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Carter Gaddis is a senior writer at USA TODAY Homefront. He is an experienced journalist who has written about roofing, sunrooms, title insurance and other home service topics. Carter has contributed to the TODAY SHOW parenting section, CBS SPORTS and ESPN, among other publications. He lives with his family in Central Florida, where he spends most weekends at theme parks or watching English soccer on TV.
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.
The deregulated electricity market in Texas means Dallas residents have choices when it comes to electric companies.
You might begin your search by comparing electricity rates, but it’s not only about that monthly bill. You should dig deeper than the cheapest electricity rates to find the best electric company in Dallas.
Here are tips and information to help you discover the best Dallas electricity providers and choose the one that’s right for you.
Choosing the best electricity plan might initially seem complex. Breaking it down into three manageable steps helps to simplify the process.
Find the website for a retail provider that interests you. You can see examples in the cost table above and the ratings table below. Most have a form that allows you to enter your ZIP code, producing a list of the company’s energy plans. Type in your ZIP code and read through the plans.
You’ll also get additional information about each plan, including the contract length, changes in cost by electricity usage, the provider’s customer rating, the cancellation fee, rate type (fixed, variable or prepaid) and the percentage of your energy that will come from renewable sources such as wind or solar.
If you find a plan that appeals to you, move on to the details. Many plans offer tiered pricing, usually lower per kilowatt-hour (kWh) if you use more energy. Rate tiers are often capped at thresholds of 500, 1,000 and 2,000 kWh per month.
Check your current electric bill for your average monthly energy usage, then use that to estimate your monthly kWh usage. The price can change based on your estimated consumption.
In most cases, the highest rates are charged for 500 kWh per month of energy usage and the lowest for 2,000 kWh per month.
Once you find a plan you like, most providers allow you to sign up immediately by providing your address and payment method. At this point, you’ll be able to initiate service.
Rates vary among electric companies, and price is an important consideration. But, additional services or a company’s reputation might sway your choice of Dallas electricity plans.
Here are the factors to consider when deciding what Dallas retail energy provider is best for you.
Companies present their plans based on the rate per kWh. The average rate per kWh for residential electricity in Texas is 14.3 cents as of April 2024, according to the Energy Information Administration (EIA).
The average Dallas electricity rate per kWh in March 2024 was 17.5 cents per kWh, according to the Bureau of Labor Statistics.
Your monthly electric bill is determined by your base rate, rate per kWh and the amount you owe each month in additional taxes and fees.
Your monthly bill might also be affected by any minimum usage fees included in your plan, bill credits and renewable energy buybacks — this refers to a company buying back unused electricity from consumers who use renewable sources.
Most providers run a credit check before you sign up to determine whether to charge a prepaid deposit. If you decide to switch electric companies before the end of your contract, you may be charged an early termination fee. Our research shows providers charge between $20 and $300 for early termination.
Most providers show the electricity rate, transmission and distribution price and other recurring fees within the plan’s details. They might not include nonrecurring fees or taxes, so ask about that before you sign your agreement — or read the electricity facts label (EFL) and full terms of service.
Energy plan types offered by most Dallas electric companies:
Some energy companies have served Texas for generations. Others came into being shortly after the state’s energy market was deregulated in 2002.
No matter how long a provider has been in business, learn as much as you can about how customers perceive that company.
Ask your friends and neighbors what they like about their retail electricity providers (REPs). Look up the company’s Better Business Bureau (BBB) page, where you’ll find a BBB-assigned letter grade — or NR for Not Rated — and any consumer alerts about the company.
The Public Utilities Commission of Texas (PUCT) also tracks consumer complaints it receives about every REP. The PUCT tracks the ratio of complaints per customer and assigns ratings on a 5-star scale. The more stars are assigned, the lower the ratio of consumer complaints against the company.
While price, plan variety and reputation are the most important factors for selecting a REP, many companies offer extras that improve the customer experience and add value. It can pay to understand your energy options.
For example, if you are concerned about sudden loss of AC or heat, find out if your REP provides additional surge protection or backup power options. If reducing your home’s carbon footprint is a priority, determine if your REP offers smart thermostat installation or usage monitoring.
Some electric companies in Texas have added what amounts to home warranty services, offering to cover some or all of the cost to repair or replace your home’s major systems or appliances.
When choosing a provider, consider subjective factors such as consumer reputation.
In the chart below, see how our top 12 providers stack up in terms of our star ratings, their PUCT complaint scorecard ratings and their BBB ratings.
The three REPs listed below serve the Dallas area and have earned 5-star or 4-star customer ratings from the PUCT’s Power to Choose site. The rating measures complaints per 1,000 customers based on a six-month rolling average.
These three Dallas energy providers are also our highest-rated out of the two dozen we’ve reviewed.
Since its founding in 1997, Green Mountain Energy has built a reputation for its commitment to renewable energy. Its residential and commercial plans are billed as “pollution-free,” and its pricing is at or near industry standards.
Based on its reasonable rates, excellent reputation among consumers and quality customer service, we rated Green Mountain 4.5 out of 5 stars — the highest among the two dozen Texas electric companies we’ve reviewed.
In addition to being one of the largest energy companies in the state — the City of Arlington purchases its electricity from TXU Energy — the provider also shows a strong commitment to sustainable energy sources. Its offerings include a basic 12-month plan for 14.9 cents per kWh.
One of TXU’s plans offers free at-home charging for electric vehicles between 7 p.m. and 1 p.m. daily. Any electric vehicle charging that takes place outside of those hours will cost the full per kWh rate.
We gave TXU Energy 4.4 out of 5 stars — tied with Reliant Energy for our second-best score.
Like TXU, Reliant is a well-regarded energy company that successfully transitioned to the deregulated market. Even though the company is not rated by BBB, Reliant earned 4.4 out of 5 stars based on our review standards.
Also like TXU, Reliant likes to make a green energy splash. Most of its plans include some renewable energy sources.
Reliant also offers a wide range of additional services, such as air conditioning and heating systems protection, surge protection and portable backup power.
The biggest difference between consumers who want to switch electric companies and those new to deregulated energy is familiarity with the process.
If you are a new deregulated energy customer in Dallas, you should know 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.
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.
Most Dallas electric companies charge an early cancellation fee (also called a termination fee) if you decide to switch companies before the end of your contract.
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 inconsistent.
Every retail provider must include an electricity facts label (EFL) when it presents a consumer with an electricity plan. The EFL is usually a one- or two-page document that includes sections on pricing, key terms and questions, and disclosures.
The pricing section contains a detailed breakdown of costs related to electricity delivery to your home. In addition to the price per kWh, you may see a breakdown of costs based on monthly usage, the amount your provider is paying the utility company, meter fees, taxes and other charges.
The terms section includes details about the deposit policy and other associated fees.
The disclosure section covers cancellation fees, the percentage of renewable energy you’ll receive in your plan, and whether the plan is considered a prepaid or pay-in-advance plan (most are not).
Green energy is produced by renewable energy sources with zero greenhouse gas emissions, limiting negative environmental impact, according to the Environmental Protection Agency (EPA). More specifically, it refers to electricity produced via solar panels, wind turbines, geothermal, biomass, some hydroelectric equipment and biogas.
The Dallas City Council adopted its 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 green energy use, with a combination of geothermal, wind and solar accounting for 1.2 billion kWh of usage.
Thanks to wind power, Dallas was No. 2 on that list, with more than 675 million kWh of green energy use. Austin ranked third, followed by Dallas Fort Worth International Airport.
It’s important to know that electricity providers in the state can designate Texas-produced natural gas as a green energy source in Texas.
About a quarter of all the electricity plans available in Dallas guarantee that 100% of the energy they deliver comes from renewable resources. Approximately half of companies guarantee that some of your power will be generated using green energy sources.
Many prominent electric retail providers — such as Reliant, TXU Energy and Constellation — offer at least two or three renewable energy plans. A couple of electric companies in Texas stand out in the green energy market, with myriad sustainable energy sources available.
Green Mountain Energy is a well-known industry leader in Texas. The provider offers seven wind-powered plans over 12, 24 or 36 months with rates between 14.5 cents and 16.9 cents per kWh. It 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 16.9 cents per kWh for 12 months or 16.5 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 electric vehicle owners solar energy buyback options and specialty plans.
A deregulated energy market differs from a regulated market in that Dallas residents can choose which company to buy electricity from based on energy rates and other factors. In regulated energy markets, consumers must use the electric company assigned to them based on where they live.
In Texas, deregulated energy means there are three major players in addition to consumers and government agencies. Those players include the following:
The TDU that serves Dallas is Oncor Electric Delivery Company.
The state offers a useful tool called Power to Choose to assist you as you weigh your electric company options.
This website provides a detailed list of available electricity plans when you type in your ZIP code. Along with the REP’s name and star rating, the displayed results include the length of the plan in months, the price per kWh, any cancellation fee and other information to help you make an informed decision.
We typed in the most populated ZIP code in Dallas, 75217, and found 132 plans offered by 39 retail providers with a cost range of 10.4–17.2 cents per kWh.
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.
The one certainty regarding electricity rates? The price will not remain the same month over 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 REPs in deregulated markets and currently serves as an advisor to OhmConnect, a REP that services Dallas and other Texas cities.
“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.” Don Whaley
“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.”
“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.”
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.
Dallas’ distribution company — Oncor — is responsible for maintaining all of the power lines. If there is an outage, Oncor’s technicians will work to resolve the problem, regardless of the REP you choose in Dallas.
You can report outages or downed power lines directly to Oncor by using the online outage reporting system, calling 888-313-4747 or texting OUT to 66267. If you have the Oncor mobile app, you can also report outages and get updates on a resolution there.
Familiarizing yourself with energy industry terms is important, especially if you are new to Texas’ deregulated energy market. Here are a few acronyms and terms you should know:
The Public Utility Commission of Texas provides a form that allows consumers to file official complaints directly to the commission. The PUCT asks that consumers contact their electric companies to seek a resolution before filing a complaint.
Yes — if you are moving to a home in the same service area as your former home. If you are moving to another delivery area, you must sign a new agreement. You might be charged an early termination fee, as well.
During extreme weather events, such as deep freezes or heatwaves, PUCT consumer protection rules prohibit providers from shutting off the power because of nonpayment. For example, a winter moratorium is triggered if a customer’s local temperature is at or below 32 degrees Fahrenheit for 48 hours.
Selecting a Dallas electric company doesn’t have to feel overwhelming. If you know your past electricity usage, average electric bill over the past few months, and your neighborhood’s or ZIP code’s average electricity rate — you’re ahead of the game.
Be sure to take full advantage of your many choices by researching the types of electricity plans available, the average price different providers charge and any extra perks you might enjoy as an electricity consumer in Dallas.
Remember: It’s not just about cheap electricity. To find the best plan for you, look deeper than the lowest rate you find. Consider factors such as contract terms, termination fees and company ratings. To get started, take a look at the top providers mentioned earlier.
We review and rate retail electricity providers in Texas to provide the information you need to select the electric company that fits your budget and home energy needs. The best retail electricity providers offer a variety of plans at reasonable rates, as well as consistent, helpful customer service.
Our ratings are based on our detailed methodology. We score companies out of 100 points using review standards based on the plan types offered, the cost of those plans, the companies’ reputations and the customer service features they offer. We then divide their total scores by 20 to determine a rating out of 5 stars.
BBB and PUCT customer ratings were accurate as of April 2024.
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.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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