Guide to Choosing an Electricity Provider in Texas

Everyone’s talking about high electric bills. The theory behind deregulation is that competition will lower your bills. The jury is still out on whether it works, according to Sudeep Reddy, economic author. Some people think about switching companies but it’s so confusing. Switching is probably easier than you think it is but you still have to do your homework, says Reddy.

If you change providers you won’t find anyone coming to your neighborhood to dig up your lawn or throw up new electricity wires, for example. You might wonder if the savings is that significant. For example, of TXU Energy’s 12 competitors in Texas, ten charge less, according to stats.

Calculating your precise savings could lead you to bang your head against a wall, say some people. Amigo Energy offers a one-year contract as does Cirro, ECOEnergy, Electric Now, and First Choice Power. Direct Energy used to be Energy America. Green Mountain Energy is wind only. Reliant, one of the more well-known competitors, has a one-year, month-to-month term at a higher cost and Starlight Energy is the same. TXU Energy is the price to beat if you live in Dallas/Fort Worth.

If you really want to make a dent in your electric bill, you’re also going to have to look at energy efficiency and conservation, writes Reddy. Some people might wonder why TXU would allow so many companies to charge less than it does. That’s actually a key part of the plan behind deregulation, according to a recent article.

I have just recently found out that some competitors charge more than TXU. Every company will tell you that it has a different cost structure, according to a recent Dallas News article. But some customers have been interested in paying more to one company – Green Mountain Energy. How do you know if you can trust the company?

Every business must go through a basic certification process by the PUC (Public Utility Commission) to make sure it has financial resources to operate, states Reddy. There are some safeguards in place according to Power To Choose. You don’t know that a company won’t raise its rates. You might wonder how many people have really switched their electric companies.

In North Texas, almost 20 percent of TXU’s residential customers had moved to a competing provider through fall 2004 according to TXU records. People are worried about rates going up this winter since natural gas prices keep rising and TXU just got approved for a 24 percent increase in billing residential customers. Under state rules they are allowed to do this if gas prices are above $6.50 per millions BTUs.

You can get more information by visiting the companies’ web sites for details about each plan. For more about conservation check out the Alliance To Save Energy Summer and Winter Tips, Home Energy Checkup, Home Energy Saver, and Texas Ratepayers’ Organization To Save Energy.