Are You Being Overcharged for Electricity?

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“On average, residential electricity rates have increased by greater percentages in deregulated states than they have in regulated states. And, among deregulated states, nowhere has it increased by a greater percentage than it has in Texas. A review of federal data shows that since 1999, electricity prices for residential users have increased by more than 64% in Texas. [1]

The abuses of the wholesale market may lie beyond one customer’s means, but the customer can shop the less-than-perfect system for lower prices.

  • Most Texans can change their retail electric provider. Check www.powertochoose.org to see if you have the ability to switch. Retail Electric Providers just package services for sale. (The actual delivery and maintenance of poles, wires, meters, restoration of service doesn’t depend at all on who you chose as your “Retail Electric Provider”). Customers in the deregulated market, which covers more than 70% of Texas, always have the ability to switch companies at any time. [2]
  • Study your electric bill. Call for an explanation of all the charges on your bill, and what you are paying per kilowatt hour (kWh). Find out what the rate is at various levels of usage so you can compare. For example, what is the rate at 1000 kWh?
  • Find out the details of your current deal with your provider. Download the Shopping for Electricity Checklist to help you ask the right questions.
  • Comparison Shop. Go on line to www.powertochose.org to check prices and deals. If you have time, watch rates for a few weeks, or longer.
  • Don’t be afraid to switch providers. Switch over to the best-priced or best-for-other reason provider. Keep a copy of all documents and information you used in your decision. Remember: the actual delivery and maintenance of poles, wires, meters, restoration of service do not depend at all on who you chose as your “Retail Electric Provider”.
  • Know Your Rights. Study the Consumer Fact Sheets provided by the Public Utilities Commission http://www.puc.state.tx.us/ocp/facts.cfm
  • Conserve where and when you can afford. Download our list of ideas that Barbara Ann has used in her own home and other great ideas to conserve energy at your home.
  • Read more about Barbara Ann’s plan to protect Texas energy consumers.



[1] “The History of Electric Deregulation in Texas: The unfulfilled Promise of Utility Restructing” A Special Research Project by Cities Aggregation Power Project, Inc. [CAPP] at p. 6.
[2] This is subject to cancellation fees for some contracts. Make sure to inquire from your current provider if you will be assessed a cancellation fee. Though some cancellation fees may appear to be substantial, a more favorable rate can sometimes make up for the costs and result in a net savings.