Power To Choose Your Electricity Company in Texas
Texans have been able to choose their electricity provider since 2002, when energy deregulation began. Previously, local utilities controlled delivery and supply. Now, you can select a retail electricity provider (REP) from many options, while the transmission and distribution utility (TDU) delivers power.
The Public Utility Commission of Texas (PUCT) created the Power to Choose website to help you compare Texas electricity providers. By proactively shopping based on your energy needs, you can often secure the best electricity rates in Texas. Power to Choose showcases most major energy providers in Texas and many popular plans, allowing you to search by ZIP code, review details and sign up online or by phone.
While it’s a useful platform, the site has limitations. It includes short-term discounts, confusing rate structures and offers that only apply to new customers. It also doesn’t clarify which plans suit your needs or provide reviews on provider performance. Without guidance, you may end up with a company that offers poor service at higher costs. Read on to learn more about Power to Choose and alternative energy comparison marketplaces that may better suit your needs.
Limitations of the Official Power To Choose Website
The Power to Choose site shows a wide range of available electricity plans, but more options don’t guarantee better results. Based on our review, the website is somewhat outdated, and it can overwhelm users with gimmicky plans and confusing pricing. It can be especially confusing for those new to the deregulated marketplace in Texas, which covers cities from Houston to Wichita Falls.
Some providers exploit the platform with bill credits, tiered rates and first-time offers that quickly lead to increased rates after a promotional period expires.
For instance, a plan may seem cheap at exactly 1,000 kilowatt-hours (kWh) but cost more when your usage drops below that threshold. The site doesn’t alert users to hidden fees, like usage charges that increase bills.
The official website lacks customer reviews, provider reputation comparisons and educational resources on plan mechanics. This absence of support makes it easy to select a seemingly good plan that actually drains your wallet.
Top Power To Choose Alternatives for Texas Consumers
You can turn to alternative electricity marketplaces to avoid confusion on Power to Choose. These platforms offer a clear way to shop for energy plans, focusing on vetted providers and transparent pricing to help you know your monthly bill.
Marketplace websites often include provider reviews and educational resources to boost confidence in your choices. Many show estimated costs based on usage and flag fees or credits that could impact your total. These tools simplify finding a plan that meets your needs.
We recommend comparing energy plans using our partners at Home Energy Club. It has a 4.9 out of 5 stars from customers on Google Reviews. It has a robust library of educational materials, and its focus is on helping you find the best energy plan for your needs.
Here are other Power to Choose alternatives:
| Marketplace | Key Features | Pros | Cons |
|---|---|---|---|
| Home Energy Club | Vetted providers, provider reviews, useful learning resources | 4.9/5 star Google reviews, clear pricing, exclusive plans, easy to use | Smaller provider selection than the official site |
| Electricityplans.com | Side-by-side comparison, plan explanations | Compare rated based on your actual usage, educational content | Outdated and crowded interface |
| Energy Ogre | Membership-based, automated plan selection service, manages switching for you | Finds and switches plans for you | $10 monthly subscription fee |
| SaveOnEnergy | Wide plan variety, filter and sort features, helpful plan guides | Large provider network, promotional offers, user-friendly site | Hard to navigate resources |
How Alternative Electricity Marketplaces Work
Power to Choose lists plans from Texas providers and is managed by the PUCT. In contrast, alternative marketplaces, run by independent companies, simplify energy shopping. They don’t list all plans but highlight trusted providers, clarify pricing and identify potential gimmicks, such as bill credits.
Marketplaces enable easy side-by-side plan comparisons and earn a small commission upon enrollment that doesn’t increase your rate. Home Energy Club aims to simplify choices, helping you save money.
Some energy comparison marketplaces, such as EnergyBot and PowerWizard, charge a membership fee and manage your energy shopping experience for you. At Home Energy Club, you’ll never pay a fee for its service.
Types of Electricity Plans Available in Texas
When you enter your ZIP code on Power to Choose or a similar comparison website, you’ll find hundreds of energy plans. But there’s no need to feel overwhelmed. Most of those plan types fall under the following plan type categories.
- Fixed-rate plans
- Green energy plans
- Prepaid, no-deposit plans
- Variable-rate
- Bill credit plans
- Time-of-use plans
Fixed-rate plans maintain the same rate per kWh, making them our top recommendation for predictable energy bills. Most green energy plans come with fixed rates, allowing you to reduce your home’s environment impact while securing competitive, predictable energy costs. Variable rates change monthly, leading to unpredictability and high costs. We don’t recommend variable-rate plans.
Prepaid energy plans may be viable to avoid a large upfront deposit or credit check, but watch out. Most energy providers only offer variable-rate prepaid plans. For predictability, we recommend Payless Power for your no-deposit lights. It offers fixed rates for price protection, a rarity among no-deposit light companies.
Time-of-use and bill credit plans offer usage-based discounts. While these plans may help some Texans save money, carefully assess your energy usage needs before signing up. If your usage doesn’t match the requirements, you’ll pay very high rates per kWh.
Providers used to offer index-rate energy plans where the rate changed constantly based on real-time market conditions. After winter storm Uri in February 2021, the PUCT banned this plan type.
How To Choose the Right Electricity Plan for Your Home
Understanding your energy use helps you choose the right plan. Review past bills for usage patterns, like summer cooling spikes or heater usage in winter. Many plans offer free weekend electricity or summer discounts. Each plan has an electricity facts label (EFL) detailing specifics and fees to aid your search for the best energy option.
Consider your time in your home. Energy plans range from month-to-month to 36 months or more. Longer commitments may offer lower rates, but ensure you’re comfortable with the terms. Fixed-rate plans may impose early termination fees (ETFs) up to $395 for cancellations.
Finally, compare plans beyond rates. Some may have extra charges or bill credits that increase overall costs if the criteria aren’t met. A trusted marketplace can identify these details by outlining fees and fine print. Additionally, check provider reviews and customer service ratings.
Understanding Electricity Pricing in Texas
Electricity rates can be confusing because your bill includes more than just what you pay for each kWh of energy you use. You may also find delivery charges from your utility, usage fees and taxes listed on your bill. These factors can make it hard to predict your monthly costs.
Read the EFL to better understand how your effective energy rate gets determined. Below is a table showing pricing based on the plan type, using real energy plan examples from TXU Energy and Payless Power.
| Plan | Plan Type | Energy Charge (Cents per kWh) | Delivery Charge (per month) | Delivery Charge (Centers per kWh) | Additional Fees | Bill Credits | Estimated Rate (1,000 kWh) |
|---|---|---|---|---|---|---|---|
| TXU Simple Rate 12 | Fixed-rate | 12.9 | $4.90 | 4.24 | $9.95/month base charge | N/A | 18.6 |
| TXU Flex Forward | Variable-rate | 13.2 | $4.90 | 4.24 | $9.95/month base charge | N/A | 18.9 |
| Payless Power 12 Month Prepaid | Prepaid | 11.3 | $4.90 | 4.24 | $0.67/day service fee | $10 credit for usage under 500 kWh | 18.0 |
| TXU Free Nights & Solar Days 12 | Time-of-use | 27.7 | $4.90 | 4.24 | $9.95/month base charge | Free nights | 19.9 |
| TXU Saver’s Choice 12 | Bill credit | 15.0 | $4.90 | 4.24 | $9.95/month base charge | $30 bill credit at 1200 kWh | 20.7 |
Hidden fees, delivery charges and bill credits make it tricky to compare electricity plans in Texas. Marketplace sites, like Home Energy Club, show you the full cost and include fees based on your usage.
Many provider websites default to showing you the cheapest rate, but you can filter options by what matters to you and avoid plans with surprises. This helps you find a plan that fits your budget without the confusion.
Avoiding Common Pitfalls When Switching Providers
Switching energy providers can save you money, but choosing the right plan is crucial. Texas electricity companies use gimmicks like bill credits and time-of-use plans to promote low rates, but these discounts aren’t guaranteed.
If your usage falls outside the required range or you use power during peak hours, you may pay more than expected. Always read the plan details before signing up to ensure it fits your usage.
Another mistake is overlooking fees or penalties. Some plans impose minimum usage fees or ETFs that can negate your savings. Such surprises can turn a good deal into an expensive error.
Using an alternative marketplace helps you spot red flags more easily. These sites provide tools to understand your plan and clarify fees, helping you avoid gimmicks. Here are more common pitfalls to watch for:
- Teaser rates that rise after a promotional period
- Hidden fees buried in the terms and conditions
- Bill credits that disappear if usage falls outside a narrow range
- High minimum usage fees
- Excessive cancellation penalties
- Auto-renewal at expensive or variable rates
Frequently Asked Questions
What is Power to Choose?
Power to Choose is the official electricity shopping site run by the PUCT. You can enter your ZIP code and view many energy plans in your area. While it shows various options, it doesn’t offer provider reviews, support to pick a plan or an easy interface to understand your plan details.
Why should I use an alternative to Power to Choose?
Alternative marketplaces help you avoid gimmicky plans or scammy providers by highlighting reputable energy companies and explaining plan options. These sites break down pricing and show estimated monthly costs based on your usage. You’ll get helpful tools to compare plans, read customer reviews and learn how to save on your electricity bill in one place.
How do alternative electricity marketplaces make money?
Energy marketplaces may earn a commission when you sign up for a plan through their site. You may receive exclusive deals or promotions without any extra cost to you. The best electricity marketplaces only partner with vetted providers and clearly explain how each plan works, so you can compare options with confidence.
Can I trust the rates shown on alternative marketplaces?
Yes, you can trust marketplace sites. These companies regularly update pricing and include delivery charges, taxes and other fees to give you a more accurate estimate of what you’ll pay. We still recommend reviewing the EFL to make sure the terms match what you saw on the site.
How often should I shop for a new electricity plan?
Consider comparing plans at least once a year or when your current contract is about to expire. Energy prices change frequently and are usually cheaper during seasons with less energy demand, like spring or fall. Timing your renewal or switching plans during these seasons might help you lock in a better rate.