In Texas You Have the Right to Choose an Electricity Company

If you are relocating from out of state or are moving to a different Texas city from places like Austin, El Paso, Garland, Plano, El Paso and a few other areas you may be happy to know that you may now choose your electric company. Texas is the most competive electricity market in the world and because of this it has helped in lowering electricity rates for residential and commercial electricity service customers.

To begin shopping for residential electricity rates and comparing electric companies just use our comparison chart at the top left of this page. You will need to enter in your zip code and a list of electricity rates and providers will appear. Pick the cheapest provider based on either a fixed or variable term.

Make note that a variable price may be lower but it is subject to go up in price after the first month. This is because you are not locking in your electricity price when choosing a variable rate.

For most people a fixed electric rate makes more sense because you will have a predictable electricity rate and you will know what the price will be each and every month.

The choice in Texas is called the Power to Choose because you have the ability compare over 20 different competitive electricity providers and find the cheapest rate.

Texas Electric: Advice on Moving from a Regulated to a Deregulated Energy Market

If you’ve moved from a regulated energy market to a deregulated one, the first thing you need to do is get used to the idea of freedom. Freedom? Yes, the freedom to choose your electricity supplier.

Study after study has shown that competition has led to better service and lower rates for Texas electric customers. However, many haven’t taken advantage because they don’t know where to start. 

How to Shop for a New Texas Electric Company: Find a Trusted Source

The first place to start is with a trusted source. Websites like put all of the resources you need to shop quickly for a Texas electric company at your fingertips. What you’ll find on sites like this are:

Comparison Charts: These list rates for multiple Texas electricity companies within a given region.

Requests for Energy Proposals: By filling in just a few pieces of information, you can get bids from numerous Texas electric companies to compare. This eliminates the need to visit website after website or make phone call after phone call to gather he info you need to make an informed decision.

Low Deposit/No Deposit Electric Service Plans: Have bad credit? A low income? On a fixed income? Conventional Texas electric companies have options for every type of consumer. You don’t have to automatically assume that the only options available to you are high-cost prepaid electric service plans.

These are just a few of the helpful categories you’ll find on sites like Everything you need to find the best Texas electric plan for you can be found there.

Texas Electric Customer Shopping Tip


Ask, ask, ask! When moving from a regulated to a deregulated energy market, most customers assume that the old rules apply. So, if they’ve had an expensive prepaid electric service plan before, they automatically assume that’s all they can get again.

Not so.

Ask about no-deposit electricity plans like the Texas LITE-UP program. It gives customers a discount on their electric bill five months out of the year.

Call and ask for qualifying details and/or to inquire about other programs like this that can help you defray the cost of your Texas electric bill.

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Texas Commercial Electricity

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Comparing Electricity Rates among the major providers

What we have seen when comparing electricity rates among some of the major electricity players in Texas is that most electricity companies wish to compete but the conservative energy trading policies in place do not always allow for them to lower or match a competing electric providers prices.

Problems a company may face when shopping for electric rates

Let’s make up a scenario, Let’s say John with ACME inc. decides to shop around for the cheapest electric rate. He goes to TXU and asks them to give him their best rates for 12 months, 24 months and 36 month terms. TXU comes back and quotes him some great rates. TXU even offers to give him the possibility of an even lower rate if they can have the option to extend that rate out an additional year if they so choose. John doesn’t bite as that would mean he gets a good rate but he is in no way protected on the down side. If rates go down further he has to maintain his existing rate and do you really think TXU would excercise that option if the rates were to go up?

So John goes over to Reliant energy to see what they can do. They offer competitive electric rates but not good enough to beat TXU. TXU however is requiring a large deposit and Reliant is not requiring this. This makes John a little more inclined to go with Reliant but not until he checks out a few not so familiar electric companies.

Comparing multiple Electric Providers

John calls up Champion Energy, Spark Energy, and Green Mountain Energy company to see what type of deals they have going. Each company lags far behind TXU and Reliant except for one. It looks like Green Mountain Energy is willing to compete and has the energy trading policy that has them pricing near the bottom of the Retail margin available to make a profit. Green Mountain Energy is willing to make a small profit on the sale because they have been told by the customer what TXU is pricing at.

Going back to the best electric bid

John goes back to TXU and asks for better terms regarding the deposit requirement and a better price. Now TXU realizes this customer is beginning to receive some competitive prices. Because John is a facilities manager for a company that uses 10,000,000 kwh of power TXU decides to price below the Retail Margin that they could have made a profit and collect an additional customer at absolutely no profit. The sales manager explains that these large sales are needed prior to a possible merger with another energy company and will look good on paper. They also assure that we may be able to add profit onto the Electric Rate when their term is up next go around.

Energy Risk Management and the likely outcome to working in this box

This is a typical behind the scenes look at what may go on during the process of obtaining a competitive electricity rate. Many times it doesn’t happen like this and the customer is confused as to why their appears to be no competitive fight from provider to provider. The Electric Suppliers are just not able to match prices as a Retail Product Chain could do because the energy market has a Risk Management side to it similar to someone buying stocks for their retirement portfolio. If they were to break their energy trading policy it would be similar to a typical bad investor who puts his money into random stocks only to see the stocks plummet beyond his means. Eventually, not only does the investor not make a profit he is liable for a margin call or mortgage payment on a house. The energy trader is liable to stock holders, the Board of trustees and management. If they were to break policy they could cause serious consequences to the company.

Electricity Bid helps you find an electric rate and provider to save you money and keep life simple.

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