The PUC’s PowerToChoose.org site has a good starting list of Frequently Asked Questions about deregulation, billing, and selecting providers. We recommend it for anyone new to the process, and we link to it to avoid redundancy.
In addition, here are the answers to some additional questions that PTC doesn’t cover or which are unique to our site:
Why should I use TexasPowerGuide.com to find the best plan?
Dozens of websites claim to help you shop for electricity. We know because we follow them all. But only Texas Power Guide helps you easily compare the plans on PowerToChoose.org yourself across your range of usage, including retailer fees and pricing sensitivities. And we’re the only site that fully discloses our plan database and calculations, so you can trust our results (and verify them if you want). Compare us to any other site and you’ll see the difference.
Why should I care about deregulation and choosing a power plan?
Beyond offering a “choice”, deregulation shifts the procurement responsibility from a single regulatory commission to millions of consumers, including you. If you live in the deregulated market area, you must make regular and informed selections about your provider — or pay someone else to do it for you. If you don’t, you’ll likely pay double or even triple for your electric bill under your provider’s “default renewal product”.
If you already have electric service in your home, find the “kWH Usage” number on your past bills. Another option is to use SmartMeterTexas.com, a free site that shows your home’s past 24 months of usage, including previous occupants.
If you’re just moving into an existing or new residence, ask the previous owner or neighbors with similar homes for their inputs. Make sure to capture a range, not just a single number or average.
Otherwise, consider starting with a shorter (3- to 6-month) plan and/or one with a flatter rate profile until you’ve gathered more data. Setting RateGrinder’s “Variability” filter to “Med”, “Low”, or “Flat” tends to highlight plans with consistently reasonable energy charges. You won’t take advantage of targeted teaser rates, but you won’t fall victim to them, either.
We review all of the English-language Fixed Rate plans daily, but we only do calculations for those with potential to be the lowest cost for a customer. If a plan’s EFL doesn’t claim a market-competitive rate at 500, 1000, or 2000 kWh, then it’s unlikely to be anyone’s cheapest option, so we don’t model it. We also ignore Time of Use plans, Indexed plans, Variable plans, and plans with contract terms shorter than 3 months. See the ‘PTP Scope’ tab on the spreadsheet for complete coverage details and rationale. Lastly, we currently only support the Centerpoint and Oncor TDU service areas (per this map) due to limited resources.
What about broker-defined plans?
Many of the other shopping websites are run by aggregators or brokers. They typically offer differently named plans from a subset of the Retail Electricity Providers (REPs) listed on PowerToChoose.org. To cover the brokers’ commissions, their plans generally carry higher rates (sometimes much higher) than their cousins on PowerToChoose.org. For this reason, Texas Power Guide generally does not catalog the plans offered on these sites. If you want to spot check one of these plans yourself, you can easily add it to RateGrinder (see “Add a Plan“). In the very rare event it beats our options for your usage, let us know and we’ll track it for others.
Why not “Variable” rate plans?
We don’t cover Variable rate plans, because they are typically expensive and unpredictable. Unlike Indexed plans with rates tied to a publicly available index, retailers usually can change pricing on Variable plans at their sole discretion. Price histories are challenging to find, and rates tend to increase dramatically after the promotional billing cycle.
What are “bundled” vs. “unbundled” plans?
All plans levy the same Transmission and Distribution Utility (TDU) charges, which your REP bills on your TDU’s behalf. Some times the REP will “bundle” the energy and TDU charges into a single, combined rate. Other times they’ll keep the Energy charges unbundled and “pass through” the TDU charges without markup. Neither way is inherently better, as long as you always compare plans by total cost.
When can I switch plans?
Anytime you want, but if you’re not willing to pay a termination fee then switch no earlier than 14 days before your contract expiration date. Your REP must list the contract expiration date on your monthly bill at least 30 days or one billing cycle in advance. If there’s any question, check your account online.
How often should I change plans?
12 month terms are generally a good compromise between pricing and hassle. Longer contracts tend to have higher rates to hedge against supply risks. Shorter contracts will earn you lower rates, but with more chances of defaulting into a costly month-to-month plan if you forget to renew on time. (Signing up for our RateAlert notifications can help with that.)
What if I move?
If you move from the contracted location, you have no obligation to continue that contract at another location. REPs can’t assess an early termination fee for moving if you provide a forwarding address and, if required, evidence that you no longer occupy the contracted location.
Will switching providers affect my electricity reliability?
No. REPs have nothing to do with delivering electrons from the power plant across the grid to your home — that job belongs solely to your local Transmission/Distribution Service Provider (TDSP), i.e. Centerpoint, Oncor, etc. REPs are financial entities that only manage pricing and billing. As long as you pay your electric bill, your REP has absolutely no effect on your service.
Should I stick with my current provider?
Electricity is a commodity, so the answer depends on your REP’s ability to deliver you a good price with a minimum of hassle. Some providers target long-term customer retention with consistently attractive pricing. But others offer their best rates only to lure new customers, hoping they won’t notice (or will at least tolerate it) when higher renewal rates kick in. TPG’s goal is to remove the shopping hurdles so you can easily identify and leave a bad provider.
Does TexasPowerGuide.com sign me up for my new plan?
No. TPG helps do-it-yourselfers avoid the tedious searching and math to identify the best plan for their home. After that, it is your responsibility to click the “Sign Up” link and establish service with your new provider. The process typically takes less than 10 minutes online — see our shopping guide for help.
How does TexasPowerGuide.com support itself?
TPG seeks to level the playing field for Texas electricity shoppers. To defray our costs of reaching and serving fellow Texans, we ask $9.99 each time using our tools saves you time/money on signing up for a new plan. (Payments are one-time and do not automatically recur.)
Because they aren’t. Instead of charging you directly, “free” search sites earn commissions from Retailers for listing and selling plans at higher-than-market rates. Commissions range from ~$20 to over $250, which you pay as higher electric bills. The higher a plan’s commission, the more incentive for “free” sites to sell it to you against your financial interest. Don’t pay the price for free advice.
The exception is PowerToChoose.org. We all underwrite PTC via the ‘PUC fees’ on our electric bills. The PUC doesn’t earn commissions, so the plans on PowerToChoose.org (which we also cover) tend to offer the lowest rates available. But PTC’s infamously ineffective search engine continues to mislead consumers into overpaying.
Why doesn’t PowerToChoose.org offer equivalent search capabilities?
You’ll have to ask them. If someday they do, then our job will be done.
Have another question?
Please let us know!