Compare Business Electricity Rates in Texas

Residential consumers in Texas can compare electricity plans on the state-sponsored shopping site, PowertoChoose.org. However, there’s no power to choose business site in Texas. The reasons for this are not clear, but could be due to the differences in how business electricity plans are structured and marketed. Regardless, it means that business owners need to find the best comparison shopping site for electricity rates. Hint: It’s ElectricityPlans.com.

Electricity rates will vary based on seasonality, the wholesale electricity market and weather forecasts. Sometime long term rates are better based on market conditions, with offers ranging from 2 to 5 years. Other times short term business power prices are cheaper, with contracts of 6 to 12 months. To find the best plan, consider different term options to see what the prices are. Also take into account your risk tolerance, the role electricity plays in your overall operating budget and how often you want to shop.

Historically, electricity prices are cheapest in the shoulder seasons of fall and spring. Prices tend to be highest in the summer (June-August) and during peak heating months (January and February). Plan ahead and manage your business electricity shopping for the best rates. You can start shopping rates for your contract renewal up to three ahead of time. Then just schedule your start date to coincide with your contract expiration. This can be a great tip for avoiding high summer renewal prices.

There are no specific rates designed for new businesses. However, if you have not established credit in your business name, it’s likely that you will need to pay a deposit to establish your electricity service. If you are a new business, call ElectricityPlans directly at 844-214-5559 to discuss options for establishing service at your new location. We can connect you with providers that have more flexible credit terms.

Business electricity rates are lower than residential rates because they are quoted as energy-only, with delivery fees passed through separately. When you look at the details and compare just the energy price component of residential and commercial rates, businesses get lower energy prices because of their larger volume plus more consistent and predictable energy consumption (load factor).

If you have a demand meter installed at your location, you may have to pay demand charges in addition to your price per kWh for your electricity and delivery. Electricity demand refers to the maximum amount of power your business requires at any given moment. Each year your maximum electricity demand is measured during the grid’s peak demand June – September, also called 4CP or 4 coincident peaks. This helps to ensure those that use the most power pay their share of grid costs.

ERCOT 4CP (4 coincident peaks) have historically been on weekdays between 3 and 6pm on the hottest days of the summer. When temperatures are soaring, pre-cool your building in the early afternoon and then adjust the temperature upwards; turn off pumps, air compressors or other high-demand equipment; avoid simultaneous equipment start up or operation during the period. Use data from Smart Meter Texas to evaluate your power usage peaks and assess your business operations during peak times. Texas is considering a move to 12CP, with demand assessed year-round. If that occurs, it will be implemented January 1, 2027 and impact your 2028 electricity bills.

If a contract expires without renewing or switching to a new provider, the business defaults to the provider’s default variable or index rate, depending on the size of the business and contract terms. These prices are typically significantly higher than fixed rate plans.