You can find this information with certain qualifiers.
Questions you need to ask first:
- Do you want to compare variable rates?
- Do you want to compare fixed rates?
- Do you want to compare hybrid rates?
For further information on why this question can get complicated read this
I am going to assume you want to compare only fixed rates. The variable rates and hybrid residential electric rates can be changed based on the discretion of the electric provider and they are not legally obligated to provide the formula on exactly why they may lower or raise your electric rate.
Unless you have a lot of trust in the brand you are choosing as your electric provider I would not compare variable electric prices. Chances are the one that is the cheapest has a formula to raise that price to make up for the initial cheapness of that rate.
Fixed Rates are the prices you should be comparing to find the best rate in Texas
1: When comparing fixed rates to find the best you can use the state sponsored non-profit site: https://www.powertochoose.org/
2: Go there and look-up just the 1 year fixed rates. I would lock in to a rate for at least a year if you are shopping right now.
3: Find the cheapest of these and order online. It’s that easy. No all electric companies are listed on that website but it is a good place to start.
Something to take note of is that the best price is not always the best electric provider. If they are a new provider and have not executed their business well they could not meet the Public Utility Commissions guidelines to remain solvent as a company. If they don’t have enough money in their bank account based on the energy they are trading and get over their heads in how they leverage their trading strategies in the commodities market they may be forced to unload all of their customers to an electric company that is following the rules of the PUCT.
If this scenario happens your best Texas electric rate could easily become the worst rate as they can no longer honor that rate and you get stuck with whatever the market rate is at.
The really bad thing about this is that these electric companies that lose their customers because of bad execution usually lose them when their is a significant unforeseen price swing in the energy market. If they did not trade and hedge correctly to allow for this volatility that is when they lose their customers.
So if your electric company that has the best rate becomes insolvent it is usually when the market is at a high point. Unfortunately, a high point in the energy market means your electric rate you have to go with will be high regardless of who they have to switch you over too.
How to Find the Best Commercial Electric Rates
For commercial electric rates, in order to find the best you have to again look at the fixed rates as a starting point.
Steps to follow:
- Choose an electric company in Texas that has been in business for at least 5 years.
- Choose 5 to 10 electric companies to call on or save yourself some time and let an energy consulting company put your electric usage through a reverse auction. Some energy brokers have connections with 85+ electric companies to bid on your account.
- Narrow down the rate choices based on the monthly fixed rate terms. Compare 6 month rates with other 6 month rates. Compare 12 month rates with other 12 month rates.
- Pick a term whether it be a 1 year term or something longer and choose the cheapest rate and a trusted brand.
- Consider if you want a renewable component to your rate and consider how this may impact the price in your decision process.
- Have the electric company or energy broker send you a contract over on the terms you want and sign the contract.
Some things to consider. If you go with an energy broker/consultant they will need you to sign a Letter of Authorization so they can request your electric usage from your electric utility. They also may need you to sign a letter of exclusivity of you are currently talking with other energy brokers or electric companies so the providers can work with one company. Electric companies can’t work with two different brokers both trying to represent the same company and the reverse auction process can’t take place if some providers can’t work with the energy consulting company because a different broker is in the mix.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.