To choose an electricity plan in Texas, you should compare, at a minimum, company reviews, plan types, electricity rates, contract lengths, fees, and provider terms to find the best fit for your home and budget.
This guide is for anyone shopping for electricity in Texas for the first time, moving to a new home, or replacing a plan that’s about to expire. Below, you’ll find step-by-step guidance on how to choose the best electricity plan and company from Power Wizard’s energy experts. When you’re ready, enter your ZIP code into our comparison tool to see what options are available in your area.
Key Takeaways
- What should you compare on an electricity plan? Compare the plan type, contract length, the energy rate listed on the Electricity Facts Label (EFL), and any fees, including the Early Termination Fee (ETF).
- How does your usage change which plan to pick? The rates shown in a plan’s EFL are quoted at specific monthly usage levels, so a plan that appears to have the lowest rate at one usage level may not be the lowest-cost option at another. Compare plans based on average usage patterns to estimate which one is likely to provide the best value.
- How do you choose or compare an electricity company? Review the provider’s Public Utility Commission of Texas (PUCT) complaint record and read recent customer reviews to evaluate customer service, billing practices, and overall reliability.
- When can you switch without a fee? You can usually switch without an ETF if you switch in the 14 days before your contract ends, or if you move to a new place.
Can You Choose Your Electricity Provider in Texas?
The key to whether you can choose your electricity plan is your service address, not your city. Some cities include both deregulated and regulated service territories, so your electricity options depend on which utility serves your home. Most Texans in Electric Reliability Council of Texas (ERCOT) regions can choose a Retail Electric Provider (REP).
The easiest way to find out if you can shop is through Power Wizard’s ZIP code comparison tool. If your ZIP code or service address is eligible to shop, you’ll be able to browse the electricity plans in your area.
6 Things to Compare Before Choosing an Electricity Plan
Every Texas electricity plan can be compared using the same six factors:
| What to Compare | Description | Where to Find It | Why it Matters |
|---|---|---|---|
| Plan type | Fixed, variable, Usage credit, Free electricity, Prepaid, Solar Buyback | EFL and/or advertised plan details | Determines how the plan is priced and managed. |
| Contract length | 0, 3, 6, 12, 24, 36 months | EFL and advertised plan details | Affects your commitment and flexibility. |
| Energy rate | Varies by plan and provider | EFL and advertised plan details | Estimated costs vary at different usage levels, which impacts your monthly bill. |
| Fees | Base Charges, Minimum usage fees, Early termination fees | EFL | Additional charges can affect your electricity bill. |
| Provider reputation | Official PUCT complaints and reviews | PUCT complaints page, Power Wizard provider reviews, Google | Helps evaluate service quality and reliability. |
| Other Perks | Satisfaction guarantees, referral program, etc. | Usually promoted on the website | This can incentivize or make customers feel more secure about their choice |
Compare Electricity Plan Types
Texas electricity plans come in several formats, including fixed-rate, variable-price, prepaid/no-deposit, time-of-use, solar buyback, and green energy plans. Each option works differently and may not be the right fit for every household. We’ll explain how each plan type works in more detail later in this guide.
Choose the Right Contract Length
Your contract length is the amount of time you agree to keep your electricity plan before it expires. Short-term plans offer more flexibility, while longer-term plans can provide pricing stability for a longer period.
Compare the Electricity Rate and Electricity Facts Label (EFL)
The EFL is the most important document to review before enrolling. Advertised electricity rates are shown at specific monthly usage levels (500, 1,000, and 2,000 kWh) on the EFL, so the headline rate is not a single price that applies to every home.
Our recommendation is to compare the rate at the usage level that most closely matches your household’s average usage pattern instead of focusing only on the advertised rate.
Watch for Fees and Early Termination Fees (ETF)
If a plan includes fees, the EFL lists those fees that can affect your total electricity costs. These fees can be:
- Base charges. A monthly fee that electricity providers may charge to cover administrative expenses.
- Minimum usage fees. A fee charged when monthly electricity usage falls below a plan’s minimum usage threshold. This can increase costs for low-usage customers.
- ETF. A fee for ending a fixed-term electricity plan early.
Not all plans include all these fees. Reviewing these charges before enrolling can help you avoid surprises later.
Research the Electricity Provider’s Reputation
Price is only part of the decision. Before enrolling, review the provider’s PUCT complaint history and recent customer reviews to better understand their customer service and billing practices. We’ll cover how to evaluate electricity providers later in this guide.
Discover the best electricity rates for you in your area!
Match the Plan to How Much Electricity You Use
The lowest-cost electricity plan depends on how much electricity a household typically uses because EFL rates are shown at fixed monthly usage levels. That means one plan may have the lowest estimated cost at 500 kWh, while another becomes less expensive at 1,000 or 2,000 kWh.
The easiest way to estimate where you’ll fall is to check a recent electricity bill. Your monthly kWh usage provides a good starting point for comparing plans based on average usage patterns.
Below are some examples of electricity plans that may work for different situations.
| If this sounds like you | Plan types worth comparing first | What to check on the EFL |
|---|---|---|
| Low electricity use (450 to 850 kWh) | Fixed-rate and green energy plans | Pricing at lower usage levels and any minimum usage fees |
| Average electricity use (650 to 1,450 kWh) | Fixed-rate, green energy, time-of-use, and bill credit plans | Estimated cost at average usage levels, time-of-use hours, and bill credit thresholds |
| High electricity use (850 to 2,000+ kWh) | Fixed-rate, green energy, and bill credit plans | Estimated cost at higher usage levels, recurring charges, time-of-use hours, and bill credit thresholds |
| EV owner | Fixed-rate, time-of-use, and EV-specific plans | Time-of-use hours and pricing at higher usage levels |
| Need no deposit or credit flexibility | Prepaid and no-deposit plans | Enrollment requirements, fees, and payment terms |
| Solar panel owners | Solar buyback and fixed-rate plans | Solar credit terms |
Texas Electricity Plan Types at a Glance
There are a few common types of electricity plans you’ll see in Texas. The best option depends on your priorities, whether that’s locking in a rate, avoiding a long contract, earning bill credits, or supporting renewable energy.
| Plan type | Best suited for | Trade-off | Typical contract |
|---|---|---|---|
| Fixed-Rate | Customers who want predictable pricing | Often includes an ETF if you cancel before the contract ends | 3-36 months |
| Variable-Price | Customers who value flexibility | Rates can change from month to month | Month-to-month |
| Time-of-Use | Households that can shift electricity use to off-peak hours | Higher daytime rates may offset the savings | 12-36 months |
| Bill/Usage Credit | Households with consistent electricity use | Savings often depend on meeting specific monthly usage thresholds | 6-36 months |
| Green energy | Customers who want to support renewable electricity | May have slightly higher pricing than comparable conventional plans | 6-36 months |
| Prepaid/No-Deposit | Customers seeking flexible enrollment or no credit check | Requires more frequent account management or advance payments | Month-to-month |
| Solar buyback | Homeowners with rooftop solar | Buyback rates and program terms vary by provider | 12-36 months |
How to Evaluate an Electricity Provider Before You Enroll
A REP’s reputation is the only comparison factor that can’t be found in an electricity plan’s EFL. Before enrolling, spend a few minutes reviewing public complaint information and recent customer feedback through the following sources to get a better sense of the company.
| Where to check | What it tells you | What to look for |
|---|---|---|
| PUCT complaint record | Complaint information published by PUCT, which regulates REPs and investigates consumer complaints | Repeated complaints about billing accuracy, customer service, contract terms, or other recurring issues |
| Google reviews | Recent customer experiences with the provider | Consistent themes across recent reviews rather than one-off complaints or unusually high or low ratings |
| Comparison Sites | Electricity comparison sites, like Power Wizard, review REPs using their proprietary methodology. | The overall score that the REP gets. |
Common Mistakes to Avoid When Choosing a Plan
Before you enroll, take one final pass through your comparison. These four mistakes are among the most common reasons Texans end up with an electricity plan that doesn’t fit their needs:
- Choosing a plan based only on the advertised rate.
- Ignoring the EFL’s usage levels and fees.
- Overlooking your contract terms.
- Skipping research on the provider.
FAQs About Choosing an Electricity Plan in Texas
Start by confirming that your address is in a deregulated area where you can choose your electricity provider. Next, compare plans based on average usage patterns, narrow your options to the plan types that best fit your household, and review the Electricity Facts Label (EFL) for estimated rates, fees, and contract terms. Before enrolling, check the provider’s complaint history through the Public Utility Commission of Texas (PUCT) and read recent customer reviews to help you make an informed decision.
Look for an electric company with a strong reputation for accurate billing, responsive customer service, and clear contract and renewal practices. Before enrolling, review the provider’s complaint history through the Public Utility Commission of Texas (PUCT) and read recent Google reviews to identify consistent patterns.
No. The advertised electricity rate on the Electricity Facts Label (EFL) is quoted at specific monthly usage levels, so a plan with the lowest advertised rate may not have the lowest estimated monthly cost once your average usage level is accounted for.
Start by looking at a recent electricity bill to see how many kilowatt-hours (kWh) your household uses in a typical month. Then compare plans based on average usage patterns using the pricing shown at different usage levels on the Electricity Facts Label (EFL). If you’re a renter or recent mover without billing history, estimate a usage profile similar to yours based on your home’s size, number of occupants, and expected electricity needs.
The Public Utility Commission of Texas (PUCT) regulates Retail Electricity Providers (REPs), handles consumer complaints, and publishes provider complaint information. Review the complaint record for recurring issues, particularly patterns involving billing accuracy, customer service, or contract terms, rather than focusing on a single complaint. It’s also a good idea to compare what you find with recent Google and Better Business Bureau (BBB) reviews.
Yes, you can switch electricity providers without paying a fee if you’re moving or within the final 14 days of your contract. Outside of those situations, you will likely have to pay an ETF.
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