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Deregulation Gives You the Power to Choose

Before you buy your next electricity plan, it’s important to understand deregulation. After all, deregulation is the reason you’re able to shop for electricity companies. Because energy providers in deregulated markets are forced to compete with one another for your business, you can compare offerings and potentially save money in the long run.

For many years, the supply and delivery of energy was controlled by a single local utility provider. While this was a convenient system, local utilities were the only option in the market.

In the 1990s, deregulation began picking up steam across the country. States unbundled utilities’ responsibilities of both generating and delivering energy and allowed retail electricity companies to enter the market and offer competitive rates. In a deregulated market, electricity companies purchase wholesale electricity and create rate plans, while local utilities take care of the delivery of electricity. So no matter what electricity provider you choose, your utility will still maintain your power lines and help you during a power outage.

Take advantage of electricity choices

Deregulation allows you to choose from a number of plans and providers to find a rate that fits your budget and energy needs. Whether you’re looking for price protection, the lowest rate available or a renewable energy plan, thanks to deregulation you have lots of options.

Today more than half the states in America have deregulated some part of their energy market for residents and businesses. Depending on where you live, you may have the power to choose your electricity, natural gas or both!

Electricity choices give businesses an edge

Every decision impacts a business’ bottom line, and any opportunity to cut costs and increase margins shouldn’t be overlooked. Because of deregulation, businesses in some states can compare electricity companies and find rates that make financial and energy sense, giving them a potential advantage over states that do not give businesses the power to choose.

Even though finding the lowest possible rate is usually a key feature while shopping for local electricity, you should consider a few other factors before purchasing a plan.

  • Contract length: Electricity plans can vary in contract length from one month to several years, so it is important to find a plan that fits your business model.
  • Rate type: The two most common rates customers can get are fixed and variable. A fixed-rate plan offers a flat per kilowatt-hour rate for the entirety of your contract, giving you sustained price protection. A variable-rate plan fluctuates alongside the electricity market, which can result in either a lower or higher rate than a comparable fixed-rate plan. However, variable-rate plans may allow you to switch to a fixed-rate plan at any time, giving you some flexibility in case of a market spike.
  • Renewable energy mix: Offsetting some or all of your electricity with a green energy product reduces your carbon footprint and America’s dependence on foreign oil. In addition, many electricity companies purchase their renewable energy from nearby dams, wind farms or solar farms, so you’ll also be able to support local job growth.

If you live or work in a deregulated area, don’t wait any longer to take advantage of your electricity choices. Now that you have a better idea of the different options available for your home or business, taking advantage of your power to choose and finding the right electricity plan is easy. Call in today to see if you can save!

Disclaimer: is operated by Just Ventures LP and is not affiliated with Power To Choose,, or the Public Utility Commission of Texas (PUCT). 

 Updated: 7-14-2015