For the thousands of business owners that operate throughout the state of Texas, staying ahead in modern competitive markets is crucial. One of the key ways to do this is to keep your overhead low, which of course means keeping your monthly electricity rates manageable.
Businesses Electricity Rates
Here are some business electricity rates:
|Provider||Term||Electricity Rate||Deposit Amount|
|Entrust Energy||36 months||4.32 cents /kWh||Subject to Credit|
|V247 Power||36 months||4.34 cents /kWh||Subject to Credit|
|Green Mountain Energy||36 months||4.35 cents/kWh||Subject to Credit|
|Champion Energy||36 months||4.50 cents/kWh||Subject to Credit|
|TriEagle Energy||18 months||4.50 cents/kWh||Subject to Credit|
These rates are for Houston, Texas, zip code 77001.
Keep in mind, these rates change daily and are only base rates. Also, typically the more energy your business uses (the higher your bill), the lower the rates we can negotiate for you.
It is difficult for most companies to cut down on their heating and lighting to make their business more efficient. What Texas business owners can do, however, is consider switching their electricity bill to a different retail supplier with a lower kWh rate.
Business electricity is defined as electric service for commercial operations such as warehouses, hotels, gas stations, car dealerships, etc. Schools, cities, and churches also have “business electricity” for the purposes of shopping and comparing rates and plans.
Ultimately, if you’re not shopping for electricity for the place your family lives — you’re shopping for business electricity and not residential.
The current business landscape in the state of Texas is as diverse as the residents who call the Lone Star State home.
- Total Income from Exports: $264.7 billion (2012)
- Health Care Industry: 200,000 companies
- Professional/Scientific/Tech Industry: 300,000
- Other Major Industries: Agriculture, Aeronautics, Defense, Energy, Tourism, Entertainment
- Overall Global Economy: 12th
Large & Industrial Business
There are many major companies that have their headquarters set up in Texas. Some of these companies appear on the fortune 500 list and include (revenue is based on 2013 stats),
- Exxon Mobil, Irving, TX ($407.6 billion)
- Phillips 66, Houston, TX ($166.2 billion)
- Valero Energy Corp, San Antonio, TX ($137.7 billion)
- AT&T Inc., Dallas, TX ($128.7 billion)
- ConocoPhillips, Houston, TX ($59.4 billion)
- Energy Transfer Equity, Dallas, TX ($48.7 billion)
- Enterprise Products Partners L.P., Houston< TX ($47.7 billion)
- Sysco Corp., Houston, TX, ($44.7 billion)
- Plains GP Holdings, TX ($42.2 billion)
- Tesoro Corp., San Antonio, TX ($39.2 billion)
Medium & Small Business
There are also many medium sized businesses or companies in Texas. These types of businesses typically have between 100 – 999 employees whereas small businesses have less than 100 employees. Some of the midsize companies in Texas include,
- Cirrus Logic
- Austin Bank
- Apex Capital Corp
- Texas Health Harris Methodist Southlake
- KSA Engineers, Inc.
- Citizens National Bank of Henderson
- One Technologies, L.P.
- LGI Homes, Inc.
- Harbor America
When it comes to small businesses, there are many within Texas that are making their mark. In fact, Texas is becoming one of the greatest states in America to start a small business, particularly in San Antonio, Houston and Austin. Small businesses in Texas include everything from independently owned bookstores, retail and restaurants. Some of these small companies that have recently seen attention from Business Insider include,
- Allied Kenco
- British Isles
- Hello Lucky
- Hotel ZaZa
- The Hobbit Cafe
- Poison Girl
- Four Elements Yoga and Fitness
- Palazzo Lavava
- Restaurant Jezebel
Overall, there are well over 390,000 small businesses (with employees), and more than 2,366,000 small businesses in total in the state of Texas.
What these stats or demographics help to illustrate is that there is a significant market for energy sales within the Texan business industry. On the flip side, what is even more important is that businesses, large or small, have the opportunity to cut costs through something known as electric choice and energy deregulation.
How Energy Deregulation Impacts Businesses
Energy deregulation legislature hit Texas in 2002. Since then, around 85% of the state has taken steps to provide customer choice to related consumers. At its core, energy deregulation helps to generate competition within different areas of the energy market. In the case of business consumers, that competition allows for something called, customer choice.
Prior to energy deregulation, utilities had control over all elements of energy from generation to customer service. This type of control created many challenges for consumers — especially business consumers. Companies had limited options when it came to their electricity related services because utilities provided services to businesses based on area, and gave little to no choice in terms of rates or plans.
In order to make electricity rates more fair and reasonable, utilities in many areas of Texas separated their business into different elements. The result of this separation has had a very positive effect on business consumers because the supply element of electricity is no longer a utility only driven product.
Through energy deregulation, entities known as, Retail Electricity Providers (REPs) can now enter or establish themselves within the Texas energy market and offer supply services to business consumers.
Texas Business Retail Electricity Providers
REPs are regulated and approved by the Public Utility Commission (PUC) of Texas. Approved REPs are allowed to offer electricity supply and supply related products or services to consumers. Some REPs also offer natural gas choice.
REPs have a difficult job. They need to provide business consumers with top notch energy related services — but only in regards to the supply of electricity. Since there are more of these companies (and even more establishing themselves within the Texas energy market today), the market is open to competition. The benefit to consumers, especially business energy consumers that use significant amounts of electricity, is that competition facilitates better rates and services in the longer term.
With so many REPs to choose from, REPs themselves have no choice but to meet the consumer demand and focus their customer service efforts on retention and satisfaction. If an REP fails to deliver in any of these critical areas, they run the risk of losing customers and revenue.
Ultimately, it is in the REP’s best interest to keep Texan energy business consumers happy!
Business Electricity Quotes
Electric choice or customer choice really gives business consumers the opportunity to save in areas where they need it the most. Many businesses in Texas for example heavily rely on electricity in massive quantities in order to run their daily operations including, agriculture, health care, retail and entertainment. Without customer choice, businesses can run into financial issues just trying to keep the lights on, which is why exploring different REP options is so vitally important.
Texas Retail Electricity Suppliers
For new businesses looking to switch to a REP for the first time, or for those who haven’t shopped around in a while, we have a list the rates and plans for over two dozen providers on our site. Examples of business REPs serving Texas currently includes:
- Breeze Energy
- Spark Energy
- Champion Energy
- Entrust Energy
- Amigo Energy
- First Choice Power
- Pioneer Power
- Summer Energy
- Voltera Energy
- Direct Energy
- Discount Power
- Ambit Energy
- Beyond Power
Types of Plans for Businesses
Typically there are two different types of offers that a Texas REP will offer business consumers. These two types include:
Fixed – Fixed electric rates and plans are rates that are static, they will not change over time. This remains true even if the market rate of electricity changes. The rate will not change from month to month. These type of contracts can generally last anywhere from three to five years.
Variable – This kind of rate fluctuates from month to month. If the rates of electricity go up, then the business rates will follow. If the rates of electricity drop, then the same logic applies. The length or terms for these contracts are flexible as well.
Again, it is imperative to make sure that before any contract is signed that you or your business truly understands the terms of agreement. You don’t want to get stuck signing for something you or your business doesn’t agree with in the long term!