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Best Electric Companies in Texas

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In Texas, energy was deregulated in 2002, giving homeowners, renters and business owners more options when deciding who will provide electricity to their home or place of business. Texas electricity companies allow Texans to choose a provider who will give them the best price and service options.

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How much is electricity in Texas?

The average cost of electricity in Texas is about 10.98 cents per kilowatt-hour. Use the chart below to compare the energy rates of a featured plan from the top Texas electricity companies.

Company namePlan nameContract lengthEnergy rate*
Spark Energy**Spark Instant Plus12 months$0.118/kWh
TXU EnergySuperSecure12 months$0.139/kWh
Green Mountain EnergyGo Local Solar12 months$0.157/kWh
Bounce EnergyAmazing18 months$0.118/kWh
Just EnergyBasics18 months$0.139/kWh
Direct Energy**Power on Command24 months$0.121/kWh
Reliant EnergyReliant Secure Advantage24 months$0.130/kWh
Champion Energy**Champ Saver36 months$0.119/kWh
TriEagle EnergyGreen Eagle36 months$0.119/kWh
Cirro EnergySmart Lock36 months$0.121/kWh

*Energy rates are accurate as of 02/18/2019 for the ZIP code 77077

**Authorized Partner

How to choose an electric company in Texas

1. Consider the electric company's history

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 Texas electric companies came about after energy was deregulated, and most offer the same quality of service as the older providers in the state.

2. Factor in any rewards programs

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 Texas electric companies offer 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.

3. Compare the electricity 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 electric 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.

4. Decide how eco-friendly you want to be

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.

5. Review the 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.

Types of Texas electricity companies

Legacy electricity companies

Legacy electricity companies in Texas have been around the longest. These electric 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.

Texas electricity companies FAQ

Is electricity expensive in Texas?
Yes, electricity is expensive in Texas. The state is the most expensive major electricity market in the U.S. However, Texas’ sunny climate makes it possible to save money by supplementing your home with solar energy.
How can I get a better deal on electricity?
To get a better deal on your electricity, you need to negotiate with your power company. Follow these steps to get the most bang for your buck:
  1. Compare rates from multiple providers.
  2. Ask your current electricity company to match its competitors’ best offers.
  3. Be polite but assertive with your demands.
  4. If you’re successful, see if you can get your discount applied to your most recent bill.
  5. Make sure the discount is perpetual rather than for a limited time.
The Public Utility Commission of Texas maintains its Power To Choose website so residents can find the best deals on electricity in their area.
Is electricity cheaper for businesses?
Typically, yes. Electricity is cheaper for businesses than for residential homes because businesses get bulk rates. Because most houses don’t pull enough power to qualify for bulk rates, the best way to save money at home is by reducing your energy usage.
How do I choose an energy supplier?
Texas is one of only 15 states that allow customers to choose their energy provider, so compare multiple suppliers to pick the right one:
  1. Find licensed energy companies with great reputations in your area.
  2. Compare their prices to see which ones provide the best rates.
  3. Check online reviews to see what customers have to say about each company’s service.
  4. Read through the contract to make sure there are no hidden terms.
How do I change my electricity provider in Texas?
If you’re considering changing your electricity provider:
  1. Check your current contract to make sure you can. Some companies lock you into rates for a certain amount of time and charge penalties if you try to cancel service early.
  2. Shop around and compare multiple companies to find the right one for you.
  3. To make the official switch, call your new power company and pick a start date. Cancel your current service as close to that date as possible.
What is a third-party energy supplier?
Third-party energy suppliers are middlemen in the electricity supply chain. These businesses buy energy from utility companies in bulk and sell it to consumers at a slightly higher rate, which sometimes helps customers save money. Third-party energy suppliers often provide better customer service, more flexible terms and fixed-rate plans.
Can I get electricity with bad credit?
Yes, you can get electricity with bad credit in Texas, although you may have to pay a larger deposit before starting service. Some companies waive the deposit for low-income households.
How do I find out who my energy supplier is?
The easiest way to determine your energy supplier is to ask your home’s previous resident or owner. If that’s not an option, find the meter and look for a sticker that indicates the company that owns it.

Not sure how to choose?

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    Texas electricity company reviews

    AUTHORIZED PARTNER
    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.
    Read 475 Reviews
    AUTHORIZED PARTNER
    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.
    Read 884 Reviews
    AUTHORIZED PARTNER
    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.
    Read 3024 Reviews
    TriEagle Energy

    TriEagle Energy provides energy in the deregulated states of Texas, Pennsylvania and New Jersey. They purchase power from natural gas, coal, nuclear and renewable sources like wind. Residents and businesses can opt to get power from 100 percent renewable sources when they sign up for a plan with TriEagle.

    Read more about TriEagle Energy
    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.

    Read more about Reliant Energy
    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.

    Read more about Green Mountain Energy
    Cirro Energy

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

    Read more about Cirro Energy
    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.

    Read more about WTU Retail Energy
    AUTHORIZED PARTNER
    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.
    Read 1307 Reviews
    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.

    Read more about Bounce Energy
    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.

    Read more about TXU Energy

    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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