Running a business in Texas means managing plenty of expenses, and electricity is one you can’t afford to overlook. With dozens of Retail Electric Providers (REPs) offering different rates, contracts, and plan types, finding the right fit for your company can be complex and time-consuming.
Let’s break down some of the top business electricity providers in Texas, explain what makes each one stand out, and show you what to look for when choosing a plan that keeps your operations efficient and costs under control.
Texas is home to dozens of REPs, but a handful really stand out when it comes to business electricity.
This information is provided solely for comparison purposes. Some of the retail energy providers below are not a partner of and do not endorse, or are endorsed by Power Wizard. No reference to some of these retail energy providers is meant to imply or establish a relationship with these retail energy providers.
| Provider | Best For | What Stands Out |
|---|---|---|
| TXU Energy | Established provider with tailored plans and reliable account support | Wide variety of plans and tools for tracking usage; strong local presence; long-standing reputation. |
| Direct Energy | Flexible contract options from a large, experienced energy supplier | Competitive rates, broad commercial coverage across North America, and dedicated account management for larger businesses. |
| Gexa Energy | Predictable pricing and clear contract terms | Transparent fixed and indexed plan options; personalized service. |
| Reliant Energy | Flexible plan structures with access to energy-management tools | Strong customer service reputation; easy-to-use online tools; wide plan selection. |
| Chariot Energy | Transparent pricing from a newer, customer-focused provider | Easy signup process; competitive renewable plan options; flexible contracts. |
| Constellation | Reliable, nationwide provider with advanced tools and renewable plan options | The company offers renewable and efficiency-focused plans, advanced usage tracking tools, and strong corporate stability. |
| APG&E | Small businesses want flexible, short-term plans | Simple month-to-month options; transparent pricing; Texas-based with personalized service. |
TXU Energy has decades of experience powering Texas businesses of all sizes, from small shops to large industrial operations. Backed by Vistra Corp., the nation’s largest competitive power provider, TXU delivers competitively priced electricity plans, energy-efficiency programs, and demand-response solutions that help businesses control long-term costs. Business customers can access online tools to track and manage usage through TXU’s portal.
Best for: Businesses seeking a long-standing, Texas-based provider with customized plans, strong account support, and proven financial stability.
Direct Energy serves businesses across Texas, as well as throughout the U.S. and Canada, offering electricity and natural gas plans for small, medium, and large operations. Small businesses (typically under 10,000 sq. ft.) can choose from affordable fixed-rate options, while larger facilities receive custom pricing and dedicated account management through Direct Energy’s enterprise division. The company also provides renewable energy solutions, educational tools on billing and rate management, and critical load designation support for public safety and industrial customers.
Best for: Businesses wanting flexible, well-supported electricity or natural gas contracts from a large, experienced energy supplier with nationwide reach.
Founded in 2001 and headquartered in Houston, Gexa Energy is one of Texas’ longest-standing retail electricity providers that has served over 1.6 millions unique households and numerous businesses statewide. Known for transparent pricing and personalized service, Gexa offers flexible business electricity plans (including long-term fixed-rate options) backed by strong community involvement through programs like Habitat for Humanity and Rebuilding Together Houston.
Best for: Businesses seeking a trusted Texas-born provider that emphasizes flexibility, transparency, and community values.
Reliant Energy powers over one million homes and businesses across Texas with competitive pricing and innovative energy solutions. Backed by NRG Energy, Inc., a Fortune 500 company, Reliant combines local expertise with national strength. The company provides customized business contracts, usage-tracking tools, and 24/7 award-winning support. Beyond service, Reliant is deeply involved in Texas communities, donating $4.1 million to 200+ programs and logging 4,000 volunteer hours in 2022 alone.
Best for: Businesses that want dependable electricity, advanced management tools, and a provider committed to both innovation and community impact.
Chariot Energy provides customized business electricity solutions across Texas, coupling global financial stability with local expertise. The company delivers same-day, tailored quotes and transparent, solar-based energy plans designed to help businesses manage costs and reduce their carbon footprint. Serving industries such as automotive, real estate, data centers, food and beverage, healthcare, hospitality, retail, and industrial sectors, Chariot focuses on reliability, cost savings, and sustainable growth.
Best for: Businesses that want personalized, solar-focused electricity plans from a financially strong provider with transparent terms and quick turnaround.
As the nation’s largest producer of clean, carbon-free energy, Constellation serves businesses of all sizes across Texas and the U.S. The company provides electricity, natural gas, and renewable solutions with flexible pricing, sustainability consulting, and carbon-reduction strategies. Its suite of services includes Constellation Navigator, solar programs, Renewable Energy Certificates (RECs), and Offsite Renewables (CORe). Businesses can manage multiple locations and monitor performance with integrated online tools and professional energy-management support.
Best for: Businesses seeking a nationwide energy partner with advanced sustainability tools, renewable options, and strategic energy-purchasing expertise.
AP Gas & Electric (APG&E) is a Texas-based Retail Electric Provider focused on small business electricity solutions across Texas, Maryland, New Jersey, New York, Ohio, Pennsylvania, and Illinois. The company’s approach centers on transparency, risk mitigation, and market opportunity optimization, providing short-term and flexible supply contracts that adapt to changing market conditions. With its My Account online portal, customers can easily monitor usage, pay bills, and manage accounts from any device.
Best for: Small businesses that prioritize clear pricing, responsive service, and flexible electricity plans without long-term commitments.
Most of Texas has a deregulated electricity market, meaning businesses can choose who supplies their electricity. The Electric Reliability Council of Texas (ERCOT) manages the state’s power grid. Retail electricity providers (REPs) such as Gexa Energy and Direct Energy sell electricity plans to businesses. Transmission and Distribution Utilities (TDUs)—like Oncor, CenterPoint, AEP, and TNMP—deliver that power and maintain the infrastructure.
Your commercial electricity rate depends on how much electricity your business uses and the length and terms of your contract.
The best business electricity provider in Texas depends on your company’s size, energy usage, and contract flexibility. A manufacturer with heavy machinery running 24/7 will need a very different plan than a small retail shop with daytime hours. Before choosing a provider, it’s important to compare plan structures, contract terms, and billing details that directly impact your total cost.
Texas business electricity plans come in several pricing structures. Understanding the differences can help you pick one that fits your budget and risk tolerance.
If sustainability is important to you, consider REPs that offer green energy plans for businesses.
Commercial electricity contracts can range from a few months (usually 3 months) to several years. Shorter terms give flexibility to take advantage of new market prices, while longer contracts provide protection from rate spikes. Before committing, pay attention to:
Set reminders to review your electricity contract 45–60 days before it ends to avoid unnecessary costs and make sure your plan still fits your needs.
Commercial electricity billing in Texas isn’t based on energy use alone. Most business bills include demand charges, which are separate from the standard energy charge and can make up a large portion of your total cost. Demand charges are based on the highest amount of power (measured in kilowatts, or kW) your business uses at one time during a billing cycle. For example, if your business turns on several large pieces of equipment or HVAC systems simultaneously, that short-term “peak demand” sets the demand charge for the month.
Your load profile shows how your business uses electricity throughout the day, week, or season. Businesses that use about the same amount of electricity throughout the day have steadier load profiles and typically pay less in demand charges. In contrast, businesses that have sudden spikes in power use—like turning on multiple machines at once—create sharp peaks in their load profile, which can lead to higher costs.
To manage demand charges and improve your load profile:
To manage demand charges and improve your load profile:
According to the Energy Information Agency (EIA), the average commercial electricity rate in Texas as of July 2025 is 9.03¢/kWh. That number serves as a helpful benchmark, but your actual rate depends on factors like our business size, total usage, contract length, and the utility company that serves your area. Delivery fees, demand charges, and other line items can also impact your total cost per kWh.
Use this average as a starting point, not the finish line. The best way to find your real rate is to compare current plans available in your area.
Even though the cost of electricity itself is fairly consistent across Texas, your business’s location plays a big role in what you actually pay per kWh. That’s because several local factors influence your total rate, including:
When it comes to business electricity, the cheapest rate doesn’t always mean the lowest overall cost. The right plan depends on how and when your company uses power, along with your goals for flexibility and long-term savings. Start by reviewing your demand levels, usage patterns, and billing cycles to see where your biggest costs come from. You can also check your historical consumption data through Smart Meter Texas. It’s a great tool for understanding your energy profile before signing a new contract.
Always read the Electricity Facts Label (EFL) for the plan you’re considering before enrolling. This document outlines important information, like contract terms, rates, fees, and more.
Many Texas businesses end up overpaying for electricity. This isn’t because they picked the wrong provider, but because they overlooked key plan details. Commercial energy contracts can be complex, and small oversights can lead to big, unexpected costs down the line. Some of the most common mistakes include:
Finding the right business electricity plan in Texas isn’t just about comparing rates—it’s about understanding how your energy usage, demand patterns, and contract terms align with your bottom line. The right provider can stabilize costs, reduce operational risk, and even improve profitability over time.
Power Wizard’s Business Electricity platform goes beyond basic comparisons. Our energy experts analyze your actual usage data, identify the plans that match your operational needs, and negotiate the most competitive rates available. Whether you manage one location or several, we help you lock in pricing that protects your business from market volatility and hidden fees.
Take the next step: Visit Power Wizard’s Business Electricity page to compare types of plans, understand your true cost drivers, and get expert help choosing the right provider for your business.
As of July 2025, the average commercial electricity rate in Texas is 9.03¢ per kWh, according to the U.S. Energy Information Administration (EIA). However, actual pricing can vary from 7¢ to 12¢ per kWh depending on your usage volume, contract length, and TDU service area.
Pro tip: Businesses using more than 10,000 kWh per month can often negotiate lower custom rates or access wholesale-indexed pricing through providers like Constellation or Direct Energy.
Yes. Many Texas electricity providers offer portfolio or aggregated contracts that allow you to combine multiple business sites under one account. This simplifies billing, creates consistent rates across service territories, and strengthens your negotiating leverage.
Example: A retail chain with stores in both Oncor (Dallas) and CenterPoint (Houston) zones can unify contracts to gain volume-based pricing discounts.
Absolutely. When you switch electricity providers in Texas, your Transmission and Distribution Utility (TDU)—the company that physically delivers power—does not change. Your new provider simply takes over the billing and rate management.
Pro tip: Schedule your switch at least 30 days before contract expiration to avoid auto-renewal penalties or early termination fees from your current REP.
Electricity pricing is heavily tied to your load profile, when and how much power you use.
Even a 10% reduction in peak demand can lower total electricity costs by up to 20% for large facilities.
Yes. Texas leads the nation in renewable energy generation, and many REPs now offer 100% renewable or hybrid business plans. Companies like Chariot Energy, Constellation, and Direct Energy offer different programs that help you support your sustainability efforts.
Choosing a renewable plan can support your Environmental, Social, and Governance (ESG) goals, qualify you for sustainability tax incentives, and strengthen your brand image with eco-conscious customers.
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