Take a look at your energy bill over the last 12 months. Does your home use more energy during certain times of the day? What about weekdays versus weekends? Knowing your energy usage will help you choose the electricity plan that is best suited to your needs.

The price you pay per kWh depends on your usage. Electricity providers list prices at three different increments — 500 kWh, 1000 kWh and 2000 kWh per month. Once you have an idea of your monthly electricity usage (how many kWh you use), find a plan that offers a competitive price per kWh for that range.

Your energy charge is not the only line item on your electricity bill. Many plans include additional recurring monthly charges, like those incurred from your utility company, or TDSP (Transmission and Distribution Service Provider). Some plans even have minimum usage charges. Electricity providers are required to include these charges in the marketed price, so we strongly recommend reading your Electricity Facts Label (EFL) so you know exactly what you’re paying for, as well as your rights.

Fixed-rate plans have contract terms ranging from three months and up. With a fixed-rate plan, you know what your energy charge will be for the length of your contract. The price can only change due to factors beyond your electricity provider's control, such as changes in fees from the utility company (TDSP) or regional administrative fees.

Variable price plans can only be a month-to-month contract. They have pricing that may vary according to a method determined by the retail electricity provider (REP).

The pricing on an indexed plan is driven by a pre-defined pricing formula based on publicly available indices or information, such as natural gas or time of usage, so it can be volatile.

A deposit may be required for new customers. Many companies require the deposit to be paid in full by the first bill due date, but some allow installment payments. 

Confirm the contract length before signing up, to avoid potential cancellation fees if you want to change plans or providers early. (Hint: many companies list the contract term in the plan name.) 

Electricity providers are constantly offering new plans to catch customers' attention, many of which come with gift cards, bill credits and even smart home products to help you better manage your energy usage and budget.

You may be assessed a penalty for making a late payment. Depending on how long your account is past due, you may also receive a disconnection notice. If you have trouble making payments on time or in full, check to see if your electricity provider offers automatic payments or if you qualify for a deferred payment plan.

Fixed-rate plans often include a cancellation fee, or early termination fee (EFT). Variable-price plans do not. Indexed plans can either be month to month or for a fixed term, so an EFT could apply. Cancellation fees are listed on the plan EFL, so be sure to reference that before signing up.

Many Texas electricity companies offer both traditional electricity plans, as well as wind and solar plans that don’t require solar panels or a windmill. If you do have solar panels installed, choosing an electricity provider that credits the solar energy you produce is your best option. Panels or no panels, there are many electricity providers in Texas that supply energy from green, renewable sources, and support your clean lifestyle.