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Texas Electric Companies: Understand Your Options

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Texas was one of the first states to deregulate its energy market, letting electric companies in Texas compete to earn your business. While a regulated utility maintains the transmission and distribution infrastructure, private companies can generate electricity, then buy and sell it on wholesale markets to provide to end users.

Competitive Texas electric companies drive and support economic growth. They often invest in innovative technologies and create new products, services and pricing structures to give customers a wide range of choices. The result is empowered consumers who can choose energy plans that best serve their needs. Consumers can shop the various Texas energy companies and select the one that gives them the features, benefits, value and services they need and want.

This comprehensive Texas electric guide will help you understand the various options in the market, what criteria to consider when making an energy choice and how to pick the best Texas electricity provider for your needs.

What Is a Texas Electricity Provider?

You might hear people talking about Texas electricity companies or Texas energy companies. You might also hear about power companies in Texas or even light companies. In a competitive market,  utility companies are different from   retail electricity providers (REPs), which are third-party electric suppliers that compete to provide you with services and choices of plans. That is the difference between energy suppliers vs utilities, which maintain the power infrastructure in Texas.

What Makes the Best Residential Electric Company in Texas?

When considering your options among electricity companies in Texas, it isn’t a case of one type fits all. The factors that matter to you might not be important to others. Your individual power needs depend on your habits, lifestyle, family situation and values.

Some of the top electricity companies in Texas offer plans and options that set themselves apart from the competition and attract customers with choices of features and innovations that fit the situations of their customers. These options include how power is produced, plan type, price structure, length of contract, cancellation policies and sometimes incentives or promotions.

How to Choose the Best Texas Electric Company for You

What are the factors to consider when evaluating electricity providers in Texas? We have compiled a list that can help you as you think it through. While all of these factors may not be important to you, many can help you when it comes to choosing the right energy plan.

  • Usage needs. You will want to take into account how much power you use every month and if there is a pattern in your electricity usage. Perhaps you use the most power on weekends or evenings. In that case, you might benefit from electricity providers in Texas that offer time-of-use plans.
  • Monthly fees. Some energy providers in Texas offer what look like low rates, but they make up the difference in fees, like minimum monthly charges.
  • Fixed vs. variable rates. You may be comparing a fixed vs variable energy rate plan. Fixed supply rate plans lock you into a price for the energy you use for the duration of your contract and protect you from unpredictable spikes in energy prices. With variable plans, you pay the market price, which can vary from month to month, or another fluctuating price that is determined at the discretion of the retail electric provider. If you need to keep your electricity bill within your budget and prices go up, you will have to adjust your energy usage with a variable rate plan.
  • Rewards and incentives. Electric companies in Texas sometimes offer promotions like low introductory rates and incentives such as  gift cards in order to get you to switch or to choose a long term vs short term energy contract.
  • Renewable energy options. Are you committed to caring for the environment and want to power your home with renewable energy? Look for electric providers in Texas that offer plans that provide energy specifically from wind, solar and/or hydropower.
  • Customer service. You may want to choose from Texas electricity providers that deliver excellent customer service. Being able to reach the company and get a fast response is important. Getting information about understanding energy costs and ways you can be more energy efficient is also helpful. Good communication and transparency about rates and policies builds trust. The company should also make it easy to read your electric bill.
  • Cancellation policy. Most Texas electricity providers have a specific cancellation policy. Some charge a fee if you cancel a contract early, which helps them cover the costs of losing you as a customer. If you learn how to read an Electricity Facts Label (EFL), you’ll be able to find each provider’s cancellation policy.
  • Reviews. What other customers say about the Texas electricity companies you are considering may help you make the final choice.

Comparing Top Electricity Providers in Texas

Many Texas electricity providers are competing for your business with a wide range of energy plans and products. Here are some of the most popular ones.

  • Champion Energy
  • Cirro
  • Constellation
  • Direct Energy
  • 4Change Energy
  • Gexa Energy
  • Green Mountain Energy
  • Octopus Energy
  • Reliant Energy
  • Rhythm Energy
  • Spark Energy
  • TXU Energy

Why Choose Constellation as Your Texas Power Company?

Comparing top electricity providers in Texas

Many Texas electricity companies provide a variety of plans. Where Constellation truly stands out is with exceptional customer service and customer-centric plans that are built around your needs. We know you value transparency, so we make it easy for you to understand your plan options and compare them.

But don’t take our word for it. We invite you to read independent customer reviews and learn more about our Constellation Rewards program and other benefits.

You have the power of energy choice when it comes to choosing among electric companies in Texas. We hope after comparing electricity plans, features, and benefits, that Constellation is the company you choose.

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© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC, Constellation Connect, LLC or Constellation Home Products & Services, LLC (d/b/a Constellation Home in Maryland and d/b/a Constellation in Georgia, Pennsylvania and Texas), each affiliates of each other. The prices of Constellation are not regulated by any state Public Utility Commission. You do not have to buy Constellation electricity, natural gas or any other products to receive the same quality regulated service from your local utility. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

Electricity or Gas Supplier License/Order #s and Home Services #s: CA 1359, CTA0032; CT 06-07-11, 01-06; DE 00-162; DC GA06-2, EA01-5; GA GM-46; IL 16-0205, 17-0330; IA G-0010; ME 2000-989; MD IR-655, IR-311, IR-500; MA GS-030, CS-015; MI U-14867, U-13660; NE NG-0043; NH DM 17-024; NJ GSL-0101, ESL-0016; OH 09-153G, 00-003E; PA A-125095, A-110036; OR ES4, RI 2379(Z1), D-96-6(E); TX 10014, B07305101; VA G-26, G-51, E-11A; TX Licenses HVAC TACLA 00107498R, Electrical TECL 343159, Service Plan TSCP #684, Plumbing #43217; GA REG CN-211051