Shopping for the Cheapest Electricity in Texas

Texas residents have an option to shop around and choose the provider they wish to purchase their electricity from, thanks to the deregulation of the electricity industry in the state. Whether you are simply looking for the cheapest electricity or you have other requirements in mind, there are a number of variables involved in each provider's plans that may positively or negatively affect your choice. Before making your selection, you should ask these basic questions:

  1. How much will I be paying per kilowatt hour of electricity if I use an average of 1000 kilowatt hours per month?
  2. Is this rate all inclusive? Does it include the cost of electricity, transmission and distribution charge, fuel charges and any other monthly consumer charges or recurring fees?
  3. Is a fixed rate offer, and if so, for how long?
  4. Is this a variable rate or indexed rate offer? If so, how can it change? How can I find out when and by how much the rate may change?
  5. Is there a contract term? If so, for how long?
  6. Am I required to put down a deposit? If so, how much?
  7. What are my monthly payment options?
  8. What happens when my contract term is up?
  9. What happens if I miss a payment?
  10. Is there a penalty if I cancel the contract early?
  11. Does your company have a buy-back plan to purchase excess renewable electricity generated by a consumer? What are the terms?

You can find out a company's track record by reviewing the number and type of informal complaints lodged against them over the last six months at the website.

Keep in mind the size of the company when you do so, however; larger companies will naturally generate a larger number of complaints.

Once you've made your selection, switching from your current provider is simple. You simply need to contact your chosen provider and inform them that you'd like to switch, or sign up via the provider's web site. They’ll send you a service contract for you to review. Once it arrives in the mail you'll be given three business days to look it over, and not be penalized should you decide to cancel. You will also be sent a card in the mail informing you that your switch request has been accepted and processed, and to let you know how you can cancel the switch if you change your mind.

You may or may not be able to find the cheapest electricity in Texas, but with careful evaluation, you get clarity to find cheap electric rates and plans that's just right for your individual needs.

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