In 2002, Texas deregulated its electricity market, separating the physical delivery of power from the retail sale of electricity. This means that while your local Transmission and Distribution Utility (TDU) — such as CenterPoint Energy or Oncor — continues to own the poles, wires, and meters, you have the power to choose which Retail Electric Provider (REP) supplies your electricity.

While deregulation fosters competition and can drive down prices, it also introduces complex pricing structures. Retail providers often use tiered rates, bill credits, and variable pricing to market seemingly low rates that only apply under highly specific usage conditions. Our directory is built to help you cut through the marketing noise and find plans with transparent, fixed pricing that genuinely lowers your monthly utility bill.

The most critical step in selecting a new electricity plan is understanding your historical usage. Review your past 12 months of utility bills to determine your average kilowatt-hour (kWh) consumption.

• •Read the Electricity Facts Label (EFL): Never sign a contract based solely on the advertised rate. The EFL breaks down exactly what you will pay at 500, 1,000, and 2,000 kWh thresholds, including all TDU delivery charges.
• •Avoid Bill Credit Traps: Many plans advertise low rates that rely on a $50-$100 bill credit if you hit a specific usage tier (e.g., exactly 1,000 kWh). If you miss that threshold by a single kilowatt, your rate skyrockets.
• •Lock in Fixed Rates: We strongly recommend 12 to 36-month fixed-rate plans. Variable month-to-month plans leave you exposed to massive wholesale price spikes during peak Texas summer heat or extreme winter freezes.