How to Choose a Small Business Electricity Plan in Texas

Running a small business in Texas means every dollar counts, and your electricity plan should work as hard as you do. But with hundreds of options and complicated rate structures, finding the right plan can quickly become confusing. Let’s break down how to choose the best small business electricity plan for your needs and how Power Wizard helps you compare providers, rates, and terms.

With dozens of retail electricity providers competing for your business, finding the right one can feel overwhelming. Each provider offers different contract terms, pricing structures, and customer perks, and not all of them are easy to compare at a glance.

To make things simpler, we’ve compiled a side-by-side look at some of the most popular business electricity providers in Texas:

REP	Known For	Rating (1-5)
APG&E	Plan diversity + award-winning customer service	4.19
TXU Energy	Commitment to customer satisfaction + innovative energy solutions	4.92
Gexa Energy	Competitive plans + exceptional customer service	4.83
Frontier Utilities	Simple, low-rate plans + 60-day happiness guarantee	4.83
Chariot Energy	100% renewable energy + supporting solar power plants	4.42
Reliant Energy	Tailored plans + active community involvement	4.92
Direct Energy	One of the largest REPs in North America	4.19
Cirro Energy	Reliable service + focus on simplicity and convenience	4.11
Green Mountain Energy	Renewable energy + promoting environmental conservation	4.19
CleanSky Energy	100% renewable electricity + 100% carbon-neutral electricity	3.55
Atlantex Power	Easy enrollment + abundant customer learning resources	3.78

Choosing the right business electricity plan for your Texas business isn’t just about finding the lowest advertised rate. Consider the following when shopping around:

Understand Your Business’s Energy Profile

Start by looking at your past energy usage. Your electricity bill or smart meter data can reveal patterns, such as when your business uses the most power and how consistent that usage is throughout the month. For example:

• Retail stores tend to have steady daytime usage that spikes on weekends or during sales events.
• Restaurants often face high energy demand in short bursts—think ovens, fryers, and HVAC systems all running at once.
• Office buildings usually have predictable weekday peaks tied to business hours and equipment use.

Understanding your usage pattern (also called your load profile) helps you match with a plan that fits your needs. A business with predictable, steady use might benefit from a fixed-rate contract, while one with flexible operating hours could optimize savings with a time-of-use plan.

Match Your Electricity Plan to Your Operating Hours

Texas businesses can choose from several electricity plan types—each with unique rate structures and risk levels. Selecting the right one depends on how your business uses energy throughout the day.

• Fixed-Rate Plans: Your electricity rate stays the same for the entire contract term. These plans offer price stability and predictable budgeting. Making this ideal for businesses with consistent energy use during peak hours.
• Time-of-Use (TOU) Plans: Electricity costs vary depending on when you use it. Typically higher during daytime “peak” hours and lower overnight or on weekends. Businesses whose operations align with off-peak hours (for example, night-shift bars or 24-hour facilities) can reduce costs by shifting major energy use outside of peak periods.

Spot Hidden Fees and Contract Traps

It’s easy to focus on the headline rate, but the fine print often hides additional costs that can inflate your total bill. Here are a few to watch for:

• Early Termination Fees: Leaving your contract before it ends can trigger steep penalties, sometimes equal to months of energy charges.
• Demand Charges: Common in commercial plans, these fees are based on your highest energy use during a short window (often 15–30 minutes). Even one big spike can increase your bill.
• Pass-Through Fees: Some Retail Electric Providers (REPs) include “pass-through” charges for costs like transmission, ancillary services, or regulatory fees from ERCOT or the Public Utility Commission of Texas (PUCT). These can fluctuate and aren’t always obvious upfront.

Before signing, read the Electricity Facts Label (EFL). This shows you every included charge and helps you avoid surprises later.

Don’t Just Compare kWh Rates: Compare Total Cost

Two electricity plans can advertise the same per-kilowatt-hour rate yet lead to very different monthly bills. The difference often comes down to how you use energy.

If your business has high peak demand—for instance, a restaurant firing up multiple appliances at once for the dinner rush—you’ll likely pay more in demand charges. On the other hand, a business with a consistent load and good load factor (the ratio of average demand to peak demand) can take advantage of lower effective costs over time.

When comparing offers, look beyond the energy rate to evaluate:

• Delivery and demand charges
• Monthly base fees
• Contract length and renewal terms
• Pass-through costs

Power Wizard connects your business with a dedicated energy expert who helps you navigate the complex Texas electricity market. Instead of sorting through endless plans on your own, you’ll get personalized guidance based on your business’s size, energy usage, and goals.

Your expert will explain your options, walk you through contract details, and help you understand what each rate type really means for your bottom line. With one-on-one support and clear, custom recommendations, Power Wizard makes it easy to choose an electricity plan that fits your needs.

Ready to get started? Start comparing small business electricity plans through Power Wizard.

Required Information to Get Started with Power Wizard for Businesses

Before Power Wizard can compare electricity rates and find the best commercial plan for your business, you’ll need to provide a few key details. These help verify your account, ensure accurate rate comparisons, and match plans based on your business profile.

Required Business Information:

• Business Name: The registered legal name of your business.
• Contact Name: The primary person responsible for managing the electricity account.
• Role in Company: Your position or authority to act on behalf of the business (e.g., Owner, Operations Manager).
• Phone Number & Email Address: Used for verification, plan updates, and customer support.
• Tax ID (EIN): Required for account setup and business rate eligibility.
• Type of Business (LLC, Corporation, Partnership, etc.): Helps identify the correct rate class and contract options.
• Billing Address: The mailing address associated with your electricity service and account.

Texas has one of the most competitive energy markets in the country, thanks to deregulation, which allows most businesses to choose their electricity provider. The Electric Reliability Council of Texas (ERCOT) manages the state’s power grid and wholesale electricity market, while Retail Electric Providers (REPs) compete to sell electricity to homes and businesses. Transmission and distribution are still handled by regulated utilities such as Oncor, CenterPoint, TNMP, and AEP Texas.

According to the U.S. Energy Information Administration (EIA), Texas commercial electricity customers paid an average of 9.03 cents per kilowatt-hour in July 2025, compared to the national average of 14.15 cents. That means Texas businesses often pay less than the national average, but the market’s open competition and plan variety make it essential to choose wisely.

In short, deregulation gives you options, but it also means the best plan depends on how and when your business uses electricity. Knowing whether a fixed, or time-of-use plan fits your usage patterns can help you control costs and avoid unnecessary surprises.

Finding a competitive electricity rate is just the beginning. Real savings come from how your business uses energy day to day. Whether you run a small coffee shop in Dallas, an office space in Houston, or a boutique in Corpus Christi, these strategies can help you cut costs without disrupting operations.

Time-of-Use Optimization for Businesses

Finding a competitive electricity rate is just the beginning—real savings come from how your business uses energy day to day. Whether you operate a small coffee shop in Dallas, an office in Houston, or a boutique in Corpus Christi, strategic scheduling can lower costs without disrupting operations.

Not every Retail Electric Provider (REP) in Texas offers time-of-use (TOU) pricing to small businesses, but for those that do, shifting flexible activities to off-peak hours can lead to measurable savings.

• Retail stores: Run non-essential equipment such as signage lighting, display refrigeration, or laundry (for uniforms/towels) during overnight hours when rates are lowest.
• Warehouses and logistics centers: Schedule forklift charging, air-compressor use, or packaging operations before peak daytime hours.
• Offices and service businesses: Pre-cool or pre-heat spaces early in the morning, and use smart thermostats to limit HVAC usage during peak hours.

Enroll in Demand Response or Incentive Programs

Texas businesses can turn flexibility into revenue by participating in demand response programs administered through ERCOT. These programs ask you to temporarily reduce or shift power usage when the grid is under stress. In return, you receive payments for your availability and curtailment.

One key opportunity is the Emergency Response Service (ERS), which requires participants to reduce load within 10 or 30 minutes when ERCOT signals a grid emergency. You can also become a Load Resource (LR) and offer capacity into ERCOT’s ancillary services markets (e.g. responsive reserves, non-spin, contingency) by meeting performance and telemetry requirements.

These programs vary in commitment level and payouts, so businesses should weigh how much disruption they can tolerate, how fast they can curtail, and what investment they’re willing to make in control systems or automation.

Invest in Energy-Efficient Tech

Upfront investment in efficiency often pays off faster than you expect. Installing LED lighting, smart thermostats, or optimizing HVAC systems with better control and maintenance can reduce your baseline demand and shrink spikes. Efficiency upgrades also make it easier to respond to demand response events without major operational impact.

Ready to get started? Start comparing small business electricity plans through Power Wizard.