Are you ready to save hundreds on your electricity bill?

Discover how to get the best electricity rates in Texas - within seconds!

Are you ready to save hundreds on your electricity bill?

Discover how to get the best electricity rates in Texas - within seconds!

Energy Providers In Texas - What Are They? How Do They Work?

Are your eyes aching from staring at a computer screen for too long? Do you just want to take a break, stop shopping for energy providers in Texas, and go take a walk outside? 

Of course you do! You know that some fresh air and beautiful scenery would be better for you than staring at a screen for three more hours, but these days you feel like you have to choose between spending your free time enjoying the great outdoors and keeping the lights on.

Let me tell you a secret…

You can have both! 

With Power Wizard’s Shopping Tool, you can find the perfect energy provider in minutes and give your poor, tired eyes a rest from the computer.

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


 

Energy Providers Texas: History Of Energy In Texas

energy providers

Here are some facts from the US Energy Information Administration:

  • Texas is the leading U.S. producer of both crude oil and natural gas. In 2017, the state accounted for 37% of the nation’s crude oil production and 24% of its marketed natural gas production.
  • Texas produces more electricity than any other state, generating almost twice as much as Florida, the second-highest electricity-producing state.
  • As of January 2018, the 29 petroleum refineries in Texas were able to process more than 5.7 million barrels of crude oil per day and accounted for 31% of the nation’s refining capacity.
  • Texas leads the nation in wind-powered generation and produced one-fourth of all the U.S. wind-powered electricity in 2017. Texas wind turbines have produced more electricity than both of the state’s nuclear power plants since 2014.
  • Texas is the largest energy-producing state and the largest energy-consuming state in the nation. The industrial sector, including its refineries and petrochemical plants, accounts for half of the energy consumed in the state.

Natural Gas Production – 1970 to 2010

While Texas is the nation’s leading producer of natural gas, holding around 23% of the nation’s reserves, natural gas production has actually been declining since 1970.

Even though natural gas production has declined during this period, the consumption of natural gas in Texas has increased.

energy providers

Why did natural gas production decrease in Texas?

It’s hard to say why, but since 2010, natural gas production in Texas has increased.

According to a reporter from the San Antonio Business Journal, “ World energy consumption is projected to grow 50% by 2050 and, with it, natural gas production in Texas.”

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The 1800s

Abraham Gesner developed the process to distill kerosene from petroleum in the 1850s.

Just a decade later, the oil industry in Texas was created. In the 1800s, here’s what the beginning of the natural gas industry looked like in Texas:

  • In 1866, one of the first significant oil wells began production. It was in the town of Oil Springs, near Nacogdoches.
  • The first oilfield in Texas that actually created a real economic impact, such as job creation, was developed near the town of Corsicana in 1894.
  • Just 4 years later, in 1898, that same oilfield built the state’s first modern oil refinery.

This is a history of the oil industry in Texas in the 1800s. The history of electricity in the 1800s looked much different.

If you’d like to learn more about the history of electricity in Texas, you can read this article.

The Early 1900s

The Texas energy industry, specifically through the mechanization of oil, began to boom in the early 1900s.

What happened in the early 1900s?

In 1900, the state’s total oil production was about 836,000 barrels. Just two years later, the oil production at Spindletop (the newest, largest oilfield in Texas) produced more than 17 million barrels.

That’s more than a 2,000% increase in oil production in just 2 years.

This massive increase in oil production led to a surplus. At one point, the U.S saw a record low price for oil, just $0.03 per barrel due to this oversupply of oil from Texas. In some cities, oil cost less than water.

From 1910 – 1940, oil exploration in Texas expanded. Oil production spread to North Texas, Central Texas, The Pandhandle, and areas in Western Texas.

In 1930, a self-taught oil prospector named Columbus Marion Joiner, discovered the East Texas Oil Field, the largest oil discovery that had ever been made in the world.

This is a history of the oil industry in Texas in the early 1900s. The history of electricity in the 1800s looked much different.

Deregulation:

The current electricity industry in Texas is very different than most other states in the US.

Why?

Texas has something called deregulated electricity.

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What is the history of deregulation in Texas?

The history of deregulation in Texas goes all the way back to the 1940s. If you’d like to read the entire story, you can go to this article.

For the sake of this article, we’ll pick up the story in 1995. In 1995, Texas passed Bill 373, which was designed to allow competition in the wholesale electricity market.

At a basic level, it allowed private Retail Electric Providers (REPs) to enter the market. The government was no longer responsible for regulating the entire industry.

In 2002, Bill 7 was passed which allowed residents in Texas to choose whichever REP they wanted to work with. It gave consumers the power to choose their electricity company.

Bill 7 is still in effect today. Because of Bill 7, there are over 100 electricity companies in Texas and millions of Texans can choose their electricity company.

Energy Suppliers For Energy vs. Electricity – They’re Different

energy providers

Energy is not the same as electricity.

As an electricity and energy consumer, you need to understand what these two industries are, how they relate to each other, and how to navigate each one in order to save the most money on your energy and electricity bill.

You might’ve heard the relationship between rectangles and squares:

Squares are rectangles but rectangles are not squares.

It’s the same with the relationship between energy and electricity:

Electricity is a form of energy but energy is not a form of electricity.

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What is energy?

Natural Gas

  • The Electricity Information Administration (EIA) states that “Texas has more than 28,000 miles of interstate natural gas pipelines within its borders, and there are more natural gas market hubs in Texas than in any other state.”

Electricity

  • The EIA states that “Three in five households in Texas use electricity as their primary source for home heating, and demand peaks during the hot summer months with the increased use of electricity for cooling.”

Wind

  • The EIA states that “Texas leads the nation in wind-powered electricity generation, producing more than one-fourth of the U.S. total in 2018”

Solar

  • The EIA states that “Installed utility-scale solar capacity in Texas more than doubled between 2016 and 2017”

Hydroelectric

  • The EIA states that “Two dozen hydroelectric power plants contribute less than 0.5% to Texas in-state electricity generation”

Geothermal

  • The EIA states that “Geothermal resources have been tapped to heat and cool homes and schools around the state.”

Nuclear

  • The EIA states “The state’s two nuclear power plants typically supply about one-tenth of the state’s net electricity generation.”

What is electricity?

Electricity is one form of electricity that consumers in Texas use to heat their homes, apartments, and businesses.

Texas, according to the EIA, is the only state that has a stand-alone electricity grid.

Most energy consumers in Texas rely on electricity to power their homes and businesses.

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Types of Energy Providers in Texas

energy providers

There are different types of energy providers in Texas.

Natural Gas:

There are a number of natural gas providers in Texas.

Here at Power Wizard, we help Texas residents find the best electricity plan for their unique energy needs. We do not focus on natural gas.

Electricity:

There are over 100 electricity companies in the state of Texas.

Some electricity companies have dozens of electricity plans.

As a result, you can choose from hundreds of potential electricity plans for your home or business. With so many options, the process of finding an REP becomes confusing and frustrating.

Instead of wasting time manually researching all the different electricity plans, allow Power Wizard to do the work for you. Our Shopping Tool will let you know the best plan for your specific needs. The whole process only takes about 5 minutes.

Solar:

There are a number of solar providers in Texas.

Here at Power Wizard, we help Texas residents find the best electricity plan for their unique energy needs. We do not focus on solar panel installation.

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


Wind:

You can’t directly buy wind power. If you had the land and the means, you could buy the wind turbines themselves. Most residents in Texas do not do this.

Instead, here’s how wind energy works:

There are a number of wind farms in the state of Texas that help produce the electricity that people use in their homes and businesses.

Here at Power Wizard, we help Texas residents find the best electricity plan for their unique energy needs. If you’re looking for an electricity plan to suit your specific needs, use our Shopping Tool.

Hydroelectric:

You can’t directly buy hydroelectric power. Instead, here’s how it works:

There are a number of hydroelectric dams in the state of Texas that help produce the electricity that people use in their homes and businesses.

Here at Power Wizard, we help Texas residents find the best electricity plan for their unique energy needs. If you’re looking for an electricity plan to suit your specific needs, use the Shopping Tool.

Best Texas Energy Providers: List of Energy Providers in Texas:

Here’s a list of energy providers in Texas (specifically electricity companies):

Do These Energy Providers Sell Electricity or Natural Gas?

Some energy providers sell both electricity and natural gas. While this is the case, most REPs in Texas only sell electricity to consumers.

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Here’s a really important tip that will likely save you money:

Just because an energy provider in Texas sells both natural gas and electricity does not mean that their electricity plan will be best for your specific needs.

Here’s a quick story that’ll show you how to save money:

There’s a woman named Teri. Teri lives in the Houston area.

She needs both electricity and natural gas for her home. So, just like most people, she consults the expert: Google. She pulls up a search page and types in something like “Energy Providers Houston.”

Teri visits a couple of different websites and finds one that offers both gas and electricity. This company claims that if you “bundle” your plan, then you’ll save money.

The electricity plan is for 10.1¢ per kWh.

Teri thinks she’ll save money (and the company makes the sign-up process sound easy), so she buys it.

She marks “Find an Energy Provider” off her checklist of things to do, unknowingly proud that she is spending more money than he needs to.

Why did Teri overspend on energy? And how can you avoid making the same mistake?

Teri lives in Houston. Houston is one of the largest deregulated cities in Texas. Why is this important?

Teri had dozens of electricity plans to choose from. But, she was set on finding a company that offered both electricity and gas.

However, what she didn’t realize was that there was a better electricity plan for her specific needs. If she would’ve shopped separately for an electricity plan, she could’ve purchased a plan for 8.9¢ per kWh.

Therefore, Teri is automatically spending about 10% more than she should be.

How To Find The Cheapest Energy Provider In Texas For Your Unique Needs

There are two ways that you can shop for an energy provider in Texas.

You Can Spend Frustrating, Confusing Hours Manually Searching for Energy Providers

If you chose to manually search for an energy provider (specifically an REP for your electricity needs) by going to different websites and comparing plans, here’s what your experience would look like:

  • You’d go to Google and type in something like “energy provider in Texas”
  • Dozens of websites would show up. You’d start to go to these websites to do research.
  • After about an hour, you’d realize that finding an energy provider in Texas is extremely confusing.
  • You’d spend another couple of hours creating complex spreadsheets to try to compare all of the different plans.
  • After you think you’ve found the best plan for your needs, you’d read the contract and Terms of Service and get even more confused.
  • At this point, you might want to through your laptop out the window.
  • A couple of days later, you just choose an energy provider and an electricity plan out of sheer frustration, unsure if you chose the best plan.

You Can Spend a Couple of Painless, Enjoyable Minutes Using Power Wizard’s Shopping. Tool To Find You The Best Electricity Plan

If you chose to find your energy provider through Power Wizard, here’s what your experience would look like:

  • You enter your zip code into the Shopping Tool below.
  • From there, you’d spend about 60 seconds entering some easy-to-find data about your electricity needs, such as the size of your home and the year it was built.
  • Power Wizard’s completely unbiased algorithm will run your data against every available plan in your zip code.
  • We’ll then let you know the best electricity plan for your specific needs.
  • Power Wizard makes the sign-up process easy so that you can get electricity to your home right away.
  • After you choose the best plan for your needs (which is likely to save you lots of money), Power Wizard continues to monitor your plan and usage. If another plan comes on the market that’s better for your needs, we’ll help you switch.
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