We compare, promote reviews, and rate the best electric providers in Dallas so you can make an informed choice.
What to Expect With Dallas Electric Rates
The best electric rates in Dallas are best for some but not for others but some of these offers need to go right in the trash. Let’s face it, advertising can be downright deceitful at times. The tricks and gimmicks lure us in to our detriment. Short term plans and variable plans hurt many electric service customers but not all.
If you want the best electric rate you might find it in a variable rate or a short term plan but probably not. These Dallas electric rates will quickly change on you and by the time you get your bill you are hundreds of dollars out of pocket.
I have chosen a variable plan and a 1 month plan. One of these electricity plans hurt my wallet but the other one didn’t. Let me explain. The 1 month plan was great. I ordered it through TXU Energy because I needed electric service on fast and they had a quick turnaround at the time. I did not need service on for long. Within the first month of service I shopped and found an affordable price for an electric rate in Texas. I was happy with the plan but many let that same variable plan spike in price on them by not going shopping for a plan that is fixed. Fortunately I did not let the plan get out of hand but instead ordered service for a 2 year fixed contract and I was good.
If I had waited beyond the month my Dallas electric rate could go up in price indiscriminately with no warning. I did not wait, I knew what to do.
On another occasion I ordered a variable plan that had advertising that made it sound like a calculated risk that would move with the market. I fell for this nice sounding plan.
The variable electric rate plan I signed up for was with a company many considered to be among the best electric providers in Dallas. I liked the initial rate but it did not last long and my price skyrocketed and my electric bill was as much as my mortgage payment.
Oncor is what is known as the “poles and wires” company. This company transmits and distributes your electricity over the lines to your home or business. You will see this companies name on your electric bill but it is a pass-through company you have no choice with. The retail electric provider is the company that you do have a choice with and they sell you your electric service.
You want to pick a good long term fixed rate anywhere from 1 year out to 4 years. If you have timing on the energy market and when it might come down you could take a risk and get on a variable price or 3 – 6 month fixed rate. Following your electric rate for a few short months is a hassle and you might forget to follow up. If you are not forgetful, go for it, then follow up and lock in to something long term that has a stable electricity price.
Transmission and Distribution Service Provider
In the Dallas area along with much of North Texas Oncor is the electric utility “poles and wires company”. Oncor has the transformers, poles, electric wires to move your electricity from the generation power plant directly into your home or business. Call Oncor for any electric service outage. This company will fix your outage but cannot sell you anything beyond a service call to check to see if your meter is operating.
Oncor also buries your electric wires, installs your meter, and reads your smart electric meter through the internet. In some cases your meter may not be reading correctly and they replace the faulty meter. Many Dallas customers have reached out to me for assistance getting Oncor to check on a faulty meter reading.
Beyond the Oncor breakdown below there can be more charges based on how much energy you use during peak demand times. The state of Texas governs what rate increases the TDSP can pass-through. There is no negotiation regarding your TDSP as the state of Texas handles that.
ONCOR Residental TDSP TAX breakdown:
- TDU Delivery Charge: 4 cents per kWh
- TDU Delivery Charge: $3.42 per billing cycle
Below are the proposed future charges Oncor may be approved to charge Dallas and North Texas homes.
One of the Oncor fees is based on how much kilowatt hours you use. So if you use 1000 kilowatt hours a 4 cent fee is multiplied against it which would equal = $40
Oncor wants to raise their fixed fee from $3.42 to $4.32 and raise the multiplier fee from 4 cents per kWh to 4.4 cents per kWh.
What the fee is now:
1,000 kWh of usage would be $40 plus $3.42 to equal $43.42
Proposed Oncor Fee Increase:
1,000 kWh of usage would be $44 plus $4.32 to equal $48.32
Types of Plans You Can Choose
The best electric providers in Dallas usually have more than one type of plan but if they are considered the best they will have a fixed plan. A one year or longer term plan insures your rate will be what is advertised and will not change during that time period. Too many people get burnt by getting on a cheaper looking variable plan or introductory rate offered to unsuspecting Dallas electric rates shoppers.
You lock in and feel safe that your price will be as advertised. Simply put this is what most Dallas electricity shoppers are wanting even if they don’t know it yet. These type of plans range from 6 months out to 4 and 5 years. The longer term contracts can have big cancellation penalties so if you order a long term plan make sure you plan on staying in your place that time or will transfer service to your new address.
A variable rate plan is often a popular offer Dallas electric companies will put in promotions. These plans can be introductory rates or lower than usual prices. There is no Texas law that states retail electric providers have to disclose how their rate formula works for a variable rate. The provider of your electricity can be indiscriminate about lowering and raising your rate throughout your time with them.
Many Dallas providers in the past have not executed their business wisely and when wholesale energy markets spiked they past on their loss to each of their customers. In 2021 the winter storm caused some people to receive $18,000 electric bills. If this is any warning be careful with variable plans.
Prepaid Guaranteed No Deposit
No deposit offers are often a way of saying prepaid electric service. There will be no deposit required if you are paying for your electric service upfront. These prepaid Dallas electric service plans are like an unsecured credit card. You load up your money in advance and as you use your electric usage the money is deducted from your account.
When I was first starting out as a teenager I remember being asked for a $500 deposit by TXU Energy. I did not have that money and my credit was not even developed yet. It seemed like an outrageous amount but Texas was not deregulated and there was not a choice.
These plans are the most popular plans you will see. There are plenty of gimmicky plans out there but they will be variations of the three plans talked about here.
Average Electric Rates in Dallas
The energy information administration from the United States government has reported on the average rates for Dallas Texas as provided in this graph. The average residential electric rate in Dallas was 13.53¢ as of July 2022. Over the course of 2021 and 2022 Texas electricity prices have jumped in price due to Texas exporting so much liquid natural gas to Europe. The averages will likely have to be readjusted soon and will likely look much higher than this in the future. There is an expectation of prices coming back down in year 2023.
Cheapest Price Electric Companies in Dallas
Check to see who offers the cheapest electric rates in your Dallas area zip code.
Frequently Asked Questions in Regards to How to Compare Electric Rates in Dallas, Texas
How do I pick the best electricity company in Dallas
The best Dallas electric plan is chosen by reviewing the terms of service and the electricity facts label. The PUCT requires every provider to show these to make the price as transparent as possible. Call us and we can go over these details with you and confirm exactly what you will be paying.
A great example involves someone I recently helped order electric service. She needed a good rate based on averaging under 1,00o kWh a month. The monthly service fee was going to be a big percentage of her bill. The service fee seems like a “just so I can charge you something fee”. She was on a fixed budget and senior. I helped her find a plan where the rate was higher but there was no monthly service fee. Her Dallas electric rate ended up being cheaper than other plans because there was no service fee.
How can I change electric providers in Dallas?
The change happens through the ERCOT system. You do not have to call your previous Dallas electric provider to inform them you will be changing. The Electric Reliability Council of Texas facilitates the change with ONCOR so everything goes through and you are not double billed. The meter can only be attached to one electric provider at a time so it is impossible to get two bills for the same measured electric usage.
Why So Many Dallas Energy Companies?
If you have ever received your electric service through a municipality or cooperative than Brazos Electric Cooperative offers a good example. The Cooperative sold wholesale electricity to 16 different member territories throughout Texas. They are a Waco bas Cooperative. The winter storm of 2021 caused them to risk bankruptcy. Texas offered them a solution to split up their Cooperative by selling their power plants and becoming just a transmission and distribution company. That means they would be only responsible for moving electricity reliably through the poles, wires, transformers, and more. The power plants would belong to a separate company and the retail electric service would be the responsibility of other companies as well. Electric Deregulation operates just like this. If the Waco Texas based Cooperative plan goes through like Texas is talking about over 20 different retail electric providers will offer service to the area instead of just one. This large choice of electric companies to choose from is how it is in Dallas Texas.
How to change electric providers in Dallas?
You can change very easily without having to contact a previous Dallas electric provider. You can use this site or many other comparison websites. Going directly to an electric company of your choice is an option. The state government even has a site called Power to Choose that you can use to compare and choose a Texas electric company. If you like what we do and offer we ask that you consider using our website to compare and choose a Dallas electric company.
Who do people trust to offer the best Dallas electric rates?
The Analysis Group Economic – Financial, and Strategy Consultants, Economic Development Journal, and My Google Business feature ElectricRates.com electric rates comparison website as a trusted resource that thousands of customers have used to compare and shop online.
Is electricity expensive in Dallas?
The winter storm of 2021 sent Dallas electric rates extremely high, then the war in the Ukraine had them going up further. Dallas electric rates are higher than they have been in some time. When you average customers long term contracts with current energy contracts being contracted today the average is around 8 cents per kilowatt hour with the average electric bill around $135 a month. In future years the average will look higher because of what prices did in 2021 – 22.
What company provides electric service in Dallas?
ONCOR transmits the electricity over the poles and wires but does not sell you the service. Technically Oncor provides the service but “retail electric providers” sell you the service. The jargon sounds the same so it can be quite confusing. The important thing to know is this site shows you how to compare and shop for the companies that sell you electric service. For green energy please visit our voluntary sustainable energy offer.
Who has the cheapest electric rates in Dallas?
We signed up a commercial business at 4.7 cents per kilowatt hour but they used much more electricity than the average Dallas home. If you are a Dallas business you can enter into a reverse auction to see who can offer the cheapest electric rates in Dallas. For homes you want to compare each day as that is how often the cheapest Dallas electric provider changes. Visit our compare tool to see who is the cheapest today.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.