Houston is the largest deregulated electricity market in Texas. With more than 7 million people in the metro and over 100 retail electricity providers competing for service, Houstonians have more plan choices than almost any other US market — but the abundance also means picking wrong is expensive.
Every Houston-area residential customer pays CenterPoint Energy for delivery — that part of your bill is identical no matter which retail electricity provider (REP) you pick. CenterPoint's current TDU charges run about 4.78¢/kWh plus a monthly service fee of $4.39. Together that's roughly $60 of a typical 1,000 kWh bill before you pay a penny for the actual electricity.
The actual electricity rate — the part you can control — is set by your Retail Electric Provider (REP). In Houston, the most common providers are Reliant, TXU Energy, Direct Energy, Gexa, Constellation. Switching providers takes 1-2 billing cycles and doesn't interrupt service.
Many Houston plans advertise "$100 off when you use 1,000 kWh" — but pad the energy rate to compensate. If you usually use 800 kWh or 1,200 kWh, you miss the credit and pay 30% more than a simple fixed-rate plan.
Houston summers push the entire ERCOT grid. If you're on a variable-rate plan, expect 40-60% rate spikes in August. Fixed-rate plans protect you here.
Reliant, TXU, and other major Houston REPs renew expiring fixed plans onto month-to-month rates that average 50-80% higher than market. Check your contract end date.
The fastest way: use our plan comparison tool with your ZIP code. It pulls every available plan from the Compare Power database (the same data REPs publish to the Public Utility Commission of Texas) and ranks them by what you would actually pay at your usage level.
If you don't know your usage, run the bill calculator first to estimate it, or check your last bill for the "kWh used" number.
Can I switch electricity providers in Houston? If you're in a deregulated part of Houston, yes — most of Houston can switch any time. There's no service interruption.
Does switching providers cost anything? No. Switching itself is free. If you're mid-contract on your current plan, you might owe an Early Termination Fee (typically $150-$295) to your current REP — check your contract.
How long does switching take? Usually 1-2 billing cycles (3-8 weeks). The same poles deliver your electricity throughout; only the billing entity changes.
Will my power get shut off if I switch? No. Switching is paperwork-only. CenterPoint Energy continues to deliver power without interruption.
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One quick conversation. We'll review what you're paying, find you a better rate, and handle the switch if it makes sense. No obligation, no pressure.