Methodology for deregulated energy providers reviews

In a deregulated energy market, you can choose your retail electricity provider and have more power over the price you pay and even the makeup of electricity sources — renewable or non — that power your home.

In a traditional energy market, consumers must use the utility company assigned to them based on their address.

Texas adopted a deregulated energy structure for consumers in 1999. Since then, electric companies in most of the state’s cities and towns have competed for customers.

We researched dozens of Texas retail electricity providers to help you choose the plan that works for you.

Research

Our research includes interviews with subject matter experts and detailed analyses of plans, pricing, reputations and other factors that may contribute to your decision about a retail energy provider. We request plan information and quotes for ZIP codes throughout Texas to gauge price ranges and the plan types available.

We also read hundreds of customer comments on consumer review sites such as the Better Business Bureau (BBB), Trustpilot, Yelp and Google Reviews.

Our goal is to provide you with the most up-to-date, detailed information available as you shop for a retail electric provider in Texas.

Review and rate

We implemented our research findings into detailed review standards to rate and compare electric companies. We score every company we review out of 100 points, then convert the result to a rating out of 5 stars.

Our review standards are based on these key areas: 

• Plan types
• Cost and features
• Reputation
• Customer service

Plan types (34 points)

A range of choices is one of the most important things an electric company can offer a prospective customer. We determine whether companies offer fixed-rate plans, variable-rate plans, prepaid plans and tiered usage plans. Companies that offer five or more unique plans receive a scoring bonus.

For companies that offer green energy plans, we assign value to the renewable sources they offer, such as solar, wind, hydroelectricity and biomass.

Cost and features (37 points)

Cost is a big factor, so this category accounts for the largest share of our ratings. Because electricity prices rarely remain stable, we rate companies based on whether they offer plans for a price at or below the average statewide kilowatt-hour price, based on the most recent data from the United States Energy Information Administration. 

We consider whether companies require a deposit, charge an early termination fee and charge a minimum usage fee. Also, we evaluate the length of the plans offered, including month-to-month.

Additional features might affect your monthly electric bill, so we consider whether companies offer options such as electric vehicle plans, free electricity periods, bill credits, sign-up bonuses and appliance breakdown coverage.

Reputation (13 points)

We gauge public sentiment about companies by considering BBB rating, the number of years they’ve been active and how frequently they’ve drawn recent consumer complaints through the Public Utilities Commission of Texas.

If companies were the subject of fewer than the average number of complaints during the past six months, we grant them a scoring bonus.

Customer service (16 points)

Finally, we rate the companies based on the quality of their customer service. We consider whether they offer conveniences such as an app, live chat, online account management and 24-hour availability.

We also consider how simple or complex it is to request a plan quote and how easy it is to report a power outage.