Power to Choose Texas: Why It Has the Lowest Rates

Power to Choose ([PowerToChoose.org) is the official electricity shopping website operated by the Public Utility Commission of Texas.

Key facts:
- Launched in 2002 alongside Texas electricity deregulation
- Serves as a neutral marketplace—no paid placements or promotional ranking
- All licensed REPs must list their available plans
- Currently shows 300+ plans from 60+ providers
- Providers face penalties for deceptive listings

Why it matters:
Unlike third-party comparison sites that may receive commissions, Power to Choose shows all plans equally without bias. Every plan displayed must be genuinely available to consumers.

The catch: Power to Choose remains the most comprehensive and unbiased resource for Texas electricity shopping, though using it effectively requires understanding its tools.

Here's something most comparison sites don't advertise: they charge providers for customer acquisitions.

The economics of comparison sites:

How this affects you: When a provider pays $100 to acquire you through a comparison site, they don't absorb that cost—they add it to your energy rate. The same provider's plan often costs more through a third-party site than through Power to Choose.

Why other sites still exist:
- Some offer usage-based comparisons (helpful)
- Some integrate with smart meter data (helpful)
- Some have better filtering tools (helpful)
- The convenience may be worth a small premium

Our honest take: Power to Choose has the lowest base rates because providers pay nothing to list there. Sites like ElectricRates.org offer additional tools (smart meter integration, personalized pricing), which adds value—but for pure lowest-rate hunting, PowerToChoose.org is hard to beat.

Your Power to Choose journey begins with your ZIP code, which determines your TDU (Transmission and Distribution Utility) and available plans.

Texas TDU territories:

Good to know:
- Some ZIP codes straddle TDU boundaries—verify your exact TDU if results seem unusual
- The site remembers your ZIP during your session but doesn't require account creation
- Power to Choose does not save searches between visits—bookmark your results or note preferred plans

Power to Choose offers filtering options that dramatically narrow your results.

Recommended filter settings:

Critical warning about price displays:
The advertised prices reflect 1000 kWh usage only. If you use significantly more or less, these rankings may mislead you.

Avoid this trap:
Don't sort purely by lowest advertised price—this often surfaces plans with usage credits that cost more in practice for your actual usage.

Each plan listing on Power to Choose displays key information you need to evaluate.

What each listing shows:

Critical step: Click "Plan Details" to access the Electricity Facts Label (EFL).

Why the EFL matters:
- The advertised price only tells part of the story
- Plans with usage credits may show artificially low rates at exactly 1000 kWh
- Your actual cost at different usage levels can be dramatically different

Best practice: Review at least 5-10 plans before deciding.

Some providers game Power to Choose rankings using techniques that inflate apparent value.

Common tricks to watch for:

The antidote:
Always check the EFL to see actual pricing across all usage levels rather than trusting the single advertised number on Power to Choose.

Red flags in plan names:
- "Promo," "Intro," or "Limited Time"
- "Bill Credit" or "Usage Credit"
- No term length specified

Power to Choose lists dozens of providers, from major utilities like TXU Energy and Reliant to smaller companies you've never heard of.

Key insight: Provider size does not determine service quality—all use the same power grid and TDU for delivery.

What varies between providers:

How to evaluate providers:
- Check complaint ratio on Power to Choose—above 0.5% deserves scrutiny
- Research through Better Business Bureau
- Read online reviews before committing
- Look for billing accuracy complaints specifically

Power to Choose does not handle enrollment directly—clicking "Sign Up" takes you to the provider's website.

Before leaving Power to Choose:
Download or print the EFL for your selected plan as documentation.

What enrollment requires:
- Your name and service address
- Social Security number (for credit check)
- Preferred start date

Timeline and what to expect:

Important: Your electricity service continues uninterrupted during the switch—you simply see a new provider name on your next bill.

Keep these documents:
- Confirmation email
- Contract/Terms of Service
- Downloaded EFL

Texas electricity prices fluctuate seasonally based on wholesale market conditions.

Seasonal pricing patterns:

Smart shopping timing:
- Check your contract end date at least 30 days in advance—providers may auto-renew you at unfavorable rates
- Power to Choose listings update continuously—check multiple times over a few weeks
- Many providers release promotional plans at month-end to meet sales targets
- Shopping on weekends sometimes surfaces overlooked plans from smaller providers

Pro tip: Set a calendar reminder 45 days before your contract ends to give yourself time to compare options.

Power to Choose shows rates at fixed benchmarks—500, 1,000, and 2,000 kWh. But your home doesn't use benchmark numbers.

The limitation: If you use 700 kWh or 1,500 kWh, you're guessing which plans actually cost less for you. Bill credits and tiered pricing make the "cheapest" plan at 1,000 kWh potentially expensive at your actual usage.

A better approach: Our Texas comparison tool connects directly to Smart Meter Texas, pulls your actual usage history, and calculates your exact cost for every plan.

Same plans. Personalized prices.

How it works:
1. Enter your ZIP code and click "See Your Personalized Rates"
2. We connect to your smart meter to pull your real usage—not estimates
3. Every plan is re-priced based on YOUR actual consumption pattern
4. See exactly what you'd pay, ranked from cheapest to most expensive

No more comparing at benchmarks that don't match your home. See your personalized rates →