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Millions of Texans enjoy deregulated energy by choosing their power plan from a variety of competitive providers. But with so many options, finding the right one can be challenging. Fortunately, you don’t have to do it on your own. Choose Texas Power is an independent marketplace dedicated to helping Texans find the best energy plan. You can review your options, consult expert-written resources, and sign up on our website.
This guide covers everything you need to know to find the best energy plans in Texas.
The best way to get affordable energy bills is to pick a plan that matches your energy needs. To get started, it’s important to understand your options and how they differ. Here are the most common deregulated energy plan types.
Fixed-rate: Fixed-rate electricity plans have set terms and rates for the duration of your contract. A fixed-rate plan is a good option for stability and protection from energy market fluctuations. Because these plans include a contract, you’ll pay an early termination fee (ETF) if you cancel before your plan expires.
Variable-rate: A variable-rate electricity plan provides less stability than a fixed-rate plan, as the rate changes when wholesale energy costs fluctuate. Variable-rate plans are a great solution for consumers who want flexibility and prefer not to sign a contract.
Fixed- and variable-rate plans are the first layer of energy plans. But you’ll find even more variety within these types of plans. Here are a few more types of energy plans that can fall within those initial categories.
Prepaid plans: Prepaid plans require you to pay for electricity before you use it. People often choose these plans if they have low credit or unpredictable usage patterns. These plans are best for customers who want to avoid paying a deposit. Explore two of our most popular prepaid options from Payless Power:
Bill credit plans: Bill credits are a monthly reward for meeting a specific energy usage threshold. For example, your provider may offer a reward if you use at least 1,000 kilowatt-hours (kWh) in a month. This usage bucket is set in your contract and should not change. A bill credit plan is best for someone who knows their average consumption and can commit to a contract. Here are two of our energy experts’ favorite bill credit plans on our marketplace:
Time-of-use plans: This type of energy plan offers a different rate depending on the time of day. Some may even offer periods of free electricity, typically in the evenings. Your Electricity Facts Label (EFL) should clearly outline the terms of your time-of-use plan. Time-of-use plans are ideal for customers who use most of their electricity during off-peak hours.
Green energy plans: Most Texas energy plans include a certain amount of green energy from solar or wind power. However, some providers specialize in 100% green plans that counterbalance your usage with renewable energy credits purchased on your behalf. Want to improve your carbon footprint? Review a couple of our top green energy plans:
The final piece to understand when you compare energy plans is the length of the contract. The ideal contract length depends on your plan and preferences. Renters may choose shorter contracts to align with their lease, while homeowners may be comfortable committing for longer. While some providers offer unique term lengths, most contracts are available for the following time frames:
A month-to-month structure is the most common option for variable-rate plans because the price changes frequently. Beyond that, it primarily depends on when you want to shop for a plan. Six-month plans require more effort than 24- to 36-month plans, because you’ll have to shop for a new one or renew after a short period. However, longer plans require a commitment to an electric company or a willingness to pay early termination fees if you change services before the contract ends.
Whatever term length you choose, it is important to read the full contract before you commit to any plan. This document will provide important details about what happens when your contract expires. Often, providers will offer a higher renewal rate after the plan ends, which leads many customers to switch to a different Texas energy plan or provider.
Choosing the best energy plan in Texas is dependent on your energy needs, usage patterns, and goals. Answer a few of these questions to point yourself in the right direction.
Do you prefer stability or flexibility? If stability is your priority, opt for a fixed-rate plan. If you prefer flexibility, consider a variable-rate plan.
How long can you commit to an energy plan? If you’re not ready to commit to a contract, a month-to-month plan may be best. However, if you plan to live in your current home for a year or more, explore long-term plans that let you lock in a low rate.
Is your home’s carbon footprint a priority? There are lots of green energy plans available on our marketplace. If green energy is important to you, consider one of our many renewable energy plans.
Do you tend to only use energy at night? If you answered yes, then a time-of-use plan could complement your schedule and allow you to save on your energy bills.
If you feel stuck between a few options, call our energy specialists for guidance. Our well-vetted team of experts has years of industry experience. We’ll help you find the best plan for your unique situation.
Fixed-rate plans tend to have the lowest electricity rates on our marketplace. Variable-rate and no-deposit plans can be more expensive because they don’t require a contract and shift often with the energy market. If price is your first priority, search for fixed-rate plans with a one- to three-year contract.
Energy rates on our marketplace are transparent and include utility delivery fees. Your energy bill will also include local and state taxes. To avoid being surprised down the road, carefully review your plan’s EFL. The EFL includes information about your rate, base charges, fees from your utility company, and more.
If your credit score is lower than the threshold set by a provider, you may have to pay a deposit to begin service. You won’t have to pay a deposit if your credit score exceeds the provider’s threshold or if you sign up for a no-deposit plan.
If you are late paying your energy bill, your provider may charge a late fee. Your service could also be disconnected if you are late multiple times or your account is past due for an extended period. Your provider should send you a notice before disconnecting your service. If you are struggling to pay your energy bill, contact your provider to discuss whether you qualify for a deferred payment plan or bill assistance.
Fixed-rate plans or energy plans with a contract typically charge an ETF if you cancel your plan before your contract expires. Variable-rate and month-to-month plans normally don’t charge an ETF, so you can switch plans at any point without paying a fee.
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