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Power to Choose Texas Electricity Rates

Many Texas residents and business owners have the power to choose their electricity provider and rate. This is as a result of energy deregulation, or “energy choice” laws that have been in place since 2002. This page will educate you on what that means and how you can take advantage if you live in, or are moving to Texas.

What Does Power to Choose in Texas Mean?

“Power to choose” can refer to two things.

1 – Deregulated energy or “energy choice” – It can refer to the deregulated electricity market in Texas. This allows residents and businesses to pick their electricity provider (aka “electricity supplier”). In other words, your utility doesn’t have to be your energy supplier. This forces electricity suppliers to compete on price and increases electricity options for the consumer.

2. Powertochoose.org – It can also refer to powertochoose.org, the Public Utilities Commission of Texas’s official electricity comparison website. Powertochoose.org is Texas’s government-run electricity comparison website where you’ll find 50+ electricity providers and thousands of electricity plans to choose from.

The benefit of Powertochoose.org is that you get to see all possible options. However, there are a few reasons why you should strongly consider an alternative electricity shopping site like ElectricityRates.com.

Power To Choose Alternatives

Powertochoose.org can be a confusing experience for Texas electricity shoppers, especially if it’s your first time comparing rates. This is because there can be an overwhelming number of options that are difficult to compare and feel confident choosing between. There is also a much broader range of electricity providers that list their plans on Powertochoose.org. These range from large, reputable electricity companies like Constellation and Direct Energy to much smaller companies that may not match the same level of service.

Some providers on Powertochoose.org will also employ deceitful practices such as advertising a very low rate that is only available if you reach certain usage levels.

Alternative options to Powertochoose.org exist to alleviate any confusion and help you compare rates across the electricity plan attributes that matter most. You’ll also find many fewer electricity providers on alternative electricity shopping sites because they are much more careful about who they allow on their platforms.

ElectricityRates.com is a great alternative to PowerToChoose.org. ElectricityRates.com vets electricity providers and rates to ensure they are trustworthy, giving you all the information you need to make a smart decision about your energy bill.

Check out ElectricityRates.com reviews on TrustPilot to see all the happy customers that have switched. If you want more information on how to switch Texas electricity providers, check out the Texas page.

Texas Energy Deregulation History

In 2002, Texas Senate Bill 7 came into effect and Texas switched to a deregulated electricity system.

Before deregulation, Texas had what is commonly called a traditional electricity system. In this system, a utility provider is in control of the electricity supply and electricity prices are set by the state’s Public Utilities Commission.

In a deregulated system, your utility provider (the entity that brings energy to your home) stays the same but you can pick your energy supplier (the entity that sells energy to you). Most of the states with deregulated electricity operate under similar rules.

Texas, on the other hand, is unique in a few ways.

How is Electricity Supply Different in Texas?

Most states with deregulated electricity allow you to keep your utility provider as your energy supplier. In Texas, certain utilities don’t supply their own energy. Texans that have one of these utility providers must pick an electricity provider.

Another difference between Texas’s deregulated system and other deregulated systems in the US involves the electricity bill. In most deregulated states, your bill still comes from your utility provider. In Texas, you recieve and pay your bill directly through your electricity provider.

Do I Need to Sign Up for Electricity in Texas?

The following utility providers do not supply their own energy. If one of them is the utility provider for your area, you must pick your own retail electricity provider.

Typing in your zip code above is the easiest way to see plans in your area. However, there’s also a snapshot of the best electricity plans for each utility listed below.

Power to Choose Business Electricity in Texas

Business owners in Texas can save big on their electricity bills through deregulation. However, the process of switching is a little different.

Electricity usage can drastically change from business to business. Generally, the more electricity you use, the lower your electricity rates get.

Since rates vary heavily based on your business’s usage, the easiest way to switch is to get in contact with an ElectricityRates.com representative. You can do that by filling out the form on the right side of the business electricity page. After that, they’ll help you find the right plan for your business.

Power to Choose Texas Utilities

Electricity plans available to you vary by your location/utility provider. Listed below is a snapshot of the best plans available for each deregulated Texas utility provider.

Power to Choose Centerpoint Providers

CenterPoint Energy serves natural gas and electricity throughout the Houston area. Here are some of the best rates for CenterPoint Energy:

Utility: CenterPoint
Plan Term & Rate per kWh
Constellation

Constellation

12 Month Usage Bill Credit

12 months
9.70¢
Constellation

Constellation

Power To Connect Usage Bill Credit

30 months
10.30¢

Power to Choose Oncor Providers

Serving the Dallas and Fort Worth areas, Oncor is the largest utility provider in Texas. Here are some of the best rates for Oncor:

Utility: Oncor
Plan Term & Rate per kWh
Constellation

Constellation

12 Month Usage Bill Credit

12 months
9.80¢
Constellation

Constellation

Power To Connect Usage Bill Credit

30 months
9.90¢

Power to Choose Texas New Mexico Power (TNMP) Providers

Texas New Mexico Power (TNMP) serves 249,000 homes and businesses throughout the state of Texas. Here are some of the best rates for TNMP:

Utility: TNMP
Plan Term & Rate per kWh
Constellation

Constellation

12 Month Usage Bill Credit

12 months
11.00¢
Constellation

Constellation

Power To Connect Usage Bill Credit

30 months
11.10¢

Power to Choose AEP Texas Providers

AEP Texas is a subsidiary of AEP Energy, one of the largest utility providers in the US. They serve over 1 million customers throughout South and West Texas.

AEP Texas has two divisions, AEP Central and AEP North. AEP Central serves the southernmost parts of Texas, while AEP North Serves the northwestern parts of the state.

Here are the best electricity rates for AEP Central:

Utility: TX AEP Central
Plan Term & Rate per kWh
Constellation

Constellation

12 Month Usage Bill Credit

12 months
10.50¢
Constellation

Constellation

Power To Connect Usage Bill Credit

30 months
10.70¢

Here are the best electricity rates for AEP North:

Utility: TX AEP North
Plan Term & Rate per kWh
TriEagle

TriEagle

Eagle 36

36 months
9.90¢

Power to Choose Electricity in Dallas

If you live in the Dallas area, Oncor is likely your utility provider. As one of the largest utility providers in the state, Oncor has many plans to choose from. Click here to learn more about Dallas electricity rates or type in your zip code above to compare plans.

Power to Choose Electricity in Houston

If you live in the Houston area, CenterPoint Energy is likely your utility provider. You can learn more about Houston electricity here or type in your zip code above to compare electricity providers and rates in your area. Power to Choose Electricity in Fort Worth

Power to Choose Electricity in Fort Worth

Oncor is the utility provider for the Fort Worth area. If you want to see the best rates for your area, type in your zip code.