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Texas Electricity Rates and Deregulation
Texas is at the forefront of energy deregulation across the United States. In 2002, Texas began deregulating electricity which in turn, ended the monopoly with the utilities. Retail electric providers (REPs) began selling electricity to consumers and utilities stopped selling and focused on solely delivering the power.
As a home or business owner, you have the right to choose between electric providers in Texas for the best rate and contract terms. This drives competition between retail electric providers (REPs).
Just like you can walk down the aisle of a retail store and pick which brand of bread you want to buy; you can browse through Texas electricity plans and pick the best electric company in Texas for your needs. This is great for consumers. Suppliers have an incentive to offer the lowest prices and best terms, knowing that customers have their pick ofoffers.
It is a good idea to compare suppliers, but the number of options may seem like a lot to review. This can leave you asking how to switch to the right suppliers in Texas. When searching for a new supplier, a comparison-shopping tool or Reverse Energy Auction will help you choose between Texas power providers and find the best offer for you. Learn how to get the best energy contract by choosing the right supplier.
In Texas, your electric utility company will continue to handle all your maintenance needs. If your power goes out, an emergency or a down power line, you will want to call them directly for help. Your Retail Energy Provider cannot assist you with these types of concerns.
Shop For A New Supplier
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Looking For A Quick Electric Quote in Texas?
Easily review current Texas electricity rates for residential and small commercial customers who use less than 250,000 kWh’s per year.
Schedule A Reverse Energy Auction
Large commercial clients get the most from our reverse auction technology. With complete transparency into their rates, they can watch live as suppliers bid on their energy.
Electric Plans in Texas
One of the first things you should find out is what kind of electric plan you need to purchase. While there are many types of electricity plans in Texas, the most common are fixed and variable.
When you sign a fixed-rate contract, the price-per-kilowatt hour will stay the same for the entire length of your contract, no matter the varying market rates. This is great if market rates rise during your contract. The only changes that would occur in these types of plans are sometimes government fees or taxes.
As Texas electricity prices change daily, so will your payment rates. Signing on for a variable-rate agreement is a bit like investing in the stock market — higher risk, but higher potential reward as well. If you are comfortable with some risk, consider accepting variable rates.
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What To Know When Shopping for Electric in Texas
If you are going to find the best energy prices in Texas for your home or business, you will need to know what to look for. It is important to review a few points before you begin your search. Review some of the following factors when choosing between Texas energy providers:
Before you switch providers, you will want to confirm when your current contract expires. Knowing your contract end date is key when shopping for a new supply agreement to avoid any early termination fees (ETFs). If your current residential contract expires in 14 days or less, you can switch providers without a termination fee.
Read Your Contract
The attention really is in the details. Knowing the opt-out clause, pass-through and ability to move your address are important items to know. Not all fixed contracts are equal. This is where we can assist with choosing the best options for your risk tolerance.
Monitor the Market
Understanding current market conditions will prove good to know when the best time is to lock in your electric renewal. Factors such as weather, supply, demand, and politics can all create a change in electric rates. This is where our Energy Experts can help you assess the market and determine when is a good time to look at pricing. Give them a call, 800-225-3813.
Let’s Take A Look At Texas Deregulation
Each state is a little unique when it comes to deregulation. Here are a few key points to understand when you start shopping in Texas.
Electric Reliability Council of Texas (ERCOT)
ERCOT is a corporation with a board of directors made up of investors and municipally owned electric utilities, generators, and independent members to maintain and ensure the reliability of the power grid in Texas. They ensure that electric is flowing to your business or home and maintains the wholesale bulk-power market. They are a non-profit and subject to the oversight of the Public Utility Commission of Texas (PUCT).
An Electric Service Identifier ID (ESIID) is used for electricity consumers in Texas. It is between 17 and 22 digits long and identifies a unique point of electric service delivery to your home or business. This number is different from your meter number and is required when switching your retail electric supplier.
Simplified Ways to Switch.
No matter how you choose to switch, we’ve got options.