Want to understand how to shop for electricity in Texas? You’ve probably jumped around to a lot of electricity shopping sites and are now more confused than ever. If you want to understand how to shop for electricity in Texas, or need more information on switching electricity providers you’ve come to the right place.
Here’s the definitive guide to shopping for electricity in Texas, to answer all your questions in one place. When you use this guide, you’ll find what you need to know about how to shop for an electricity plan.
Key Takeaways – TL;DR
- Texas is Deregulated: Texas has a deregulated electricity market—you’re free to choose from many retail providers and plan types.
- Match Your Usage: Pick a plan that fits your actual energy use not just based on 500, 1000, or 2000 kWh/month to avoid surprise charges.
- Avoid Gimmicks: Steer clear of plans with tricky pricing like tiered rates or bill credits. Always read the Electricity Facts Label (EFL), and go with a Basic Fixed Rate plan if you aren’t sure.
- Shop Smart: Spring and fall offer the best electricity rates—avoid peak seasons like summer and winter.
- Use Better Tools: Skip the confusing state site; use trusted comparison tools like ElectricityPlans.com for clearer plan choices.
Just use the table of contents to jump to what you are looking for. Then search for electricity by zip code to shop Texas electricity plans near you.
Table of Contents
- Basics of Texas Electricity Deregulation
- What Types of Electricity Plans are Available in Texas?
- How to Shop for Electricity in Texas: Step-by-Step
- How to Find the Best Electricity Plan in Texas
- I’m Moving to Texas; How Do I Set Up Electricity?
- Frequently Asked Questions About Switching Electricity in Texas
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Basics of Texas Electricity Deregulation
Texas has been deregulated since 2002, and over 85% of consumers have electricity choice. That means you can shop for your electricity supplier in most of Texas including Houston, Dallas, Fort Worth, Waco and more.
>Check our full list deregulated cities in Texas to see if you have the power to choose your provider.
The local transmission and distribution utility company (TDU) still manages the poles and wires, reads your meter and responds in case of an electrical outage.
Instead of getting power from the local utility company, Texas residents select from a list of retail electricity providers (REPs), each of which has an array of plans spanning fixed rate electricity plans to variable rates, free electricity at certain times, 100% renewable energy and even prepaid electricity.
It’s all managed by the Public Utility Commission of Texas (PUCT) which is responsible for:
- Licensing Retail Electricity Providers (REPs) and Aggregators.
- Monitoring competitive activity in the state to ensure a level playing field.
- Approving delivery rates for the regulated transmission and distribution service providers (TDSPs), also knows as the local utility.
- Regulating ERCOT (Electricity Reliability Council of Texas, which manages the electrical grid).
- Monitoring and responding to consumer complaints.
What Types of Electricity Plans are Available in Texas?
You’ll find fixed rate, variable rate, tiered/bill-credit, prepaid (no-deposit), green/renewable, and time‑of‑use plans in Texas.
- Fixed rate plans lock your price per kWh, which is ideal for most households. Variable plans adjust month-to-month with market rates.
- Tiered or bill-credit plans may offer the appearance of savings but can cost more if your usage differs from the baseline.
- Prepaid plans avoid credit checks by requiring upfront payment.
- Green plans offset usage with renewable certificates.
- And time‑of‑use plans charge less during off‑peak hours. Some plans even offer free electricity at certain times.
For more details see Understanding Electricity Plan Types: Fixed, Variable, and Indexed.
Pro Tip: Always read the Electricity Facts Label (EFL) to compare electricity plans accurately and avoid hidden fees.
Enter Your Zip Code to Start Shopping for Electricity Plans
How to Shop for Electricity in Texas: Step-by-Step
ElectricityPlans.com makes it easy to find the best electricity plan for your Texas home. Here’s the step by step on how to shop for an electricity plan in Texas.
Time needed: 15 minutes
How to shop for electricity in Texas:
- Know your current electricity usage
Look at your bill to find out your average monthly electricity usage. Electricity rates in Texas are displayed based on 500 kWh, 1000 kWh and 2000 kWh. Knowing your electricity usage is key to finding the cheapest electricity plan.
- Enter Your Zip Code
Enter your zip code on ElectricityPlans.com to get electricity rates near you.
- Enter Your Average Monthly Usage
Enter your average monthly usage to see your estimated electricity bill and price per kWh for each plan. This accurate pricing helps you identify your best options.
- Select the Type of Plan
Based on your needs assessment, choose the type of electricity plan, which could include green energy, tiered rate, free electricity or basic fixed rate.
Pro Tip: We recommend basic fixed rate plans which give you a set rate per kWh for all your energy usage. - Pick Your Electricity Plan
Sort all plans by Price: Low to High to find the cheapest electricity plan for your zip code and usage.
Use the Compare Plans function to show a side-by-side comparison of up to three plans you’re considering. (And even get results emailed to you if you aren’t quite ready; just remember prices change all the time!) - Review the Contract Details
You should always review the fine print before signing a contract. You’ll find all the details in the plan description, plan type and in the pricing details.
- Enroll with Your Electricity Provider
Now that you’ve completed the process of shopping for your electricity plan, you’re ready to enroll!
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How to Find the Best Electricity Plan in Texas
There is no one best electricity rate in Texas. Everyone’s usage is different, and everyone’s needs are different. The best electricity plan depends on what you want. Based on our 20+ years of experience in Texas electricity, here’s how to find the best electricity plan on Electricity Plans.
- Popular electricity plans are listed on our home page at ElectricityPlans.com.
- Shop electricity by usage. You can shop based on your electricity usage, instead of 500, 1000 or 2000 kWh. That’s the best way to know what you’ll pay.
- Recommended plans are always highlighted as featured plans at the top of the list. These are plans that offer a solid value or a low electricity rate for most people. We also have our annual review of the best electricity plans by category.
- Exclude gimmicky plans. Bill credit and tiered rate plans are good for some people, but they’re only good for you if you fall within the right usage level. To make it simple, you can shop what we call Basic Fixed Rate electricity plans.
- Plan summary. You can see a quick summary of the plan in our Plan Description one-liner.
- Plan details. You can review all the Plan Details. That’s where we deconstruct the Electricity Facts Label.
- Compare plans tool. Select three plans, then click Compare. You’ll get a side-by-side view of the plans to easily compare their rates and features.
Sign up for electricity plan expiration reminders after you complete your enrollment. That way you never miss another opportunity to shop!
Shop Best Texas Electricity Plans Near Me
I’m Moving to Texas; How Do I Set Up Electricity?
Texas is the fastest-growing state in the country, according to the US Census. The Texas electricity market is different than any other state in the USA. Under deregulation, you can’t buy electricity from your local utility company. You must select an electricity provider.
While that sounds complicated, don’t worry. It’s actually easy to set up electricity in your new Texas home.
To set up your electricity service in a new home, simply pick for your electricity plan using the tips above (i.e. shop based on usage; select a basic fixed rate plan; enroll online). Then select a “move-in” during enrollment, instead of switch service.
You can choose schedule your power up to 60 days in advance, so it’s ready to go. Or, if you forget to set up power ahead of time, you can get same day electricity.
Depending on your credit, you may need to pay a deposit to start electricity service, typically $250-$400 based on the size of your home. There are alternative ways to satisfy the deposit, including providing proof of on-time payment from your previous electricity provider. Or you can choose no deposit electricity plans; these plans are typically at a higher rate per kWh, but you can start service for less than $70, with no ID and no credit check.
>Here’s more info on moving to Texas.
Looking for apartment electricity? You don’t need to match your electricity contract term to your lease term. Sign up for the best available rate. Any possible early termination fee is waived when you provide a forwarding address as proof that you’re moving.
Frequently Asked Questions About Switching Electricity in Texas
We’ve answered some of the most commonly asked questions about switching electricity providers in TX below:
There’s no application fee or cost to switch electricity providers in Texas. Make sure you know the expiration date of your current contract. If you’re within 14 days of your contact expiration date, you can switch without an early termination penalty..
If you have to move before the end of your electricity contract in Texas, you can either cancel your contract or transfer it to your new address. If you cancel, your provider will waive any early termination fee if you provide them with a forwarding address for your final bill.
For a switch, you have three days to change your mind, called the right of rescission. During these three days, you can terminate the new contract with no penalty.
Yes, you can choose your electricity start date. Simply request a start date up to 60 days in the future. If you don’t select a start date, switching will be immediate.
You don’t have to notify your current electricity company that you’re switching electricity providers.
Electricity rates are advertised at specific usage levels, which can be misleading. The best way to compare electricity rates and providers is to use a shopping platform that lets you shop based on your electricity usage, rather than just at 500, 1000 or 2000 kWh. That lets you see what you would be paying.
