There are over 40 energy companies supplying retail electricity service in the Dallas area, with plan terms ranging from 3 month terms to 5 years and rates from 5 cents to 44 cents per kWh. The amount of choices, plan types, rates, and energy types is overwhelming. It is worth it to take a few minutes to get a better understanding of how these markets work and how you can get the best energy rate for your dollar.
[[widget|toc]]Texas deregulated the retail electricity market in 1999. Over the last three years, 12 month fixed rate energy prices have ranged from .08 to .10 per kWh on average. Depending on your usage those prices could swing your annual bill by $200 to $500 dollars or more. So it pays to compare, and shop for a low rate. The electricity energy market is volatile, just like the oil and naturdal gas markets, so timing can also play a role in how low or how high your rate can go.
Generation companies - generate power for you home using, natural gas, coal, hydro, nuclear, solar and wind energy. They sell the energy to retailers who in turn bill you for your usage. The energy produced is transmitted via TDSP (trans dist) companies. The major generation companies supplying the Dallas market are: Luminant Energy, Tenaska Energy, and Panda Power.
The Dallas electricity utility company is Oncor. Oncor is a TDSP; a Transmission and Distribution Service Provider. They maintain the poles, wires and electricity distribution system. Oncor owns the meter at your home or business, they read your meter remotely (if it's a smart meter), maintain the poles and wire to and from your house, and restore power when there's a storm or blackout. Oncor charges are included in your electricity bill. Learn more about Dallas Utility Company charges.
Retail Electricity Companies provide your electricity, get your power turned on, and bill you for your usage. They buy energy from generation companies and wholesale markets (ERCOT), and then re-sell the electricity to customers. Retailers buy blocks of power, and blocks of future power (called "strips") via hedges. Hedges keep the price stable and provide generators with stable predictable energy demand.
The easiest way is to look at your electricity bill or log on to your Dallas energy company's "my account" section to view your usage and previous bills.
The first step to get a great electricity rate is to understand your usage. If you use a lot of . . . .
Home Size - Square Feet |
Central AC Units |
Base Usage |
500-1500 |
1 |
500 kWh |
1501-2500 |
1- 2 |
1000 kWh |
2500+ |
2 or more |
2000 kWh |
Simple rule of thumb: $100 for every 1000 square feet.
Credit Score |
FICO Score |
Deposit |
Good-Excellent |
650+ |
$0 |
Fair |
550-649 |
$175-$400 |
Bad |
350-549 |
$175-$400 |
Lack of credit is one of the main reasons that customers are not able to switch or turn on their electricity service. Before you sign up, check your credit score via Credit Karma or through a free credit rating service. Also, keep in mind that most Energy Companies use "Utility Credit Scores." These are based on your wireless, internet and previous utility payment history, so, if you've never had a cell phone, cable, or utility bill you may have a low "Utility Score" while you may have a high "FICO" credit score. Most Dallas Energy Companies will accept a letter from a previous electricity supplier or utility that states that your account was paid on time, and extend credit based on those terms.
Utility |
Service |
Electricity Delivery |
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Dallas Natural Gas Service |
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High Speed Internet and Entertainment Services |
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| Comcast | High Speed Internet and Entertainment Services |