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The Best Power to Choose Alternative for Texans - Shop for Electric Rates & Energy Plans in Texas

  • Written By: Rebecca Bridges
  • Edited By: Shannon Bedrich

  • Deregulation results in more competition and lower prices all around. Electricity isn’t any different and several states have adopted this model for their utility markets. Texas is among them, and for comparing energy plans and electricity providers, residents are directed to state-run Power to Choose Texas, an electricity-rate marketplace where any electricity provider can list their rates. It’s the official electricity shopping site for the Public Utility Commission of Texas.

    However, the website is not without its drawbacks. Mainly, it’s hard to use, has a lot of gimmicky plans, and doesn’t have any quality screening. As a result, it’s not always clear if you’re making the right choice for your residence. The potential to be sucked in by teaser rates or deals that seem too good to be true exists as well; for example, tiered rates and bill credit plans with lengthy fine print.

    You have the power to choose electricity plans in Texas. And we make it easy for you to choose. ElectricityPlans is the best Power to Choose alternative to compare energy plan options and electric rates.

    Why? We read the fine print and highlight the information you need to know. Plus you can shop based on your average monthly electricity usage. That lets you quickly find the right plan for your home.

    In a hurry? Here are current prices for rates in Houston (Centerpoint) and Dallas (Oncor). Just enter your zip code to see electricity rates in your area.

    Shop Texas Electricity Rates by Zip Code

    What is the PowertoChoose.org Website?

    Texas Electric Choice was the first Power to Choose Texas site in 2002, at the beginning of deregulation. The Public Utility Commission of Texas introduced the PowertoChoose.org in 2012.

    The intentions of Power to Choose were good — help Texans shop for electricity. Unfortunately, the Power to Choose soon became the Power to Confuse. Energy providers offered a bunch of teaser electricity rates, all hiding behind an average price per kWh that “looks” fair.

    Issues with Power to Choose Texas

    The most common mistake people make when using the Power to Choose is not understanding the three electricity rates shown on the Electricity Facts Label.

    That’s because people don’t understand how to read the EFL. Few customers understand the three rate structure. And they sign up thinking that those are the exact rates that they’ll be paying for a range of usage.

    The truth is, on the Power to Choose site, a lot of plans look good at 1000 kWh. But these are tiered rates or bill credit rates and reflect a specific level of usage. But use more or less? And you’ll pay more than what you expected – sometimes significantly so.

    Best Alternative to Power to Choose – ElectricityPlans.com

    That’s why we created ElectricityPlans.com as an alternative to Power to Choose. When you look at PowertoChoose vs. ElectricityPlans, you’ll be amazed at how easy it is to shop for electricity.

    Here are some of the tools for comparing energy plans and rates you’ll find on our site:

    • Shop based on your unique monthly usage.
    • See both your price per kWh and your estimated monthly bill for every plan.
    • Use search tools to look for just the features you want, like fixed rate electricity plans or 100% green energy plans.
    • Review one-line plan summaries and rates to see if it’s the plan for you.
    • See the fine print highlighted for each electricity plan.
    • Compare up to three plans head to head and see average prices and estimated bills change based on your inputs. Get results link emailed to you for convenient follow-up later.
    • Sign up for electricity plan expiration reminders after you shop.

    Residents can compare electricity providers to find the energy plan to meet their needs. When you compare offers and find the cheapest plan, you save on your electricity bill!

    This video summarizes how to shop for an electricity plan.

    VIDEO: How to compare electricity plans and find the best electricity rate for your Texas home.

    Choosing an Energy Provider – Electricity Shopping Made Easy

    It should be easy to shop for electricity, just like anything you buy online. ElectricityPlans.com is a simple alternative to Power to Choose and helps you find the best electricity plan for your home.

    Instead of shopping based on 500, 1000 or 2000 kWh, you can shop using your monthly kWh usage. We’ll recalculate every rate for you! That way you can find the plan that’s best for you…not best for the person using 1000 kWh a month.

    We comb through the details for you and show the exact pricing for each plan in an easy-to-read format. Type in your average usage level and we’ll calculate what your bill will be whether you use 500 kWh, 5000 kWh, or something in between. That gives you the ability to choose the electricity plan that matches your usage.

    For each plan, we have a one line description to help you decide. You can also check the full Pricing Details section where we break down the math in the Electricity Facts Label.

    Make sure to sort by “Price: Low to High” to select a low price plan.

    You can also choose by type of energy plan. We always recommend you select a basic electricity plan. This type of electricity plan gives you the same fixed rate per kilowatt hour regardless of your usage. Other plans have tiered rates or bill credits that may make you think you’re paying less than you actually do. You can also pick 100% renewable plans like solar or wind.

    Compare companies to find energy plans that are right for you. That includes looking at contract length, differences between offers and special incentives.

    And if you need more help shopping? Our PlanScan service will evaluate your bill and make recommendations based on your electricity usage patterns, at no charge.

    electricityplans is electricity shopping made easy

    Types of Electricity Plans in Texas

    While the number of choices can seem overwhelming, electricity plans in Texas fall into one of the following types:

    • Fixed- rate plans have a set energy rate that lasts the entire contract term. Keep in mind that price per kWh includes utility delivery fees, which may change during the duration of the contract, and which also may have a monthly fee component.
    • Variable rate plans involve regular rate fluctuations that reflect market changes and the REP’s decision to raise or bring down rates. So you can get a sense of how much rates might jump in any given month, providers are required to list historical prices on their websites. Overall, understand that your energy bill will change month to month, even with consistent power usage.

    Within this, there are versions of fixed and variable rates.

    • Prepaid plans let you pay upfront at the start of each billing cycle and allow unused funds to flow into the next month or cycle. These plans have no deposit and no credit check, and can be variable or fixed.
    • Renewable energy plans let you invest in plans that source their power from solar and wind sources.
    • Time-of-use plans offer lower rates during off-peak or less-busy hours, allowing you to schedule when and how you use electricity to lower your bill.
    • Tiered Rate plans offer different fixed rates for different time periods. For example, you may have one rate for your first 800 kWh, then a different rate for 801-1200 kWh etc. This can be an advantage if you really understand your electricity usage.
    • Basic Fixed Rate plans offer one price per kWh for every unit of energy, regardless of time of day or level of usage.

    FAQs About Texas Power to Choose

    What is a good kWh rate in Texas?

    Electricity rates vary depending on location, term, type of plan and other factors. Your best bet is to follow Texas electricity trends, and use comparison shopping to find the cheapest electricity rates in Texas.

    What is “power to choose energy” in Texas?

    Electricity deregulation in Texas means you have the power to choose energy in Texas. You choose your electricity supplier, rate and plan to fit your needs. Your local utility company continues to deliver power to your home, read your meter and respond to any emergencies. Your supplier, called a Retail Electricity Provider, provides power, sends your bill and handles customer service.

    As a resident of Texas, here’s what you need to know about what makes our electricity unique:
    • Texas has its own power grid, separate from Western Interconnection and Eastern Interconnection. Most of the state is connected to this electric grid, excluding select areas of east and west Texas and the panhandle region.
    • Since becoming a deregulated electricity market in 2002, Texas has encouraged competition for energy plans and rates. As a result, residents in most communities, excluding a handful like Austin and San Antonio, can choose their electricity provider, also known as a Retail Electric Provider or REP. REPs act as middlemen between consumers and utility companies, purchasing electricity and setting their rates. Prior to 2002, residents and businesses purchased electricity directly from the local utility provider.
    • Texas is also a renewable energy market, with both wind and solar alternatives available.
    • The independence Texas’ energy market allows has resulted in a diverse number of plans covering a wide range of rates, usage terms, contract lengths and customer service options. Ideally, both residents and businesses can shop around for the best electricity plan based on their usage, budget and interest in renewable energy.

    Why are electricity prices so high in Texas?

    Electricity rates in Texas are 13% lower than the national average, but 20% higher than they were just five years ago. Factors impacting electricity rates in Texas include population and economic growth, regulatory changes and aging infrastructure. Learn more about electricity price trends in Texas.

    Why is there no Power to Choose for commercial electricity?

    As a business, you have the power to choose commercial electricity. But there is no actual Power to Choose site for businesses. Instead, business owners in Texas can use ElectricityPlans as a power to choose alternative for commercial electricity rates.

    What’s the difference between Power to Choose and Choose Texas Power?

    The PowerToChoose.org official web site is the state-sponsored shopping site where all retail energy providers in Texas can list their electricity plans. ChooseTexasPower.org, despite its “.org” status, is a for-profit shopping site with select REPs. It’s a site operated by a company called Red Ventures in North Carolina. The name, design and the .org confuse people because it’s a very similar name to the official site. Don’t be tricked when you’re shopping for electricity in Texas!

    About Rebecca Bridges

    Rebecca Bridges has worked in deregulated energy markets since 2001. As chief marketing officer for ElectricityPlans, she focuses on helping consumers save on their electricity bills and find the best electricity plans. Outside of work, Rebecca uses her marketing experience to support dog rescue and can often be found hiking or biking local trails.

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