Texas Electricity Rates

As some of you may know, I live in Texas, and the Texas electricity industry has been deregulated. Thus, Texas electricity rates have become a “shop able” commodity. But why does TXU still get the lion’s share of the electricity market? Because people do not know that they have a choice. I want to address this, and tell you which company I am currently with, why it is so great to go with a different electrical provider, and how much money you can save. I am even going to provide you with a link to be able to shop today’s rate for many different electrical providers.

  • Will Another Energy Company Have Blackouts?
    A lot of people have this concern, and therefore do not want to switch. But in Texas, the generation of the electricity is still regulated. Thus, regardless of the provider, the electricity comes from the same power plant, along the same electrical lines, and if there is a failure, you would call the same 800 number to have the lines repaired. So, the only thing that changes is who the bill comes from, how much they charge you per kilowatt hour, and the terms of the contract. So let your mind at ease, each energy company out there provides the same delivery of electricity.
  • Making the Switch is Too Much Trouble
    I assure you, it isn’t, just make the call to the new company (some even allow sign ups online), complete the contract within a few minutes, and presto, done. Just make sure that you get all the details like how long the contract term is, how much per kilowatt hour, is it a flat/progressive/average kilowatt hour charge, are there any early termination fees, is there a guaranteed kilowatt hour price, etc. I recommend going month-to-month, at least in the beginning, to try the company out.
  • Which Electrical Provider am I With?
    Well, to me, price was the most compelling factor is my choice of electrical providers. After that, I did not want to commit to a one year contract, so I chose Star Tex Power as my provider. At the time, there was only one company cheaper than them, but the name of the company was Amigo Energy. I just couldn’t trust a name like that, so I went with Star Tex Power. One simple phone call, and I was up and running. They also have free online payment processing, which makes the billing very simple.

To sum up, since the deregulation of the energy industry in Texas, electricity rates have been a lot better. If I were you, I would definitely make the switch. You may shop the rates of many providers at powertochoose.org. Sign up for my RSS feed for more great personal finance tips and help to come in the near future! So long for now…

5 thoughts on “Texas Electricity Rates

  1. I just recently signed up with Star Tex power myself for 10 months at 10.8 cents per kwh . I just wondered how long you have been with them and how things are going. This is my first time away from ol TXU. I am seeking comments from Star Tex customers. Thanks

  2. Star Tex Power has been fine so far. I was a little displeased that they bumped my rate to 12.1 cents per kwh when the summer months hit, but I did not do the contractual locked rate, I just did the month to month variable rate. I wanted to try them out before I got locked into a contract. But the service has been fine, no problems so far.

  3. Pingback: StarTex Power Comments

  4. I just recently signed up with Star Tex power myself for 10 months at 10.8 cents per kwh . I just wondered how long you have been with them and how things are going. This is my first time away from ol TXU. I am seeking comments from Star Tex customers. Thanks

    • I made the mistake of getting into a 2 year contract with them when prices were sky high. I am through that now, and am back down to a reasonable rate. They are still a good company.

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