Taking Control of Your Energy in Texas

Did you know you have the power to choose who provides your electricity in Texas? That’s right—instead of sticking with a single provider, Texas’s deregulated market allows you to pick the electricity company and plan that best fits your needs and budget. But with so many choices out there, finding the right plan can sometimes feel overwhelming. We’re here to break it all down and help you understand everything you need to know about navigating Texas’s electric market with confidence.

Understanding

Texas Electric Choice and Your Power to Choose

In Texas, deregulation means more than just another bill to pay—it’s a way for you to decide who provides your electricity. Texas opened up much of its electricity market to competition in 2002, which means in deregulated areas, you get to shop around and choose from various electricity providers, like Fanfare Energy. This choice creates healthy competition, encouraging providers to offer better rates, rewards, and customer service.
Deregulation applies to most of Texas, including cities like Houston, Dallas, and Corpus Christi, but not everywhere. Municipal utilities and electric cooperatives aren’t inc

Know How to Shop
for Electricity

Shopping for an electricity plan might sound complicated, but with a few simple steps, you can make a smart choice that suits your household’s needs. Here’s how to get started:

Identify Your Energy Needs:

Look at your previous electricity bills to see your average monthly usage. Plans often have different rates for high and low usage, so knowing your usage can help you pick the right plan.

Compare Prices

Don’t just focus on the advertised rate; be sure to look at the full cost. Some plans have low rates but include extra fees, so it’s essential to read the fine print.

Look for Extras:

Many providers offer perks, like bill credits, rewards programs, or green energy options. Find a plan that gives you more of what you want!

Read the Contract:

Make sure you understand the length of the plan, any cancellation fees, and what happens at the end of the contract term

Familiarize Yourself with EFLs:

See below

Understanding
Electricity Facts Labels (EFLs)

When shopping for an electricity plan in Texas, you’ll come across something called an Electricity Facts Label (EFL). Think of the EFL as a cheat sheet for understanding exactly what’s included in a plan—it gives you all the essential details so you can make a confident, informed choice. Here’s what you need to know about reading and understanding EFLs:

What’s in an EFL?

An EFL is a standardized document that breaks down the key parts of an electricity plan, including:

Price per Kilowatt-Hour (kWh):

This section outlines how much you’ll pay for electricity based on your usage. Often, EFLs will show prices for different usage levels, like 500, 1,000, and 2,000 kWh. Keep in mind that the rate can vary based on your actual monthly usage.

Monthly Fees:

Some plans have a base charge or monthly fee, which is included in the EFL. Be sure to check if this fee applies, as it can affect your overall cost.

Contract Term:

This section lets you know how long you’ll be locked into a plan. Contract terms can vary from month-to-month plans to longer commitments, like 12, 24, or even 36 months.

Early Termination Fee:

If you’re considering a longer contract, take a look at the early termination fee. This fee applies if you cancel your plan before the end of the term, so knowing the cost upfront is helpful.

Renewable Energy Content:

Want a greener option? The EFL will specify the percentage of renewable energy included in the plan, making it easy to pick a plan that aligns with your environmental values.

Why the EFL Matters

The EFL gives you a clear picture of what you’re signing up for, so there are no surprises. By comparing EFLs across providers, you can make an apples-to-apples comparison of costs, fees, and other plan details, helping you find the plan that best fits your needs and budget.

When you’re ready to choose a plan, checking the EFL is one of the best ways to understand exactly what you’re getting and avoid any hidden fees. At Fanfare, we’re here to make the process simple and clear, so you can feel great about your choice!

Electricity Plan Types

Choosing the right electricity plan can make a big difference in both your costs and peace of mind. Here are the main types of plans available:

Fixed-Rate Plans:

With a fixed-rate plan, the rate you pay per kilowatt-hour (kWh) remains the same for the entire contract period. This type of plan is ideal if you like stability in your budget and don’t want to worry about seasonal rate fluctuations.

Variable-Rate Plans:

These plans don’t lock in a rate, so the price per kWh can vary month to month, often based on market prices. Variable-rate plans can be a good option if you’re comfortable with some flexibility and don’t want to commit to a long-term contract.

Indexed Plans:

An indexed plan has a rate tied to a specific pricing formula, often based on wholesale electricity prices. While they can offer competitive rates, they’re best suited for those who are well-informed and comfortable with changes in monthly rates.

The Key Players

in the Texas Electric Market

Understanding who does what in the Texas electricity market can help you make better decisions as a customer. Here are the main players and their roles:

Retail Electric Providers (REPs):

These companies, like Fanfare Energy, are the ones you’ll choose from for your electricity plan. REPs purchase electricity from generators and sell it to customers. When picking a REP, consider factors like rates, customer service, rewards programs, and contract terms.

Transmission and Distribution Utilities (TDUs):

TDUs own and maintain the infrastructure—power lines, poles, and meters—that carry electricity to homes and businesses. Although you don’t select your TDU (it’s based on where you live), you’ll see their charges on your bill for grid upkeep and reliability.

Electric Generators:

Generators produce electricity at power plants and then sell it into the Texas market. These facilities can use natural gas, coal, nuclear power, wind, and solar to produce electricity. Generators supply power to the grid, but you won’t interact with them directly—they sell to REPs who then deliver the service to customers.

Public Utility Commission of Texas (PUCT):

The PUCT regulates the Texas electricity market and ensures companies follow state rules to protect consumers. They monitor REPs and TDUs, handle complaints, and ensure transparency and fairness in the market. The PUCT also oversees the Power to Choose website, where Texans can compare available electricity plans.

Electric Reliability Council of Texas (ERCOT):

ERCOT is responsible for operating the state’s power grid. They balance supply and demand in real time to keep the grid stable and reliable. ERCOT also coordinates with generators, REPs, and TDUs to ensure power flows smoothly across Texas.

What Areas of Texas Have Electric Choice?

In Texas, electric choice is available in deregulated areas across much of the state, giving millions of Texans the freedom to pick their electricity provider. Here’s a quick look at where Texans can take advantage of this choice and where local providers remain the default option.

Deregulated Areas:

Most major metropolitan areas and surrounding regions fall under deregulation, meaning residents and businesses can shop for electricity plans from a variety of providers. Key deregulated cities and regions include:

Houston
Dallas
Fort Worth
Arlington
Abilene
Corpus Christi
Waco
Lubbock
Midland
Plano
Frisco
Katy
Sugar Land
Pasadena
Cypress
Spring
Odessa
Irving

And many more

Regulated Areas:

Not all Texans have electric choice. Certain cities and regions are served by municipal utilities or electric cooperatives that operate independently. For example, Austin, San Antonio, El Paso, and Beaumont don’t participate in the deregulated market, meaning residents in those areas will use the local utility for electricity services.

Texas’s deregulated market empowers those living in eligible areas with choice and flexibility. If you’re in a deregulated area, providers like Fanfare Energy are here to help you find the perfect plan that meets your needs and budget, with options that go beyond what a single utility might offer.

Power to Choose FAQs

How do I know if I live in a deregulated area?

You can check online the Fanfare website. Just enter a zip code to find out if we offer service in your area.

How long does it take to switch providers?

Switching usually takes a few days to process, and your service won’t be interrupted. If you’re moving, you can set your switch date to line up with your move-in day.

Do I have to inform my old provider when I switch?

No, your new provider will handle the transition with your current one. They’ll take care of all the details, making it hassle-free for you.

Will my electricity be affected during the switch?

Not at all! The actual power comes through the TDU, so switching REPs doesn’t impact your service.

Can I change plans if I’m unhappy with my choice?

You can, but watch out for early termination fees on long-term contracts. Some providers, like Fanfare, offer shorter contract options for added flexibility.

How often can I switch providers?

You can switch at the end of your contract or earlier if you’re willing to pay any cancellation fees. However, it’s usually best to wait until your current contract ends.