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Learn About Texas Electricity

Guides and resources to help you understand the Texas electricity market and make informed decisions.

Texas is one of the few U.S. states with a fully deregulated electricity market. Instead of being assigned a utility, residents in most areas — including Houston, Dallas-Fort Worth, and their surrounding suburbs — choose from over 100 competing retail electricity providers (REPs), each offering dozens of plans with different rates, contract lengths, and fees.

That competition can mean real savings, but it also creates complexity. Rates change constantly, fees aren't always obvious upfront, and the same provider can price identical plans differently depending on which utility delivers power to your ZIP code. The guides below break down the parts of the system that matter most before you sign a contract.

Key Terms

REP (Retail Electricity Provider)
The company you choose and pay for electricity — TXU Energy, Reliant, Gexa, and 100+ others compete for your business in deregulated areas.
TDU / TDSP
The utility that owns the poles and wires and physically delivers power to your home (e.g., Oncor, CenterPoint). You don’t choose your TDU — it’s fixed by your ZIP code — and its delivery charges apply no matter which REP you pick.
EFL (Electricity Facts Label)
A standardized one-page disclosure every plan must provide, showing the rate at 500/1,000/2,000 kWh, contract length, fees, and cancellation terms.
Fixed-Rate Plan
Your per-kWh rate stays the same for the full contract term, protecting you from market price swings but usually requiring an early termination fee if you leave early.
Variable-Rate Plan
The rate can change month to month at the provider’s discretion, with no contract or termination fee — more flexible, but less predictable.
Minimum Usage Fee
A penalty charged on some plans if your monthly usage falls below a set threshold (often 1,000 kWh), common on plans that advertise very low headline rates.

Guides

Blog Posts

Electricity Renewal Offer vs. Switching: A Comparison Worksheet

Compare two offers using the same usage, fees and contract dates, with a worked example.

Prepaid vs. Postpaid Electricity in Texas

Compare upfront cash, payment timing, balance management and total costs.

Understanding Your Texas Electricity Bill

Every line item explained, plus how state and local tax rules differ.

Fixed vs Variable Rate Electricity Plans

What actually changes between the two, and how to decide which fits your situation.

Best Electricity Providers in Texas

Providers ranked on listed 1,000-kWh rates and minimum-usage-fee prevalence.

How to Save Electricity in Texas

Sourced, practical tips on AC use, water heating, appliances, and rate plans.

TXU Energy vs Gexa Energy: Which Is Cheaper?

Live rate comparison between TXU and Gexa, plus plans and customer service compared side by side.

Gexa Energy vs Rhythm Energy: Which Is Better?

Live rate comparison between Gexa and Rhythm, plus renewable sourcing compared side by side.

TXU Energy vs Reliant Energy: Which Is Cheaper?

Live rate comparison between TXU and Reliant, plus plans and customer service compared side by side.

Best Summer Electricity Rates in Texas

Live lowest rates by TDSP area, updated automatically through the summer.

How Minimum Usage Fees Are Calculated

The exact mechanics behind minimum usage fees on Texas electricity plans, and how to avoid them.

Cheapest Electricity in Texas

Find the lowest electricity rates and learn how to get the best deal.

TDU Delivery Charges Explained

Understanding the delivery charges on your electricity bill.

Power to Choose Problems

Common issues with the state marketplace and how to avoid them.

No Early Termination Fee Plans

Distinguish no-fee contracts, limited cancellation guarantees and same-provider plan changes.

Short-Term Electricity Plans

Month-to-month and short-contract options for renters and movers.

Texas Winter Storm Electricity Guide

How to protect yourself from price spikes and outages during winter weather.