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Jennifer Farrington is a contributing writer at USA TODAY Homefront. She is a Florida native who has more than a decade of writing and editing experience. Jennifer has covered everything from real estate and insurance to personal finance and entertainment.
TXU Energy is a highly regarded electricity company in Texas, rated 4.7 out of 5 stars based on over 7,000 Google reviews. Positive reviews routinely praise the company for providing a positive customer experience and excellent communication.
However, TXU has a price tag to match. According to March 2023 data from the Texas Public Utility Commission (PUC), it’s one of the most expensive retail electric providers servicing Texas’ deregulated electricity market. It also enforces hefty cancellation fees ranging from $150–$395.
Depending on which of the five Transmission and Distribution Utilities (TDUs) serves your area, rates can start as high as 13.9 cents per kilowatt-hour (kWh) for 1,000 kWh on a 12-month, fixed-rate plan. By comparison, some competitors offer the same usage on a three-month, fixed-rate plan at or around 8.9 cents per kWh.
If customer experience is a must, TXU might be an ideal option. Customers rave about its attentive customer service, which it offers through an online chat feature and phone interactions. TXU is rated 4.9 out of 5 stars on Trustpilot and 5 out of 5 stars on Power To Choose.
We also like TXU for the incentives it offers. Its Season Pass perk cuts expenses by 50% during June through August and December through February. However, the savings cap at $450 per year. Its electric car savings incentive offers 100% free EV charging at home all night and morning, year-round.
Additionally, if you’re in a bind and need your lights on fast, TXU promises same-day service for new accounts as long as you purchase Monday through Saturday before 6:30 p.m. Although a refundable deposit may be required, the company offers flexible payment options depending on the results of a soft credit check.
TXU Energy, headquartered in Irving, Texas, serves residential and business customers across the state. It operates as a subsidiary of Vistra Corp, a company that owns four other retail companies in the energy sector. Two of these — Ambit Energy and Homefield Energy — also provide electricity services to Texans.
Because most Texans can choose their electric provider, it’s important to understand the rates, plan types and hidden costs of the companies you’re considering.
TXU Energy rates vary depending on factors such as fixed- or variable-rate plans, term length — 10, 12, 24 or 36 months — and usage (kWh). We compared TXU Energy’s rates for new residential customers for the Oncor utility area servicing Irving, Texas, using ZIP code 75038.
For reference, the average household in Texas used about 1,078 kWh of electricity monthly in 2022, according to data from the U.S. Energy Information Administration (EIA).
TXU Energy is transparent with its Electricity Facts Label (EFL) and outlines what you’ll pay if your usage is at, below or above one of its advertised thresholds, which are 500 kWh, 1,000 kWh and 2,000 kWh.
EFLs are “documents retail providers are required by law to provide to customers prior to enrollment that detail all the charges [on your energy bill],” explained Revolution Energy CEO Josh Pesikoff. An EFL includes a base charge and TDU delivery charges, which are already bundled into the rates mentioned above.
TDUs — responsible for delivering energy through power lines and measuring usage — and the Electric Reliability Council of Texas (ERCOT) — which maintains the electric grid — assess fees for their services. They fluctuate monthly, which could translate into a higher electricity bill for you.
The PUC “has the final authority to approve, deny or adjust TDU applications for rate changes. The applications are usually filed several times per year,” said Billy Rudolph, chief of staff of the Administration & Regulatory Affairs for the City of Houston.
While you can’t circumvent TDU delivery charges, selecting a plan to maintain low costs, even when these fees rise, is within your control.
Although TXU Energy doesn’t advertise any no-deposit options, it does offer a plan, called On Your Terms, without a cancellation fee. It’s a variable-rate plan, which means your rates can fluctuate each month.
For instance, if an ice storm inflicts severe damage to the electricity grid or a temperature surge drives wholesale electricity prices up, TXU Energy reserves the right to adjust your rates to offset the heightened costs incurred by itself and the TDU serving your area.
In most other cases, you’ll have to pay a refundable deposit. The amount you’ll pay is contingent upon the outcome of a soft credit check. The company mentions flexible payment options on its website, and under certain circumstances, you might even be eligible to have the deposit waived.
TXU Energy offers the option to make any plan eco-friendly through its GreenUp feature, ensuring 100% of the power you purchase comes from wind sources. This is a low-commitment way to reduce your carbon footprint without additional cost.
If you have solar panels already, you can potentially sell any surplus energy back to the provider. Here are a few of TXU Energy’s plans that provide green energy options:
New residential customers of TXU Energy, excluding those in Lubbock, can enjoy same-day activation.
To qualify, you’ll need an Advanced Metering System (AMS) meter, which enables remote and real-time communication with your utility company and facilitates seamless usage data sharing. If you’re unsure whether you have an AMS meter, check the meter for labeling or contact your utility company for clarification.
New TXU customers will also incur a one-time fee to connect electric services, imposed by the TDU, which your first invoice will reflect.
Renters don’t have to forgo access to green energy as TXU Energy offers fixed and variable-rate plans with contract terms ranging from 10 to 12 months. Plus, if you’re not satisfied with the plan you pick, you can switch without facing an early cancellation fee.
After you purchase a plan, the retailer will provide your landlord with proof of service and can even help you obtain a renters insurance policy through its partner, Lemonade.
TXU Energy’s cancellation fee depends on the length of your contract:
There are times when this fee won’t apply. “Per state law, cancellation fees do not apply within 14 days of a customer’s contract end date, so a customer can switch on or after 14 days before the contract end date with no penalty,” said Pesikoff. “If a customer is moving, cancellation fees are also waived if the customer provides the retail provider evidence of the move.”
He also suggests that customers can “politely” ask their current provider if they can waive the fee.
To bolster your confidence in choosing an electricity plan from TXU Energy, the retailer stands behind its service with a Total Satisfaction Guarantee. You can cancel your plan within 60 days without incurring an early termination fee.
Occasionally, TXU Energy will offer a welcome bonus in the form of a prepaid Visa card in increments of $25 and $50 on select plans. It also offers a Season Pass that helps you save 50% on energy costs during the most expensive times — summer and winter.
TXU Energy offers both fixed- and variable-rate plans as the basic options. You can customize your plan further by selecting a contract length of 10, 12, 24 or even 36 months in some areas. Let’s take a closer look at some of these options.
Value Edge 12 or 24 is considered TXU Energy’s budget-friendly plan. It is one of its lowest-priced plans, but only when usage levels are around 1,000 kWh.
Alongside affordable rates, you’ll enjoy a $30 bill credit applied to each billing cycle when usage levels reach or exceed 800 kWh. Additionally, 7% of the energy you receive comes from renewable sources.
TXU Energy’s Flex Rewards is a variable-rate plan with no set contract period. This plan provides 3% cash back annually, which you’ll receive as energy credits.
Access 100% solar energy day and night with TXU Energy’s Free Nights & Solar Days plan. Enjoy free energy from 8 p.m. to 5 a.m. and relief from TDU delivery charges during these hours. Contract terms start at 12 months, and participation requires a properly functioning AMS-enabled smart meter.
Simple Rate 12, 24 or 36 plans provide fixed-rate contracts spanning 12, 24 or 36 months. These plans incorporate 7% renewable energy sourcing, and rates decrease as usage increases.
This plan features 100% free EV charging at home between 7 p.m. and 12:59 p.m. every day of the week with the Free EV Miles 12 fixed-rate plan. Unlike other plans, rates are lowest when usage is at 500 kWh.
TXU Energy serves the following major cities: Houston, Dallas, Fort Worth, Killeen, Odessa and Lubbock. It also serves some or all of the following cities: Irving, Arlington, Austin, Midland and Plano.
TXU Energy holds an A+ rating and accreditation through BBB. However, its customer review score is not encouraging; the company is rated 1.1 out of 5 stars. It also received 388 complaints between March 2021 and February 2024, including a mix of billing and collection-related issues, product or service issues, and advertising, sales or delivery issues.
A common thread in negative reviews is TXU’s lack of communication around price changes on variable-rate plans. In a February 2024 review, Brian R complained that TXU provided nonsensical reasons for rate increases, even when he was away from his house and electricity usage was low. Mariah B said TXU didn’t honor the date of her contract and charged her a month after the 12-month term ended.
On Trustpilot, TXU has an overwhelmingly positive reception with a review score of 4.9 out of 5 and 93% 5-star reviews. This highlights the importance of reading multiple reputable review platforms before making a decision.
Though reviewers on BBB complained about TXU’s communication, most reviewers on Trustpilot praised it. Lorie described an informative and polite exchange that landed her a payment extension. David praised a TXU representative who spoke with him for over an hour to provide fair payment options after a faulty HVAC system caused a large spike in his electricity bill.
Overall, customers generally express satisfaction with their service from TXU Energy but may lack information regarding their rates.
Price, contract terms, incentives and customer reviews should all be considered when searching for the best electricity plan. “Some retailers offer introductory ‘teaser’ prices. Pay attention to how long those prices are locked in and to what the prices default once the introductory rate expires,” said Ramteen Sioshansi, professor and director of Carnegie Mellon Scott Institute for Energy Innovation.
Sioshansi also recommended that you pay attention to whether the prices are fixed or variable. “For instance, some retailers may offer prices that are connected to wholesale prices that appear (and normally are) low. However, if electricity supply becomes scarce and wholesale prices skyrocket, the retail prices that a customer pays may skyrocket as well. This is what happened to a number of customers during Winter Storm Uri.”
Powering your home can be costly, so consider these money-saving tips recommended by TXU Energy that can help you cut your electricity costs each month:
If you experience a power outage, contact your local TDU.
With nearly 85% of the Lone Star State fostering deregulated electricity markets, most Texans today have the power to choose their electricity provider.
To simplify the process of finding an electricity provider that is best suited for you and your family’s needs, Power To Choose lets you compare providers and energy plans. However, you must finalize your purchase on a retailer’s website. Once you settle on a provider, review your usage regularly to ensure it stays within the threshold for the lowest rates.
TXU Energy’s Weekly Snapshot email updates you on your usage. It also offers a plethora of green energy options, including the ability to include renewable energy in any plan with its GreenUp feature. For the financially motivated, TXU Energy offers payment extensions and flexible payment options for deposits.
If you have questions about plans or concerns about your bill, you can reach TXU Energy at 866-278-4898.
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