What the Power to Choose Your Electricity Provider Means for You
In the past, Texans bought their electricity from a local utility that was often the only choice in town. Utilities had very little incentive to keep rates low or go the extra mile for customers. Today, Texas is one of a growing number of states with a competitive energy market that allows residents to purchase power from retail electricity providers or suppliers. Competitive markets are also referred to as deregulated energy markets. A competitive marketplace can have positive results for customers as competing energy providers offer a variety of plans and rates so you have the power to choose among them.
Which Texas Electricity Plan Should I Choose?
Energy choice gives Texans the opportunity to purchase an electric plan that works for them. A fixed-rate plan includes signing a contract and is ideal for those looking to lock in the price per kilowatt hour to have energy budget certainty. Variable rate plans are on a month-to-month basis with no long-term contract but leave you open to price fluctuations.
How are Electricity Rates Calculated?
Electricity is measured in kilowatt hours (kWh), which is a figure that corresponds to the kilowatts used by an electric device or appliance in an hour. Your monthly electric bill reflects the number of kilowatt hours used multiplied by the rate per kilowatt hour. Read your provider’s EFL, or Electricity Facts Label, for detailed information about your rates per kWh. What’s a kilowatt? It’s simply another name for 1,000 watts of electricity. You can learn more about kilowatt hours by reading our Understanding Energy Costs and Bill page.
How to Choose an Energy Provider in Texas
Considerations when shopping for an electric provider:
- Your service area. In a state as large as Texas, a retail electric provider may not offer services in every town or city.
- Cost per kilowatt hour (kWh). Electricity use is measured in kilowatt hours, or kWh, and this is how your provider will share their rate.
- Fixed-rate plans. You can lock in the price per unit of energy by signing up for a fixed-rate plan. This guards against energy price fluctuations due to market forces such as demand.
- Additional costs and fees. Your new energy provider should disclose costs and fees before you sign up for service. Pay attention so that you can get a good estimate of what your monthly electricity costs will be and how they compare to what you’re currently paying.
- Reputation. It’s always a good idea to perform your due diligence when purchasing any product, and the same is true when choosing an electricity supplier in Texas.
Switching Texas Electricity Providers
- Check the terms of your current contract. You can sign up with a different electric retail provider at any time; however, you may be charged an early termination fee, or ETF, if you switch suppliers before your current contract ends. Check your original agreement to see when you can opt out of your service without having to pay a fee.
- Evaluate your energy needs. Your electricity consumption will vary based on the size of your home and family. Other variables, such as the efficiency of appliances, can be harder to pin down. Review your previous energy bills to get a better understanding of your average monthly usage. Knowing your energy needs can help you choose the best electric plan for you.
- Contact Constellation. Visit our Residential Sign up page to get started. You can also call us at 866-917-8271 to speak to a representative.
Choosing a New Electricity Provider When Moving in Texas
When you move into a new apartment or house in Texas, you can choose your electricity provider. You may be able to keep your existing contract if the new address falls within the company’s service area. If not, you’ll need to make a choice. The process is like that described above, with one major exception: there are no early termination fees for canceling your retail electric contract if you provide proof you’ve moved.
Consider Choosing Constellation as your Texas Electricity Provider
Here are three reasons why:
- Enrollment is easy.
- You have electricity plan choices. Take your pick of fixed-rate, variable-rate, renewable energy plans and bundled plans (offered in select areas).
- Exceptional customer service. Responsive and professional representatives are committed to earning your continued business.
