Texas Electric Choice Your Power to Decide
In the Lone Star State, freedom is a core value. Since 2002, Texas has embraced deregulation in the energy market, giving residents the power to select their retail electricity provider.
With energy choice in Texas, you’re not restricted to a local utility company. If you live in a deregulated area, you can choose an electricity provider that best meets your needs. Competing providers offer a range of plans, rates, and customer experiences, giving you plenty of options.
Instead of being limited to one municipal utility or electric cooperative, you have access to hundreds of energy providers..
To assist with your decision, the Public Utility Commission of Texas has created PowertoChoose.org. This website provides detailed information about available plans, pricing, and provider options.
Make the most of your power to choose!
What Is PowerToChoose.org?
PowerToChoose.org is a free, user-friendly website that offers a straightforward interface and search tools. By answering a few simple questions, you can access a list of Texas electricity providers. At Killeen Energy, we strive to offer a similar easy experience, allowing you to select the best plan for your needs. Just enter your zip code here to view and compare available plans.
The History of Texas Electricity Deregulation
In 1999, the Texas Legislature began deregulating the electricity market, paving the way for free market competition and allowing residents to select their own electric companies. By 2002, the deregulation process was fully implemented, and Texans gained the ability to choose from a wide array of electricity providers.
Make Your Choice!
At Killeen Energy, we empower you to select the plan that best suits your needs. Explore our plans to compare options and find the one that’s right for you.
Who Has Electric Choice in Texas
You might be wondering, “Can I choose my electricity provider in Texas?” The answer is probably yes, as approximately 85% of Texans live in deregulated areas, including cities like Houston and Dallas. The remaining 15%—about 5 million people—reside in areas where electricity is still regulated by the Texas Public Power Association (TPPA).
Deregulation applies to for-profit companies, making it the norm across much of Texas. Non-profit municipal utilities and electric cooperatives have the option to participate.
To find out if you have the power to choose, simply visit powertochoose.org and enter your ZIP code to see if your area is deregulated. If it is, you’ll be able to view available energy plans in your area. Alternatively, you can enter your address on our website to explore plans offered by Killeen Energy.
Understanding Your Power to Choose
The Texas electricity market involves several key organizations and companies responsible for managing the power grid, maintaining physical infrastructure, and producing electricity. Here’s a breakdown of the main players and their roles:
Electricity Reliability Council of Texas (ERCOT)
ERCOT serves as the independent system operator for the Texas grid, supplying electricity to 24 million residents. Their responsibilities include:
- Regulating the wholesale electricity market
- Ensuring access to transmission
- Maintaining system reliability
- Overseeing the retail-switching process
Retail Electricity Providers
Retail electricity providers, like Killeen Energy, are responsible for offering electricity plans to consumers. There are hundreds of such providers in Texas, each offering various plans, promotions, and rates per kilowatt-hour.
Power Generation Companies
These companies generate electricity, typically through large- scale operations using wind, solar, gas, coal, and other sources. Even residential customers with solar panels can technically be considered power generators.
Transmission & Distribution Utilities
- Oncor Electric Delivery
- CenterPoint Energy
- Texas-New Mexico Power
- AEP Texas
- Sharyland Utilities
Public Utility Commission (PUC) of Texas
Established by the Texas legislature in 1975, the PUC oversees ERCOT and the electricity marketplace, ensuring compliance with regulations. Their website, PowerToChoose.org, is a valuable tool for comparing different providers’ plans and rates.
Types of Electric Plans in Texas
Texas electric providers offer various rates and plans. The most common types are fixed-rate and variable-rate plans, though there are a few other options available as well.
Fixed-Rate Electricity Plans
With a fixed-rate plan, you pay a set price per kWh that remains constant throughout the duration of your contract. This rate is unaffected by market fluctuations. However, some fixed-rate plans may include a minimum usage requirement, which could result in a higher rate if not met. Additionally, breaking the contract before it ends typically incurs an early termination fee.
Prepaid Electricity Plan
Prepaid plans operate on a pay-as-you-go basis. There’s no deposit or contract—just prepay for your electricity as needed. Instead of receiving a monthly bill, you’ll get updates via email or text about your usage and remaining balance. If your balance drops below a certain level, your service may be disconnected with little notice. Prepaid plans typically have higher rates and require close monitoring and timely notifications
Variable-Rate Electricity Plans
Variable-rate plans allow your electricity rate to fluctuate based on market conditions. While these plans often don’t have a monthly contract or cancellation fee, the rate per kWh can increase or decrease. This means you might enjoy lower rates when market conditions are favorable, but face higher costs during periods of high demand, such as a hot summer. Variable-rate plans usually operate on a month-to-month basis, making it harder to predict and budget for your energy expenses.
Indexed-Rate (Market Rate) Plans
Indexed-rate plans, also known as market rate plans, share similarities with variable-rate plans but are tied to a publicly available index. The rate you pay per kWh will rise or fall according to changes in the index. These plans offer more stability compared to standard variable-rate plans, as the rate adjustments occur at specific intervals. When considering an indexed-rate plan, inquire about the pricing formula and how index changes are communicated.
The Energy Facts Label Your Key to Exercising Your Power to Choose
- The price per kilowatt-hour (kWh) for electricity usage.
- Base charges, which are a fixed monthly fee for service.
- Delivery charges from the Transmission and Distribution Service Provider (TDSP).
- The length and expiration date of the contract.
- Early termination fees if you end the agreement early.
- The type of plan, such as fixed-rate, variable-rate, or indexed.
- Accepted payment methods.
- Any additional charges, fees, and taxes.
Frequently Asked Questions About Power to Choose
- What is deregulation?
In 1999, the Texas Legislature enacted a law that allows most Texans to choose their electricity provider. This law promotes free market competition and aims to lower prices. However, some areas, such as those served by municipalities or cooperatives, are not required to deregulate, meaning customers in those regions may not have the option to choose their provider.
- Can I be penalized for changing providers?
You won’t face a penalty for switching providers unless you terminate a contract early, which may incur an early termination fee.
- How are electricity rates calculated?
Electricity usage is measured in kilowatt-hours (kWh), representing the amount of power a device uses in an hour. Your monthly bill shows the total kWh used, multiplied by the rate per kWh.
- What are "bundled" vs. "unbundled" plans?
All plans include Transmission and Distribution Utility (TDU) charges. Some retail electric providers bundle these charges with the energy cost, while others separate them.
- What if I don’t choose a retail electricity provider?
If you don’t select a provider, ERCOT will assign a Retail Electric Provider (REP) for you. This default plan often comes with higher rates, potentially double or triple the cost. There may be better options available that suit your needs more effectively than ERCOT’s default REP.
- Do all Texans have the power to choose their electric provider?
No, some communities served by municipalities, cooperatives, or investor-owned utilities may opt out of deregulation, so residents in those areas might not have the option to choose their electricity provider.
- Do I need to inform my current electric company if I find a new provider?
? You don’t need to contact your current provider if you switch companies. However, you will still be responsible for any applicable early termination fees. Not notifying them won’t exempt you from these fees.
- What happens to my electricity service if I move?
If you relocate within your current provider’s service area, you can retain your existing contract. If not, you’ll need to find a new provider. Moving doesn’t usually incur early termination fees.
- How can I find my monthly electricity usage?
Check your previous statements for “kWh Usage.” You can also view your past year’s usage on SmartMeterTexas.com. If you’re moving into a new home, ask the previous occupant for their usage details