We enjoy the advantage of being able to choose our desired electric provider in the Texas deregulated electricity market. In order to leverage this advantage to its optimum potential, you will want to apply some smart comparison shopping strategies.

By applying sound tactics and tools, such as those found in this easy-to-follow electricity shopping guide, switching Texas power companies for the maximum benefit is simple.

Calculate Your Current Cost

Before you start shopping, you’ll need an accurate baseline by which to compare competitors’ offerings. You’ll need your most recent electricity bill in order to determine the amount you currently pay for electricity. Document the amount, which will usually appear as a rate per kilowatt-hour, such as “10.1/kwh” , meaning 10.1 cents per kilowatt-hour.

Some Terms to Learn:

REP

Stands for “Retail Electricity Provider” – These are the electric suppliers in your area that are competing for your business. You’ll want to compare the offerings of the REP’s available to you and shop for one that has the best rate and a plan that best fits your needs.
PUCT/ERCOT

These are the official agencies governing electricity service, utilities and suppliers in Texas; the Public Utilities Commission of Texas and the Electric Reliability Council of Texas, respectively. They provide a wide variety of information and resources for both residential and commercial electricity customers in Texas.
Fixed Rate

Some REP’s offer fixed rate plans, usually on a contract basis over a pre-set period of 6, 9 or 12 months. On these plans, you can “lock in” your electricity rate for the entirety of the contract term. Early cancellation penalties may apply.
Variable Rate

An alternative to Fixed Rate plans, the Variable Rate plan is typically a month-to-month (no contract) arrangement with the REP. While you’ll be free of a contractual obligation to the REP on this plan, the electricity rate can change with every bill and possibly cost more in the long run than a Fixed Rate plan.

Prepare Great Questions

By now, you’ve pinpointed your comparison price which you can use as a baseline for comparing the offerings of retail electricity providers in your area.
ELECTRICITY SHOPPING TIP!

Some suppliers offer special promotional plans, bonuses and incentives for signing up with them. It’s not a bad idea to consider taking advantage of these promos, just make sure you fully understand all the terms and conditions invovled!

If you’ve already narrowed down your selection, you may still want to contact some of your choice candidates and ‘interview’ them with some key questions.

In the list below, we’ve highlighted a few of the primary questions you should consider asking your prospective providers:

What is the current electricity rate (in cents per kwh) and how long will it last?

What is the length of the agreement, and other terms and conditions?

What steps must I take to switch over from my existing supplier?

What, if any, is the penalty for terminating an agreement before the term ends?

Are there any budget-billing plans available for me?

Can you help me with a No-Deposit or Prepaid solution?

Of course this is not an entirely exhaustive list, and you may still have other questions of your own that are unique to your situation. However, these are great questions to ask to get you started. Also, many of your questions can be answered by contacting an electricity consultant, who will offer you free, expert and unbiased advice.

Use an Online Comparison Tool

When you’re ready to choose an electric provider and sign up for service, you can use an online resource for final comparisons and setting up the electricity service.

The best option is to use ElectricChoice.com, as it is the most comprehensive electricity shopping tool. Not only can you sort and compare available providers in your area for the best possible rate, but you will also never have to worry about outdated rate.

Just enter your zip code and you can instantly compare retail electric providers serving your area, check out any special promotions, and sign up for service.

Electric Choice is a trusted tool in part because all of the pricing you see is the latest possible rates available at that time. Furthermore, Electric Choice staffs electricity consulting experts, with whom you can chat online or over the phone to get any of your questions or concerns answered on the spot.