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Choosing The Best Electric Providers In Dallas

cheap electricity companies in dallas tx

Dallas electricity rates are lower than the national average, especially as every electricity provider in the area works to bring energy costs down. With average electricity rates around $0.1196, Dallas energy costs are some of the lowest in the US, and your electricity bill will be low and affordable, even if you use a lot of electricity to cool your home every summer. Every electricity provider also works hard to attract as many customers as they can by offering freebies, bill credits, and energy incentives. 

Dallas Electricity Rates

As there are hundreds of cheap electricity plans offered by dozens of energy providers working in the area, finding the right energy plan for your Dallas home can be a hassle. We did our bit and have compared energy plans for you. Here are the top twenty most popular energy plans offered by companies in Dallas: 

Energy CompanyContract TermPrice per Kilowatt-Hour
Cirro Energy60 months$0.0608 / kWh
APG&E60 months$0.0620 / kWh
APG&E48 Months$0.0651 / kWh
Cirro Energy36 Months$0.0650 / kWh
Green Mountain Energy60 Months$0.0655 / kWh
Green Mountain Energy48 Months$0.0674 / kWh
Constellation Energy48 Months$0.0675 / kWh
Gexa Energy60 Months$0.0697 / kWh
APG&E24 Months$0.0704 / kWh
TriEagle Energy36 Months$0.0705 / kWh
Green Mountain Energy24 Months$0.0742 / kWh
Constellation Energy24 Months$0.0754 / kWh
TriEagle Energy24 Months$0.0757 / kWh
Gexa Energy30 Months$0.0775 / kWh
Cirro Energy12 months$0.0782 / kWh
Constellation Energy3 months$0.0805 / kWh
Constellation Energy12 months$0.0814 / kWh
Gexa Energy24 Months$0.0819 / kWh
TriEagle Energy12 Months$0.0825 / kWh
Green Mountain Energy12 Months$0.0829 / kWh

Energy Companies in Dallas

These plans are offered by a myriad of electricity companies. When on the lookout for the cheapest electricity rates in the area, you should also pay attention to the electric companies offering these plans. Here are the seven most popular energy providers in the Dallas area:

Reliant Energy

Reliant Energy provider is a Texas-based provider delivering power plans to more than 1.5 million Texas residents. Reliant Energy is known for its support for the local community: in 2019, it donated $3.5 million to 200 community programs in Texas. With Reliant, you can get free weekends and free nights, 24/7 customer support, and can even win free electricity (5 Texans per year). 

TXU Energy

TXU Energy provider is the oldest provider in Texas, established in 1882. It has a number of plans to offer, suited for every pocket and need. TXU Energy offers home protection plans, renewable electricity rates, and iThermostat for free. 

Frontier Utilities

Frontier Utilities provider is a natural gas and light company working in Ohio, New Jersey, Pennsylvania, and Texas. It offers prepaid and no-deposit plans, a mobile app, and flexible billing. Another reason to choose Frontier Utilities is their Refer-a-friend program, where you can get $50 in credit. 

Pulse Power

The Pulse Power company focuses on a hassle-free experience that allows electricity access to everybody. The company offers free nights and weekends, 100% renewable energy plans, and a 90-day guarantee. It offers a range of home services as well as online account management and smart home solutions.  

Cirro Energy

Cirro Energy provider is a Dallas-Fort Worth-based Texas company. Established in 2001, it serves over 150,000 customers. Owned by NRG Energy, Cirro Energy offers home solutions, electric-line protect, and surge protect in case of storms or network instability. 

Green Mountain Energy

Founded in Vermont in 1997, Green Mountain Energy now serves customers in Texas, Pennsylvania, New Jersey, New York, and other states. The company offers 100% renewable plans, mostly from solar and hydro, and boasts of its positive impact on the environment. With Green Mountain Energy, you can get a smart lighting kit, smart sprinkler controller and can even join local solar projects. 

AP Gas & Electric (APG&E)

AP Gas & Electric focuses on long-term cooperation with their customers. AP Gas & Electric was established in 2004 as a private business venture and has since managed to expand and serve thousands of Texas households. They offer both residential and commercial energy plans. 

Types of Dallas Energy Plans

Yet another factor to consider when purchasing your new energy plan is the type of the plan itself. Plans can be fixed-rate, variable-rate plans, as well as no-deposit, green electricity, and business energy plans. Here is what they all mean and what perks each type of energy plan can offer to you: 

Fixed-Rate Plans

Energy providers always offer cheap electricity in the form of fixed-rate plans. These plans lock in your energy rate for the duration of the contract, so it does not change. This way, Dallas electricity providers can protect their customers and avoid any unpleasant surprises. This is the type of plan we recommend. 

Variable-Rate Plans

Variable-rate plans offer a variable energy rate. This type of energy rate fluctuates with the fluctuations in the wholesale market. Cheap electricity is available during the winter period, while the energy costs rise during the summer when everybody turns on their A/C. Depending on your electricity usage, this may be the best energy plan for you, although we do not recommend it

No-deposit Plans

Any energy plan can be a no-deposit plan as well, for as long as your credit score is high enough. For those who are not lucky to have a credit score of 850 and would not like to pay a pricey deposit, there are other options, such as prepaid energy plans and pay-as-you-go energy plans. Beware, and only use these plans for a short time, as your electricity costs could skyrocket since energy rates in these plans are not so low. 

Green Electricity Plans

Green energy plans are also known as Renewable Energy plans. Through green energy plans, electric companies offer renewable energy at affordable rates. Generally, the longer the contract term, the lower the price of electricity per kWh. You should choose this type of energy plan if you would like to work together with electric companies to help climate change mitigation and further investments into renewables. 

Business Energy Plans

If you are a small business owner and would like to establish your business in Dallas, Texas, you’re in the right spot. Dallas electric companies offer some of the cheapest electricity rates for their commercial customers, up to 30% lower than the national average. You can find out about what electricity rates in Dallas you can get by calling your electricity provider and asking for a custom rate. 

What Does Dallas’ Energy Plan Look Like?

Now that we have decided on the best electricity company, electricity rates that go with your budget, as well as the type of electricity plans you would like to browse, it is time to take a look at some more important factors to consider. These include the contract term or length, freebies, renewable energy percentage, and whether the electric rate is bundled or not. To find cheap electricity for your home, consider all of the following: 

Length

The contract term usually determines the energy rate in your electricity plan. Generally speaking, energy plan contract terms are anywhere between 1-60 months. The longer the term, the lower the price of your electricity. If you are choosing a fixed-rate plan, always check if your energy rate will stay locked in for the duration of the contract and not be changed annually

Freebies

Many electric companies try to provide energy efficiency advice and help save money for you. If you know what your electricity usage is like and when you use the most electricity, you should be looking for an energy plan that includes free weekends or nights. Some companies allow you to combine freebies and solar days, so you’re sure you’re doing your bit for nature. 

Renewable

Green energy percentage is making a big comeback in the Texas energy market. Today, almost every electricity plan includes at least a percentage of renewable energy. You can find this type of information on the Electricity Facts Label that your electric company can provide you with. 

Bundled

Bundled energy plans are a great type of plan since the prices they show are the prices you pay. If you have no time for the hassle, this is the type of plan for you. The energy rates seem much higher, but remember, this is only because your electric company takes all the ‘per kWh’ costs and presents them to you in the form of a single energy rate. 

Factors That Affects Electricity Rates

As you may have noticed, all energy plans offered by energy companies in Dallas offer electricity at a different rate. In many of these cases, the energy rate is not fixed, as it changes throughout the day or the year. Finding the cheapest electricity just got a bit more complex. However, if you understand the factors that affect electricity rates, you will be able to protect yourself and save money in doing so. Let’s have a look at the factors that affect your electricity bills the most. 

Fuels

Fuels are burned in power plants to generate electricity. The electricity is generated in turbines, which are spun by steam. To get the steam, power plants burn fuels such as coal, natural gas, or biomass. As the prices of these fuels fluctuate in the wholesale market, so does the electricity rate you pay with your electricity plan. 

Power Plant Prices

Energy is always generated in power plants. There are several types of plants: 

  • Hydropower plants
  • Thermal Plants, and 
  • Nuclear power plants (currently in the phase-out throughout the states). 

These plants can cost billions to build and millions to run and maintain. 

Transmission and Distribution Area System

Your transmission and distribution area system also costs money to run and maintain. This system, called the power grid, for short, ensures that your electricity is delivered to you with the cheapest Dallas electricity rate possible. The money you pay to the utility company is the money used to run and maintain this vast network. 

Area Regulations

Local area regulations also have a say in how much electric companies can charge you. While they do not have a complete say in the price of electricity, they still do control the transmission and distribution prices, even in a deregulated energy market. Observatory bodies are there to ensure your utility company does not overcharge you. 

Weather Conditions

Weather conditions also have a say on the electricity rates in Dallas. Cold and hot weather increase power consumption, driving the prices up. Likewise, that same weather can decrease production by reducing the efficiency of power plants themselves or obstructing their fuel delivery lines. 

How To Calculate Dallas Electricity Rates?

As you may have noticed, there are several fields in your bill for the used electricity in Dallas. Even if you are with the best energy provider in Texas, you can still find yourself wondering what all those charges are for. Here is an example. 

You spend 1,200 kWh per month. You decide to go with the second tier for your favorite electric plan in Dallas. For the sake of example, let’s consider the following prices: 

Tier 1: 1,000 kWh/month @ $0.092

Tier 2: 1,001-2,000 kWh/month @ $0.083 

Tier 3: 2,000 + kWh/month @$0.075

So if you spend 1,200 kWh/month, you will pay the first 1,000 kWh at the price of $0.092 and the remaining 200 kWh at the rate of $0.083. On top of this, you will also have to pay the transmission fees (for the sake of example @ 0.0235 / kWh) and two fixed charges: 

  • Basic Charge – usually less than $10, this is a recurring charge that is fixed, and 
  • TDU Electric Delivery Charge – usually less than $5, has to be paid every month, is fixed as well. 

What are Retail Electricity Providers?

Retail Electricity Providers are electric companies. These companies buy power in bulk on the wholesale market and later on sell it to you at a small profit. These electricity companies also ensure that you always get a cheap electricity rate, as they increase competition in the market. A lot of competition means a low electric bill and cheap electricity rates for Dallas residents. 

How To Choose the Best Dallas Energy Provider?

Dallas electric companies charge very different rates with their electric plans. Although we all use the same electricity, the cheapest electric company does not always mean the best affordable electricity. Sometimes, a bit pricier electric company may offer better customer support, more freebies, or even a better payment system and online platform. Understand your energy needs before making your final decision. 

How To Change Your Electricity Provider?

If you would like to change your electricity provider, you should first use Electricrate to see which cheap electric companies work in your area. Bear in mind that energy prices depend on energy usage and energy demand, so always browse for a new provider during winter, when energy prices are at their lowest. Electric plans can be much cheaper then. 

Once you’ve decided on the residential electricity plan and power provider, you would like to work with, contact your existing provider and see if they can match the price. If no, contact the new provider to check if the cheap electricity rate comes with any hidden costs or a high early termination fee. If you are satisfied with what you hear, apply for a new energy rate and let the new provider take care of the paperwork. 

Dallas Tier Pricing: How Does It Work?

Electricity rates in Dallas are very low. This means that you can get the most value (in kWh) for every dollar you spend on your electric bill. However, to make sure you do not overspend on electricity, you should understand that electricity plans in the area come with tiers of energy use. There are three tiers: up to 1,000 kWh/month, 1,001-2,000 kWh a month and 2,000 kWh/month. Choosing the right tier will save you hundreds of dollars a year. 

In these tiers, you spend the energy (in 1,000 kWh increments) as you normally would. Each upcoming tier offers cheaper electricity rates, while the third tier calculates your energy use per kWh and charges accordingly. Never choose a higher tier than you actually need since you will have to pay that extra power when you may not even need to use it. 

About Dallas

texas energy rates comparison

Dallas is the county seat in Dallas County, Texas. The city has a population of over 1.3 million and is known for its architecture and amazing life opportunities. As one of the cities with the cheapest electricity in the US, it also enjoys a humid subtropical climate with a lot of sunny hours every year, perfect for a solar panel array and quick energy independence. 

Popular ZIP Codes

If you are considering moving to Dallas, you will be glad to find out that the city offers perfect chances for young entrepreneurs, as well as those who would like to enjoy a beautiful climate. Some of the Dallas neighborhoods are more attractive to newcomers than others. Here are a few of those: 

PlaceZip Code
The Uptown Area75201, 75202, 75204, 75207
The Deep Ellum75226
Bishop Arts District 75208
Lakewood 75206 and 75214
Bluffview 75209, 75220, 75235

Living and Moving to Dallas

If you would like to move to Dallas, you can expect affordable pricing, affordable housing, as well as a perfect climate for you. The Dallas-Fort Worth area is full of opportunities for those who would like to start a career. At the same time, it also offers quiet spots and small nearby towns for all those who would like to lead a more secluded life. 

FAQs

What is the cheapest energy in Texas?

Frontier Utilities and Express Energy offer the cheapest energy in Texas. Their lowest nominal electric rates start at $0.075 and $0.076, respectively. This means that you can purchase very affordable electricity. However, if you plan on living in Texas for a short while, pay attention to the early termination fee: these may be high with some companies. 

Who is the best electric company in Texas?

Reliant Energy is considered to be the best electric company in Texas. This is due to their innovative solution and a large market cap. However, some customers say that TXU is the best electric company due to its great reputation and a long time in the market (since 1882). 

Is Reliant a good energy company?

Yes, Reliant is an excellent energy company. It serves more than 1.5 million Texans. Reliant Energy also gives back to the community, mostly in the form of donations. In 2019 alone, Reliant has donated more than $3.5 million to different Texas causes and community programs. 

Is TXU free nights a good deal?

Yes, TXU free nights are a great deal, especially if you use a lot of electricity during the night. This is simply a measure that many providers use to iron out or even the power consumption during the day and the night. For this reason, many companies allow lower electric prices or even free electricity at night. 

Conclusion

Dallas electricity seems to never have been cheaper. Dallas electricity plans are numerous, green energy options abundant, and cancellation fees low. Choosing Dallas as the place to move to is also encouraged by the low average cost of living and an independent marketplace that will ensure reliable electricity supply by your electric provider. If you are considering moving to Dallas, you are on the right track. 

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