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How to Shop for Texas Energy Rates

When you shop for new Texas energy rates, you will find an array of options. And, of course, having a new plan with a great rate can make anyone’s day a little better. Deregulation makes it possible to search for a new Texas energy rate for your electricity supply. Since electricity is a necessity that you use every day, it makes sense to shop around. The market thrives on competition and encourages companies to offer you good rates for electricity.

Comparing Texas electricity rates

What are the average Texas electricity rates? It depends. It’s a good idea to look at energy supply rates offered by different providers in your area. Don't be alarmed though if your supply rates are much different than those in a city across the state. Texas energy rates differ from location to location.

Find out more about supply rates in cities and towns near you:

Corpus ChristiDallasEl PasoFort Worth
GarlandGrand PrairieHoustonIrving
MesquitePasadenaPlanoSan Antonio

Knowledge is power and when you take the time to learn about Texas electricity rates, you can get the power you need at an affordable price. The process of finding low Texas energy rates is simple when you have all the details.

Texas energy rates come with different options

Texas electricity rates vary according to the company and the options it offers. You’ll need to learn about these supply rate plans so you can know what you’re getting into before you choose a provider.

  • Fixed rates: A fixed-rate plan is just what it sounds like. You’ll pay a stable rate for every kilowatt hour of electricity you use. Normal changes in the volatile energy market won’t affect your supply rate. Companies may offer a fixed rate for a few months, a year or multiple years.
  • Variable rates: A variable rate will change as the market changes. Supply and demand will play a role in the supply rate you pay. Weather can also play a role in your rates. You could pay a different rate each month, making it more difficult to predict your bill amount. On the other hand, you could save money if market prices drop.
  • Indexed rates: An indexed rate is usually tied to the market rate of a certain commodity, often natural gas. When the price of natural gas goes up or down, so does your indexed rate on electricity supply. Some indexed rate plans have a rate cap, so you know your supply rate will never go over a set amount though it could be lower!


Will you pay an AMS meter charge, REP deposit or early termination fee?

There are a few charges you may experience with your Texas energy plans. It is best to be aware of the charges so you'll know what to expect. is here to help you understand terms such as AMS meter charge, REP deposit and an early termination fee.


  • Except for residents located in the CenterPoint Energy service area, there is a fee for smart meters, also called the Advanced Metering Systems (AMS) charge. The AMS meter charge is to recover the cost of smart meters. All retail electric products will likely include the AMS meter charge.
  • Another charge you may be faced with is a REP deposit. Some retail electric providers (REPs) may require a deposit when you sign up for a plan. According to the Public Utility Commission of Texas, a REP deposit may be required to establish satisfactory credit as a preliminary condition to providing service.
  • Lastly, you may be charged an early termination fee if you are under a contract and you cancel the service before the contract ends. If the REP charges an early termination fee, if will be explained in the terms and conditions.

Updated: 10-6-15.