Compared to the rest of the nation, data from the U.S. Energy Information Administration which publishes annual state electric prices [8] shows that Texas' electric prices did rise above the national average immediately after deregulation from 2003 to 2009, but, from 2010 to 2015 have moved significantly below the national average price per kWh, with a total cost of $0.0863 per kWh in Texas in 2015 vs. $0.1042 nationally, or 17 percent lower in Texas. Between 2002-2014 the total cost to Texas consumers is estimated to be $24B, an average of $5,100 per household, more than comparable markets under state regulation.[9] [10]

Power to Choose is a program run by the Public Utility Commission of Texas. Its goal is to protect residents of the state from unfair energy costs and unregulated REPs, as well as develop a strong infrastructure. The program provides an easy to use, online tool that give residents of the state the opportunity to compare rates, plans and other energy options.  Keep in mind though, you really need to read the fine print if you decide to use Power to Choose (or any other service, for that matter).

How does that work? Spark Energy buys electricity and competes in the market for the best price -- a competition that ultimately drives prices down and allows us to deliver more value for your money. In Texas, switching to a different electricity provider is kind of like changing to a different long distance company. When you switch to Spark Energy, the utility will continue to deliver electricity to your home but Spark Energy will handle all the billing, including the utility’s delivery fees and the electricity you actually use.

The price to beat seemed to accomplish its goal of attracting competitors to the market during the period through January 1, 2007. It allowed competitors to enter the market without allowing the incumbents to undercut them in price. It has also given energy consumers the ability to compare energy rates offered by different providers. The less-regulated providers undercut the price to beat by only a small margin given that they must balance lower prices (to attract customers and build market share) with higher prices (needed to reinvest in new power plants). Due to the small difference in competing prices and slow (yearly or so) "buying" process, price decrease due to competition was very slow, and it took a few years to offset the original increase by "traditional" electric providers and move to lower rates.

And just like with any plan, it’s worth it to do the math to see how different scenarios will affect your bill. Take, for example, a home in Sweetwater that uses about 1,000 kWh of energy per month, and is interested in the Texas Essentials 12 plan. Zero percent renewable energy is the cheapest option — but by committing to a $5 monthly charge for its 100 percent “JustGreen” option, it’s actually cheaper than the 60 percent hybrid renewable option.


If you’re thinking about looking for a better electricity plan for you, shop and compare retail electricity providers in your area. Our pick is Direct Energy.  With plans like Free Weekends and Direct-Your-Plan, an electricity plan tailor-made to your lifestyle, you can find the perfect option for you.  Direct Energy customers also benefit from rewards programs like Refer-A-Friend, energy saving insights from Direct Your Energy and access to home services and home protection plans.
You’ll never experience any interruptions when you switch electricity companies. In fact, service reliability is never affected at all. It typically requires 7 days for the new plan to go into effect and you won’t even notice when it happens. However, you want to make sure that you never make this switch before your current contract is up. Doing so could mean you’ll have to pay early termination fees or penalties.
Utility companies are responsible for transmission and delivery of electricity even in energy deregulated parts of Texas and should be contacted in the event of a power outage. Your retail energy supplier may provide you competitive electric rates or exceptional customer service, but they cannot repair power lines or restore your service. In the case of an emergency, contact:
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