Texas Electric Companies Compete for Your Business

As a resident in Texas’ deregulated energy market, you get to choose your preferred plan from one of the many electric companies around the state. Why is this important? Consider this: With so many energy providers in the area – many of which offer multiple perks and packages – you have power over the price and service you receive by making a smart choice when it comes to your electricity.

Why bother to compare electric companies?

In deregulated areas, electric companies are concerned with their share of the market. As a potential paying customer, you’re their first priority. This gives you the upper hand; most electricity companies strive to provide affordable prices to attract your business. Bottom line: The competitive energy market in Texas could help you save money.

Your local electricity companies explained

In deregulated markets in Texas, electric companies are commonly known as retail electric providers, or REPs. Retail electric providers are the ones responsible for the actual supply of your energy. Unlike your local utility company, which handles the wires and cables associated with the transmission of energy, retail electric providers act as electricity vendors. You set your billing rate and select a service plan directly with them.

One of the best parts about living in a deregulated area is that there are usually multiple electric companies to choose from, so you shouldn’t feel pigeonholed. In fact, there are so many to choose from, it’s important to know how to identify the right one for your home or business. Here are three things you should keep fresh in your mind while you size up providers:

1. How long will you need an energy plan? Some electric companies may structure contracts that better fit your timeline. While certain retail electric providers offer favorable yearly arrangements, others may have more attractive month-to-month plans. Additionally, think about how you’d like your rate to be determined. Fixed-rate plans offer the same rate throughout your contract term, while variable-rate plans offer a rate that changes frequently with the fluctuations of the energy market.
2. Are you looking to offset your carbon footprint? Environmentally friendly solutions are available from a variety of electricity companies. Many REPs can ensure an equivalent of up to 100% of your home’s electricity is generated from green energy resources such as solar or wind power. Take a look at what’s out there; many of the electric companies you’re familiar with take part in ecological initiatives that are helping Texans infuse renewable energy into their everyday lives.
3. Are you looking for commercial energy? The same electric companies that supply your energy at home may also be able to supply your energy at work. If you’re a business owner, look into what rates the retail electric providers are offering. It’s possible that you could cut costs and ramp up your profits just by switching to a REP that’s willing to supply you at a more affordable rate.