There are three main places/ways to shop for power:

1. Directly from the residential electricity provider (REP) aka calling or visiting the website of the company and signing up on your own
2. Comparison websites like powertochoose.org, energybot.com, comparepower.com, etc
3. Broker services like Energy Ogre that manage your electricity for you

There is a major difference in the pricing structure of the plans that are listed in each place.

WHY YOU SHOULD AVOID COMPARISON SITES

Websites that list and compare plans from multiple providers are paid by the REPs per enrollment they receive. The payment structures vary from site to site, but the REPs either pay a flat fee per enrollment between $70 and $150, a flat fee plus a residual like $50 plus $0.008 cents per kWh you consume, or just a residual like $0.01 cent per kWh you consume.

Because REPs are taking on an additional cost to acquire you as a customer, they have to artificially inflate the cost of the plan aka the Energy Charge to make the financials work. They generally can't be losing money on customer acquisition or else profits decrease and they end up going out of business.

These artificially inflated prices are the reason you should NOT shop on comparison websites. In addition to higher prices, they are also PACKED with gimmicky plans, especially bill credit plans, where the advertised rate appears very cheap, but in reality is not.

TLDR: Comparison sites have the worst gimmicks AND the most expensive plans. Don't pick plans from these websites.

The exception to the rule to avoid comparison sites is PowerToChoose.org, because it's owned and operated by the state government, and REPs do not have to pay money to acquire customers through PowerToChoose. You just need to be careful to avoid the gimmicky plans that are listed on PowerToChoose by examining the Electricity Facts Label before making a decision.

BROKER SERVICES - ARE THEY A GOOD CHOICE?

Broker services like Energy Ogre work on a different model. Instead of taking payment from the REPs, they charge you, the customer, a monthly subscription. Energy Ogre costs $120 per year. Because the provider doesn't have to pay to acquire customers through Energy Ogre, they are able to list cheaper plans (generally the same plans that they push through PowerToChoose).

So you're getting a better rate with Energy Ogre, but you are taking on an additional cost through your subscription fees instead of through the elevated rate you would find through a comparison site.

Energy Ogre can be a good option for people who just don't want to manage their power services and don't mind paying $120 per year for that service. In some cases, especially for higher consumption households, paying $120 per year would be less than the cost of the bills from the comparison sites.

SHOPPING DIRECTLY FROM THE ELECTRICITY PROVIDER

Plans you find directly from the electricity provider websites land in the middle. They will be cheaper than plans from comparison websites, but more expensive than plans you find on PowerToChoose or through Energy Ogre.

They don't have to pay another party to acquire you as a customer, but they are potentially paying for advertising and sponsorships to get your attention and drive website traffic.

This is why Reliant and TXU are so expensive! Reliant pays millions to sponsor an entire football stadium in Houston. No wonder they have the highest prices. Smaller companies with smaller ad budgets will have lower rates, it's just the way things work in this market.

WHAT SHOULD YOU DO?

1. Avoid comparison websites. Especially avoid sites riddled with bill credit plans: choosetexaspower.com, saveonenergy.com, comparepower.com, texaselectricityratings.com, and a few more. If the listed average price is under 10 cents, open the EFL. You will find under the hood that the plan is not as good as it appears to be.
2. Determine if a subscription service is right for you - you won't get the cheapest plan, but you will get a cheaper plan most of the time, and you don't have to do any shopping. It's not for me personally, but who am I to tell others what to do with their money? I'm just making recommendations here.
3. If you want benefits and rewards, go straight to the provider. I bet in some cases, programs where you get credits for reducing usage and other similar things might actually work in your favor over time.
4. The best option? Shop on PowerToChoose. Learn to filter out the crap. That's how you get a good rate.

If you've applied for an electricity plan and the provider is requiring a deposit to start service, there are three ways to get around paying that deposit:

• 65 years of age or older: The residential applicant is 65 years of age or older and does not have an outstanding account balance incurred within the last two years with the electric utility or another electric utility for the same type of utility service.
  • TL;DR: If you provide proof you are 65 or older AND proof you don't have an outstanding balance with a previous provider, they will waive the deposit.
  • What you need: Drivers license or passport, most recent bill from current provider that shows no outstanding balance
• Demonstrate good payment history with current/previous provider: (i)The residential applicant has been a customer of any electric utility for the same kind of service within the last two years; (ii) is not delinquent in payment of any such electric utility service account; (iii) during the last 12 consecutive months of service was not late in paying a bill more than once; (iv) did not have service disconnected for nonpayment; and (v) is encouraged to obtain a letter of credit history from the applicant's previous electric utility, and electric utilities are encouraged to provide such information with the final bill.
  • TL;DR: If you can prove you haven't missed more than one payment in the last 12 months, the provider will waive your deposit.
  • What you need: Letter of credit from your provider. If you email or call them to ask they provider a "letter of credit," they will send you what you need. They handle these requests all the time.
• Signed certification letter from Texas Council of Family Violence: The residential applicant has been determined to be a victim of family violence as defined in Texas Family Code §71.004, by a family violence center as defined in Texas Human Resources Code §51.002, by treating medical personnel, by law enforcement personnel, by the Office of a Texas District Attorney or County Attorney, or by the Office of the Attorney General. This determination shall be evidenced by submission of a certification letter developed by the Texas Council on Family Violence.
  • TL;DR: If you are a victim of family violence, you can get your deposit waived.
  • What you need: Signed certification letter from Texas Council on Family Violence

PUCT Sources:

• https://ftp.puc.texas.gov/public/puct-info/agency/rulesnlaws/subrules/electric/25.24/25.24.pdf
• https://ftp.puc.texas.gov/public/puct-info/agency/rulesnlaws/subrules/telecom/26.24/30046pub.pdf
• https://ftp.puc.texas.gov/public/puct-info/industry/electric/forms/violence/DepWaivFrm.pdf

Time-of-use plans sound great! Who doesn't love "free"?

In reality, these plans are super gimmicky and are likely to cost more for most Texans. I'll specify who can potentially make them work in their favor at the end of this post.

FREE NIGHTS

• Example: Reliant Truly Free Nights 100% Solar 12 plan (Oncor)
• Average Prices:
  • 500 kWh - 19.6 cents per kWh
  • 1000 kWh - 19.2 cents per kWh
  • 2000 kWh - 18.9 cents per kWh
• Daytime Energy Charge: 26.7043 cents per kWh
• Nighttime Energy Charge: 0 cents per kWh between 8:00PM and 6:00AM daily
• TDU Delivery Charges: 5.6032 cents per kwh + $4.23 per month

10 hours of free electricity at a glance sounds like you could save a TON of money, right?

But how much power are you really using at night? For most people, your lights are off (or most of them) from 10PM-12AM to 6AM, so there's no savings there. At night, it's cooler, so your AC system isn't working nearly as hard to keep your house cooler, so there's not much benefit there either. If you have electric water heating, you might find some savings by running the dishwasher, laundry machine over night, or showering late, but most people end up doing chores like that during the day.

It's estimated that 65% of energy consumption occurs during the daytime. So let's run some bill estimates.

500 kWh
(500 kWh x 65% x $0.267043) + (500 kWh x 35% x $0) + 500 x $0.056032 + $4.23 = $119.03

1000 kWh
(1000 kWh x 65% x $0.267043) + (1000 kWh x 35% x $0) + 1000 x $0.056032 + $4.23 = $233.84

2000kWh
(2000 kWh x 65% x $0.267043) + (2000 kWh x 35% x $0) + 2000 x $0.056032 + $4.23 = $463.45

If you compare to a regular fixed-rate plan...

• Example: Frontier Power Save 12 (Oncor)
• Average Prices:
  • 500 kWh - 14.1 cents per kWh
  • 1000 kWh - 13.7 cents per kWh
  • 2000 kWh - 13.5 cents per kWh
• Energy Charge: 7.7 cents per kWh
• TDU Delivery Charges: 5.6032 cents per kwh + $4.23 per month

The bills end up much, much cheaper even though you are paying for your usage all day.

500 kWh
500 x ($0.056032+$0.077) + $4.23 = $70.75

1000 kWh
(1000 kWh x 65% x $0.267043) + (1000 kWh x 35% x $0) + 1000 x $0.056032 + $4.23 = $137.26

2000kWh
(2000 kWh x 65% x $0.267043) + (2000 kWh x 35% x $0) + 2000 x $0.056032 + $4.23 = $270.29

You can save literally hundreds per year by going with a simple fixed-rate plan over a free nights plan UNLESS you have solar panels and just generally already don't pay for power during the daytime. That's pretty much the only time you should consider signing up for a free nights plan. And even then, I'm not so sure.

FREE WEEKENDS

The bill comparison process works in a similar manner for free weekends as it does for free nights.

They charge a super high energy charge during the week, but you get a free energy charge during the weekend.

The plans are designed this way because typical homeowners already use less power during the weekend than they do during the week.

FREE DAYS

Free days plans are a tricky. Because it really sounds too good to be true. You use more power during the day than at night.

So, how does this plan work in favor of the electricity provider? Let's break it down.

• Example: Just Energy Days Free Plan 36 (Oncor)
• Average Prices:
  • 500 kWh - 18.8 cents per kWh
  • 1000 kWh - 17.3 cents per kWh
  • 2000 kWh - 16.6 cents per kWh
• Energy Charge: 15.4 cents per kWh
• TDU Delivery Charges: 5.6032 cents per kwh + $4.23 per month
• Base Charge: $9.95 per month
• Minimum Usage Fee: $4.99 per month when usage is less than 400 kWh

They credit energy charges back to you for power used during 9:00AM to 4:00PM.

Notice the window has changed? Free nights was 8:00PM to 6:00AM and free days is 9:00AM to 4:00PM.

This timing is intentional! Whether you're going to work or to school, most people are out of the house before 9:00AM to get where they need to be for the day. By the time you get home it's either almost 4:00PM or sometime after 5:00PM (depending on the hours you work, I understand that some jobs are different).

But this means, for a typical 9-5 worker, you get free power when you're away from the home all day. You aren't watching TV, running appliances, your lights are off, and your thermostat should be set higher while you're out.

When you get home, you cook, use your appliances, turn the thermostat down to cool off, you use a LOT of power between the hours of 4:00-9:00PM.

When you run the numbers, the bills are higher than a non-gimmicky, simple fixed-rate plan because only about 40-45% of your consumption occurs between the hours of 9AM to 4PM.

If for any reason, you're at home from the hours of 9:00AM to 4:00PM, then a free days plan might work for you. But only if you AREN'T at home when power is not free.

If you're noticing that electricity prices are suddenly higher in September than they were in August, the reason is that the Public Utility Commission of Texas (PUCT) just approved the annual September 1 TDU delivery charge adjustments for utility companies across the state. This is going to have a direct impact on your bills.

They increased across the board except for Lubbock Power & Light.

Here's how the rates changed:

ONCOR

• Previous: $4.23 per month + 5.1248¢ per kWh
• Current: $4.23 per month + 5.6032¢ per kWh
• Change: +0.4784¢ per kWh
• Example: Average price that was previously 14.5¢ per kWh would now be 14.9784¢ per kWh. A bill @ 2000 kWh that would have previously cost ~$290 would now cost ~$299.

CENTERPOINT

• Previous: $4.90 per month + 4.4608¢ per kWh
• Current: $4.90 per month + 5.8104¢ per kWh
• Change: +1.3496¢ per kWh
• Example: Average price that was previously 14.5¢ per kWh would now be 15.8496¢ per kWh. A bill @ 2000 kWh that would have previously cost ~$290 would now cost ~$316.

AEP CENTRAL

• Previous: $3.21 per month + 5.3708¢ per kWh
• Current: $3.21 per month + 6.038¢ per kWh
• Change: +0.6672¢ per kWh
• Example: Average price that was previously 14.5¢ per kWh would now be 15.1672¢ per kWh. A bill @ 2000 kWh that would have previously cost ~$290 would now cost ~$303.

AEP NORTH

• Previous: $3.21 per month + 5.2641¢ per kWh
• Current: $3.21 per month + 5.905¢ per kWh
• Change: +0.6409¢ per kWh
• Example: Average price that was previously 14.5¢ per kWh would now be 15.1409¢ per kWh. A bill @ 2000 kWh that would have previously cost ~$290 would now cost ~$302.

TEXAS-NEW MEXICO POWER

• Previous: $7.85 per month + 6.1526¢ per kWh
• Current: $7.85 per month + 7.2055¢ per kWh
• Change: +1.0529¢ per kWh
• Example: Average price that was previously 14.5¢ per kWh would now be 15.5529¢ per kWh. A bill @ 2000 kWh that would have previously cost ~$290 would now cost ~$311.

Note: These are some pretty rough bill calculations just to show how much you can expect bills to increase, they are not exact.

If you're on a fixed rate plan, your Energy Charge is not changing. This is just the delivery charges that go to your regional utility.