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Key Takeaways
Texas electricity rates vary by city, so only compare energy plans in your ZIP code. Houston often has the cheapest rates, but rates across Texas are generally affordable, based on the MarketWatch Guides team’s review.
In Texas, the utility company monitors lines and repairs outages, while the electricity company markets electricity and bills you for your usage.
Texas electricity rates range from 11.3 ¢/kWh to 22.6 ¢/kWh, but your effective rate will vary based on your city, home size and energy usage.
What Is the Cheapest Electricity Provider in Texas?
As of August 2024, Gexa Energy, Frontier Utilities and 4Change Energy typically have the cheapest electricity rates.
That said, these low rates may not always yield the most predictable monthly bills. This is because many of these plans are bill credit plans, which can offer significant savings when you qualify for credit but may cost you when you don’t.
For more predictable bills that consistently offer affordable rates, consider a plan with a slightly higher rate but more straightforward pricing. If you’re willing to take on some risk, a bill credit plan may work for you, but if you prefer something less volatile, look for rates closer to the mid-range, typically between 14 ¢/kWh and 17 ¢/kWh.
CityCheapest PlanRate (¢/kWh)Top Value Plan Rate (¢/kWh)HoustonGexa Energy Eco Saver Plus 1211.3 ¢TriEagle Energy Sure Value 3614.9 ¢DallasGexa Energy Eco Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Fort WorthGexa Energy Eco Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢ArlingtonGexa Energy Eco Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Corpus Christi4Change Energy Maxx Saver Select 1213.3 ¢TriEagle Energy Sure Value 3614.9 ¢Plano4Change Energy Maxx Saver Select 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢LubbockGexa Energy Eco Saver Plus 1215.9 ¢Frontier Utilities Budget Saver 2418.9 ¢Laredo4Change Energy Maxx Saver Select 1213.3 ¢TriEagle Energy Sure Value 3614.9 ¢Irving4Change Energy Maxx Saver Select 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Frisco4Change Energy Maxx Saver Select 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢McKinneyFrontier Utilities Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Grand PrairieFrontier Utilities Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢KilleenFrontier Utilities Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Mesquite CityGexa Energy Eco Saver Plus 1211.6 ¢TriEagle Energy Sure Value 3614.9 ¢Note: Our team collected the above rates in August 2024 for homes using 1,000 kilowatt-hours (kWh) of energy in the following ZIP codes: Houston (77077), Dallas (75001), Fort Worth (76107), Arlington (76010), Corpus Christi (78336), Plano (75023), Lubbock (79404), Laredo (78040), Irving (75038), Frisco (75033), McKinney (75070), Grand Prairie (75050), Killeen (76541), and Mesquite City (75126).
How We Gathered Rates Data in Texas
We gathered quotes for electricity rates in Texas based on a variety of ZIP codes, which covered the most populous ZIP code in every city where deregulated energy purchasing was available. We used the standard 1,000-kilowatt-hour usage rate to identify what users would pay based on our first hand research that the average usage rate for most Texas residents was in the 1,000-kWh range. Our team gathered a total of 160 electricity rates in every city, looking at all plan options available in each ZIP code for 25 energy providers across 72 cities in Texas.
What Is Considered Cheap Electricity in Texas?
Cheap electricity rates in Texas start at 11.3 ¢/kWh from plans with large monthly bills credits. When considering such a plan, determine your home’s typical monthly usage levels. Then, check the Electricity Facts Label (EFL) to see the estimated average rate at 500 kWh, 1,000 kWh and 2,000 kWh of energy usage. If you see a very low rate at 1,000 kWh but a rate that’s twice as high or more at 500 kWh, that’s an energy shopping red flag.
If you’re willing to assume some risk, you may be able to save by enrolling in one of these cheap Texas electricity plans. While you may get very cheap rates during months when your usage is high, you could face a far higher rate during lower usage months.
Plans with slightly higher rates may save you money annually. This is because more straightforward plans have less variation in their effective rate from 500 kWh to 2,000 kWh, so your rate doesn’t change much, even when your usage does. This can lead to more predictable monthly bills.
Texas Electricity Rates by Location
Below you can see average Texas electricity costs per kWh in cents by ZIP code. We collected this data from the U.S. Energy Information Administration’s U.S. Energy Atlas. At the time of writing on August 1st, the Atlas was last updated in December 2023.
Residential Energy Plan Types in Texas
One of the first things you may notice when shopping for electricity in Texas is all of the varied plan types. Each plan type offers something different, catering to the needs and lifestyles of Texans across the Lone Star State.
Fixed-Rate Plans
Fixed-rate plans let you lock in a single rate for price protection across a range of term lengths. This type of plan provides more predictability and is often a good fit for most Texans.
Variable-Rate Plans
Variable-rate plans come with no contract and have rates that change from month to month. We don’t typically recommend plans with variable rates, but they may work for Texans who need a short-term solution before enrolling in a more predictable fixed-rate energy plan.
Time of Use Plans
Time of use plans offer “free” electricity during set time periods, typically nights or weekends. While they technically offer “free” energy during select time periods, these plans also charge far higher rates during paid periods to offset the losses of the $0 energy used during the free times. This plan may be a good fit for the young professional who is gone most of the day and uses most of their electricity when they return home late in the evening.
Prepaid and No-Deposit Plans
No-deposit plans or prepaid energy plans don’t require a deposit or credit check, and they let you pay in advance for the energy you use throughout the month. This type of plan is best for Texans who may not have a strong credit score and want more flexible payment options.
Renewable Energy Plans
Renewable energy plans offer green energy taken from renewable power sources, such as wind power, solar power and hydropower. This type of plan is ideal for the eco-conscious Texan who wants to save money while reducing their carbon footprint.
One thing to note is that there is often some crossover between plan types. For example, most plans these days offer some green energy content. Meanwhile, most bill credit and time of use plans also feature fixed rates, in addition to their usage credits or “free” energy offerings.
How To Choose the Best Electricity Plan in Texas
When it comes to choosing the best electricity plan in Texas, it’s all about picking the right plan type for your lifestyle and usage needs. Some key factors to look for as you shop include reading the EFL and knowing the fine print of any plan you’re considering.
If you live in a large metro area of Texas, you have over a hundred combinations of providers and plans to choose from. In this section, we’ll break down what to look for and how to choose the right provider. The basic process boils down to a few considerations:
Choosing a plan type
Understanding your electricity usage
Reviewing the electricity facts label
Considering factors like term, promotions and cancellation fees
Picking a Plan Type
When it comes to picking an energy plan, the type you select will come down to how much energy you use and when you use it. Whether you use Smart Meter Texas or you pull your historic usage from your monthly energy bill, look at your kilowatt-hours for the entire year to understand how you use energy. Then, consider plan types that match your needs.
If you use the brunt of your electricity at nighttime and over the weekends, a free nights and weekends plan may work for you. What if you consistently use 1,000 kWh or more month after month? In that case, a bill credit plan may actually net you the best prices. And if your usage tends to vary widely from season to season — which is fairly common for Texans — you may benefit from a more straightforward plan with a narrow rate range from 500 kWh to 2,000 kWh.
No matter which type of plan you choose, note that most providers perform a credit check during the enrollment process.
Understanding Your Usage
Now that you know how to pick a plan type, let’s talk about how to understand usage. According to the U.S. Energy Information Administration (EIA), the average residential account used 1,178 kWh per month in Texas in 2022. This was quite a bit higher than the national average of 899 kWh monthly. Usage tends to be on the rise, according to the EIA, so the average may be even higher now than it was then.
Keep in mind, this is an average. Your actual usage depends on several factors, including home size, number of household members and appliances used. Extreme weather events that often affect Texas can impact your energy usage as well.
Home TypeAverage Monthly Electricity Usage in kWhApartment, 5 or more units per building461Apartment, 2-4 units per building531Single-family attached669Mobile homes844Single-family detached933
Extreme weather isn’t the only thing to keep in mind. Your energy usage can also vary dramatically from season to season. With Texas’s warm summer weather, you’ll likely use far more energy for air conditioning. Comparatively, the winter months are quite mild, so most homeowner’s see a big drop off in their usage between the two seasons.
As mentioned above, you can find your exact historic energy consumption using Smart Meter Texas or by checking prior monthly energy bills.
Review the Electricity Facts Label
Here’s where your usage and plan options come together. All electricity providers in Texas include electricity facts labels (EFLs) when advertising plans. Below is a sample EFL from Gexa Energy for its Eco Saver Plus 12 plan in the CenterPoint service area.
You can see two tables. At the top, there’s an average price per kilowatt-hour for three usage levels: 500 kWh, 1,000 kWh and 2,000 kWh.
The second table lists three different charges and a usage credit:
Energy Charge: A flat fee that Gexa charges per month.
Usage Credit: Gexa provides customers with a billing credit when usage is greater than or equal to 1,000 kWh per month.
TDU Delivery Charge (per month): A flat fee the Transmission and Distribution Utility (TDU) charges, passed through by the electric company without markup.
TDU Delivery Charge (per kilowatt-hour): This is what the TDU charges per kilowatt hour to transmit energy to your home.
Gexa’s price may vary depending on how long your term is and the discounts or incentives you get. CenterPoint’s price will stay the same unless the state of Texas approves TDU rate changes, which is allowed to happen twice per year in March and September.
Because your bill is made of a mix of flat fees and fees per kilowatt-hour, your average kilowatt-hour charge will vary. Broadly speaking, if you use a lot of electricity, your cost per kilowatt-hour will go down because the flat fee accounts for a smaller portion. If you use very little electricity, you’ll see the average price per kilowatt-hour rise because the flat fee accounts for more of the calculation.
Your price will also vary dramatically depending on whether or not you qualify for the usage credit. Like many other providers, Gexa offers some plans with discounts when you stay within a certain range of kilowatt-hour usage. If you go above or below the range, you could lose the discount and your bill will increase. These unpredictable discount types include bill credits, tiered rates, and base charges that go away at certain usage levels.
If your average usage is 1,000 kWh or higher, this plan may be a good choice for you, because the bill credit can significantly offset the cost of your energy. If your usage is less predictable and often dips below 1,000 kWh (very common during milder winter months), this plan type may not be the best pick for your household.
Read the Fine Print
As with any contract, the fine print matters. With energy plans, there are a few places to note. First is the EFL. Pay attention to a plan’s rate per kilowatt-hour, base charge and TDU fees. Also, verify the plan type to be aware of rate structures that affect how much you pay, such as time of use requirements, bill credits or tiered rate structures.
It’s also a good idea to review the terms of service, as some plans may include a range of other fees, including disconnection fees, reconnection fees and more. Knowing these details can help you identify the best plan for you while also avoiding any offerings that have tricks, gimmicks or deceptive rate structures.
These terms may also include a switch-hold policy. In essence, this is a lien on an account with a past-due payment. A switch-hold will prevent you from switching providers until you’ve paid off any outstanding balance on your account.
Key Factors To Consider
Below are a few more key factors to consider as you shop around.
Price: As mentioned above, your electricity cost includes a flat fee and a per-kilowatt-hour cost from both the electricity provider and the TDU.
Term: Fixed-term plans range from three to 36 months. A three-month plan is basically like a variable plan where your rate changes every three months. On the other end, 24- and 36-month plans also tend to be cheaper than average because you promise to stay with the company longer.
Reputation: Companies differ in their customer service, longevity and stability. The cheapest provider might not be the most reliable for long-term use.
Usage zone discounts: One provider might offer a discount for staying below 1,000 kWh, while another offers a discount for using at least 1,000 kWh per month. You’ll lose these discounts if your usage falls outside the zone, so these plans are only worth it if your electricity usage is extremely predictable.
Time-of-use plans: Plans can come with free energy at night or on the weekends, but you usually pay a higher rate during the day.
Green discounts: Some companies offer cheaper rates if you drive an EV or have a smart thermostat that optimizes your energy usage. If you have solar panels, you can get credits for excess energy generated to offset your bill with solar buyback plans.
Cancellation fees: Variable plans don’t have cancellation fees, but fixed plans do. Fees usually range from $50 to $395 in total or from $15 to $20 for each remaining month on the contract. It’s important to note the cancellation fee when you compare plans in case you may want to switch before the contract expires.
What To Watch Out For
When energy shopping in Texas, remember, the advertised rate is just that: An ad. Check the plan details and peruse the EFL to learn more about any hidden fees or hoops you’ll need to jump through to get the advertised rate.
To understand how plans stack up against one another, compare them across the same usage level, term length and rate type to see which is best for you. No matter what plan you sign up for, note that you will likely have to pay a deposit. Most providers require one, unless your credit score is very strong. Finally, remember that variable rates are often too unpredictable to help you save money in the long run.
Best Electricity Companies in Texas
While you can shop for electricity by plan, it might be helpful to shop by electric company.
While there are hundreds and hundreds of plans to choose from, there are only a handful of major providers. Plus, these companies often offer a range of plan types for you to pick from. Shopping by provider can also give you a holistic view not just of energy rates, but also customer service and brand reputation, all of which may impact your decision.
ProviderSuperlativeMarketWatch Guides RatingBest Value PlanRate (¢/kWh)Cheapest planRate (¢/kWh)Trieagle EnergyBest overall provider4.7/5Sure Value 1215.9 ¢Sure Value 3614.9 ¢Pulse PowerBest for no surprise bills4.4/5Pulse Texas Fixed 1215.5 ¢Pulse Texas Fixed 3615.2 ¢Rhythm EnergyBest for affordable options4.6/5Digital Discount 3614.6 ¢Digital Discount 1213.8 ¢Payless PowerBest for No Deposit energy plans4.1/56-Month Prepaid17.2 ¢12-Month Prepaid16.8 ¢Shell EnergyBest for transparency4.2/5Simple Choice 3616.1 ¢Simple Choice 3616.1 ¢4Change EnergyBest for apartment dwellers4.3/5One Rate 2418.5 ¢Maxx Saver Select 1211.3 ¢TXU EnergyBest for same-day energy4.5/5Simple Rate 1220.3 ¢Clear Deal 1217.5 ¢Gexa EnergyBest for Movers4.2/5Saver Freedom 3618.9 ¢Eco Saver Plus 1211.3 ¢*Rates based on a home with 1,000 kWh of energy usage in Houston with the ZIP code 77077.
How Can I Lower My Electricity Bill in Texas?
If you’re looking for ways to lower your Texas electricity bill, it all starts with either cutting down on your energy usage or switching to a cheaper electricity plan.
How To Switch Electricity Plans in Texas
By switching energy providers, you may be able to significantly lower your energy bill by enrolling in a plan that has a lower rate or is a better match for your personal electricity needs.
To get the most out of switching providers, first find your home’s energy usage. Knowing how many kilowatt-hours you use in your home per month can help guide you to the best plan for how and when you use energy. You can find your home’s exact historic usage data using Smart Meter Texas.
With your usage and the EFL, you can find plans that match your energy needs. To compare electric plans in your area, punch in your ZIP code below.
Once you find the right plan for your budget and energy needs, simply enroll online through Home Energy Club. You should not have to cancel your current plan, as your new provider will handle the cancellation for you.
Speaking of cancellations, note that if you cancel a fixed-rate energy plan before the contract is up, you may owe an Early Termination Fee (ETF). However, that doesn’t mean you shouldn’t cancel. If the new energy plan you’re considering has lower rates, you may be able to pay the ETF and still save money in the long run. You can also avoid an ETF if you wait to cancel your plan until there’s only two weeks remaining in your contract.
In short, while switching may seem daunting, the process is usually quick and straightforward and can have a positive impact on your electricity bill and your monthly budget.
Are You Moving to Texas?
If you’re relocating to the Lone Star State, it’s important to understand its deregulated energy sector so you can effectively choose the energy plan that works best for you.
Understanding Deregulated Energy in Texas
In 1999, Texas lawmakers passed a bill deregulating energy across most of the state. That bill went into effect in 2002, separating out the different segments of energy into three distinct units: Generators, Transmission and Distribution Utilities, and Retail Energy Providers (REPs) (also referred to as electric companies).
In short, deregulation broke up energy monopolies across the state, creating a free market in home electricity.
For Texans, having a deregulated energy market means increased competition for electric companies, which can help drive prices down. It also means you have the power to choose your electric company in Texas.
That said, deregulation has also led to a variety of power companies and plan types, making shopping for energy challenging. Due to the excessive amount of plan types and rate offerings, some customers may find energy shopping overwhelming.
To help consumers, the Public Utility Commission of Texas established Power to Choose. This state-run website is an energy comparison marketplace where Texans can search for a home energy plan. Due to a lack of oversight on Power to Choose, many Texans who used it found themselves enrolled in deceptive plans with confusing rate structures, resulting in them paying far more than they needed to for their electricity.
Here are a few more pros and cons of the deregulation system in Texas:
ProsConsCustomers can choose between many plans, providers and pricesThe deregulated market can be confusing to navigatePrices can be more competitive compared to regulated statesNot all options are advantageous to consumersPlans have more differentiation like free energy at night or discounts for driving an EVSome companies may choose to maximize profits over providing good serviceReliable companies prioritize customer satisfaction to growHigher potential for market volatility
Differences Between Utilities and Energy Providers
The two main entities you’ll see when shopping for electricity are TDUs and retail electric providers (REPs), which are also called electric companies.
When a power line goes down or a transformer blows, the TDU, like Oncor or CenterPoint, is the entity that comes and fixes it. But you don’t work with the TDU as a consumer. You work with an electric company like TXU Energy or Gexa Energy to set up an account, pay your bill and troubleshoot issues. The energy company basically resells the electricity that the TDU manages in the area.
ERCOT and the Texas Electric Grid
Now that you know about TDUs and REPs, it’s time to talk about the power grid.
Most of the Texas electric grid is run by the Electric Reliability Council of Texas (ERCOT) which manages the flow of electricity to more than 27 million Texans. This is important because ERCOT works hand in hand with the Public Utility Commission of Texas (PUCT) to ensure fair competition and transparent pricing from Retail Energy Providers (REPs). In short, it has a big impact on your energy rate in Texas.
How Does the Electric Reliability Council of Texas Set Energy Rates?
Working in tandem with the PUCT and REPs, ERCOT helps set electricity rates in Texas by enforcing competition and transparent rate structures. Keep in mind that because of deregulation, the free market means that factors such as demand, extreme weather events and even the commodity cost of natural gas can impact energy prices.
Terms To Know
Here’s a handy glossary of some frequently used terms in Texas’ deregulated electricity market:
TermDefinitionElectric Reliability Council of Texas (ERCOT)This organization manages the flow of electricity to over 90% of Texans.Transmission and Distribution Utilities (TDU)These companies maintain the wires and poles for specific areas of the state. You might have a choice between two TDUs, but most areas just have one.Retail electric provider (REP)This company sells electricity to customers. There are dozens of REPs per TDU area, and these are the companies you compare for service and plans.Kilowatt-hour (kWh)Electricity rates are expressed in cents per kilowatt-hour as this is the basic unit of measurement for usage.Fixed-rate planThis is a plan that has a locked-in electricity charge for a set period of time.Variable planWith this plan, the electricity charge changes each billing cycle.Time of use planThis plan charges different rates at different times of the day or week.Renewable percentageThis is the percentage of a plan’s electricity that comes from renewable energy like wind and solar or natural gas produced in Texas.Electricity facts label/sheetThis document provides the breakdown of flat fees and fees per kWh plus discounts, cancellation fees and conditions for each plan.Indexed planThis plan’s electricity charge is tied to a publicly available market index, and the price can fluctuate each billing period.DepositMany companies charge a security deposit to begin an electricity account. You can avoid the deposit by having a good credit score or shopping for no-deposit plans, which may have higher rates.Prepaid planSome providers let you prepay for electricity and add funds when the balance reaches a certain point.SlammingThis is an unauthorized switch of your electric service.CrammingThis is an unauthorized energy charge on your bill.
Texas Electricity Rate Trends
Electricity prices are notorious for undergoing abrupt changes, and the electricity rates in Texas are no exception. While the general trend of power prices worldwide is upward, the average prices in Texas have seen multiple ups and downs. This graph from the Federal Reserve Bank of Dallas shows the historical price data for Texas.
Although Texas electricity prices were generally rising every year, the increase in pricing slowed down from 2002. This was the year Texas’s electricity market became deregulated, introducing competition and therefore lowering prices. However, over the years, inflation, global fuel prices and other geopolitical factors have led to the growth of power prices in the state, just as they did in the U.S. as a whole.
Electricity rates in Texas started dropping again from 2010, even though the national average kept climbing. According to a report by the research firm Ideasmiths, the decline in Texas power prices since 2010 is a result of widespread renewable energy adoption. The report notes that between 2010 and 2022, renewables have decreased the electricity prices in the state by a notable $31.5 billion.
Adjusting for inflation, the power costs in Texas remained stable for an entire decade. In 2021, however, winter storm Uri destabilized the state’s grid, causing a frenzy and boosting electricity prices. The worst affected customers of this price rise were commercial customers in Texas. Since then, increasing population and rising demand have led to increasing infrastructure costs, and therefore climbing power prices. However, thanks to renewable energies, the average cost of electricity in Texas is still lower than the national average.
Texas Electricity Rates by TDU
Average rates may be higher or lower depending on the TDU. Below, you can see how rates changed over the past five years for the major TDUs in the state. These are average rates for 1,000 kWh per month from major electricity providers within each TDU. The data comes from the Public Utility Commission of Texas’ annual residential rate comparisons, released in December each year.
Average Cents per kWh (1,000 kWh/Month Usage)TDU20192020202120222023Oncor10.6310.7513.5616.4116.77Centerpoint11.4011.3914.4917.8617.54TNMP12.4712.3015.3818.6818.30AEP Central11.9711.3114.2017.9316.84AEP North11.8010.6713.8317.2717.62Source: PUCT
You can see that electricity costs have generally increased over the last five years, but each TCU area fared a bit differently.
How To Purchase Energy in Texas
Shopping for energy in Texas can feel overwhelming. That’s why we put together some quick steps to help you compare providers and plans, find the best electric rate for your personal needs and enroll online in a few minutes.
You can start by comparing Texas energy plans and rates at Home Energy Club.
Enter your ZIP
Enter your ZIP
Know Your Usage
Compare Plans Available
Enter Your Information and Enroll
Enter your ZIP
Know Your Usage
Compare Plans Available
Enter Your Information and Enroll
Enter your ZIP code below to review plans specific to your Texas neighborhood.
Next, estimate the energy usage of your home. To pull your precise historic electricity usage, check Smart Meter Texas.
When you view and compare plans, remember that the lowest rate doesn’t always translate to the best monthly bill. Consider straightforward plans for predictable electric bills. Whatever plan you consider, read its EFL to see if it’s a good fit for you.
To find the best plan for you, filter by home size, plan type, and bill predictability. Then, select a plan.
Enter your address and contact information to finalize your purchase.
Once you submit your information, you should get enrolled in your plan.
Frequently Asked Questions About Texas Electricity Rates
What is a good rate per kWh in Texas?
If you find a rate below the state average of 14.58 cents per kWh, you can consider that a good price. Overall, prices range from about 9 cents to 25 cents and more depending on the plan.
Who is the cheapest electricity provider in Texas?
There’s no one single cheapest provider for all situations. In our analysis, we found that Octopus Energy, Gexa Energy, BVK Energy and Frontier Utilities are affordable for 12-month fixed-term contracts considering 1,000 kWh monthly usage.
How much is electricity in Texas right now?
According to the EIA, residential Texans pay about 14.58 cents per kWh for electricity on average. This is less expensive than the national average of 15.73 cents per kWh.
Why are Texas power rates higher than in previous years?
Texas electricity rates have been rising in recent years because of an increasing population with more demand plus the impact of severe weather on an older power grid.
Methodology: Our System for Ranking the Best Utility Providers in Texas
To help you make the best energy-plan choices possible, we at the MarketWatch Guides team have researched over 25 of Texas’s top utility providers, from larger and well-known companies such as Constellation and TXU Energy to newer providers like Flagship Power. We surveyed 1,000 consumers in Texas, incorporating their feedback into our methodology. We also spent over 20 hours speaking with industry experts to better understand the market. The factors we use to score utility providers are:
Plan Features and Options (31%): Almost all providers offer fixed-rate electricity plans, so we award more points to companies that also offer variable-rate plans. Providers that include 100% green-energy plans powered by renewable energy (solar and wind) also earn more points. Companies that offer five or more plans score higher, as do providers that offer the three most popular terms — 12, 24 and 36 months.
Overall Cost (19%): Our cost rankings take into account whether providers offer sign-up bonus incentives, plus the presence or lack of base monthly charges, minimum usage fees, early termination fees and required deposits. Providers that offer the lowest costs and a full suite of incentives are awarded the full 19%.
Brand Trust and Reputation (25%): When shopping for a utility or electricity provider, consumers should consider a provider’s reputation and may favor companies that have been in business longer. To evaluate brand trust, we focus on each provider’s customer satisfaction ratings according to the BBB. Providers with the highest BBB star ratings and letter grades are awarded, as are companies that have been in business for over 15 years.
Customer Service (25%): We’ve reviewed how easy companies are to work with and how they prioritize the customer experience based on the presence or lack of an app, 24-hour customer service, live chat and transparent pricing.
Our rating system and company reviews are intended to help you make the best decision possible when shopping for an electricity plan. To learn more, you can read our full methodology.
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