Umair Gaines
Texas has been deregulated since 2002, meaning that Texans can shop for their electricity supplier in most parts of the state, including Houston. This has created a free market where most consumers have the power to choose their electricity provider and plan. As a result, Houston residents can set up electricity by purchasing an energy plan from a retail energy provider (REP). The best way to find and sign up for a plan is through an independent marketplace, where you can compare leading providers and their competitive rates in your area. When shopping for electricity in Houston, it is recommended to opt for a fixed-rate plan if you want a lower electricity bill, as variable-rate plans can change month to month and result in a higher bill if energy demand increases. Additionally, look for plans and providers that offer bill credits, and check if you have a smart meter before shopping for energy, as this will allow you to begin your new electricity plan quicker without a technician visit.
| Characteristics | Values |
|---|---|
| Average Houston electric rate for 1,000 kWh | 13.84 cents |
| Average Texas electricity rate | 15.3 cents per kWh |
| Average US electricity rate | 17.11 cents per kWh |
| Commercial Texas electricity rate | 9 cents per kWh |
| Cheapest Houston electricity rate | 9.7 cents per kWh |
| Cheapest Houston electricity providers | APG&E, Gexa Energy, Frontier Utilities, Express Energy, 4Change Energy, Cirro Energy |
| Fixed-rate plan | Lower electricity bill, predictable pricing |
| Variable-rate plan | Lower rate at the time of shopping, can change month to month |
| Bill credits | Discounted energy costs |
| Smart meter | Remotely activated, no technician visit required |
| Switch providers | No cost at the end of the contract term, possible cancellation fees for early termination |
| Change of address | Early cancellation fees waived |
| Right of rescission | Three days to change your mind without penalty |
| Switch activation time | Less than three days, same day in most cases |
| Provider of last resort (POLR) | Temporary provider if your chosen provider goes out of business |
| Best time to shop for electricity | Cooler seasons like spring and fall when demand is lower |
| Top Houston electricity providers | TXU Energy, TriEagle Energy |
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What You'll Learn
Compare rates and plans
Texas has had a deregulated energy market since 2002, meaning that residents of Houston can shop around for their electricity supplier. This means that energy providers compete for your business by offering cheaper rates and better plans.
There are a few things to keep in mind when comparing rates and plans. Firstly, it's important to understand your average monthly usage, as this will impact the rate you are charged and help you understand what you will pay with each plan. You can use an online electricity bill calculator to work this out.
Next, you should select the type of plan that best suits your needs. Basic fixed-rate plans are a good option for most homes as they allow you to budget for your energy and secure a stable rate. However, there are also bill credit plans, tiered-rate plans, free electricity, and no-deposit plans to consider. Bill credit plans can significantly lower your energy costs, so it's worth looking out for these.
When comparing rates and plans, check the price and estimated usage for each plan you're considering. Be sure to read the fine print carefully, especially if you select anything other than a basic fixed-rate plan. You should also review your current contract terms and compare rates from multiple providers before making the switch.
You can use an online marketplace such as Texas Electric Rates or Choose Energy to compare rates and plans from different providers. These platforms allow you to enter your ZIP code and find the best rates and plans for your area. Shop Texas Electricity is another platform that allows you to compare different plans and rates in just a few clicks.
It's worth noting that energy rates tend to increase during the summer months when demand is higher, so you may be able to secure better rates by switching during spring or fall. You can also avoid termination fees by timing your switch within 14 days of your contract's expiration.
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Fixed-rate vs variable-rate plans
Texas has a deregulated electricity market, meaning that Houston residents can choose their energy supplier and plan. This means that energy companies compete for your business, and you can select a plan that fits your budget and needs.
When choosing between a fixed-rate and a variable-rate plan, there are several factors to consider. Firstly, a fixed-rate plan offers a set price per kilowatt-hour of energy for the term of the contract, which is typically 6, 12, 24, or 36 months. This means that regardless of market volatility or increased demand, your rate will not change, allowing you to budget for your energy expenses effectively. Fixed-rate plans are generally preferred by most consumers due to the stability and security they offer.
On the other hand, variable-rate plans offer more flexibility but come with volatile pricing. The rates for these plans may change monthly based on market factors and energy demand. While a variable-rate plan might have a lower rate initially, it can result in a higher bill if energy demand or market prices increase. Variable-rate plans may be suitable for those who want more flexibility and are comfortable with potential price fluctuations.
It is recommended to shop for a new fixed-rate plan when you are close to your current contract's expiration date, typically within 30-45 days. This allows you to compare offers and find the best rates. Additionally, consider using an online platform or a calculator to compare different plans and providers to make an informed decision.
By understanding the differences between fixed-rate and variable-rate plans, you can make an informed choice based on your budget, energy usage, and preferences when shopping for electricity in Houston, TX.
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Switching providers
In Texas, residents have the freedom to switch electricity providers at any time. However, it is important to be mindful of early termination fees (ETFs) that may be incurred if you are under contract with your current provider. Fixed-rate electricity plans often come with ETFs if you cancel or switch before your contract ends, so be sure to review your plan's Electricity Facts Label (EFL) for details.
Before switching providers, it is advisable to do your research by examining your current electric bill and rate and comparing it to the cost of a new energy supplier. This will help you determine the most cost-effective plan for your needs. You can use online marketplaces like Choose Energy and Choose Texas Power to compare rates and plans from different providers. These platforms partner with top-rated companies and allow you to browse rates, compare plans, and switch suppliers at no cost.
When you are ready to switch, simply select a new provider and contact them to initiate the switch. You can sign up for a new plan online or over the phone, and your new provider will manage the transfer process, coordinating with your utility company to ensure a seamless transition. The switch typically takes 3-7 business days but can take up to 2-4 weeks in some cases, such as when a new meter needs to be installed.
It is worth noting that Texas has specific consumer protections and requirements set by the PUC. For instance, if you switch electricity plans within 14 days of your current contract's end, you won't need to pay an ETF. Additionally, Texas law requires providers to return your deposit, with interest, at the end of your contract or after 12 months, provided you have paid your bills on time.
Lastly, be aware that some providers may place a 'Switch Hold' on your account if you have a late or large unpaid balance. You may need to resolve this past-due balance or negotiate with your provider to have the hold removed before switching to a new provider.
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Smart meters
While smart meters are standard, Texans are not forced to have one in their homes. However, opting out of a smart meter can be costly. TDUs make it cost-prohibitive to switch back to an analog meter, with fees varying depending on the service area. For example, in the ONCOR service area, there is a charge of over $445 to install an analog meter, which increases to over $800 if they have to remove an existing smart meter. There may also be additional monthly charges of up to $25 for meter servicing and reading.
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Energy-saving habits
Energy rates in Houston, Texas, tend to increase as the weather gets hotter. As such, it is important to adopt energy-saving habits to keep electricity bills low. Here are some energy-saving habits for people in Houston, Texas:
Take Advantage of Natural Lighting
Keep curtains and blinds open during the day to make use of Houston's abundant sunlight. Natural light brightens up your home and reduces the need for artificial lighting, helping you save on electricity bills.
Unplug Chargers and Electronics When Not in Use
Many electronic devices continue to draw power even when turned off, contributing to energy wastage. Make it a habit to unplug chargers, appliances, and electronics when they are not in use to eliminate standby power consumption.
Maintain Your HVAC System
Schedule regular maintenance for your heating, ventilation, and air conditioning (HVAC) system to ensure it operates efficiently. Clean or replace air filters regularly, check for leaks in ducts, and maintain optimal airflow to improve energy efficiency.
Opt for Energy-Efficient Appliances and Light Bulbs
Investing in energy-efficient appliances, such as refrigerators, washing machines, and dishwashers, can significantly reduce your household's energy consumption. Look for products with Energy Star ratings, which are designed to operate more efficiently and consume less energy. Additionally, consider replacing incandescent bulbs with compact fluorescent lamps (CFLs). CFLs use between one-fifth and one-third of the power of equivalent incandescent lamps, and they last 6–15 times longer.
Seal Leaks and Improve Insulation
Houston's climate can be extreme, with hot summers and chilly winters. Ensure your home is properly insulated, and seal any leaks around windows, doors, and ducts to prevent air from escaping. This will help maintain a comfortable indoor temperature while reducing the workload on your heating and cooling systems.
Choose Energy-Efficient Cooking Methods
Opt for energy-efficient cooking methods such as using microwaves, slow cookers, or toaster ovens, which consume less energy compared to traditional ovens and stovetops.
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Frequently asked questions
You can shop for electricity in Houston by comparing rates and plans on websites like Choose Texas Power, Choose Energy, Shop Texas Electricity, and Texas Electricity Ratings. These websites allow you to compare rates from different providers and select a plan that fits your budget and energy needs.
Here are a few tips to consider:
- Opt for a fixed-rate plan if you want a predictable and stable electricity bill.
- Look for plans that offer bill credits when you use a certain amount of energy, as this can lower your costs.
- Check if you have a smart meter before shopping, as it can simplify the process of switching providers.
- Consider shopping during cooler seasons like spring and fall when demand and rates are typically lower.
If you are at the end of your contract term, there is typically no cost to switch providers. However, your current provider may charge cancellation fees for early contract termination, so it is important to review your existing contract before making a switch. You have the right to change your mind within three days of switching, without any penalty.
