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For many years, consumers were unable to choose their own energy supplier. Each area had their own public utility company that generated and distributed electricity to consumers who lived in a particular service area. In 1999, the Federal legislation passed a deregulation bill that allowed Texas and 41 other states to go direct and choose the company that produced their energy. Deregulation allows for competition for natural gas and electricity providers in Texas therefore lowing energy costs. The consumer can choose between multiple retailers and hopefully receive cheap electricity in Texas and other areas with deregulated energy.
Before determining which utility company to choose, consumers who live in Texas must compare their options to see which electricity providers in Texas will better suit their location, lifestyle and budget. Consumers should obtain a list of all the utility companies servicing Texas from the Public Utility Commission and compare their current electric bill with the rates of other companies. Make sure to compare the current rate per kilowatt hour for each provider.
If a person wants to find cheap electricity in Texas, it is important to pay close attention to the different rates each energy company charges and how these rates are determined. If the consumer is being charged a fixed rate, that means they will be charged the same rate throughout the length of the contract. A variable rate plan changes from month to month depending on the method the electricity providers in Texas use to supply the electricity.
Read the terms and conditions of each utility company. Fees and contract lengths vary between energy providers. Some companies allow the consumer to change providers without a penalty and other companies do not. The customer should contact their current electric company and discuss the rates and terms other providers are offering and ask them if they will match or beat these rates.
Deregulating electric companies enables consumers to receive cheap electricity in Texas and other states that passed the bill. Now the consumer is better educated to make a decision which electricity providers in Texas will be the best choice for them.
Noemi Knepp is the author of this article on electric rates in Texas . Find more information, about elelectricity providers Texas here