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Choosing A Power Company In Texas

By powerwizard

When your current electric company isn’t working for you anymore, you’re the one who has to work hard to find another one. Choosing a power company in Texas can be an all-day affair.

Sifting through articles like this, spreadsheets, and endless calculations is enough to make anyone feel like they’d rather just go off the grid than choose a new electricity provider.

Power Wizard gives you the power to choose an electric company in minutes!

One use of the Power Wizard Shopping Tool can end your search in minutes! More importantly, it can make your electric bill lower!

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Choosing a Power Company in Texas: The Why

Why are there so many power companies to choose from in Texas?

The answer is simple: Deregulation.

What is Electricity Deregulation?

Choosing a power company in Texas?

Texas is one of the few states that has a deregulated energy market for most of the state. This means there are fewer laws regarding the sale of electricity at a retail level.

Private companies are allowed to enter the marketplace and set their own rates. These businesses compete to have the best product, which is great news for you.

However, finding a good price is not as easy as simply comparing electricity rates.

Retail Electric Providers (REPs) have found creative ways to structure their rates differently, so comparing rates can be like comparing apples to oranges.

How Does Electricity Deregulation Affect You?

While deregulation allows competition in the electricity market, it also makes things a little more complicated for consumers.

You may have the freedom to choose your power company in Texas, but you are also responsible for finding the best plan for your household.

Choosing a Power Company in Texas: The Where.

Where you live in Texas affects your ability to choose a power company. Not every REP provides service to every city and neighborhood in the state.

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How Does Your Location Affect Your Ability to Choose a Power Company in Texas?

Most of the state is deregulated, but some parts of Texas are still regulated markets.

Most of the state is deregulated, but some parts of Texas are still regulated markets.

In El Paso or Austin for example, you will only have one power company to choose from. They have a large utility company that sets the rates and there is no option for consumers to make a different choice.

If you live in a deregulated city, you might have dozens of REPs to choose from. However, not all companies work in the same cities. Even in deregulated areas like Houston or Dallas, you will need to find out which REPs service your area.

Finding the list of REPs that service your area can be a challenge.

This is only one of the many benefits of using Power Wizard to shop for your electricity plan. We can save you a ton of time by letting you know which companies will work for your home or business.

Simply enter your zip code in our Shopping Tool to see what REPs work in your neighborhood, and how Power Wizard can save you on your electricity bill.

If You Move, Will You Need to Change Your Power Company?

If you’re relocating inside of Texas, you might be able to keep the same REP that you’re currently using, but you will need to contact them and find out if the company services the area where you are moving.

Sometimes a REP will change your rate based on your location. Even though you might be happy with your current power company, you’ll want to shop around to make sure you still have the best rate on the market.

Also, your contract will probably start over if you move. This is something to keep in mind when you’re signing a contract, especially if it is a long-term agreement. You’ll want to be aware of all the fine print, so you don’t incur any unexpected fees.

Something else to consider when you’re moving is – every house has a different energy footprint.

Maybe you’re moving from a small apartment to a larger home. You’ll probably be using electricity differently in your new home, so you’ll want to re-evaluate your plan.

Choosing a power company in Texas?

Let us find you the best plan in seconds and start saving.

Choosing a Power Company in Texas: The Who.

Who is running the power companies in Texas?

Power companies are also known as Retail Electric Providers (REPs), and there are 100s of them in Texas.

REPs are privately-owned retail companies that buy electricity at wholesale prices and sell it directly to consumers like you.

Who are the Available Power Companies in Texas?

Because of deregulation, there are dozens of electricity providers available to residents and business owners in Texas.

The long list of available power companies in Texas can be found here.

What Should you Look for in a Power Company?

There are so many power companies in Texas, you’re likely to find some of them have better service than others.

A company’s history and reputation are a few things that matter when choosing the right REP to do business with.

Factor #1: Company History

When you’re researching a power company in Texas, inquire about how long they have been in business and who founded the company.

Check out the company’s website to see if it’s easy to use and seems well established.

If a company has been in business for many years, it might mean they have worked out the kinks in service and will be able to serve you better.

Factor #2: Reputation

Before signing a contract, you might want to investigate a little bit online.

You can easily google the REP and see if they have any complaints on the Better Business Bureau.

If a company has a good reputation online, it is a good indicator that the service will be top-notch.

Factor #3: Customer Service

Customer service is an important factor in choosing a power company in Texas.

Check and see what customers are saying in Google reviews and other review sites.

You can also call the company’s phone number and speak with a representative to see what type of experience you have with them.

Discover the best electricity rates.

Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.

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Choosing a Power Company in Texas: The What.

More important than choosing a power company is choosing the best electricity plan. You’ll want to pick a plan that saves you the most money every month.

Luckily, Power Wizard can show you how to choose the best energy plan.

Picking a plan can be easy when you let us do the work for you.

Instead of continuing to spend hours researching, let us tell you which REP has the best plan for your personal usage needs.

Simply enter your zip code into our Shopping Tool to see how it works.

Choosing a power company in Texas?

How to Pick a Power Plan

When you’re wondering how to pick a power plan, you’ll want to consider your usage, rate, plan types, term lengths, promotions, and other factors.

Factor #1: Your Usage

The biggest factor that goes into choosing your power plan is how you use electricity.

As an example, let’s look at Cindy’s lifestyle and usage habits.

The biggest factor that goes into choosing your power plan is how you use electricity.

As an example, let’s look at Cindy’s lifestyle and usage habits.

Cindy lives in a brand new, very energy-efficient home, and yet her electricity bill is much higher than her neighbor’s bill.


She works from home and keeps the lights and air conditioning on most of the day. Cindy uses a lot of technology for her job, and some of her electronics consume a lot of power.

If Cindy worked in an office and wasn’t home as often, her power bill would probably be much lower.

The number of people who live in your home, your hobbies, and other lifestyle factors will make a difference in which power plan you should choose.

Factor #2: Rate

When you are looking at power plans, you ultimately need to consider the rate per kWh.

The average rate for electricity in Texas is 11.25 cents. You will want to compare your rate quote to the average for your area to make sure you’re getting a reasonable price.

Get quotes from all the power companies in your area to make sure you find the lowest rate available.

Factor #3: Plan Types

Power companies in Texas have gotten creative with rate structures, so there are hundreds of different types of plans.

Some of the most common rate types include:

  • Variable-Rate
  • Fixed-Rate
  • Free Nights and Weekends
  • Index-Rate
  • Prepaid
  • Month-to-Month

Each of these plans has pros and cons depending on your home and usage requirements.

Discover the best electricity rates.

Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.

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Let’s take Michael’s power usage for example.

Michael is a traveling nurse and works the night shift in a hospital. He lives alone and spends most weekends at his family’s home in another neighborhood.

Michael probably won’t benefit from a “free nights and weekends” plan since he’s rarely at home using electricity during these times.

Because he is a traveling nurse, Michael might require a contract that does not have a long time commitment.

If he receives a work assignment in another area, he might have to move quickly and cancel his contract. So, he could probably benefit from a month-to-month plan or a short-term contract.

Your lifestyle is a big factor in deciding what type of plan will work best for you.

Factor #4: Term Lengths

Electricity contracts will specify a period when both parties are under obligation.

Contract lengths vary. Yours could be 6 months, 12 months, or 24 months. Some people opt for a month-to-month plan which doesn’t obligate you to a specific amount of time.

There are pros and cons to various contract lengths.

Some companies might offer you a lower rate for a longer contract. The month-to-month plans usually have the most expensive rates.

It’s important to read the fine print in your agreement. There could be fees for terminating your contract before the period is up.

It’s important to read the fine print in your agreement. There could be fees for terminating your contract before the time period is up.

Factor #5: Incentives/Promotions

When you’re shopping for power plans, you will find that many companies offer seasonal promotions.

Some promotions might include a free ihome or a special rate for a certain amount of time.

While promotions can save you in the short term, you also need to consider the long-term payments to your electricity company.

If the REP is asking you for a long commitment, but they can change the rate, you might end up paying a premium when they raise the price.

Choosing a Power Company in Texas: The When.

When is the time to switch electricity providers?

When you use Power Wizard, the answer is: You switch providers when a better deal becomes available.

Maybe you’re asking, “But what about my current contract terms?”

Don’t worry. We’ve got you covered. We’ll discuss and explain how to understand the terms.

Let us find you the best plan in seconds and start saving.

Factor #1: Current Contract Terms

When you’re thinking about making a switch to a new power company in Texas, take a close look at your current contract terms.

Depending on your specific agreement, there might be a fee based on how much time is left in your contract.

Still in a Contract?

If you have time left on your current contract with your power company, you might be wondering if it’s possible to switch right away.

You don’t need to wait until your contract is up to get into a better plan.

Power Wizard’s unbiased algorithm monitors the marketplace constantly and compares rates to your current plan. We take into consideration your cancellation fees and will only recommend that you switch your REP if it makes sense to do so.


Month-to-month plans are easier to cancel because there isn’t usually a fee to switch.

You will want to time your switch so that you don’t experience any gap in service. Power Wizard can make sure you won’t have a power outage due to switching providers.

Factor #2: Your Wallet

Finding the best plan for your home that also saves you money is the ultimate goal.

Power Wizard will take a look at your current contract, and weigh the early termination fee against the cost savings of switching plans.

You don’t have to do the math or learn all the technical jargon in your contract – we’ll do it for you.

Factor #2: Your Expectations

Your expectations for your power company could include:

  • Excellent customer service.
  • An accurate bill every month.
  • Good communication and the ability to get in touch with an agent promptly.

Choosing a Power Company in Texas: The How.

Maybe you’re asking yourself, “What electric company should I use?”

You will find there are hundreds of electricity plans and companies to choose from.

There are 2 ways to choose a power company in Texas: the hard way, and the easy way

Discover the best electricity rates.

Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.

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How to Choose a Power Company the Manual (and Often Frustrating) Way.

Manually searching for a power plan can be very frustrating.

We can use Sarah’s example to explain.

Sarah was moving to Texas and needed to get the power turned on in her new home. She started to look for a utility company to sign up with.

After a little bit of research, Sarah found out that Texas has lots of Retail Electric Providers to choose from.

She tried to find a list of REPs in her specific area, but this information wasn’t easy to come by. She ended up going down the list of over 100 REPs and tried to inquire with each company as to whether they provided service in her area.

After getting a few rate quotes, Sarah realized that the rates were not all created equal

Some rates were low, but they would change from month to month. Some rates seemed high but they offered free nights and weekends.

Sarah looked at her previous electricity bills to see what her usage was so she could match it to the right plan.

She was going to be starting a new job with different hours, so she couldn’t accurately tell what her usage times would be. Since she wasn’t there, she also didn’t know how much electricity her new home would use.

Finally, after hours of work, Sarah gave up trying to shop for plans by herself. She Googled: “How to find the best power plan in Texas.” Luckily, at that moment, she found Power Wizard.

How to Choose a Power Company With Ease: Power Wizard.

After Sarah found Power Wizard’s website, she realized her search was over.

She didn’t need to research or spend any more time thinking about her electricity bill.

Here’s how it works:

  • Enter your zip code and a few other pieces of information into our Shopping Tool.
  • Power Wizard’s unbiased algorithm will match your home and your data to the best electricity plan on the market.
  • We monitor the market for new deals every day and will let you know if one comes available.
  • Power Wizard takes control over your electricity bill, so you don’t have to think about it anymore. We monitor your usage and always make sure you’re on the best plan.
  • You don’t even need to set up auto-pay with your new provider. We’ll do it for you.

If you find yourself spending lots of time researching electricity plans, let us take over for you. You can let us manage your power bill, so you can get on with your life.

Let us find you the best plan in seconds and start saving.

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