Texas electric choice refers to energy deregulation in Texas. Energy deregulation means that residents have the power to choose their electricity provider. This creates a free market where dozens of retail electric providers (REPs) compete for your business, leading to better rates and services.
In areas with a regulated energy market, you buy electricity from a single utility company. They set a standard rate that everyone pays. Whereas in a deregulated market you can shop around for the best deal that suits your needs.
Texas electricity rates are increasing every year. So now more than ever, it's incredibly important that you shop for the right energy provider that will help you maximize savings.
Not all areas in Texas are deregulated. The majority of the state (about 80% of residents), including major cities like Houston and Dallas, are deregulated. However, some municipalities and co-ops have opted out. Co-Serve in Denton and parts of the DFW Metroplex for example do not offer a choice of energy providers.
Austin, El Paso, and San Antonio are not deregulated. Residents in these areas cannot choose their energy provider. Instead, their energy costs are determined directly by the utility.
This map of Texas highlights deregulated areas where residents can shop for energy providers and choose their electricity plan.
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Comparing various electricity providers' rates can seem overwhelming, but it doesn't have to be.
The most important part of shopping is knowing your energy usage. But, before you start scrambling for your electricity bill…
Use GridHacker to compare rates by entering your ZIP code. Our system will automatically fetch your energy usage from your utility. We’ll then match your usage patterns to the best plans, and highlight important information like rate structure and contract terms.
PowerToChoose.org is the official website of the PUCT. It’s a resource where Texans can compare electricity plans offered by various REPs. While it can be a useful tool, be aware that some plans might have hidden fees not immediately obvious.
Providers will often game the ranking system on the Power To Choose website with plans that aren’t really what they appear to be. We call this the “advertised rate”.
The provider will use an advertised rate to lure customers in only for them to find out later that they are actually paying much more than they originally thought they were signing up for. That’s where GridHacker shines. We filter out these types of plans so that you can see your actual bill before you buy. We call this the “real rate”.
In Texas, REPs sell electricity to consumers, while utility companies (Transmission and Distribution Utilities, or TDUs) maintain the power lines and deliver electricity to your home. When you choose an REP, you’ll still rely on your local TDU for electricity delivery and maintenance. It’s important to know your TDU’s rates and services, as these can affect your overall electricity costs.
Utility rates in Texas include transmission and delivery charges (TDU charges), which are fees for maintaining the infrastructure that delivers electricity to your home. These charges are separate from your REP’s rates and can vary based on your location. Understanding these fees can help you better estimate your total electricity bill.
Providers like to use complex terms and marketing gimmicks in their electricity plans. Generally, we recommend looking for a fixed-rate plan. You can find that information in the electricity facts label. Texans can choose from various energy plans, including:
- Fixed-Rate Plans: Stable rates throughout your contract term, ideal for budgeting.
- Variable-Rate Plans: Rates can change based on the market, offering flexibility but with potential cost fluctuations. We generally recommend staying away from these types of plans.
- Prepaid Plans: Pay for electricity upfront, avoiding deposits and credit checks. This is a common option if you have no credit or low credit.
- Green Energy Plans: Use renewable energy sources like wind or solar power, supporting sustainable practices.
Starting new electricity service in Texas is straightforward. Once you’ve selected a plan through GridHacker, you’ll need to provide some basic information, such as your address and desired start date. GridHacker and your chosen provider will coordinate with your local utility or TDU to set up your service.
If you are switching providers you will not notice any outages or disruptions. If you are setting up service for a new home or meter it may take up to a few days to have your service turned on however, this is on a case-by-case basis. Depending on your utility you may be able to get power on faster.
Same-day electricity service is available in most cases for residential customers. It can be a little more complicated for commercial accounts. If you need help getting your power on the same day we recommend contacting our support team directly.
Electric rates in Texas can fluctuate due to several factors, including changes in energy demand, fuel costs, and weather conditions. During extreme weather, for example, increased demand for heating or cooling can drive up prices.
Understanding these fluctuations can help you choose a plan that protects you from unexpected electric rate- hikes.
There is an entity in Texas that is tasked with the monitoring and management of the costs and transmission of energy- The Electric Reliability Council of Texas or ERCOT for short.
The Electric Reliability Council of Texas (ERCOT) is a nonprofit organization that manages the flow of electric power to more than 26 million Texas customers, representing about 90% of the state’s electric load. Essentially, ERCOT acts as the traffic manager for the Texas electric grid, ensuring that the electricity supply meets demand.
ERCOT is responsible for several critical functions in the Texas energy market:
While ERCOT does not directly sell electricity to consumers, its operations have a significant impact on the electricity market and the rates you pay. Here’s how:
ERCOT’s role becomes especially prominent during extreme weather events, such as heatwaves or winter storms. These events can place significant stress on the electric grid, and ERCOT is responsible for managing the increased demand and coordinating with power generators to maintain supply. The Winter Storm Uri in February 2021 highlighted the challenges ERCOT faces and underscored the importance of grid resilience and reliable electricity supply.
Small businesses in Texas also benefit from energy deregulation. Business owners can compare commercial electricity rates and plans to find the best deal for their operations. Factors to consider include contract length, rate stability, and any additional services offered by the REP. GridHacker can assist in finding competitive rates tailored to your business needs.
Businesses actually have different meters than residential customers, at least in the eyes of the energy provider. Typically businesses use more electricity than homes so the rate structure is more complicated.
If your business uses a large amount of electricity (Ex: your monthly electricity bill is over $1,000) you will likely want to get a custom quote for your electricity rate. Don't worry we'll help you do this, but the process is a little slower. Providers will analyze your usage and then quote you based on things like your load factor and other fancy industry metrics.
Texas has widely adopted smart meters, which provide detailed information about your electricity usage. These meters can help you monitor and manage your consumption, leading to potential savings. With a smart meter, you can access your usage data through your REP’s online portal, allowing for better energy management and more informed decisions when selecting a plan.
The official site for Smart Meter Texas can be found at https://www.smartmetertexas.com.
This is important because GridHacker is able to pull your historical usage data in order to match you with the right plan. Smart meters help make this data accurate and timely.
Texas is a leader in renewable energy, particularly wind power. Many REPs offer plans that include a percentage of renewable energy. Choosing a green energy plan supports sustainable practices and can sometimes offer competitive rates compared to traditional plans.
Careful though, some electricity plans will have names like "free weekends and solar days", but if you look at the EFL you will see that the plan only uses 31% renewable energy.
If renewable plans are important to you, GridHacker makes it easy to filter down the available plans for your home or business renewable options. Just look for the leaf icon.
GridHacker simplifies your search for the best electricity plans in Texas, providing clear comparisons and expert advice to help you make an informed decision.
Our service is free to our customers. If you enroll in an electricity plan on the website the provider may pay us a small referral fee.
Providers like to use complex terms and marketing gimmicks in their electricity plans. Generally, we recommend looking for a fixed-rate plan. You can find that information in the electricity facts label. Texans can choose from various energy plans, including:
- Fixed-Rate Plans: Stable rates throughout your contract term, ideal for budgeting.
- Variable-Rate Plans: Rates can change based on the market, offering flexibility but with potential cost fluctuations. We generally recommend staying away from these types of plans.
- Prepaid Plans: Pay for electricity upfront, avoiding deposits and credit checks. This is a common option if you have no credit or low credit.
- Green Energy Plans: Use renewable energy sources like wind or solar power, supporting sustainable practices.
Starting new electricity service in Texas is straightforward. Once you’ve selected a plan through GridHacker, you’ll need to provide some basic information, such as your address and desired start date. GridHacker and your chosen provider will coordinate with your local utility or TDU to set up your service.
If you are switching providers you will not notice any outages or disruptions. If you are setting up service for a new home or meter it may take up to a few days to have your service turned on however, this is on a case-by-case basis. Depending on your utility you may be able to get power on faster.
Same-day electricity service is available in most cases for residential customers. It can be a little more complicated for commercial accounts. If you need help getting your power on the same day we recommend contacting our support team directly.
Electric rates in Texas can fluctuate due to several factors, including changes in energy demand, fuel costs, and weather conditions. During extreme weather, for example, increased demand for heating or cooling can drive up prices.
Understanding these fluctuations can help you choose a plan that protects you from unexpected electric rate- hikes.
There is an entity in Texas that is tasked with the monitoring and management of the costs and transmission of energy- The Electric Reliability Council of Texas or ERCOT for short.
The Electric Reliability Council of Texas (ERCOT) is a nonprofit organization that manages the flow of electric power to more than 26 million Texas customers, representing about 90% of the state’s electric load. Essentially, ERCOT acts as the traffic manager for the Texas electric grid, ensuring that the electricity supply meets demand.
ERCOT is responsible for several critical functions in the Texas energy market:
While ERCOT does not directly sell electricity to consumers, its operations have a significant impact on the electricity market and the rates you pay. Here’s how:
ERCOT’s role becomes especially prominent during extreme weather events, such as heatwaves or winter storms. These events can place significant stress on the electric grid, and ERCOT is responsible for managing the increased demand and coordinating with power generators to maintain supply. The Winter Storm Uri in February 2021 highlighted the challenges ERCOT faces and underscored the importance of grid resilience and reliable electricity supply.
Small businesses in Texas also benefit from energy deregulation. Business owners can compare commercial electricity rates and plans to find the best deal for their operations. Factors to consider include contract length, rate stability, and any additional services offered by the REP. GridHacker can assist in finding competitive rates tailored to your business needs.
Businesses actually have different meters than residential customers, at least in the eyes of the energy provider. Typically businesses use more electricity than homes so the rate structure is more complicated.
If your business uses a large amount of electricity (Ex: your monthly electricity bill is over $1,000) you will likely want to get a custom quote for your electricity rate. Don't worry we'll help you do this, but the process is a little slower. Providers will analyze your usage and then quote you based on things like your load factor and other fancy industry metrics.
Texas has widely adopted smart meters, which provide detailed information about your electricity usage. These meters can help you monitor and manage your consumption, leading to potential savings. With a smart meter, you can access your usage data through your REP’s online portal, allowing for better energy management and more informed decisions when selecting a plan.
The official site for Smart Meter Texas can be found at https://www.smartmetertexas.com.
This is important because GridHacker is able to pull your historical usage data in order to match you with the right plan. Smart meters help make this data accurate and timely.
Texas is a leader in renewable energy, particularly wind power. Many REPs offer plans that include a percentage of renewable energy. Choosing a green energy plan supports sustainable practices and can sometimes offer competitive rates compared to traditional plans.
Careful though, some electricity plans will have names like "free weekends and solar days", but if you look at the EFL you will see that the plan only uses 31% renewable energy.
If renewable plans are important to you, GridHacker makes it easy to filter down the available plans for your home or business renewable options. Just look for the leaf icon.
GridHacker simplifies your search for the best electricity plans in Texas, providing clear comparisons and expert advice to help you make an informed decision.
Our service is free to our customers. If you enroll in an electricity plan on the website the provider may pay us a small referral fee.
Energy deregulation allows consumers to choose their electricity provider from multiple competing retail electric providers (REPs). This system aims to increase competition, leading to potentially better rates and services for consumers.
Texans can choose from several types of energy plans, including fixed-rate plans, variable-rate plans, prepaid plans, and green energy plans. Each type has its own benefits and is suited to different needs and usage patterns.
Transmission and Distribution Utility (TDU) charges are fees for maintaining the electrical infrastructure, that delivers electricity to your home. These charges are separate from your REP’s rates and vary by location.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to over 26 million customers, ensuring that supply meets demand. ERCOT oversees grid management, market operations, reliability monitoring, and long-term planning.
