Texas Energy News November 17, 2021

Moving to Texas? Here's How to Choose a Texas Electricity Provider

With Power to Choose, homeowners, renters, and businesses in deregulated areas have the ability to select their electricity provider in Texas. See how to find the right electricity provider for you.


Moving to Texas? You’re in good company – According to the latest U.S. Census data, Texas gained the most residents of any state since 2010.

Choosing an Electric Provider in Texas – Frequently Asked Questions

How Do You Find an Electric Company for Your Address?
This depends on where you live in Texas. Some communities are served by municipalities, investor-owned utilities, or cooperatives where choosing your electric provider isn’t possible. For most of Texas, the electric utility market is deregulated meaning you have the power to choose your provider.
Texas energy suppliers like Value Power offer online tools that allow you to see available plans in your area by simply entering your zip code.  If you want to see if we serve your address, please enter your zip code at our Plans & Pricing page.
What Kind of Electricity Plan Should You Get?
Each company offers various plans depending on the type of rate, contract length, and plan options. Research your options to determine the answers to some important questions:

  • Would you prefer a fixed rate or are you okay with the risk of a variable rate?
  • How long would you like your contract to be?
  • What is the business’s customer service record?
  • What is your anticipated energy usage?

Having a baseline understanding of your needs will help you determine the best plan for your household. Not sure what plan to choose? Value Power puts customers first, and a single phone call can help you resolve questions and determine the best electric plan. Our customer service team is trained to speak plainly and is committed to meeting your needs.
What Kind of Small Print Should You Look for When Buying Electricity?
While many Texas energy providers claim to offer similar packages, you should check the small print before making your final selections.  We recommend you review three documents:

1. The Electricity Facts Label

In response to complaints that it was difficult to make "apples to apples" comparisons between electricity contracts, the Public Utilities Commission of Texas made it mandatory for all retail electric providers (REPs) to present information about their contract offers in a standardized manner, on what is called an Electricity Facts Label.
The Electricity Facts Label, similar to the nutrition label found on many food products, provides information on electricity prices, contract terms, sources of generation, and emissions levels. This information is intended to help customers make an informed decision about their electric service.
All Texas REPs are required to show an electricity facts label about each of their contract options. The EFL must disclose the following information:

  • The average cost of electricity (in cents/kWh). The EFL should state at which level of consumption this price applies to (i.e. is it the price for 2,000 kWh monthly consumption? For 1,000 kWh?)
  • The length of the contract 
  • Whether there are any termination fees
  • Whether the price can change during the duration of the contract, and if so, by how much and under what circumstances
  • Any additional fees you may be charged (e.g. late payment fees, collection fees, disconnection/reconnection fees, etc.)
  • How much of the energy you purchase is sourced from renewable content
  • The REP's contact information

2. Terms and Conditions

The terms and conditions (or Terms of Service) of your contract are important to read because they - along with the Your Rights As a Consumer document - outline your rights and responsibilities as a consumer, and those of your REP. Some of the important information to look out for in the terms and conditions include:

  • Descriptions of any non-recurring charges that you may incur, along with the REP's security deposit policy
  • How to cancel your contract and under what conditions you will/will not have to pay an early termination fee
  • Information about what will happen to your contract once it ends (in most cases, REP reserve the right to switch you automatically to a month-to month variable price
  • Information about your Rights of Recission (see below)
  • Contact information for the REP


3. Your Rights as a Consumer (YRAC)

YRAC helps explain what to expect from your REP (residential electricity provider), as it describes the PUC rules about customer rights for Texas electricity service. It is a good idea to read it through at least once, but as all Texas REP rules must follow the same rules for consumer rights, you can get away with reading just one! The YRAC document outlines some of the following information:

  • Information about financial assistance
  • Information about language
  • REP contact information


What Kind of Electricity Plans Are Available in Houston, TX?

There are three types of energy plans available when moving to Texas. Different energy providers often offer different types of plans to remain competitive. Be sure to understand the differences so you can determine the best type of plan for your household.

  • Fixed-rate plans: There is one, consistent price per kilowatt hour (kWh). In general, this means that your monthly payments should remain fairly consistent with your energy usage. In Texas, fixed-rate plans are attractive due to protection during higher energy usage during hot summers.
  • Variable-rate plans: Variable rate plans have no monthly contract or cancellation fee. The price per kilowatt-hour varies month to month. The rate you pay per electricity kWhs can vary from one month to the next. These rate changes are usually caused by changes in how much it costs to generate and deliver electricity. This can create big variances in the monthly bill.
  • Indexed-rate plans: Similar to variable-rate plans, your electric rates may change month to month. The difference between a variable rate plan and an indexed rate electricity plan is the formula. Indexed rate electricity plans are typically tied to market price, like the cost of electricity in real-time. These plans can expose consumers to significant price risk as was evidenced during the winter storm Uri in February 2021.

The best plan is the one that works for YOUR household’s energy usage. However, there are significant benefits to the reliability and transparency of a fixed-rate plan with no hidden fees or add-ons, like Value Power’s plans.

Get Great Electric Rates in Texas with Value Power

Choosing an energy provider in TX shouldn’t be hard – you deserve a seamless, gimmick-free, transparent sales experience.
At Value Power, our priority lies with you, our customer. Value Power promises great rates without the gimmicks and hidden fees you might find in the small print of other Texas electric providers. Plus, our customer service is second to none – no complicated wait menus, long wait times, or bureaucratic run-arounds. With us, getting your electricity running from the moment you move to Texas is a seamless experience.
If you’re moving to Texas, simply view available great rates in your zip code with our easy online tool or call us if you have questions. Get started today!