Plan
- It turned electricity into a competitive market much like television, phones, and the internet.
- Keeps electricity companies honest by not allowing them to overcharge because of the fierce competition.
- Allows customers to choose a plan that's specific to their needs and wants.
Cons of the Power to Choose Your Electricity Plan
- Electricity companies have learned how to structure their electricity plans in a way that's difficult to understand.
- The market has turned uber-competitive and there are now over 120 retail electric providers in Texas.
- On average, the electricity rates in deregulated areas are now higher than those in regulated areas.
How To Take Advantage Of Power to Choose
If you're considering an electricity plan in Texas, here are a few of the main things to keep in mind. You can learn about everything discussed below and more on our Texas electricity guide.
- Your Home's Average Electricity Usage Per Month – In Texas, an electricity plan's effective electricity rate can change depending on how much electricity you use each month. Know your usage and take note of the different factors that affect your effective electricity rate.
- The Types Of Electricity Plans You Can Get – You can find plans with fixed rates, variable rates, time-of-day pricing and more. ElectricityRates.com features fixed-rate plans almost exclusively because they tend to save you the most. Depending on your credit, you may also want to look into no-deposit plans.
- Your Electricity Provider – Texas electricity providers specialize in different types of plans and services. For instance, some providers specialize in renewable energy plans that source electricity from renewable sources. ElectricityRates.com features many affordable renewable energy plans in Texas.
Is Texas Power to Choose the Best Way to Compare Energy Plans?
As we've been pointing out, the original Power to Choose website was founded as an excellent concept. Unfortunately, it has proved inadequate compared to other electricity comparison tools such as electricityrates.com. With electricityrates.com, you can enter your zip code into the free Rate Comparison Tool at the top of this page and check out all the electricity plans that are available in your area.
If you live in Houston and are looking for a new electricity provider, Tiler Rate Assistant is the best comparison tool to use. Tiler takes into account your specific usage when calculating monthly costs, so you know exactly how much you’ll be paying. With Electricityrates.com, you can compare rates from leading providers and find a plan that fits your needs.
Power to Choose in Texas Cities
To take advantage of Texas Energy Choice and start comparing rates today, enter your ZIP Code in the Rate Comparson Tool above.
You can also learn more about comparing rates by finding your Texas city below:
- Abilene
- Arlington
- Corpus Christi
- Dallas
- El Paso
- Fort Worth
- Garland
- Houston
- Irving
- Laredo
- League City
- McAllen
- Plano
- San Angelo
Power to Choose FAQ's
- What is Power to Choose?
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Power to Choose is the official website run by the Public Utility Commission of Texas that lets Texans compare electricity options and sign up for an electricity plan. Power to Choose services customers living in deregulated energy areas.
- How does Power to Choose work?
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In Texas, the term “power to choose” is often used synonymously with Energy Choice. Energy Choice is the means by which customers have the ability to choose their own energy supplier and sign up for electricity rates that are favorable to their needs. In most areas of the country, customers aren’t required to choose their provider but in Texas several utility companies require their customers to sign up for their own plan.
- Which Texas utility companies offer power to choose?
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The following Texas utility companies offer their customers the power to choose their electricity provider: Oncor, CenterPoint, Texas New Mexico Power (TXNMP), Texas AEP Central and Texas AEP North.