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Electricity Plans

By Payal B

If you have that fight with your teenager about the hairdryer again, you might explode!

Every morning, it’s the same. You’re making coffee, and you hear them in the bathroom, drying their hair for 45 minutes. And this is after an hour-long shower! You might as well be making coffee to the sound of your teen flushing money down the toilet.

But what if you didn’t have to start your day fighting with your kid about the electricity bill? With a better electricity plan, you could find the family harmony you’ve always wanted!

Instead of throwing the hairdryer in the garbage while your kid is at school, use the PowerWizard Shopping Tool to find the perfect electricity plan for you and your family.

Find family harmony and the best electric plan in minutes!

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


This guide will walk you through step-by-step how to find the best electricity plan in Texas based on your needs and your usage.

Power lines at sunrise - Electricity Plans

Why Do I Get a Choice of Electricity Plans in Texas?

Do you know that you have a choice in your electricity plan if you reside in Texas?

Because of the deregulation bill passed in Texas in 2002, consumers in some areas of the state can shop and compare electricity plans to find the best electricity rates for their needs.

As a result of this bill, 85% of Texas electricity consumers can compare electricity plans to suit their needs. They’re not stuck using one government-owned or government-regulated electric utility company.

Here is a list of other states that are able to choose their energy plans.

  • California
  • Connecticut
  • Delaware
  • Washington, D.C.
  • Illinois
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • New Hampshire
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania
  • Rhode Island
  • Virginia
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Lightbulb on table - Electricity Plans

You Get A Choice Because Of Deregulated Electricity

The bill was passed to encourage free-market competition in Texas. This free market gives consumers the power to choose their electricity plans.

Consumers like you can shop around to find the best electricity plan.

Although choosing your own electricity plan sounds great, it might not be:

There are dozens of electricity companies in Texas. Each electricity company has multiple plan options.

The result is hundreds of electricity plans. The average person doesn’t have the time or industry expertise to properly navigate this convoluted market.

How Does Deregulated Electricity Work?

The deregulation bill passed in 2002 designated the Electric Reliability Council of Texas (ERCOT) to be the authority to oversee grid reliability and operations to ensure no particular buyer or seller would gain an unfair advantage in the market.

The municipal utility company still owns the infrastructure and is responsible for transmitting energy but not setting the energy rates.

Texas decided to reduce the state’s regulation on electricity resulting in a free market and open competition with electricity plans. This means you have many options for your electricity provider and are not forced to use one or two like many other states.

As a result, there are dozens of REPs offering a combination of hundreds of plans.

How Much is Electricity in Texas?

Texas produces more electricity than any other state. It generates almost twice the amount as in Florida.

Here are some average rates for residential and commercial electricity rates in Texas:

Average Residential Electricity Rates In Texas:

  • Residential electricity rates in Texas average 10.98¢/kWh, which ranks the state 31st in the nation.
  • The average residential electricity rate of 10.98¢/kWh in TX is 7.58% less than the national average residential rate of 11.88¢/kWh
  • The approximate range of residential electricity rates in the U.S. is 8.37¢/kWh to 37.34¢/kWh.

Average Commercial Electricity Rates In Texas:

  • Commercial electricity rates in Texas average 8.16¢/kWh, which ranks the state 40th in the nation.
  • The average commercial electricity rate of 8.16¢/kWh in TX is 19.13% less than the national average commercial rate of 10.09¢/kWh.
  • The approximate range of commercial electricity rates in the U.S. is 6.86¢/kWh to 34.88¢/kWh.

However, this may be misleading, depending on who asks about their electric bill.

Why could these rates be misleading, you ask?

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

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The Price Of Electricity Plans Depends On Different Factors

Determining the best electricity plan for you depends on many different factors.

Keeping these factors in mind as you talk to family and friends about their rates and plans will play an important role as you compare electricity plans.

Remember, no two homes will be the same. Rates will vary greatly depending on these factors.

Factor #1: Your Zip Code

Your zip code matters.

The price of your electricity plan may differ from your family member’s plan who lives in a different zip code, even though your homes are the same size and your usage is pretty close.

Your electric bill for a 2,000 sq foot house in Houston may cost you more than a 2,000 sq foot house in Abilene.

Factor #2: Residential or Commercial

Do you need electricity for residential or commercial spaces?

If you are searching for electricity plans for commercial space, you are more than likely looking for square footage than residential. A commercial space may have people coming and going, which will cause your electricity usage to be higher.

Also, there are electricity plans specifically designed for commercial properties in Texas.

Factor #3: Size of Your Home, Apartment, or Commercial Space

The size of your home, apartment, or commercial space can affect your electric usage.

However, the following are a few other things to consider along with the size of your home:

A commercial space size contributes to your electricity rates, but also consider the following:

  • Number of employees
  • If you have customers coming and going
  • Office Equipment
  • Hours – 24/7 business or a standard 9-5
  • And more…
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Factor #4: Age of Your Home, Apartment, or Commercial Space

The age of your home, apartment, or commercial space may be a factor in how much you are paying for your electricity bill every month.

An older home, apartment building, or commercial space may have less effective insulation or may have older appliances that are not as energy-efficient, causing your electric bill to be higher.

There are some basic home improvements you can do to help curve your bill.

Newer homes tend to be built with energy-efficient appliances and have better insulation, usually resulting in lower electric bills.

Therefore, a new home in Houston that’s 2,000 square feet might not benefit from the same electricity plan as an older home in Houston that’s also 2,000 square feet simply because of the home’s age.

Happy family on couch - Electricity Plans

Finding a Texas Electricity Plan

There are over 160 electricity companies in Texas.

That can be overwhelming when trying to find a new electricity plan.

Below, we share two different options to help you find the best electricity plan in Texas.

It’s interesting that most people search for electricity incorrectly in Texas:

They shop for electricity using a labor-intensive, inefficient, and incredibly frustrating strategy. Take a look below.

Option 1: Manually Spend Dozens Of Frustrating Hours Searching Through Dozens of REPs’ Websites

How much time do you have? Remember, there are over 160 electricity companies in Texas. Do you really have that much time to search through dozens of REPs’ sites manually to find a plan that works for you?

It is a gamble. Think about this:

You conduct an online search for the best REPs in Texas, go to each site, and likely walk away with more questions than when you started on top of wasting multiple hours.

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

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Option 2: Spend Less Than 5 Minutes Using An Unbiased Algorithm That Will Find You The Best Electricity Plans

Save time by allowing technology to do the work for you.

Power Wizard has a solution to eliminating the endless number of hours spent manually searching for new electricity plans.

And the solution takes less than 5 minutes.

Here’s how Power Wizard works:

  • Share information like your zip code, size of your home, electrical usage (you can even upload a previous month’s electrical bill), and more.
  • Your data will quickly run through our unbiased algorithm and be compared against all the available plans on the market.
  • Once your data is computed, Power Wizard will share the best plan for you based on your energy needs.
  • As a member of Power Wizard, our algorithm is always working for you. If another plan for your energy needs becomes available, we will notify you. Our process even considers any fees that you may incur due to the switch.
  • As a member, you will have access to Power Wizard’s customer service team to answer any questions, as well as access to your dashboard. You can see your savings, monitor your plan, and more.

Why Seemingly Cheap Electricity Plans Can be Misleading

Cheap electricity plans may sound great! But they can also be misleading.

They may come with:

  • Contract Plan Terms
  • Overage charges
  • Costs of Service
  • Length of Contract

The Price Per kWh Is Likely Not The Final Price You Pay

You think that the rate you see on your electricity plan’s contract is the price you pay. That’s often not the case.

Knowing that the following charges will be included in your bill will help you make a better decision and clarify your bill statement.

  • Taxes and surcharges
  • Supply charges
  • Electricity usage
  • Transmission and distribution charges

Hidden Fees

Many cheap plans catch consumers off guard. The cheap plans are not always so cheap.


  • Many of the cheap plans have charges somewhere else
  • You may see a spike in rates after the first year
  • Cancellation fees
  • And other hidden fees

Don’t be fooled!

Hidden fees make it hard to know which electricity plan is best for you and your family.

And reading through dozens of electricity plans to figure out their hidden fees is stressful, time-consuming, and incredibly frustrating.

Instead of spending hours doing that, you can spend a couple of minutes using Power Wizard’s Shopping Tool. It’ll let you know the best plan for you.

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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What are some of the Best Features of Modern Energy Plans?

Features or exclusive perks are things many consumers compare when comparing electricity plans.

A few to look for include:

While receiving a gift card from your electricity company seems great, remember that they’re using this as a marketing strategy.

Just because you get a gift card does not mean you’re getting the best electricity plan.

Are Free Weekend Electricity Plans Worth It?

Free always sounds and looks good! But is a free weekend electricity plan worth it for you? Maybe? It depends on your schedule and a number of other factors.

Life with anything that states FREE in front of it will have trade-offs.

Be sure to ask yourself if your schedule allows you to receive the full benefit of using the free weekend electricity plan you are considering.

What are Some of the Overrated Features of Modern Energy Plans?

Free energy sounds great, but will you be home to benefit from it?

Energy plans offering free or discounted rates during the hours you are sleeping or not at home may not benefit you.

Knowing your schedule and understanding the terms of these plans is important and may save you more by going with another option.

Be Careful To Avoid Marketing Strategies That Will Entice You To Choose The Wrong Electricity Plan

A company’s marketing of their electricity plans has caught your eye. The price looks good, and you are ready to sign.

But first, be sure to know and weigh your home’s needs.

Are you home on the weekends to benefit from the free weekend plan being offered?

Are you home most nights during the hours offered for the free night?

If you answered “NO,” these plans may not be a good fit for you.

Is the offer valid only for long-term plans, and do you move often?

If you answered “YES,” this plan may not be a good fit for you.

Remember to always ensure the perks benefit your home’s needs.

Oftentimes, the cost per kilowatt-hour is much higher during the hours that you still have to pay for electricity than plans that charge you during all hours of the day. For example, your price per kilowatt-hour for a free weekend plan may cost you 16.2¢, whereas your price per kilowatt-hour may range between 6.8¢ to 14.5¢ for other types of plans.

Discounted or free energy plans may work well for you and save you money under the right situations but may not save you as much as you think.

This is where Power Wizard’s technology can help you avoid enticing marketing strategies and help you choose the best electricity plan for you.

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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Are Electricity Plans Connected to a Smart Device Worth It?

How tech-savvy are you?

Although some have reported savings with electricity plans connected to a smart device, it comes down to personal preference.

When setting up smart devices, a bit of tech knowledge comes to play when connecting devices.

You should also take the cost and installation of the smart device(s) into account when comparing this plan.

How do you Know What the Rates are for Each Plan Option?

Here’s what your life would look like if you tried to manually search through every electricity plan in Texas:

  1. You’d need to create a comprehensive Excel spreadsheet to organize everything.
  2. With hundreds of electricity plans, you’d need to hire someone or quit your job to successfully search through all the plans
  3. By the time you finished doing the research, there’s a good chance that rates have changed and all of your work was invalid.

Option 1: Manually Search Through Dozens Of Websites

It would take weeks to search through every electricity plan in Texas.

Not only would it take weeks, but you’d likely need to get a law degree to understand all the legal jargon in the contracts.

It actually gets worse:

You think that the “best electricity plan” is simply the cheapest rate per kWh. But that’s probably not true. The best electricity plan for you is likely not the same plan for your neighbor.

On top of setting up comprehensive spreadsheets and getting a law degree, you’ll also need to learn how to code.

The only feasible way to figure out if an electricity plan is best for your home is to create an algorithm that compares your home’s unique data against each plan.

It’s nearly impossible to manually find the best plan.

Option 2: Use Power Wizard’s Unbiased Algorithm That’s Specifically Designed To Find You The Best Electricity Plan

Thankfully, there’s a much easier way to search for electricity.

Here’s what your life will look like if you use Power Wizard’s Shopping tool.

  1. You spend less than 5 minutes using the tool. You enter some simple data like your zip code and your home’s size. You can relax and sip your coffee while doing it.
  2. The tool determines the best plan for you and makes signing up easy. It only takes a couple of minutes.
  3. After you pay, Power Wizard’s algorithm will monitor your plan and usage for you 24/7.
  4. With all this free time (and savings), you can do the things you love, like spending time with friends and family.
Discover the best electricity rates.

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

Learn More in Under 2 Mins

Why is it Hard to Compare Texas Energy Plans?

With Texas being a deregulated state and the hundreds of electricity plans to choose from, competition is strong. And companies compete with plan offerings making it hard to truly compare.

The following also make it hard to compare Texas energy plans:

  • Terms of Plans
  • Length of Service Options
  • Individual needs
  • Terms of Contracts

There may be two plans that look nearly identical. They have the same price per kWh. But, after reading their Terms of Service, you quickly realize that the two plans are very different.

How do I Find the Cheapest Provider?

The “cheapest” electricity plan might not be the best plan for you.

Here’s a story that explains this:

Let’s say you live in Waco.

After some initial research, you find that the cheapest energy provider for your area is selling electricity at 7.9¢ per kWh. Seems really cheap, so you buy it.

After your second month, you look at your electricity bill. It seems really high.

You inspect further.

You see that your rate says 10.1¢ per kWh. What!?

You’re upset. You keep reading the statement.

After 10 more frustrating minutes of searching, you figure it out. This “cheap” electricity plan requires that you use at least 1,500 kWh per month. If you fail to meet the minimum, then they’ll charge you a higher rate of 10.1¢ per kWh.

You go back to the section that explains your electricity usage. It says you used 1,423 kWh.

Because you didn’t use the minimum amount, you were charged a rate over 30% higher than what you signed up for.

This is why the “cheapest” electricity plan likely isn’t the best plan.

The Electric Company that has the Best Plan is the One That Will Work the Best for YOU.

Selecting the best electricity plan is about you! This is the time to focus on your home or business needs solely. Not the need of your neighbor, co-worker, or family members.

Everyone’s needs are different. Knowing your needs and having an all-seeing technology system will help you choose the best plan and keep your rates low.

Power Wizard can help you find the best electricity plan for your needs. All you need to do is spend 5 painless minutes using our Shopping Tool below.

Once Power Wizard finds you the best low rate plan, your plan will be switched over and monitored to ensure it stays low.

You can learn more about how Power Wizard works by going here.

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

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