Electric companies in Texas are pretty darn cool

Thanks to a deregulated energy market, people have had the power to choose the Texas electricity provider they prefer for more than 20 years. So, it’s no surprise that in that time, there’s been a lot of innovation among electricity providers in Texas. That includes the types of plans offered to consumers and the sources used to supply energy across the state. And, as the second-most-populous state in the U.S., Texas has made a name for itself in ways that you may not have known about. 

Check out some of the interesting (and dare we say, “fun”) facts about the electricity providers in your home state.

Did you know…?

With 29.5 million residents in the state (that’s approximately 8.9% of the total U.S. population!), Texas energy companies bring power to millions of people. That’s just the beginning. Did you know …

• Texas has had lower residential, commercial and industrial electricity rates than the United States’ average. According to the U.S. Energy Information Administration, in January 2022, Texas residential energy rates were 1.48 cents/kilowatt hour (kWh) lower than the national average. Also in that month, commercial rates clocked in at 3.56 cents/kWh less than the nation’s average. Industrial rates also beat the national average by 1.58 cents/kWh that month. 
• Texas has the second-highest cumulative solar capacity, trailing only California. In addition, it’s one of the leading states in solar energy potential.
• In 2020, Texas produced about 28% of the nation’s wind-powered electricity. That’s more than any other state!

Little-known facts about electricity providers in Texas

The deregulated energy market in Texas is all about competition. Therefore, many Texas energy companies like to get creative with their electricity plans. After all, one size doesn’t fit all when it comes to lifestyle, budget and preferences. So, why not offer plans built around these factors? Take a look at some interesting ways electricity providers in Texas can power your home, on your terms.

Interesting info about Texas energy companies 

• Choose from plans that let you lock in your energy charge for 12, 24 or even 36 months. Just set it and forget it for long-term price security.
• Who doesn’t like free? Some plans offer free electricity during weeknight or weekend usage. For example, night owls might switch their energy-consuming chores (like laundry) to the specified ‘free’ timeframe to help save on their electric bill. Time of Use plans like this let people make small shifts to take advantage of off-peak usage times. These are time periods when demand on the electricity grid is lower.
• Like to shop? Some electricity providers in Texas offer gift cards after enrolling in certain plans. In addition to powering your home, plans like this give you extra spending power.
• Protect the environment, right from that comfy spot on your couch. Electricity plans that provide 100% renewable energy — from sources like the wind and the sun — make it easy to do your part for a healthier planet.
• Bon voyage! Did you know you can even get airline miles with some electricity plans? Whether you’re a frequent flyer or still waiting to take your first flight, plans like this can get you closer to your next destination. 

Be sure to check each plan’s Electricity Facts Label (EFL) for details. You’ll enjoy discovering all the options available during the shopping process.

Frequently asked questions about Texas electricity providers and plans

At one point or another, you might have thought of some “What if?” scenarios related to Texas energy companies and plans. Don’t worry, you’re not alone. We can help clear things up.

What if I move and have to cancel my electricity contract early? Do I have to pay a cancellation fee? 

If you move from your existing service address in the middle of a contract term, no worries. By providing a forwarding address and possibly other move-related information, you won’t have to pay your plan’s early termination fee. Check your plan’s contract documents for specific terms and conditions.

What if my contract is about to expire? Will my electricity get shut off if I don’t make a decision about what to do next? 

No. You don’t have to stress about your power being turned off simply because your contract term has expired. Here’s how this situation plays out. As an example, say you are enrolled on a fixed-rate product. Your current provider is required to notify you in advance of the date your contract expires. This gives you time to decide if you want to renew or shop and compare energy rates. You’re also allowed to switch providers in the final 14 days of your contract without incurring an early termination fee. 

Even if your contract term expires and you’ve not enrolled on a new plan, it’s okay. Your provider will simply switch you over to a default month-to-month plan. Your power will keep running without interruption.

What if the Texas power company I’ve chosen goes out of business?

The Public Utility Commission of Texas (PUCT) is always looking out for consumers’ best interests. In this scenario, the PUCT has designated “Providers of Last Resort” (POLR) as backup electricity service providers in the rare circumstances when a Texas electricity company cannot supply power. The POLR is meant to be a temporary safety net. For information on choosing Texas electric providers, check out this guide.

Shopping for electricity in Texas

Think about all the electric companies in Texas competing for your business (the PUCT lists more than 135 active retail electricity providers in the state). Imagine how hard it would to sort through all the plans to find the perfect match for your home. 

Luckily, it’s simple to shop and compare electricity rates and providers. With our easy-to-use filters, you can narrow down your options. Plus, you get plan pricing translated into actual monthly bill estimates based on your monthly electricity usage and other factors. Try it — we think you’ll quickly find a plan that’s just right for you.

Summer heat can raise your average utility bill

It’s summertime in Texas, and you know what that means … the air conditioners run 24/7 and can single-handedly cause your monthly average electricity costs to spike. True, summer doesn’t technically start until June 21. But, the weather in the Lone Star State tells a different story. Average June highs across the state are:

Amarillo, TX 80° 
Austin 93° 
Bryan – College Station 95° 
Corpus Christi 92° 
Dallas-Fort Worth 92° 
El Paso 89° 
Galveston 88° 
San Antonio 93° 
Houston 91° 
Waco 93° 

In many other cities across the country, these temperatures would be considered extreme. But for Texans, it’s only the beginning of the summertime heat.

For this reason, you might be asking yourself, “How can I save on electric bills this summer?” or “How can I cut energy costs around the home?” Luckily, there are many things you can do to cut down your usage and help lower your energy bill without melting in the sun.

Energy-saving tips to lower your average electricity costs

Conserving energy is one of the top ways to save money on your electric bill. Since much of your bill depends on how many kilowatt hours (kWh) you use each month, reducing your usage in small ways can add up to significant savings. Follow these tips to become more energy efficient. 

Show some filter love.

Your AC works hard for you, honey, so you’d better treat it right. Clean or change its air filter every month for greater efficiency. It’s one of the best ways to use less energy, since the more dust and debris stuck in the filter, the harder your AC has to work to cool your home.

Although the International Association of Certified Home Inspectors recommends swapping filters at least every 90 days, doing so more often is even better, especially during Texas summers. With all the work your AC does in the summer months, a monthly air filter change will keep it running efficiently and keep the air you breathe cleaner. Buying your filters in bulk can help lessen the cost of frequent replacement.

Take an energy break.

Why cool an empty home? Save some kWhs by making it a habit to adjust your thermostat before you leave home. 

If the house will be empty for more than a few hours, raise the temperature. While you may or may not agree with Energy Star’s recommendation of 85° while away, every degree helps conserve energy. Plus, if you have a smart thermostat, even better! You can lower the temperature from your mobile device before you head home. Then, you’ll be greeted by a comfortable climate.

Avoid thirst traps. 

When not in use, unplug computers, game consoles, mobile devices and other electronics. After all, nobody likes energy vampires. That is, electronics that use power even when in standby mode or turned off but still plugged into the wall. This type of energy usage is also called phantom load. It can cost consumers an average of $165 per year, according to one study. And while the savings you’ll achieve for each item you unplug may only come out to cents per month, it all adds up. Plus, every bit of electricity not used helps the environment by not emitting harmful CO₂greenhouse gasses.

Shake & (don’t) bake.

If your home feels like an oven on hot days, don’t turn another one on! Instead, choose more energy-efficient options like a pressure cooker, slow cooker, microwave or outdoor grill. They’ll help you cut down on your electricity usage and avoid adding a lot of heat to your kitchen.

And if you do use the oven, make use of the oven light to check on the status of your food. Opening the door lets hot air escape and requires more energy to heat back up to your original temperature.

Tennis, anyone?

Throw some clean tennis balls into your dryer to speed up the drying process (and reduce wrinkles and static). You can also use wool dryer balls. Either way, their presence causes more movement and space, letting more heat circulate between items. This is an especially helpful energy-saving trick for bulky items like towels, pillows and blankets.

For an even more energy-efficient way to dry your laundry, try hanging wet items on a clothesline outside. Imagine how quickly they’ll dry in the Texas summer sun!

Cut down on shower hour.

It takes energy to heat all that H₂O, so aim for a quick scrub to conserve electricity (and water). A 2016 study lists showers as the second-largest use of water in a household (tied with faucets). The study reports that the average shower lasts around 8 minutes. Can you cut yours down by one minute? By four minutes? Make it a household challenge to see who is the speediest scrubber.

Another way to conserve water is to install low-flow showerheads that contain the Water Sense label. This indicates they use less than 2 gallons of water per minute (gpm). Low-flow showerheads use 20% less water than a standard showerhead, which uses about 2.5 gpm. 

Smarten up your home.

Get connected and stay in control of everyday energy usage with smart thermostats, smart plugs and smart light bulbs. These modern products offer ways to control them from afar. For example, you can control them by remote, mobile app or through platforms like Amazon Alexa or Google Home. 

Imagine being on vacation and using your phone to adjust the temperature to an efficient setting. Or, turning certain appliances off and switching on outdoor lighting at specified times. Some smart plugs can even show you how much energy a device is using. Meanwhile, others can be connected to your smart doorbell or smart security cameras.

The more, the merrier.

Make energy efficiency a game and let your children get involved by turning off lights, going screen-free and monitoring the thermostat. The benefits are threefold:

1. It helps you use less electricity, which can help lower your average electric bill. 
2. It reminds everyone to be energy aware throughout the day.
3. It models positive behaviors that become habits as children grow older.

Too hot to handle?

Did you know that water heater manufacturers typically set the default water temperature to 140°? Your water doesn’t need to be that hot. The U.S. Department of Energy and the Environmental Protection Agency recommend a setting of 120°. This will get the job done but also save energy (and prevent scalding). 

Note: This is one energy-saving area you don’t want to go overboard with by dropping the temperature below 120°. That’s because lower temperatures can promote microbial growth. 

How much can you save by reducing electricity use?

While the tips above probably won’t help you slash your average electricity costs in half, they can have a significant impact. By being more energy efficient in your day-to-day life, you can expect to see your usage decline. Not only will you be helping to tame those summer electric bills, you’ll also be doing something positive for the environment. And there’s no downside to that!

Why has my electricity bill suddenly increased?

Even the most energy-efficient household has probably seen their average electric bill go up in recent months. That’s due in part to current world events, inflation and high demand. The increased price of electricity further shows how important it is to take steps to save energy in your own home.

How can I lower my electricity bill?

In addition to following these energy-saving tips and making small lifestyle choices, you can also look at the big picture to reduce your average electricity costs. Summer is the perfect time to shop and compare electricity plans. Find one that fits your lifestyle and can help you lower your average electric bill. Check out how simple it is to find your perfect energy match with Everything Energy’s free search tools.

You may think about your electricity bill during a particularly hot summer day. But do you know just how much you’re paying to power your home? It can be a bit intimidating to dive deep into your energy bill if you’ve never examined it closely before. However, it’s a good exercise in knowing where your money is going and what you pay per kilowatt hour (kWh) of usage. (A kWh is a unit of measurement equaling the amount of energy you’d use if you kept a 1,000-watt appliance running for an hour.)

Once you have that information, you’ll be able to shop for better electricity rates and compare plans more effectively.

So, if you’re up to the task, let’s take the mystery out of electricity rates once and for all. We’ll start with the five most important things to know.

1. You can find your electricity cost on your EFL

The Electricity Facts Label (EFL) for the electricity plan you’re enrolled in has a lot of useful information (and a lot of lengthy but necessary legal language). The trouble is, many consumers don’t take the time to read through this part of their contract. But once you’ve seen and understand one EFL, you’ll be able to navigate this document swiftly. That’s because the Public Utility Commission of Texas (PUCT) standardizes the format of EFLs to help residential and small business customers avoid unexpected surprises on their electricity bill.

When you pull up the EFL for your plan, you can see a lot of different items included on it. These items will help you determine your actual electricity rate. You can use that information to compare it to other energy plans available to you.

2. Your type of electricity plan is important

Do you have a steady electricity rate every month, or does your rate fluctuate monthly? It depends on what type of electricity plan you signed up for. On a fixed-rate plan, you have the same energy charge for the entire length of the contract. On a variable-rate plan, however, the price you pay per kWh is determined by market or other factors considered by the electricity provider. Some people like to lock in a rate. Others prefer the flexibility of going month to month and being able to switch whenever they want. 

For customers who sign up for a fixed-rate plan, pay attention to the contract expiration date. If your electricity contract expires and you take no action, electricity providers may enroll you on a default month-to-month plan with a variable rate. 

You’ll want to know what type of plan you’re currently on before you start comparing your plan to other electricity rates. If you don’t know, just check your EFL! 

3. Your bill may have more charges than just cost per kWh

You’ll be able to find your cost per kWh pretty easily on your EFL (usually called the Energy Charge). However, that’s only part of the story of your electricity rate. You may also run into items such as a base charge and delivery charges that need to be factored in when calculating your rate and comparing plans. So, let’s break it down:

A base charge is a flat, monthly fee sometimes charged by your energy provider, regardless of how many kWh you use. 

Delivery charges, also called TDU (Transmission and Distribution Utility) delivery charges, come from your utility company to cover the cost of moving electricity from the generation plant to your home.

For additional terms and charges you may see on your electricity bill, check out this guide from the PUCT.

4. Your monthly usage may affect your average electricity rate

On your EFL, you’ll find a Pricing Disclosure section. It lists the average price per kWh if you used 500 kWh, 1000 kWh and 2000 kWh. Unless otherwise noted, the average price per kWh includes any base charges and delivery charges. That’s why the lower usage rates often have higher average kWh costs: they have the other charges factored in and averaged out over a smaller number of kWh.

Knowing your average monthly electricity usage will allow you to make accurate plan comparisons. Plus, it will help you avoid unexpectedly high bills for the length of your contract term.

FYI: When you shop electricity on Everything Energy, you can filter plans based on your monthly usage.

5. You can shop for better electricity rates online

Thanks to the deregulation of the Texas energy market more than 25 years ago, you get to choose your electricity provider. That means providers compete to earn your business! So not only can you shop and compare energy plans to get the best electricity deals, you can also search by other factors important to you. From plans that use wind and solar power to those that offer free nights or weekends, gift cards, airline miles, energy-saving gadgets and more, the perfect plan for your family and lifestyle is out there. 

Now that you know the five most important things about electricity rates, you can shop, compare and enroll. Check out Everything Energy’s advanced search tools that help you zero in on your next electricity plan.

Peak moving season has arrived. College students are on the move, families use the months off of school to get situated and better weather means smoother loading and unloading. Are you one of the many planning to change your location in the upcoming months? If so, you’ll want to consider a few things that could impact your monthly cost of electricity before you sign that apartment lease or home purchase contract.

1. Home size affects your monthly electricity price.

We all know everything is bigger in Texas. But that’s not always a good thing when it comes to where you hang your hat. The size of your living space can affect your electricity bill more than you may think. 

According to the U.S. Census Bureau, the average size of a new house built in 2020 was 2,261 square feet. That’s nearly 1,000 square feet larger than the average home size in 1960. More square footage means more space you’ll need to cool during the long, hot Texas summer. And while high ceilings may appeal to you, the bill for cooling all that air might not.

The key question to ask is not, “How much house or apartment can I afford?” It’s, “How much room do I actually need?” After that, you can estimate your average electricity bill for that amount of space. (And compare it to where you currently live.) A Goldilocks approach will help narrow it down to something not too big, not too small, but just right!

2. Appliances can impact your monthly cost of electricity.

If your new pad comes stocked with appliances like a refrigerator, dishwasher and washer/dryer, take note. Older models tend to be less efficient. Meanwhile, Energy Star-rated models can help you save on your electricity bill with their efficiency — and help you lessen your carbon footprint. For example, Energy Star dryers use about 20% less energy than similar models without the Energy Star certification. 

Factoring in the energy efficiency of the large appliances that come with your new space will help give you a better idea of your monthly cost of electricity.

3. Good insulation can help you save energy every day.

The Environmental Protection Agency (EPA) estimates that better insulation could save the typical U.S. home 15% on heating and cooling costs. That includes sealing air gaps and adding insulation in attics, floors over basements and accessible basement rim joists. 

For homebuyers, have your home inspector measure the R-value of insulation in these areas. That way, you know whether this is an improvement you need to consider making. 

If you’ll be renting, check for air gaps around windows and doors. If you find any issues, request that maintenance personnel seal those areas prior to your move-in date.

Whether you own or rent, take the necessary steps to ensure you’ve minimized these air escape routes to the best of your ability, so you can have the best electricity bill possible.

4. High or low, location matters.

If you’re looking at, say, a third-floor apartment, don’t forget — heat rises! It will take more energy to cool off from the sweltering Texas heat. On the flip side, if you’re renting a basement apartment or have significant living space below ground level, you can expect a cooler area. That’s great for summer, but it also may require extra heating to remain comfortable in cooler weather. Consider where you’ll be doing most of your “living” as you look for a new place, and how this might affect your energy bill.

It’s easier than ever to estimate your cost of electricity.

To find electricity for your new place, including monthly bill estimates based on your typical usage and home size, make sure to shop around to find the best plan for your lifestyle.

Electricity companies in Texas abound

How many electricity companies in Texas do you think there are? 5? 15? The Public Utility Commission of Texas lists more than 135 active electricity companies in Texas!

So, how can you be sure that the Texas power company you choose can be trusted to power your home? Meet your lifestyle needs? And provide great customer service along the way? Certainly, knowing how to find and assess electricity providers will help you narrow down your search.

What to look for in Texas energy companies

Some things to look for in an energy provider when shopping for an electricity plan include:

Years in operation

Electricity companies in Texas that have stood the test of time are a great place to start. Think about how competitive the deregulated Texas electric market is. So, companies that have been in business for over a decade have demonstrated their credibility and experience many times over.

Reputation

Unhappy customers share their experiences much more often than satisfied customers. Therefore, don’t just rely on Internet reviews. Make sure to also seek out positive reviews from friends and family members. And, see what electricity companies they recommend.

Plans that match your life

No two households are the same. And, good electricity companies in Texas know this. For this reason, they strive to adapt to different lifestyles, routines and needs with their electricity plan offerings. From term length and rate type to special products and related services, trust an electricity provider that caters to what customers want.

Ease of enrollment

In most cases, switching electricity providers or enrolling in a new plan should be a fairly simple process. That is to say, you can usually enroll either online or by phone. Texas electricity companies that clearly explain how to enroll — and have customer support available to help if you have any questions — set a positive standard for future interactions.

Online account management

This far into the 20^th century, any electric provider in Texas deserving of your trust should offer online account management. For instance, many people want the option to safely pay, view usage and manage their account in other ways online. That’s why having an outdated website without this option can be a red flag. It may not inspire confidence in a provider’s service ability.

You have the power to choose, Texas

Over two decades ago, the Texas Legislature passed a law deregulating the Texas electricity market. It promoted competition in Texas electricity rates and forever changed the state’s energy landscape. As a result, consumers like you now have the power to choose your electricity provider. So, use freedom and start shopping for your ideal energy plan. 

Search plans from electricity companies in Texas you can trust

If you’re not sure where to start, check out Everything Energy. Our shop and compare tools will help you find plans from electricity companies in Texas you can trust. Simply enter your ZIP code and select your average monthly electricity usage and other filters. Then, we’ll show you plans that best fit your lifes.

The Texas summer heat waves are rising up from the pavement while the sun beats down on your rooftop. It’s no wonder your power bill jumps as the AC struggles to keep up. Even a powerful home AC still uses more power in the heat of summer than any other time of the year. Here in Texas, even the winter heating bill can’t rival the cost of summer cooling. So, let’s look at some ways to save money on your summer electricity bill.

There are a ton of ways to lower your power bill, some big, some small. You can take on big home improvement projects, like installing new double-paned windows or smaller efforts, such as the addition of a smart thermostat that adapts to the ebb and flow of your cooling needs. But for those looking at more approachable DIY solutions, you can still significantly lower that seasonal power bill with just a few smart projects around the house.

Let’s dive into our favorite do-it-yourself ways to reduce your electricity use in the summer.

Four ways to save money on your electricity bill

1. Trap the AC Inside Your House

Re-Caulk Your Windows

A lot of heat can get lost out rattling window panes, something common especially in dry Texas houses where heat, rains, and droughts cause regular swelling and contracting of your window frames. This breaks seals, causes window rattle, and allows precious AC to slip out your window cracks. Re-seal those windows with a new round of caulk around the window pane, but without sealing your opening windows closed.

Install New Weather Stripping on Doors & Windows

Help your doors and opening windows keep the cold in by reinstalling the weather stripping. Most weather stripping is only made to last between two and five years. If you don’t know when the weather stripping was last replaced, a new round could significantly improve your AC-based power costs.

Improve Your Attic Insulation & Airflow

Improve your attic. Houses can lose air through an under-insulated attic. If you’re familiar with attic work, add a new layer of insulation and seal up any obvious areas for drafts. Make sure the vents are clear (especially of fluffy insulation) so that your attic airflow is also healthy and insulating. You’ll be surprised how much this can help reduce your electricity bill.

Close or Insulate Closets

Many closets are not properly insulated. You’ll notice added heat when you open the closet door. Keep your closet doors closed to trap that insulation through the door or insulate the interior of each closet by papering the walls in foil insulator wrap.

Weather-Seal the Pet Doors

If you have a pet door or two, adding weather stripping or otherwise find ways to seal that door when it’s supposed to be closed. Pet doors are often a notorious source of lost AC and unsuspected summer power bill costs.

Cast Shade on the House

Keep your house shady. Encourage tall branching trees or build awnings around the house. The less sun hits your roof, siding, and windows, the less heat you’ll be fighting against with the AC’s power.

2. Stay Cool for Less

Set the Thermostat a Few Degrees “Less”

In the summer, set your thermostat just a few degrees warmer than normal and you could save hundreds over the summer. Central air conditioning uses, on average, 1 kWh per ton per hour. A 5-ton air-conditioner will use approximately 5 kWh per hour, which would use 60 kWh per day, if it ran for 12 hours. Here is a calculator to help you understand the costs. un the AC at 77 instead of 74 and discover the power bill difference.

Adjust Thermostat When No One is Home

If the house is empty, let it warm up for the hottest hours of the day. Last person out the door sets the thermostat to a toasty 85, safe for appliances but too warm for most Texans indoors. Then first person home sets the thermostat to cool the house for an evening at home (or install the smart thermostat to do it for you).

Run Ceiling Fans and Rooms

Make use of your ceiling fans – they are much more affordable to run than your AC fan. Why? The AC blower has to push air all through the house. Your ceiling fan cools one specific area. Set ceiling fans and floor-mounted fans around the house to keep it breezy without using more AC than you need.

Seasonal Bedding, Clothing, and Curtains

Switch up your clothes. When the summer gets really hot, give into your need to wear shorts and breezy shirts. Wear light cotton or even exercise active-wear clothing designed to wick sweat and cool in moving air. Switch your bedding to the cool percale weave in natural fibers to sleep cooler. Swap  your heavy winter curtains for the light breezy kind combined with some serious anti-blinding sun shades. When your fabrics match the season, you can turn the AC a little warmer and sleep a little cooler all summer.

Try a Swamp Cooler

Swamp coolers only work, ironically, in dry climates because it works through evaporative cooling. Some regions of Texas are more than dry enough to bring the temperature down for very little electricity cost using swamp cooler technology.

3. Use Less Electricity By Accident

Stop Phantom Load with Power Strips

Did you know that many appliances keep sucking up electricity after you switch them off? Experts call this Phantom Load. There are a number of reasons for this to be true, but there is one easy solution. Plug your appliances, computers, and devices into power strips. Simply switch the power strips off when you’re done with the appliances and easily prevent the power-costs of phantom load.

Keep Your Filters & Vents Clean

Want your AC to flow efficiently through the house? Make sure there’s nothing blocking it in the ducts, vents, and filters it must flow through to reach each room. Check your AC unit filter and change it out regularly (every 1 to 9 months). It’s easy to check your vent registers and clean them if they are covered in old dust. Take a peek at your ducts to ensure they are still clear.

Clean the Fridge Seal & Coils

Another high-usage appliance might be your refrigerator. Just like the AC, the fridge has to work harder on warm days to keep your food cold. The more efficiently it works, the less you pay for the considerable power it consumes. Clean your refrigerator and freezer door seals and them moisten them with petroleum jelly to boost performance. Then gently brush the built-up dust from the fridge’s coolant coils in the back to boost cooling efficiency with less power.

4. Make the Most of Your Power Bill

Switch to Average Billing

If your summer power bill is too much or you don’t like the seasonal cost-difference, sign up for average billing. Average billing for power bills uses historical data on the annual electricity usage at your address, and divides that amount by 12, so you pay about the same amount each month. While you will pay the same amount over the 12 months, you won’t see the wild swings during the higher-usage months, so you’ll pay less on your electricity bills during the summer months.

Soak Up Some Solar Credits

If you have solar panels or are handy with the equipment, you can even hook up solar and start selling some of the power you generate back to the power company for a monthly bill discount. 

Make big summer electricity bills a thing of the past. Are you ready to get started on one or more of these project and see which works for you? You’ll find big savings on those summer energy bills.

If you are new to Texas, the electricity market here may be puzzling. In deregulated areas of Texas, electricity customers shop for the right plan from a variety of providers in the market. This competitive market was designed to spur innovative electricity plans that help serve customers better.

For newcomers unfamiliar with shopping for electricity, choosing the right plan can be intimidating. We’ve put together this list of terms and details to help you select a plan and a provider with confidence.

How to pick the best electricity plan

Confirm your current contract

Do you already have an electricity contract? Don’t switch electricity providers before confirming your current contract period. If your current plan is not yet up for renewal, you might be subject to a cancellation fee if you switch. Most electricity providers will not charge the cancellation fee if you are moving, but if you switch to another provider before your contract is complete, there will likely be a cancellation fee on your last bill. Check your plan details on your providers website, or look at you electricity bill to see if there’s a contract binding you to your current provider.

How much electricity do you use?

Head over to your account online or check your bill to determine the amount of electricity you consume every month. While your usage will likely be higher at certain times of the year, knowing your range of usage will help you select the best plan while you are shopping. Most electricity websites in Texas show Average Price per kWh at Usage Levels of 500, 1000 and 2000. If you know where your usage sits within those levels, it will be easier to compare plans.

While you are looking at your usage, get a feel for your monthly bill and how it varies at times of the year so you can compare options to what you have now. In Texas, most of us use more electricity in summer, while we are running our air conditioning. But winter usage often depends on whether you have gas or electric heat. It’s worth saying that electricity prices rise and fall during the year due to market conditions. There’s no guarantee that rates when you are shopping will be in the same range as they were last time you signed up.

What term length do you prefer?

Texas electricity market has a huge variety of term durations that differ in price points. If you’re looking for stability in prices, long-term contracts will meet your needs. On the other hand, shorter durations don’t tie you to an extended commitment. The most common plan duration is 12 months, but those that don’t enjoy shopping for electricity often select longer plans, to lock in a price and push off having to shop again. As long as you are getting a rate you like, there’s no real downside to a longer term length. If you are renting a home, it can be handy to match the term length to your rental agreement.

Determine if you want a fixed or variable rate

Most plans in deregulated power market come at either fixed or variable rates. 

Fixed rates are sometimes called Secure or Term. These provide you with a fixed price for the length of your contract. They provide price security, but they usually have a cancellation fee if you switch away before the term is up. The cancellation fee is usually not applicable if you move.

Variable rate plans are sometimes called Flex plans or Month To Month plans. In this arrangement, there is no term length and you can switch providers anytime. However, your electricity rate can change each month. These plans don’t lock you into a commitment, so they are great for consumers that are in a short-term situation.

Plans with extra

Most electricity providers have a wide range of plans. You may see plans with rewards or incentives – like cool technical gadgets or gift certificates or sports memorabilia. These plans may cost a little more, but you might find a great perk – like a signed football jersey.

Some of the perks can be altruistic. Several providers have plans that include making a charitable donation when you sign up. Reliant Energy has a

If these types of plans appeal to you, Everything Energy has filters to help you find plans with an incentive.

Compare electricity plans & providers

You can go to popular Retail Electricity Providers’ sites to shop individually. You’ll get lots of information, but it can be time consuming to shop each provider one at a time. You can also check Texas’ state-run Power to Choose website, and other relevant websites. Since you are here, check out our comparison engine. We partner with reliable, and trusted electricity providers with long histories of great customer service. Everything Energy makes it easy to shop these REPs with a wide diversity of plan selections. We’ve got helpful filters to help you narrow down your search based on plan types and term lengths, so you can see only the plans you are interested in. Finding the best electricity rate for your family has never been easier.

Where ever you choose to shop, look for these details:

Average Price per kWh: this is the all-in price you would pay at a given usage level – sites usually display 500, 1000, 2000. The price factors in the cost of the electricity, delivery charges from the utility company, and taxes and surcharges. Note that the taxes and surcharges can change over time.

Usage Level Selector: As noted above, most sites will display price at a couple usage levels – set it at the level closest to your usage to see pricing most relevant to your home.

Rate Type & Cancellation fee: Once you know which plan type you prefer, you can search and filter based on this information.

Go through the Electricity Facts Label (EFL)

EFL (similar to a Nutrition Facts Label) of each plan that your chosen provider offers allows you to ascertain your consumption’s price point. If you need help understanding a plan’s EFL, we have a guide for you.

What’s the TDSP charge?

While REPs sell you the electricity and bill you for what you use, the local utility company delivers the power over the lines and meters they maintain. The utility companies, also called Transmission and Distribution Service Provider (TDSP), own and maintain the poles, wires, and meters. They’re also responsible for reading the meters and reporting usage for each meter to the REP, who does the billing.

The charges from these utilies are passed on to the consumer via their electricity bill, and are known as the TDSP charge. In Texas, the TDSPs have to get permission from the PUC to raise their rates. This does happen occasionally, and when it does, even customers on a contract will see a higher average price on their bill once the new TDSP charge is factored in. The TDSP charge is calculated into the Average Price per kWh.

These TDSP charges apply to all electricity customers in the ulitity area, regardless of which REP the customer is with. So you can’t get out of this fee by changing REPs. The TDSP will usually bill this charge to your REP, who will, in turn, indicate it on your bill without any markup. To view TDSP charges from Texas Utility Providers in deregulated areas, click here to see a great resource from Cirro Energy.

What if I Change my Mind after Signing Up?

You can ask your power provider to cancel your enrollment within three business days from when they delivered the Terms of Service agreement to you, whether you got the deal in the mail or signed it online. You’ll then receive a confirmation to cancel your plan (alongside the information on how to cancel) through the mail.

According to the state directives, your retail electricity provider should allow you between 3 to 14 days to cancel the plan without charging you any penalty. If you do so after this period has elapsed, you may pay the cancellation fee. 

Wrapping Up

You now have an idea on how to shop around for the best electricity plan. If you are ready to shop, it’s as easy as entering your zip code to see the best electricity plans in your area.

SUMMARY:

• Time of Use plans are designed to reduce demand on the electric grid during peak usage.
• They do this by incenting customers to shift their usage to off-peak times, by offering a lower price for electricity.
• You can save a lot of money on your electric bill if your usage matches the plan.

How does a Time of Use electricity plan work?

Traditional electricity plan have a fixed rate that applies to all your electricity use during the billing period. You pay the same rate for your electricity regardless of the time of day or the season you are in. However, time of use electricity plans (TOU) have a variable rate that might be higher during peak hours of day, and lower during times of lower usage. Reliant Energy offers a ‘Free Nights’ and a ‘Free Weekends’ plan, for example, and Green Mountain Energy offers several plans with discounted rates at night, when you are most likely to be charging an electric vehicle.

Time of Use plans are designed to reduced demand on the electricity grid during peak hours. Residential electricity use rises in the morning as people wake up, and wanes as they go to work, rising again in the early evening as people come home and turn on lights, cook dinner, run dishwashers. There are also seasonal shifts – electricity use is much higher on summer afternoons in Texas when all our air conditioners are battling the heat. TOU plans were designed to encourage electricity customers to shift usage to times when there is less demand, with a lower price being their reward for conserving during peak hours. Customers that are able to shift usage can save money on their electricity bill with a TOU plan.

How to save money with a Time of Use Electricity Plan

When reviewing a TOU plan, understand the peak and off-peak hours. Each TOU plan has it’s own distinct usage hours. Peak hours are the most expensive days of the day for billing since everyone uses electricity at that time. Off-peak hours are cheaper because electricity usage is lower. If you can shift usage to the off-peak hours, these plans may save you money on your electric bill. For example, if you are never home on the weekends to take advantage of a plan with lower-priced electricity on Saturday and Sunday, you may not be able to take advantage of the benefits. If you have an electric vehicle, charging during off-peak night hours can save you a lot money. Use this information while shopping for your electricity plan and find the right electricity plan to suit your family’s lifestyle.

Understand the billing plan from your electricity provider; While you may be trying to shift your usage to low-cost hours, you’ll still pay for the electricity you use during peak hours. Be sure to understand what you are being charged during peak hours. It’s important to read the energy facts label when shopping for your plan, which will help you understand what the peak hours cost and keep you from getting surprised.

Navigate lifestyle changes to fit into off-peak hours. Once you understand the off-peak hours and rates of a potential electricity plan, think about how much you can shift your electricity usage into those hours. Can you do all your laundry on the weekend, to take advantage of Free Weekends? Instead of running the dishwasher right after dinner, can you wait until you go to bed, and take advantage of Free Nights? If you have a swimming pool, can you run the pool pump and cleaners during lower-cost hours? The average energy charge displayed on the website includes a certain percentage of usage during each rate period. You can see this number on the plan’s EFL. Look for something like: Average price calculation is based on consumption profile over 12 months of 42% of consumption at
nighttime as defined below. If you can shift your usage, so that you use more that that percentage of your electricity during that period, you’ll pay less than the advertised Average Price per kWh at that usage level.

How do I pick the right electricity plan?

Time of Use plans can definitely save you money if your usage fits the right curve, or if you are able to shift your usage to those lower-price hours. These plans also help keep the electric grid stable by reducing demand that stresses the grid during peak hours. Piqued your interest? Check out the Time of Use plans from our reliable providers.

An EFL or Electricity Facts Label is a lot like the nutrition label on the back of food products at the grocery store. When you pick up a can of corn and turn it to the back, you can read about everything that the can has inside it. The EFL is the same way. It will tell you everything that is inside a particular electricity plan from a particular provider. The EFL is am important tool to help you compare electricity plans.

What is an EFL?

An Electricity Facts Label is a document that electricity providers are required to provide to the public. It helps to break down every part of a retail energy provider’s electricity plans. This way, you can make sure you understand what’s in a plan and why it matters in terms of what you’ll pay and what you get.

EFLs have standard components so that all companies offering plans provide the same information – even though it might look slightly different. This allow you to easily compare energy plans of all electricity providers. This is specifically standardized in Texas for deregulated areas by the PUCT (Public Utility Commission of Texas).

How does an EFL help you compare electricity plans?

To compare electricity plans, you have to understand the details of each plan you are looking at.

At the top of the EFL you’re going to see information like the name of the REP, the name of the plan, and the date this EFL went into effect.

How to compare the price of electricity plan

In the Pricing Disclosure, you will see a breakdown of all the components of the Average Price. Energy charge is what the REP charges for actual electricity. You may see a base charge or usage charge, which are monthly fees from the REP. If they are included in the price of the plan, they have to be listed here. So, if you don’t see those, they don’t apply to your plan.

The pricing disclosure will also include Delivery Charges from the company that owns the poles & wires in your area. Those utilities charge their fees to the REP, who passes them to consumers each month. These fees are fixed by the PUC, and you can’t change them by looking for a different plan or REP. Delivery charges could be per month, per kWH, or both. You can learn more about TDSP charges from this post.

You’ll also see here the Average Price per kWh, listed at three usage levels: 500, 1000, 2000. This average price factors in all the elements of price, and determines what a customer would pay per kWh at each of those usage levels. That number is an easy way to compare electricity prices across different electricity providers and plans.

On average, Texans used about 1,140 kWh per month in 2019. Remember that your usage probably varies month to month, so make sure to understand your usage over the year and look at the pricing for those levels.

Other Plan Details in the EFL

Towards the bottom of the EFL, you’re going to see details about the plan It’s often in a question format, but not always. You’ll see information related to whether the plan is a fixed rate or variable and the term length, for example.

In other words, you can see whether the plan has its rate change from month to month or whether it’s always the same. You’ll also see how long your contract will go for, called the “contract term.”

There could be data about the “termination fee” if you want to quit your contract before it expires. Many providers may actually waive this fee if you show them that you’re actually moving away.

You’ll see a question related to whether your price can change during the contract period. Usually, the fact sheet will indicate that the answer is “yes,” it can change. The next line indicates why and how your price could change. Even fixed price plans can have price changes if the PUC allows the TDSP to increase their rates, which are factored into the price.

This section of the EFL also includes information on how much renewable energy the plan contains.

Summing Up

The EFL is a very helpful guide when shopping for electricity and we definitely encourage you to review while you are comparing electricity plans. By learning to read the EFL, you understand the exact rates for the electricity plans available in your area, and it will be easy to compare one plan’s rates to the rate from another plan. You’ll be able to see what their tiered plans look like and whether plan A has a lower starting rate for the first tier up to 1000 kWh than plan B. Which one is best for you will depend on how much your household actually uses, so this is important to keep in mind when you’re reading all of these different sheets. Learning to do so will greatly increase your understanding of the situation. If you want to learn more about comparing electricity plans, check out this guide.

As society becomes more aware of the effect carbon emissions are having on climate change, federal, state, and local governments around the world are taking steps to reduce their carbon footprint. Several cities in Texas joined thousands around the world and signed the Paris Agreement on climate change, and the Austin City Council has also pledged to reach net-zero greenhouse gas emissions by 2050. 

While government action will be key in helping to reverse the effects of global warming, individual action will also be critical in helping to reduce carbon emissions. Fortunately, there are a variety of steps that you can take to drastically reduce your household’s carbon footprint. Incorporating a few green initiatives into your routine could go a long way in helping your community to reduce its carbon emissions. Here is a look at just a few of the things that you can do to significantly reduce your carbon footprint.

Unplug unused devices

One of the simplest things that you can do to reduce your carbon footprint is to unplug your electronic devices when they are not in use. What many people do not realize is that electronics continue to draw a small amount of power when they are plugged in even if they are powered off. In fact, phone and laptop chargers will continue to draw power when plugged in even if they are not connected to a device. While the amount of power these devices and chargers use may seem insignificant, it can quickly add up. In the U.S. alone, this “vampire power” uses up to $19 billion in energy each year. To cut down on your carbon footprint, simply get in the habit of only plugging in chargers, devices, and appliances when you are actively using them. 

Drive less

Another great way to reduce your carbon footprint is to drive less. Every time you make the conscious decision to leave the car home and walk, bike, or take public transportation to your destination, you are immediately reducing your carbon footprint. In particular, walking to close destinations such as dinner out can help the planet while also providing an easy way for you to incorporate additional exercise into your routine. Of course, if you aren’t in the mood to walk, public transportation still helps reduce carbon emissions as more transit authorities are turning to green power sources including electric and natural-gas vehicles. In fact, it is estimated that a person who switches from commuting 20 miles alone by car to taking public transportation every day can reduce their annual CO2 emissions by 48,000 pounds per year. That represents a 10% reduction in carbon emissions for many two-car households.   

Consider buying carbon offsets

Of course, there is only so much that you can do personally to make a real impact on climate change, which may leave you feeling frustrated and wanting to do more for the environment. If so, you may want to consider buying carbon offsets. A carbon offset is a means by which you can compensate for your carbon emissions by helping to fund projects/programs that reduce carbon emissions elsewhere. For instance, if you pay to offset one ton of carbon, the offset will help to capture or destroy one ton of greenhouse gasses that would have otherwise been released into the atmosphere. If your job requires you to drive or fly on a regular basis and there is only so much that you can do personally to reduce your carbon emissions, buying carbon offsets can help to compensate for this and reduce or eliminate your carbon footprint.

If you are interested in buying carbon offsets as a way to reduce your carbon footprint, we recommend you check out the options at picknrgoffsets.com

Plant a garden

Gardening enthusiasts will be happy to learn that planting a garden can help to further reduce your carbon footprint. As you likely already know, plants absorb carbon dioxide and produce oxygen, which is an extremely useful symbiotic relationship for humans. Thusly, the more plants you add to your garden, balcony, or windowsill, the more your carbon footprint will be offset. Consider adding some bee-friendly flowers to help threatened bee populations. You can also plant a vegetable garden to help reduce your grocery bill. 

In addition to offsetting carbon emissions, planting a garden if you live in the city can also help to reduce the “urban heat island” effect. This is essentially localized warming that is taking place in urban areas due to the fact that there are more paved areas than in rural areas. Plants can then help to mitigate this effect and provide cooling by absorbing excess heat.      

Eat local produce

You can also reduce your carbon footprint, and help the local economy, by buying local produce whenever possible. When you buy produce that isn’t locally in season, it has likely been shipped in from elsewhere; possibly from another country. This can have a profound effect on carbon emissions, as food may be taking a journey around the world to reach your dinner table. It is then important that you try to buy in-season products from local grocers, as well as farmers’ markets in your neighborhood, to ensure that your food is traveling as short of a distance as possible. You should also try to buy organic produce, as these products haven’t been sprayed with pesticides and chemicals that are toxic to the environment (in addition to being bad for your health).  

Line dry your clothes

One of the biggest changes you should consider making in your home to reduce your carbon footprint is to stop using your dryer as much as possible. Opting to go with the traditional line-dry method of drying your clothes is much better for the environment, as dryers are actually one of the top energy-consuming appliances in your home. While line-drying may take some getting used to, and it can seem like an unnecessary hassle if you have never line-dried clothing before, doing so can go a long way in protecting the environment. Furthermore, line-drying has the added benefit of being better for your clothes, as tumble drying causes wear-and-tear, shortening the life of fabrics.