One manages the utility infrastructure, and the other buys electricity that they then sell to you. How can I switch electricity companies in Houston?Įven though you pay one bill each month for your Houston electricity, there are actually two companies that come together to power your home. Who are Houston energy companies?Įven though you pay one bill each month for your Houston electricity, there are actually two companies that come together to power your home. Future bills will come from your new electricity company. After paying that bill, your obligation to the old company is done. Your old company sends you a final bill to settle your account.

The Electricity Reliability Council of Texas (ERCOT) also sends you a notice confirming your switch. To get started shopping, just input your zipcode in the box below and press 'Shop for Rates.'Īfter you agree to your new plan, your new electricity company tells your old company about the choice you've made. Once you've found the plan that best matches your needs, you can sign up for that plan right from Texas Electricity Ratings. Texas laws and regulations make switching electricity companies in Houston easy. How can I switch electricity companies in Houston? Generally speaking, there aren't bad plans, just ones that aren't right for you. On the flip side, a consumer whose usage is consistently above 2,000 kWh should strongly consider this plan.Īgain, it all comes down to the fit between the customer and the plan. If you're looking at a plan offering a huge bill credit once you consume 2,000 kWh in a billing cycle but your usage never tops 1,500 kWh, that plan isn't the right one for you. Use a plan's electricity facts label (EFL) and terms of service to see exactly how each plan works. Once you have these numbers, compare them to what you would pay on several electricity plans you're considering. Take note of these extremes, and calculate your average kilowatt hours used per billing cycle. If you're like most Houstonians, your electricity bill spikes in the hot summer months and bottoms out in the fall and spring. The best way to figure out your normal usage is to look at your past electricity bills, either from last year or those from the past two months. When you know your normal electricity consumption you can shop for plans that give you the best price. How do I pick the best electricity company in Houston?Īs discussed at the beginning, selecting the right electricity company is all about knowing your usage and finding the plan that best aligns with it. There are other kinds of plans, such as green plans, or plans that come bundled with things like Smart Thermostats, but for the most part, these three plans are the main three kinds of choices available. Rates typically change from month to month. Keep in mind there are often daily charges with these plans. You deposit money into an account that your energy company bills directly depending on your use. You won't have to worry about deposits or early termination fees, but rates can decrease or increase from month to month. Month to month contracts with rates that vary. Be aware that these contracts typically charge an early termination fee if you switch before your term ends. Lock in low energy rates for a period of months ranging from 9 to 36. There are three types of electricity plans you can choose from when selecting an energy plan that best fits your needs. Each plan will likely end up having different rate scales.

Now that we have explained TDSP rates, the second thing to consider is the type of electricity plans a customer can buy.

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