Because summer heat is driving heavier air-conditioning use across Texas, more attention is returning to one potential way to save money.
As BNO News broke down, the state's Power to Choose marketplace provides a unique landscape wherein many households can compare electricity plans and change providers while keeping the same delivery wires.
What's happening?
A 2002 market overhaul separated retail electricity sales from power delivery in Texas and led to the state's comparison site, Power to Choose, according to the Public Utility Commission of Texas. Texas is one of several U.S. states where residents can shop for retail electricity plans instead of buying power from a default provider.
That means customers in eligible areas choose a provider for rates and contract terms, while a transmission and distribution utility continues to handle delivery infrastructure and outage response, as BNO News described.
The Electric Reliability Council of Texas, which oversees power movement across roughly 90% of the Lone Star State for more than 26 million people, runs the wholesale market but does not handle customer billing. Texas' deregulated market includes over 100 licensed providers, according to ElectricRates.org.
Still, not every household can take part, BNO News pointed out. Customers served by municipal utilities or electric cooperatives are generally outside the system unless their provider chooses to opt in.
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Some plans can appear cheaper than they really are, the outlet reported. PUCT data shows billing complaints make up about 48% of cases involving Texas electricity providers. Texas' average home rate in March 2025 was about 16.01 cents per kilowatt-hour, per PowerOutage.us.
Why does it matter?
Summer raises the stakes because heavy air-conditioning use can stress the ERCOT grid while also pushing monthly household electricity bills higher, BNO News said. Even small differences in rate structure, base fees, or usage rules can have an outsize effect when home electricity use climbs.
KPRC 2 reported that some households might trim $650 to $1,200 a year by moving to a different plan.
Texas regulators are also dealing with rising demand from major users, including data centers and cryptocurrency miners, adding pressure to an already closely watched power system.
Renewables provided 40.2% of ERCOT electricity in the second quarter of 2025, according to the Institute for Energy Economics and Financial Analysis, and many retail plans let customers choose 100% renewable options.
What can I do?
If you live in a deregulated part of Texas, BNO News advised starting with the Power to Choose website and comparing more than advertised rates.
An important document is the electricity facts label, which lays out a provider's prices at usage levels such as 500, 1,000, and 2,000 kilowatt-hours along with fees and renewable content.
It also helps to decide whether you want a fixed-rate or variable-rate plan. Fixed plans offer predictability during high-demand months, while variable plans can shift with market conditions.
Contract length matters too, especially for renters or anyone who may move before a term ends. Consumers should also watch for base charges, minimum usage rules, early termination fees, and utility delivery charges.
Switching providers does not require any physical change at home. Your local utility still delivers power and responds to outages, so a move is about finding a better deal.
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