Where to Start Shopping for a Retail Electric Provider

According to the latest consumer price index for North Texas, prices for electricity continue to rise. From July 2021 to July 2022, prices paid for electricity jumped 47%.

If it’s time to shop for a retail electric provider, read on to learn more about where to start.

'OUR LAST BILL WAS $300 MORE THAN NORMAL'

Between the hot temperatures this summer and rising rates, Ross Hood saw the impact on his monthly electric bill.

“I think our last bill was $300 more than normal for this period of time,” Hood said.

Hood said he was paying about 9 cents per kilowatt hour earlier this year, but his contract ended.

While looking for short-term contracts in the spring, Hood said he saw rates approaching 19 cents a kilowatt hour.

“You have to wonder how the people on fixed incomes handle it, how do people who are living paycheck to paycheck handle it?” Ross told NBC 5 Responds.

'WE HAVE HAD MANY PEOPLE CALL IN TEARS'

At the Network of Community Ministries in Richardson, Cindy Shafer said the nonprofit helped 70 families pay electric bills in June and July of this year. It helped 56 in the same time period last year.

“We have had many people call in tears,” Shafer said.

This summer, Shafer said the organization has taken more than 400 calls a month from people who need help. Some were on contracts with fixed rates set a couple of years ago.

“You have people that their contract ends and it was at a fixed rate, but now it's going up to the market rate and that's shocking,” said Shafer.

NAVIGATING THE MARKET

Some of you are in electric cooperatives or get your electricity from a utility owned by your city. Others pick a retail electric provider in Texas’ deregulated market.

Tim Morstad with AARP Texas explained this hot summer combined with higher rates makes the market tougher for consumers to navigate. “Many people are experiencing sticker shock if they're looking at their contract and trying to choose for the next year or two," he said.

If you’re shopping for a plan, you can start the search on the state’s Power to Choose website.

Morstad said as you shop rates, look for other fees that could be tacked on including a fee for requesting paper bills or calling customer service.

Read the fact sheet and terms of service for each proposed plan. Pay close attention to the rate you’re getting and if there’s a minimum usage fee. In some cases, if you use less than 1,000 kilowatt hours a month or more than 2,000 kilowatt hours per month, you may pay a higher rate.

“Not too much, not too little and for some people, it’s not realistic to say that each month, month in and month out, you're going to hit this perfect band,” said Morstad.

Look at old bills and track what your home uses each month of the year and factor your typical usage into the plan you pick.

You’ll also see different rates for different contract terms and wonder if it’s worth locking in a fixed rate for 12, 24 or 36 months.

Morstad said it’s a tough call, “It's very difficult right now to predict what the electricity markets will do. Partially because we're influenced by global factors right now.”

Morstad said AARP has advocated for a standard electricity plan to make comparing companies and rates simpler for consumers.

“There are so many little nuances of how they price things, and you have to scrutinize significantly,” Hood said.

The Public Utility Commission of Texas tells NBC 5 it doesn’t create or offer electricity plans.

If a customer has a concern or complaint about their plan, they should contact their provider and if they still can’t get a resolution, consumers can contact the PUC’s customer protection division.

Complaint information about providers is also available online.

NBC 5 Responds is committed to researching your concerns and recovering your money. Our goal is to get you answers and, if possible, solutions and a resolution. Call us at 844-5RESPND (844-573-7763) or fill out our customer complaint form.