Dan Simms is a contributing writer at USA TODAY Homefront specializing in home repair, renovation and renewable energy. While working as a property manager for one of the largest real estate management firms in New York, Dan worked alongside contractors and renovation specialists to prepare homes for sale. He is an avid DIYer and has completed a shed construction and a bathroom renovation in his own home and investment properties. He lives on Long Island, New York. Reach out to him on LinkedIn.
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According to the EIA, the average price / kWh for energy in Dallas is $0.182. Providers like Gexa and 4Change offer current rates of $0.107 cents / kWh.
Texas adopted a deregulated electricity market in 1999, and residents have since had the freedom to choose their own electricity providers.
In states with regulated power, homeowners can only purchase electricity from a utility company. In Dallas, electricity is deregulated. This means an energy supplier purchases electricity from the energy market and sells it to consumers, controlling the cost per kilowatt-hour (kWh) and providing unique energy plans and customer service. The utility company is only responsible for transmitting and distributing that energy over the power lines it maintains.
One of the major benefits of a deregulated electricity market is that the competition between suppliers brings down the cost of energy. You can take advantage of deregulation by shopping for a more affordable energy plan than the one you have now.
Understanding that you have options and knowing how to look for a more affordable electricity plan is a crucial step in saving money on your electricity bills in Dallas.
The easiest way to compare energy plans and find the best electricity rates in Dallas is to use Power To Choose, a website run directly by the Texas Public Utilities Commission (PUC). You can enter your ZIP code and get a complete list of all the energy plans available in your area, along with the company and the average price per kWh.
“When the market opened for competition in 2002,” said Whaley, “the traditional utilities broke into generation, transmission/distribution and the customer-facing [retail energy provider, or] REP.” The entire energy market consists of companies that produce electricity, such as power plants; companies that deliver the electricity and maintain the delivery systems, including power lines; and companies that market and sell energy plans to consumers.
The Electric Reliability Council of Texas (ERCOT), a stand-alone energy market that solely serves the Lone Star State, generates the electricity in Dallas. This portion of the market is highly regulated, so homeowners don’t have an option to switch companies at this level.
“Transmission line owners and local utilities, still operating under a regulated rate-of-return regime, are responsible for maintaining and operating the power lines,” said Hirs. Oncor is the main utility company in Dallas that distributes electricity throughout the city and maintains the distribution systems, such as power lines. All meters in Texas are linked to a specific utility company, so there’s no choice at this level, either.
Finally, the REPs market and sell electricity plans and act as an intermediary between distribution companies and customers. Dallas residents have a choice at this level and can choose a REP and associated energy plan that works for them.
There are three primary types of electricity plans available in Dallas. The difference is how you’re charged and how you pay.
A few other types of plans also fall within these three options:
Same-day electricity options just mean that you can get service the same day you sign up for it. If you’re moving to Dallas and forgot to initiate electric service, or you’re looking to switch providers, you can set service up seamlessly the same day.
Not all Dallas electricity companies offer same-day power; those that do can have cutoff times for requests.
Power To Choose is a site run by the Texas PUC that allows customers to compare the electricity plans available in their ZIP code. The website updates in real time, so you’ll always have the most up-to-date information available.
When you enter your ZIP code, you’ll see the plans you can choose from, sorted by the average price per kWh. You can also click on each one to get more information, including the following:
You can filter the plans by renewable energy percentage, company, price, contract term and more to find the best electricity plan for your needs.
Dallas’ electricity is produced by the Electric Reliability Council of Texas (ERCOT), and Oncor is the utility company that maintains the delivery infrastructure in Dallas. According to the Texas PUC, there are 39 REPs — those that market and sell electricity plans — that serve the Dallas area:
Each provider has individual plans that vary in average price per kWh, contract terms, individual plan benefits and more.
Switching electricity companies in Dallas is simple; you can do it entirely online. Before you switch, check to see if you’re under contract with your current provider. If you are, check your contract for an early termination fee, and be prepared to pay that to make the switch.
You can start by looking at the providers and plans available in your area by entering your ZIP code on the Power To Choose website. You’ll see a list of every plan you can choose from, sorted by the rate per kWh. You can click “filter” to sort by other criteria if you prefer to prioritize based on another metric.
Consider the following when choosing a plan:
Next, click the plan you’re interested in and click “fact sheet.” You’ll see your chosen plan’s electricity facts label (EFL) from the provider. Review the information and confirm that the rate, contract term and other details are in line with your expectations.
Pay special attention to the electricity price section and the box next to “What other fees may I be charged?”
Head back to the plans page, and click “sign up.” You’ll be prompted for your zip code and the service address, followed by personal information, including your license number and social security number. Once you fill in the required fields, you can place the order. If you’re not ordering same-day electricity, your new service should begin within a few business days.
If you are new to Dallas and uncertain where to start your search for an electric company, refer to the checklist above. The process for choosing an electric company as a new resident is essentially the same as switching from an existing account to a contract with a different company.
The biggest difference between consumers who want to switch companies and those new to deregulated energy is knowledge about the process and familiarity with the concept of energy choice versus using a company assigned to you based on your address.
If you’re a new deregulated energy customer in Dallas, pay attention to the following:
Know what’s on your bill: As a customer in a deregulated energy market, you’ll want to pay more attention to the cost per kWh listed on your plan. The listed rate includes the price of transmission and distribution, as well as other recurring fees. The rate might not include nonrecurring fees or taxes, so ask about those costs before you sign.
Know your minimum usage: Another difference from regulated energy markets is that many electric companies require you to use a minimum amount of energy each month. Some charge a fee if your usage falls short of the minimum.
Know your renewal policy: When a contract expires, some companies automatically renew on a month-to-month basis. This can affect your rate, so familiarize yourself with renewal policies.
Know your cancellation policy: Most electric companies charge an early cancellation fee if you decide to switch companies before the end of your contract.
Know your upfront costs: Some electric companies require a security deposit, usually spread out in payments over time and almost always refundable. The deposit might be waived if your credit history is favorable. However, an electric company might require an upfront deposit paid in full if your payment history is spotty.
According to the Environmental Protection Agency (EPA), “green energy” refers to energy produced by renewable energy sources with zero greenhouse gas emissions, limiting negative impact on the environment. More specifically, it refers to electricity produced via solar panels, wind turbines, geothermal, biomass, some hydroelectric equipment and biogas.
The Dallas City Council adopted the Green Energy Policy in 2019. The policy stated that the City of Dallas would commit to purchasing 100% renewable energy and promote projects that reduce environmental impact. It also established an energy management program to mitigate environmental effects and reduce energy costs.
Dallas consumers have access to green energy plans that deliver 100% renewable energy to provide power, which means no fossil fuels are burned during production.
As of January 2024, Houston topped the EPA’s list of leading local governments in terms of green energy use, with a combination of geothermal, wind and solar accounting for 1.2 billion kWh of usage.
Dallas’ use of wind power placed it at No. 2 on the list, with more than 672 million kWh of green energy use. Dallas Fort Worth International Airport was fourth on the list behind No. 3 Washington, D.C.
Most big electric retail providers, such as Reliant, TXU Energy and Constellation, offer renewable energy plans.
One well-known renewable energy industry leader in Texas is Green Mountain Energy, which offers seven wind-powered plans over 12, 24 or 36 months with rates between 14.9 cents and 16.5 cents per kWh. Green Mountain offers two solar plans for 18 months at 15.9 cents per kWh or 12 months at 16.9 cents per kWh.
Green Mountain also offers wind energy plans that include no charges for electricity used between 8 p.m. and 6 a.m., with fixed rates of 17.5 cents per kWh for 12 months or 16.9 cents per kWh for 24 months. The company offers four solar energy buyback plans, which allow consumers to earn credits for solar energy they don’t use.
Gexa Energy is another electric company with a deep selection of green energy plans. All of Gexa’s 17 plans are categorized as renewable energy. Its energy sources include wind, solar, nuclear power and natural gas. The company also offers solar energy buyback options and specialty plans for electric vehicle owners.
The cost of electricity in a specific state or city depends on multiple factors — such as the local availability of fuel sources and the maintenance cost of infrastructure. While energy prices increase over time, the average cost in Dallas remains relatively stable and below the national average.
The price of electricity in Dallas averages 13.97 cents per kWh based on the plans available online as of this writing. Meanwhile, the U.S. average sits at around 10.6% higher at 15.45 cents, according to the U.S. Energy Information Administration (EIA).
The one certainty regarding electricity rates? The price will not remain the same as it is this month.
“Deregulation has led to periods of extreme price volatility, often driven by fluctuations in natural gas prices or spikes in demand due to weather conditions,” explained Don Whaley, who served as president of numerous retail electricity providers (REPs) in deregulated markets and currently serves as the advisor to OhmConnect, a REP that services Dallas.
“Despite these challenges, taking a long-term view reveals that the commodity price paid by consumers in Texas has remained remarkably stable,” he said.
Fluctuations in Texas’ wholesale energy market present a challenge for price consistency.
“Electricity prices are increasing in Dallas because [the Electric Reliability Council of Texas] wholesale market is now the most expensive and most volatile in the nation,” said Ed Hirs, energy fellow, lecturer and energy economics expert at the University of Houston.
“Transmission costs are up and are being passed through because of the buildout necessary for renewable energy supplies, [and] Oncor has been required to harden their grids to service their growing communities,” he said.
Oncor refers to Oncor Electric Delivery Company, the largest utility company in Texas.
Additionally, legislative changes regarding Texas electricity influenced more than just cost.
“Over the 20-plus years of deregulation, consumers have become far more knowledgeable about the market,” said Whaley. “This has led to greater residential solar adoption and demand for more sophisticated rate offerings from [REPs] serving the competitive sections of the state.”
One example is adopting plans that provide customers with 100% renewable energy, which has placed Dallas and Houston at or near the top of the EPA’s list of greenest cities for nearly a decade.
The distribution company — Oncor in Dallas — is responsible for maintaining all of the power lines, so if there is an outage, Oncor’s technicians will work to resolve the problem, regardless of who your supplier is.
You can report outages or downed power lines directly to Oncor by using the online outage reporting system, by calling 888-313-4747 or by texting OUT to 66267. If you have the Oncor mobile app, you can also report outages and get updates on a resolution there.
Dallas residents who are unaware of their freedom to choose a power provider will usually default into a month-to-month agreement with their provider when their previous plan expires. Check to see if you’re currently under contract; if you aren’t, you’re likely getting a variable-rate plan, which means your rates could spike unexpectedly.
Head to the Power To Choose website, enter your ZIP code and search for a new plan. You can base your choice solely on the price per kWh, but it’s a good idea to consider the contract length, how much of the electricity comes from renewable sources and the reputation of the provider before signing up for a new energy plan.
When you find a plan that works for you, click on the plan, click “sign up” and then follow the steps to initiate service and enjoy your new rate.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
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