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How to Pick an Electricity Retailer in Texas

September 8, 2023
by dmirza
electric rates

In the vast expanse of Texas, where everything seems bigger and bolder, the power to choose your electricity retailer is a significant advantage. The Lone Star State stands apart with its deregulated electricity market, allowing residents to handpick their energy provider. But with great power comes great responsibility, and in this case, the responsibility is choosing the right electricity retailer. Whether you’re a Texan by birth or have recently made this great state your home, navigating the complexities of the electricity market can be perplexing. Fear not, for this guide is your compass through the Texan energy landscape. In the following words, we’ll break down the steps to help you make an informed decision, ensuring your lights shine bright without burning a hole in your wallet.

Understanding the Deregulated Electricity Market in Texas

What is deregulation?

Deregulation in the electricity market means that you have the freedom to choose your electricity provider, just like selecting a cell phone plan or internet service. This system fosters competition, which can lead to lower prices and better service.

Benefits of a deregulated market

In a deregulated market, you can:

  • Choose from a variety of electricity plans.
  • Find lower rates by shopping around.
  • Switch providers if you’re not satisfied.

How does it work in Texas?

Texas operates its own electricity grid, ERCOT (Electric Reliability Council of Texas), and has its rules for electricity regulation. Understanding how this market functions is crucial to picking the right retailer.

Identifying Your Electricity Needs

Analyzing your consumption

Before choosing a retailer, assess your electricity consumption. Look at your past bills to determine your average monthly usage. This information will help you find a plan tailored to your needs.

Green energy options

If you’re environmentally conscious, consider green energy plans. Many retailers offer renewable energy options, such as wind or solar power, to reduce your carbon footprint.

Researching Electricity Retailers

List of major retailers in Texas

Start by compiling a list of major electricity retailers in Texas. Common names include Reliant Energy, TXU Energy, and Gexa Energy. Research each company to learn about their reputation and history.

Reading customer reviews

Customer reviews can provide valuable insights into a retailer’s customer service, billing accuracy, and overall satisfaction. Check websites, forums, and social media for honest opinions.

Comparing Electricity Plans

Fixed-rate vs. variable-rate plans

Retailers offer various pricing structures. Fixed-rate plans provide stability with a consistent monthly rate, while variable-rate plans can change monthly. Understand the pros and cons of each.

Hidden fees and contract terms

Scrutinize the fine print of electricity plans. Watch out for hidden fees, early termination penalties, and contract lengths. A plan that seems cheap upfront might have hidden costs.

Understanding Your Electricity Bill

Breaking down your bill

Familiarize yourself with the components of your electricity bill, such as the base rate, delivery charges, and taxes. This knowledge will help you identify any unexpected charges.

Spotting hidden charges

Keep an eye out for additional charges like service fees or administrative costs. These extras can significantly impact your overall bill.

Customer Service and Support

Availability and responsiveness

Consider the availability of customer support. Reliable assistance can be crucial when issues arise, so choose a retailer with accessible customer service.

Online account management

Many retailers offer online account management tools, making it easier to track your usage, pay bills, and monitor your plan. Opt for a retailer with user-friendly online services.

Renewable Energy Options

Choosing environmentally friendly plans

If you’re passionate about sustainability, look for retailers offering renewable energy plans. These options often include electricity generated from wind or solar sources.

Green energy certifications

Check if your chosen retailer holds certifications for providing green energy. Certifications like Green-e indicate a commitment to renewable energy sources.

Special Discounts and Incentives

Loyalty programs

Some retailers offer loyalty programs that reward you for staying with them. These programs can include discounts, gift cards, or other incentives.

Referral bonuses

Explore whether your retailer offers referral bonuses. You can earn rewards by referring friends or family members to your chosen electricity provider.

Making the Switch

Contacting the chosen retailer

Once you’ve decided on a retailer, contact them to initiate the switching process. They will guide you through the necessary steps.

Cancelling your current plan

If you’re switching from another provider, follow the cancellation process outlined by your current retailer. Be sure to settle any outstanding bills.

Consumer Rights and Protections

Regulatory authorities in Texas

Familiarize yourself with the regulatory bodies in Texas, such as the Public Utility Commission of Texas (PUC). These organizations protect your rights as a consumer.

Resolving disputes

Know how to address disputes or issues with your retailer. Understanding your rights can help you navigate potential conflicts.

Tips for a Smooth Transition

Meter readings and final bills

Take meter readings on the day of your switch to ensure accurate billing. Pay any final bills from your previous provider promptly.

Setting up autopay

Consider setting up autopay to ensure you never miss a bill payment, preventing late fees or service interruptions.

Choosing the right electricity retailer in Texas is a decision that can significantly impact your monthly expenses and overall satisfaction with your service. By understanding the market, identifying your needs, and thoroughly researching your options, you can make an informed choice that aligns with your budget and preferences. Remember to stay vigilant about hidden fees and take advantage of renewable energy plans and incentives. With these considerations in mind, you can navigate the Texas electricity market with confidence.


  1. What is the average electricity consumption in Texas?
    • The average electricity consumption in Texas varies but is typically around 1,176 kWh per month for residential customers.
  2. Can I switch retailers anytime?
    • In most cases, yes, you can switch retailers at any time. However, check your current contract terms for any early termination fees.
  3. What happens if my chosen retailer goes out of business?
    • If your retailer goes out of business, you will be transferred to a provider of last resort to ensure continued service.
  4. Are there any incentives for using renewable energy?
    • Yes, many retailers offer incentives for choosing renewable energy, such as lower rates or green energy certifications.
  5. How do I report a billing dispute?
    • If you have a billing dispute, contact your electricity retailer first. If the issue is not resolved, you can reach out to the Public Utility Commission of Texas for assistance.

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How to Discover the Top Electricity Provider for Your Residence in Texas
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