Texas Electricity
Selecting Electricity Service Providers in North Texas
To compare prices from electricity providers, the Public Utility Commission of Texas (PUCT) created a web site, http://www.powertochoose.org
, where Texans can go to find information about the different plans offered for their areas. Some plans’ terms and conditions indicate minimum electricity used, consideration of credits, and penalties, which make it very difficult for people to get a clear understanding of electricity price offers.
The following is the guideline from the Power to Choose Web site to compare offers from different electric companies: “Electric companies are required to provide an Electricity Facts Label for each plan. This fact sheet contains standardized information about the plan’s rates, fees, and contract terms. To compare offers online, visit our Plans page.” However, users are not able to see the plan’s rate fees for all offers and they have to download each plan’s fact sheet one at a time, then collect the information in some way in order to make the comparison.
The good news is that Dave Lieber, Dallas Morning News Watchdog, is on a crusade to ask legislators to make changes to make easier for users to utilize the Web site.
In the meantime, the best way to make a decision on selecting an electricity service provider is by using Fred Anders' online tool at http://www.texaspowerguide.com/.
This tool uses a database from “Power to Choose” to filter and show a list of electricity service providers sorted from lowest annual cost of electricity consumption to highest. The database is updated multiple times daily, and you only need to input your Zip code and 12-month electricity usage data. Users can see the results immediately because they are generated automatically and in real time. No registration is required, there is no advertising and, using an honor system, they are asking users to pay only $10.00 .
To use this tool, go to the web site, enter your ZIP code, and your monthly electricity consumption. Then do the following filtering:
- Complain Ratios– Power to Choose uses a Star rating system. Texas Power Guide uses Complaint Ratios. A score of 1x means a company gets as many complaints per customer as the industry average. “0.5x” means half as many, “2x” means twice as many, etc. Click on the box and enter 2 to start with.
- Cancellation Fee –If you cancel your contract in the last month an electricity service provider could fine you with a fee of $50 to $375. Select a company with a low or prorated penalty for cancelling a plan, for example, cancellation fee: $X0.00 per month left in term.
- Complexity – Select “Low.” Same electricity price for any electricity monthly consumption; it also includes the Transmission and Distribution Utility (TDU) charges. TDU is the company that maintains and services power lines in your area and restores service after a power outage. ONCOR, for example.
If the tool doesn’t show the annual cost for a specific company plan, it is because the pricing of that plan is too expensive or so complicated and convoluted that Texas Power Guide was not able to calculate a reliable annual electricity cost. Avoid those electricity plans. Anything offered for “free” is generally a red flag - if it’s free nights and/or weekends, a fancy new thermostat, or cash back rewards.
The following are ideal no-gimmicks plans:
- Same electricity price for any electricity monthly consumption.
- Same price for new and old customers.
- Two plans only, one for 12 months and one for 24 months.
- Prorated penalty for cancelling a plan, for example, cancellation fee: $X0.00 per month left in term.
- Company rating of four or five stars or complaint ration less than 2x
- No free offers.
Currently, September 6, 2018, the only company that meets these criteria is
- MidAmerican Energy Services - A Berkshire Hathaway Energy Company
