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New to Texas: How electricity deregulation works and how to not get scammed

This is the thing that catches EVERY transplant off guard. In Texas, you CHOOSE your electricity provider. It's not like other states where the utility company is your only option.

How it works:

  • Oncor (in DFW) owns the power lines and delivers electricity
  • But you choose which RETAIL provider generates and bills for your electricity
  • There are 100+ providers competing for your business
  • This means: prices vary wildly, some plans are great deals, some are scams

Where to compare plans:

  • powertochoose.org — the OFFICIAL Texas PUC comparison site
  • Sort by price, filter by plan length and type
  • Look at the AVERAGE PRICE AT YOUR USAGE LEVEL (500, 1000, 2000 kWh)

Plan types:

  • Fixed rate: Your price per kWh is locked for 6-36 months. GET THIS.
  • Variable rate: Price changes monthly. AVOID THIS. Summer rates can triple.
  • Indexed rate: Tied to wholesale market prices. Only for energy nerds.
  • Free nights/weekends: Sounds great but the daytime rate is usually higher. Do the math.
  • Prepaid: No credit check but rates are terrible. Avoid.

The EFL (Electricity Facts Label) trick:

  • Every plan has an EFL — it's like a nutrition label for your electricity plan
  • The ADVERTISED rate and the ACTUAL rate are often different
  • Look at the "Average Price per kWh" row at 1000 kWh usage
  • Check for hidden fees: base charges, minimum usage charges, TDU delivery charges

DFW-specific tips:

  • Average DFW home uses 1,000-1,500 kWh/month (higher in summer)
  • A/C is 50-70% of your summer bill
  • Lock in a fixed rate in winter when prices are lowest (January-March)
  • Set your thermostat to 78F in summer. Every degree lower costs 3-5% more.
  • Don't fall for door-to-door energy salespeople — they are ALWAYS more expensive

Current best rates (as of early 2026):

  • Good fixed rate: 8-12 cents/kWh at 1000 kWh
  • Great fixed rate: under 8 cents/kWh
  • Getting scammed: anything over 15 cents/kWh on a fixed plan

Source: Texas Public Utility Commission, powertochoose.org, Oncor delivery area information

Community ReportAutomatedSource: Community ReportPublished: Apr 4, 2026, 2:36 AM

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