To do so, we used five of the state’s largest electricity companies to explore six things you'll have to evaluate when you're comparing plans and providers: We’ll walk you through customer satisfaction scores, running the numbers on rates, and calculating the impact of different fees, discounts, and contract types. We'll weigh in on extra perks, like points, and green energy too.

Prepaid electricity plans are yet another option available to Texas customers. Prepaid plans let you avoid credit checks and deposits by pre-paying for your electricity. Prepaid electricity plans typically do not have a fixed duration and operate on a pay-as-you-go basis. Shopping for prepaid electricity can often yield relatively cheap electricity with no deposit. See Prepaid Electricity: Is It Right For Me? for more.
On the other hand, month-to-month variable rate (no-contract) plans don’t have cancellation fees. You won’t be penalized if you find a better deal elsewhere and want to make another switch.  And, you won’t be stuck paying more than you should be if the market rate for electricity trends down.  But, if it goes up, you’ll be paying more than your in-contract neighbors, and you’ll likely want to shop around again for a better deal.

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That’s what Josh Burdick thinks when looks around for electricity deals on Power to Choose for his 1,400 square foot West University condo. But Burdick, 45, an information technology project manager for an oil company in Houston, figured that he wouldn’t end up saving that much. He signed up with Reliant 11 years ago and has never left, paying anywhere from $120 to $150 a month during the summer. He is not even on a plan, instead paying month-to-month market rates, which typically cost more than longer term retail contracts.

Minimum Usage Fees: Often set at or around 1,000 kWh/month, these fees mean you’ll always pay for at least that amount — even if you only use, say, 800 kWh of electricity some months. It sounds nasty, but it’s only something to be concerned about if your electricity bills historically show you hover right around that minimum use threshold. If you’re electricity use always exceeds that amount, it’s like it’s not even there.
Ultimately, analysts said, this means that the vast majority of customers are not reaping the benefits of electricity deregulation, which promised that more competition would mean healthy savings. One analyst estimates that consumers are leaving about $2 billion a year on the table, which is likely flowing to the bottom lines of retail electricity companies.

Variable-rate plan:A variable-rate plan means the rate you pay for your electricity may fluctuate based on the market price of energy. Energy price depends on many factors, like weather, demand, fuel prices, the distribution system and the market. Variable-rate plans are flexible because you are not locked into a contract; however, you’ll pay a higher price in high-demand seasons like summer. A variable-rate plan might be ideal for you if you like to shop around and keep an eye on prices.
Texas deregulation began in early 2002 with the approval of Texas Senate Bill Number 7. Now, the majority of the state, including Houston, has the power to select their own provider. Previously, consumers were only given one option for an energy supplier. Deregulation has allowed competition in the energy market and has given residents the power to choose which energy provider sells them energy and bills them each month.
NRG is one of the largest electricity companies in the world, providing electricity generation, transmission and distribution.  With Headquarters in Houston, NRG is constantly on the lookout for qualified individuals to fill dozens of needs within the electric company.  Current openings include Customer Manager, SAP developer, Proposal Writer, CMSR Representative, and segment Manager.
The low teaser rates for consumers available just a month ago have disappeared, making it impossible for buyers who average about 1,000 kilowatts a month to lock in a three-month rate for less than 18 cents a kilowatt-hour, according to PowertoChoose.org, the price comparison tool run by the Public Utility Commission of Texas. A year ago, Texans shopping for a three-month contract could find rates that were less than 7 cents a kilowattt hour while earlier this spring, bargains were still available for less than a nickel a kilowatt hour.
Brothers Augustus Chapmen Allen and John Kirby Allen founded the city of Houston, Texas on August 30, 1836. The city was founded on some land near the banks of Buffalo Bayou. Its name comes from the general, Sam Houston who eventually became the first president of the Republic of Texas. Not only is Houston the most populous city in Texas, but its broad industrial base in energy, manufacturing, and transportation make it clear that there’s a high demand for efficient and reliable energy here.
Variable Rate Plans: Designed as month-to-month contracts, these plans are in total control of your energy provider, which can shift the price you pay per kWh at its discretion. This means you, the consumer, are in a better place to reap the benefits when the energy market falls — but it also means you're at risk for hikes in prices, whether as a result of natural disasters or the provider's bottom line. Variable plans always offer a full year of price history to show the average price per kWh so you can get a sense of what you're getting into (like this one from Reliant) and know this: Variable plans don't have cancellation fees. You can cut your service at any time — a huge incentive for REPs to keep their prices reasonable.
REPs sell electricity rates to Houston energy consumers, but transmission and distribution service providers (TDSPs) deliver the supply of electricity. In Houston, CenterPoint Energy serves as the area's TDSP and works with about 85 REPs. If your power goes out, immediately report the issue to CenterPoint Energy, not your REP. Use the following phone numbers to get in touch with your Houston TDSP.
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