Texas Electricity Guide
Everything you need to know about navigating Texas's deregulated electricity market and making smart energy decisions.
Understanding Texas Electricity Deregulation
In 2002, Texas opened its electricity market to competition, allowing residents in most areas to choose their electricity provider. This deregulation means you're no longer limited to a single utility company.
What Deregulation Means
- You can choose your Retail Electric Provider (REP)
- Multiple providers compete for your business
- Different plan types available (fixed, variable, etc.)
How It Works
- Your local utility still delivers electricity
- REPs handle billing and customer service
- Switching providers doesn't affect reliability
Note: Not all Texas areas are deregulated. Cities like El Paso, Lubbock, and parts of the Rio Grande Valley have regulated utilities. Check our Service Areas page to see if you're in a deregulated market.
How to Compare Electricity Plans
With so many options available, comparing plans can feel overwhelming. Here are the key factors to consider.
1Understand Rate Types
Fixed-rate plans lock in your rate for the contract term, protecting you from market fluctuations. Variable-rate plans may change monthly based on market conditions.
2Look at the Electricity Facts Label (EFL)
Every plan includes an EFL that shows the average price per kWh at 500, 1000, and 2000 kWh usage levels. This helps you compare apples to apples between providers.
3Consider Contract Terms
Contracts typically range from month-to-month to 36 months. Longer contracts may offer lower rates but include early termination fees if you switch before the term ends.
4Watch for Hidden Fees
Some plans include base charges, minimum usage fees, or penalties. Always read the Terms of Service document for the complete picture.
Understanding Your Electricity Bill
Your electricity bill includes several components. Understanding each part helps you make sense of your charges.
Energy Charge
The cost of the electricity you use, measured in kilowatt-hours (kWh). This is the rate you choose from your REP.
TDU Delivery Charges
Transmission and Distribution Utility charges for delivering electricity to your home. These are set by your local utility, not your REP.
Taxes & Fees
State and local taxes, plus regulatory fees. These are typically a small percentage of your total bill.
Base Charges
Some plans include a monthly base charge regardless of usage. Check your plan's terms for these fixed costs.
Texas Energy Saving Tips
Summer Tips
- Set thermostat to 78°F when home
- Use ceiling fans to feel cooler
- Close blinds during peak sun hours
- Run appliances during off-peak hours
- Schedule AC maintenance before summer
Winter Tips
- Set thermostat to 68°F when home
- Seal air leaks around doors/windows
- Open blinds during sunny days
- Use programmable thermostats
- Insulate water heater and pipes
Texas Weather Advisory
Texas weather can be extreme. Plan your energy usage and have backup plans for heat waves and cold snaps. Consider plans with rate protection during high-demand periods.
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