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What is the Power to Choose Texas?

What is the Power to Choose Texas? A Guide to Electricity in the Lone Star State

If you’re a Texas resident, then you have the power to choose your electricity provider. This is great because it means you can find an energy plan that fits your needs and budget. In this guide, we will discuss the basics of electricity in Texas and what you need to know in order to make an informed decision about your energy provider. Thanks for choosing Power to Choose Texas!

Texans Have the Power to Choose

In 1999, Texas became one of the first states in the nation to deregulate its electricity markets. This means that Texans have the power to choose their retail electric provider (REP). The Public Utility Commission of Texas (PUCT) oversees the state’s electric markets and sets customer protection rules. The PUCT’s job is to make sure that REPs provide reliable and safe service to their customers.

Types Of Energy Plans:

The four most common types of energy plans In Texas. Let’s take a closer look at each one.

1) Fixed Rate Plans:

The first type of energy plan available in Texas is a fixed rate plan. This kind of plan offers a set price per kilowatt-hour that will not change for the duration of your contract. This can be a good option if you want to budget for your energy costs or are concerned about price fluctuations. However, it is important to note that fixed-rate plans may not always be the cheapest option. In some cases, variable rate plans may offer lower prices when energy prices are low.

2) Variable Rate Plans:

The second type of energy plan that is available in Texas is a variable rate plan. This kind of plan offers a price per kilowatt-hour that can fluctuate depending on the market price of electricity. This can be a good option if you want to take advantage of lower prices when they are available. However, it is important to note that variable rate plans may also be more expensive at times when energy prices are high.

3) Market or Indexed Rate:

With a market rate plan, your electricity provider charges you the same rate as the current market price for electricity. This rate can change at any time and is typically based on the real-time price of electricity on the wholesale market. Indexed rate plans are similar to market rate plans in that your electricity provider charges you a rate that is based on the current market price for electricity. However, with an indexed rate plan, this rate is locked in for a period of time, typically six months to one year. This means your rate will not change during the contracted period even if the market price for electricity goes up. Indexed rate plans offer more price stability than market rate plans, but they may still be subject to change after the contract period expires.

4) Prepaid Electricity Plan:

With a prepaid electricity plan, customers are required to pay for their electricity upfront. This type of plan is often used by customers who want to avoid deposits and credit checks. Customers on a prepaid plan typically receive their electricity from a third-party provider. In Texas, the biggest benefit of a prepaid plan is that it can help customers avoid paying high deposit fees. It is also helpful to know about more consumption-based pricing models, like demand charges or time-of-use rates.


Power to Choose Texas is a site that allows you to compare and find the best electricity plan for your home or business. You can also find out more about how to use less energy and save money on your electric bill. The program has helped millions of Texans save money on their electricity bills and continues to be a success. If you live in Texas, be sure to check out Power to Choose Texas and see if it’s right for you.

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