Texas consumers can save hundreds of dollars each year by shopping for electricity, but most don’t seek out better deals, overwhelmed by the number and complexity of power plans on the state’s Power to Choose website, wary of fine print in too-good-to-be true offers, or just too busy to spend time calculating whether free nights and weekends offset the higher rates they pay during the week.
Texas deregulated most of the state's electricity markets in 2002, a move aimed at lowering electricity costs by letting consumers choose their own electric power providers and their own plans. Some parts of Texas continued to be regulated, including those that get power from municipal utilities, electric cooperatives and investor-owned utilities that operate outside the state's primary power grid.
No matter who you are, residents and business owners in Texas have to have electricity. Understanding electricity rates in Houston can be overwhelming at first. At SaveOnEnergy.com®, our job is to help you explore your Houston energy options. The more you learn about electric companies in your area, the easier your decision will be when you choose an energy plan.

Partha Krishnamurthy, a marketing professor at the University of Houston, said he suspects that many people may be unaware they’re paying more than they need to for electricity, putting their bills on autopay and forgetting about the rates they pay. Most people don’t go to the trouble of changing banks, jobs or their electricity providers, for that matter, unless there are problems.
Electric bills for customers in the Houston area can more than double in summer months, mainly because air conditioning. Not coincidentally, electric rates also rise in the summer months because of this increase in demand. The most dramatic rate increases occur in month-to-month plans, but electric rates do increase across the board for all fixed-rate contract lengths.
Prices are expected to go up so quickly that Direct Energy has stopped selling its "Power-to-Go" plan to new customers this summer, a prepaid plan that changes rates each month depending on wholesale prices. Instead, the company is encouraging its customers to lock in for longer periods of time. Customers who used up to 2,000 kilowatts each month could get a 12-month contract for 11.7 cents per kilowatt hour in May compared to the same plan for 9.1 cents per kilowatt hour one year earlier.
Electric companies buy longer-term contracts so they can hedge their risks when they’re selling long-term electricity plans. Just a week ago, it looked as if wholesale prices would be as high as Texas has seen in the past 15 years, said Ned Ross, director of governmental affairs for Direct Energy, the third biggest seller of electricity in Texas, behind No. 1 NRG and No. 2 TXU. Future prices have retreated recently, but companies buying power for August are still paying at least double what they paid a year ago, according to data from the Electric Reliability Council of Texas, or ERCOT, which oversees the state’s power markets.
In Houston, 0% of people have switched to a plan that has some renewable energy component to it. Another 0% have switched to a plan that is partially renewable, while 0% have switched to a plan that powers homes completely by renewable electricity. This of course means that 100% of people have remained on a plan powered by traditional sources of electricity such as coal or nuclear power.
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It’s worth noting that you can switch for free with no exit fee 42-49 days before the end of your contract. Under Ofgem’s standards of conduct, energy firms have to give you between 42 and 49 days’ notice of your tariff ending. You can use this time to decide whether to stick with them, or switch. If you decide to switch, you won’t be charged an exit fee.
Prices are expected to go up so quickly that Direct Energy has stopped selling its "Power-to-Go" plan to new customers this summer, a prepaid plan that changes rates each month depending on wholesale prices. Instead, the company is encouraging its customers to lock in for longer periods of time. Customers who used up to 2,000 kilowatts each month could get a 12-month contract for 11.7 cents per kilowatt hour in May compared to the same plan for 9.1 cents per kilowatt hour one year earlier.
We have taken the legwork out of shopping for plans by providing the most straight-forward electricity shopping experience anywhere. We show you the best deals from the most respected, reputable providers in Houston. Our providers offer great electricity rates and provide a consistently high level of customer satisfaction. Our customers regularly report huge savings on their electric bills.
2. Most companies have this basic $9.95/mo charge if you don't meet a certain kWh, usually 1000 kWh (Reliant is 800kWh minimum). That will pose a problem in those more temperate months like in the spring and fall because although you're paying lower kWh,you're paying that extra $9.95/mo for no reason. ASK YOUR ENERGY PROVIDER WHAT THE LIMIT IS. I got a minimum of 800kWh/mo with Reliant; if I go under 800kWh, I will have to pay $9.95. Good thing about Reliant is that they do a weekly energy usage report, and you can keep up with how much you may owe. That's pretty useful to me, considering I live in a smaller space, thus less usage.
Customers can find deals in competitive electricity markets if they take the time and effort to look at web sites such as powertochoose.org, the official comparison shopping site of the Public Utility Commission. The study cited a PUC survey of retail electricity offerings in Houston that showed nine deals in March that were lower than the regulated price of electricity in San Antonio.
Prices on longer term plans of a year or more have also risen significantly. Retail electricity providers are reluctant to discuss their prices — especially rising ones — but the Association of Electric Companies of Texas, a trade group, estimated that the rate on a one-year fixed price offer on the Power to Choose website has climbed more than 20 percent over the past year to an average of 11.1 cents per kilowatt hour.
In finding you the best Texas electric rates, we only list electric companies that have great business stability, excellent service, environmental awareness, and transparent pricing. This protects you from providers that could soon go out of business, are unattentive to customers, are environmentally unsound, or may end up charging you a higher rate than advertised.
It is unlikely that you’ll see any change at all. You will be receiving the same electricity as you always have been, just from a different company. The only difference you definitely will see will be smaller charges for your electricity. By using our price comparison service you’ll be able to cut costs to your energy tariffs and save more money on electricity and gas.

Houston Electricity Prices and Rates was created to make evaluating electricity providers’ rates simple and clear. Whether you are a commercial business that wants to take a critical look at all the market has to offer or a residential customer looking for the best rate for your home, we provide a one stop shop to help you make the best decision regarding your electricity costs.

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