Texas Electricity: The Power to Choose Your Electricity Company

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Finding Affordable and Reliable Texas Electricity is Easy

Something tells me most of us are caught up in the who's who and what's what of the energy debate. It's more than daunting as an energy consumer to try and sift through the constant pounding from all sides on green energy, renewable energy, fossil fuels, etc.  Thankfully, there are ways to save money and enjoy reliable electricity service, with the option of conserving energy and positively impacting the environment.

Texas is one such state that offers a competitive electricity market, with many of the companies also offering green or alternative rate plans and carbon offset programs. Deregulation means that you and I can compare companies and products available in our local area, and find the electricity service that is ultimately the best fit. 

So sit back, read, comment and let me know if there is any additional  information that you need to know about Texas electricity service.

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Electricity Texas 

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State of Texas

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Choosing Your Electricity Provider 

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Texas, Texas and more Texas 

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Carbon-Capturing Coal Plant in Texas? 

Capable of capturing up to 90 percent of carbon emissions, a new coal-firing power plant under development, with Sweetwater, Texas looking to be the likely location. How big of a development is this? It's the nation's first, so I'd say that's pretty significant for Texas energy and the environment.

The questions:

  • Will it happen?

  • What about the harmful environmental practices due to the coal mining process?

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How It Began 

Texas Electricity Deregulation

Think of the old, mid-1990's electricity service as kind of a nutshell. After the generation (production) of Texas electricity was deregulated, a series of changes occurred that directly affected us, the customer, and the cost of our electricity service.

Prior to 1995, all aspects of electricity service were handled by utility companies, meaning that generation, transmission and distribution, and retail sales were all bundled and packaged neatly together.

Let's split this information up so it's easier to understand:

  • Generation, whether it be from fossil fuels or green energy, was the first to separate from the group, resulting in more power plants and more power.

  • Transmission and distribution are still regulated by the Texas Public Utility Commission. So the actual delivery of your electricity over poles and wires is still handled by a local company separate from the actual electricity provider, or retail marketer. The local wires company also handles any outages or emergencies to maintain safe and reliable service.

  • Beginning in 2002, the retail side of electricity service was deregulated providing the means for companies to compete for your business, offering lower prices and innovative products to attract new customers. Retail electricity providers handle the customer service and billing entities of your electricity service, as well as serving as the retail marketer responsible for selling electricity to residential and commercial consumers.

The New and Improved Energy Meter

The Smart Meter has arrived! This nifty little device gives electricity customers 24-hour access to energy usage information.

Texas Deregulation Glossary 

Pulled some terms from this Texas electricity site to help explain some of the jargon surrounding deregulation and electricity service. (In no particular order)
  1. Deregulation
    Removal or relaxation of regulations or controls governing a business or service operation. Basically, the federal regulations on electricity service that bunched all aspects together are gradually lifted, opening up the market for competition.
  2. City-Owned Utility
    A non-profit utility that is owned and operated by the city it serves. City-owned utilities can also enter the competitive market and offer services and special pricing to prospective customers. (In Texas)
  3. Competitive Electricity Provider
    An electricity provider that is certified by the PUC and competes for business by offering lower prices, reliable customer service, alternative energy programs and more. I'll provide more information on specific companies later in the lens.
  4. Generation
    Electricity production, and the first aspect of service to become deregulated in 1995.
  5. Local Wires Company
    Handles and maintains wires and poles responsible for transmitting electricity to our homes. This is NOT the company that sells and handles our electricity billing and customer service.
  6. Public Utility Commission (PUC) of Texas
    A state agency that protects customers from fraudulent practices and regulates the delivery of electricity. Texas retail electricity providers must be certified by the PUC in order to sell in competitive areas.
  7. Retail Electric Provider
    A company that sells electricity service. (same as Competitive Electricity Provider, though not every retail provider is deregulated, as some still sell service to customers, but are still under state and federal regulations)

What Does a Texas Electricity Company Offer? 

Trying to explain deregulation in simple, understandable language is quite difficult. Fortunately for us the only real aspect that matters is the role of a retail electricity provider, a.k.a our electricity company.


For the sake of easy reading, here are a few bullet points outlining what kind of services a Texas electricity company offers its customers:


  • Responsible for selling electricity service to new customers. Deregulation is unique because it allows customers in available areas to switch, transfer and compare products and services with relative ease.

  • Lower prices and special incentives to attract new customers

  • Comprehensive billing options required by the PUC means the electricity bill is itemized, dated, has appropriate contact information, and more. Plus, the PUC rules establish the option for receiving a bill either by mail or electronically.

  • Additional services: Energy audits (can save you money annually), energy efficient products and programs, meter maintenance and installation.

  • Green energy programs are a thing of the present and future in Texas. Texas is currently the leader in wind power, with continuing research in biomass, solar energy and more in the works.

Tips for Choosing an Electricity Company 

So the basics are more or less pretty simple. Texas is a mostly deregulated electricity market, so shopping for an electricity company is easier, faster and should save you a ton of money.

But how exactly are you supposed to go about researching and finding the best deals on electricity in your area? That's actually pretty simple as well. Here are a few things to consider:
  • Keep a keen eye out for special incentives for new customers. Many Texas electricity providers offer lower rates and special programs such as price protection to help minimize the impact of a volatile market.

  • Pay attention to any monthly charges, cancellation fees and of course, the price per kilowatt-hour, all of which should be outlined clearly as required by the Texas Public Utility Commission. Find out which companies offer fixed or variable rates, or both, and look for programs that give you a lot of options to work with.

  • Know your consumer rights!!! The PUC exists to protect you from fraudulent business practices, so take the time to do your research.

  • Find out the sources used to generate electricity, as many Texas companies offer renewable energy programs at reasonable rates.

  • What, if any, are the contract terms?

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