Electricity is an essential service and part of daily living. In the past, consumers had no choice in providers and simply connected to the power grid through the existing, local electric company.

However, in Texas, energy was deregulated in 2002, meaning that consumers are now able to choose from several electricity companies that will provide electricity to their home or place of business. Texas electricity companies allow Texans to opt for a provider with whom they align philosophically and with the best deal for them financially.

Top 10 Best Rated Texas Electricity Companies

Champion Energy Services is backed by the clean power generator Calpine. Champion provides electricity to residents and businesses living and operating in select deregulated energy markets, including Pennsylvania.
Just Energy is one of the top energy providers for the United States and Canada. They offer green energy options, and their SmartStat thermostat helps you save money by using the latest technology.
Spark Energy offers electricity and natural gas to residents and businesses across the country. Pennsylvania residents and business owners can enjoy lower rates, transferrable service and referral rewards by switching to Spark.
Direct Energy offers numerous home services, including plumbing, HVAC and electrical repair. Their professionals can perform small to large repairs, making your home safer and your utilities more convenient.
WTU Retail Energy has a new mobile app so paying your bill and viewing your usage is simple and quick. Their energy-saving center will help you reduce your energy usage, reducing your overall monthly bill.

Cirro Energy offers excellent customer service and affordable energy plans. Their residential and commercial plans can help you save money, and then offer fixed-price green energy alternatives, as well. 

Bounce Energy offers perks for using their services, including easy bill pay, free rewards and more. They offer many options for their energy services, including a Build-Your-Own Electricity Plan.

TruSmart Energy is a smart-grid energy provider that serves all of Texas’s deregulated areas. Their Free Sundays program rewards customers who have a smart meter by automatically providing free electricity every Sunday.
Reliant offers the Predictable Pay plan, which sets your payment for the next 12 months so no surprises when you get your bill. They offer several payment plans, and they have same-day service connection if you move.

TXU Energy offers straightforward pricing plans and innovative products and tools. Their rates are competitive and affordable, and they offer free electricity during certain times of day, including nights and mornings.


The ConsumerAffairs Research Team believes everyone deserves to make smart decisions. We aim to provide readers with the most up-to-date information available about today's consumer products and services.

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What features matter most?

Company legacy

Many Texas electricity companies have been around for decades, and each has a reputation that precedes it. Customers may want to take into account a company’s history and how they have handled providing electricity in the past.

  • Legacy providers: The oldest Texas electricity companies, called legacy companies, have been around the longest, and they have provided electricity in the state since long before energy was deregulated.
  • New electricity companies: Many electric companies came about after energy was deregulated, and most offer the same quality of service as the older providers in the state.

Plans offered

One of the most important features of an electric company is the type of electricity plan offered to consumers. This is often the most important deciding factor for customers choosing a provider.

  • Fixed rate plans: Some electricity companies charge consumers a flat rate for electricity throughout the entirety of their electricity plan.
  • Variable rate plans: Variable rate plans charge consumers a different rate from month to month, and these plans often lack contracts and allow consumers to take advantage of changes in the market.
  • Green plans: Green electricity plans in Texas allow consumers to choose electricity generated from eco-friendly sources, like solar power.

Environmental consciousness

There’s no doubt that electricity uses up some of the Earth’s natural resources. However, some energy companies in Texas are more eco-friendly than others, using different sources of power and dispersing different amounts of emissions into the environment.

  • Green companies: Electricity providers focused on eco-friendly power often generate electricity from sources other than natural gas, such as solar power, hydroelectric power (water) and wind.
  • Traditional electric companies: Traditional electric companies in Texas generate electricity from more traditional sources that are not renewable, such as coal or natural gas.

Contract terms

Many electricity companies in Texas require consumers to sign a contract. The terms of this contract spell out how long a customer must stay with the company and how much they will pay, among other specifications.

  • Non-contract companies: Some of Texas’ electricity providers do not make consumers sign a contract, and they provide power on a month-to-month basis.
  • Minimum terms: Texas electricity companies with minimum terms require residents to commit to a certain amount of time buying energy from them, and these companies often charge a cancellation fee if service is ended before the contract expires.

Rewards offered

Because there are many electricity companies in Texas, companies may attempt to win customers over by offering extra rewards. These can include many types of promotions for signing up or rewards for using the service.

  • Rewards programs: In Texas, some electricity companies offer customers cash and gift rewards in exchange for using their service.
  • Sign-up promotions: Some electric companies in Texas offer consumers incentives for signing up for service, including gift cards, donations to charity, or a promise of a lower bill.
  • Additional services: Another extra incentive offered by many Texas electricity companies is the added bonus of extra helpful services, like a moving service that will help take care of ending electricity service when leaving and finding a new electricity provider in a new location.

Payments accepted

Electricity in Texas can be paid for by cash, credit card or check, depending on the company. Customers can choose a company that accepts the payment type that is best for them.

  • Bank account payments: Many Texas Electricity companies allow people to automatically debit the amount of their electricity each month from their bank account.
  • Credit card payments: Some electric companies in Texas accept credit cards as a payment for electricity used.
  • Cash payments: In Texas, some electric companies allow consumers to pay their electric bill directly with cash.

What are different types of Texas electricity companies?

Legacy electricity companies

Legacy electricity companies in Texas have been around the longest. These companies often rely on the more traditional non-renewable sources of power to generate electricity, and they often have the reputation for being some of the most dependable companies in terms of providing power for residents.

Green electricity companies

Green electricity companies in Texas are more focused on eco-friendliness. They often provide electricity generated by more renewable sources of power, such as solar power, water and wind.

Who's it for?

Residential customers

Residential customers are customers who live in a single-family or multi- family home and need electricity for themselves and the other people that occupy their home.

Small businesses

Small businesses employ fewer than 15 people, and they need electricity to power their offices and provide for small business needs.

Mid-size and big businesses

Mid-size and big businesses have different electricity needs than smaller companies, since they often employ a larger number of people and have more facility needs.

Company reviews

  • Champion Energy Services

    Champion Energy Services is a fast-growing electricity company that serves deregulated markets in the U.S. The company is Houston-based, but also serves consumers in Texas, Illinois, Pennsylvania, Ohio, New Jersey, Maryland and New York.

    • Customer service: Champion Energy provides customer service to consumers 24 hours a day, 7 days a week.
    • Variety: Champion Energy is a good choice for both residential consumers and for businesses.
    • Price: The company is known for offering Texas residents extremely competitive rates for electricity.
    • Online presence: Champion Energy Services’ online presence is not as advanced as some other electricity providers.
    • Billing: Champion Energy is expanding rapidly, and the company has not expertly nailed down all of their necessary billing practices yet.
    • Best for Residential customers, small businesses, midsize and big businesses
  • Spark Energy Gas and Electricity

    Spark Energy was founded in 1999 and provides customers with electricity across the United States. The company is one of the pioneers in the retail energy business.

    • Experience: Because the company was founded nearly 15 years ago, customers can enjoy the benefits of working with an experienced retail energy company.
    • Pricing: Spark Energy has extremely competitive pricing compared to other suppliers in the area.
    • Renewable: Spark Energy uses renewable energy sources, and they have an eco-friendly philosophy behind their business.
    • Customer service: Spark Energy has no online chat customer service platform, and there can be long hold times that occur when calling the company.
    • Sales tactics: Spark Energy employs an aggressive door-to-door sales tactic.
    • Best for Residential customers, small businesses, midsize and big businesses
  • Reliant Energy

    Reliant is a child company of the larger Fortune 500 company NRG. They provide businesses of all sizes as well as residential customers with electricity throughout the state of Texas.

    • Best for Residential customers, small businesses, midsize and big businesses
  • Direct Energy

    Direct Energy is one of the state’s largest electricity providers. Founded in Toronto in 1986, Direct is an international company that also provides consumers - both residential and commercial - with other utilities, including natural gas.

    • Legacy: Direct Energy is one of the oldest providers of electricity in Texas, since the company has been around since 1986.
    • Selection: Direct Energy offers a good selection of electricity plans, which allows customers to pick a plan that fits their budget and electricity needs.
    • Location: Direct Energy is a large company, and they have offices and outposts in more than 30 cities across the state.
    • Customer service: Because the company is large and international, many customers must deal with many bureaucratic steps in order to get customer service.
    • Consumers: Consumers who are not on a fixed-rate plan or who are renewing their contract may see increases in price from month to month or year to year.
    • Best for Residential customers, midsize and big businesses
  • Green Mountain Energy

    Green Mountain Energy is an electricity company in Texas focused on eco-friendly energy. The company offers electricity via renewable energy sources such as solar, wind and geothermal power.

    • Best for Small businesses, midsize and big businesses
  • Cirro Energy

    Cirro is an NRG company that provides electricity to Texans. The company has plans that cater to both residential consumers and businesses.

    • Best for Residential customers, small businesses, midsize and big businesses
  • WTU Retail Energy

    WTU Retail Energy is part of the Direct Energy family of companies, and it serves the western part of the state of Texas. WTU Retail Energy is a community-focused company.

    • Best for Residential customers, small businesses, midsize and big businesses
  • CPL Retail Energy

    CPL Retail Energy is part of the Direct Energy family of companies. The business is known for providing South Texas residences and businesses with electricity.

    • Best for Residential customers, small businesses, midsize and big businesses
  • Austin Energy

    Austin Energy is one of the largest public power utilities in the country. It is a publicly owned utility service, and it is run by the City of Austin.

    • Best for Residential customers, small businesses, midsize and big businesses
  • Just Energy

    Just Energy is a national energy company that provides many Texans with Electricity.

    • Variety: Just Energy offers a wide range of choice of programs for customers, including fixed rate options to avoid fluctuations in the market.
    • Green initiatives: Just Energy has taken up many efforts to help the environment, including offering discounts on energy efficient light bulbs and investing $50 million dollars in helping to reduce carbon emissions.
    • Community outreach: Just Energy focuses on doing charitable work for the communities around it.
    • Large: The company is a big, international company, so often feels bureaucratic.
    • Locations: Just Energy does not serve as many cities in Texas as some of the other large electricity companies do.
    • Best for Small businesses, midsize and big businesses
  • Bounce Energy

    Bounce Energy provides electricity to residents in three different U.S. states - Texas, Pennsylvania and New York. Bounce Energy is a company that gears their service towards residential customers.

    • Best for Residential customers
  • TXU  Energy

    Texas Energy is one of the most popular energy companies in the state. They offer more power to Texans than any other provider within the state.

    • Best for Residential customers, small businesses, midsize and big businesses

11 – 13 Best Rated Texas Electricity Companies

Green Mountain Energy has offered energy services since 1997, including green energy options. They offer both residential and commercial plans, and you can set up a quote via their customer website.

CPL Retail Energy offers free power all day on Saturdays. Their prepaid contract offers flexible energy by allowing consumers to purchase energy only as needed. They also offer home services, including HVAC.

Austin Energy offers plans for both residential and commercial customers. Their tiered rate structure helps you save money on electricity by reducing your usage, and you can easily pay your bill online.