There are few things in Texas that are as big or confusing as the energy and electricity market. Technically, electricity is a form of energy, which makes matters even more confusing because the terms get used interchangeably. As a result, energy providers can refer to the companies that create electricity, those that distribute electricity, or those that sell electricity. Because of how confusing things can get, this article will serve as a guide on how to break them down.
- What is an Energy Provider?
- What are Different Types of Energy Providers?
- Which Energy Provider has the cheapest rates?
- How Many Energy Providers are There in Texas?
- How do I Choose the Best Energy Provider for Me?
What is an Energy Provider?
In simple terms, energy providers are companies or corporations that provide energy and electricity to homes and businesses. This can include retail electric providers, gas and oil companies, utility companies, and power generators. All in all, there are more than 1,000 different energy providers in Texas, and many of them serve in different capacities.
In Texas, most energy providers sell either gas or electricity but rarely do companies sell them both. A few of the larger retail electric providers have ties to gas companies, but they typically only sell electricity. GoodCharlie Energy is an example of a REP that only sells electricity.
What are Different Types of Energy Providers?
Power Generators of All Sorts
Many people know that electricity doesn’t just magically appear, but they also have no idea where it comes from. They simply flip a light switch or turn on their TV and automatically expect something to happen. Electricity isn’t something that you can find in a natural state in nature and immediately use it in your home. Instead, you have to create it out of something.
That’s where power generators come into play. Power generators are energy providers that create electricity out of either fossil fuels or renewable resources. This category of energy providers includes gas and oil companies, nuclear power plants, wind farms, hydroelectric plants, and solar companies. While each of these entities uses a different resource to create electricity, they all have the same end goal.
While power generators are energy providers that create electricity initially, they aren’t the ones that you purchase it from. They also aren’t the companies that you pay your monthly energy bill to, or that you have to worry about enrolling in an electricity plan with.
Electricity Delivery Services
The second type of energy providers in Texas are transmission and distribution utility companies. As with power generators, you don’t have to worry about choosing your TDU or paying them on a monthly basis. However, while you don’t pay them directly, a portion of your monthly electricity bill goes to them.
TDUs are in charge of all the different components that make it possible for electricity to make it to your home safe and sound including:
- Electric poles and power lines
- Underground cables and conduit lines
- The electric meters attached to your house or apartment
- Restoring your power after an outage
Retail Electric Providers
While TDUs and power generators play an integral role in delivering electricity to your home, retail electric providers are the only energy providers you need to worry about. Retail electric providers, or REPs for short, are energy companies that purchase electricity from power generators and resell it to residential and business customers throughout Texas.
They can do this thanks to deregulation, which effectively turned the electricity market in Texas into a competitive business. REPs purchase electricity from power generators of all sorts and work in conjunction with TDUs to ensure it makes its way to your home. While you are responsible for choosing your REP, your REP will choose who they purchase electricity from and work with whichever utility company operates in your area.
Which Energy Provider has the cheapest rates?
Because of how volatile the electricity market in Texas is, it’s tough to say who has the cheapest electricity rates. Instead of looking for energy providers with the lowest rates, look for companies that have plans that fit your lifestyle. You should also look for a company with a plan that fits your electricity usage.
Understanding usage is important because most electricity plans have tiered rates that vary according to how much electricity you use. In other words, the rate you pay for using 500 kWh of electricity will usually be very different from the rate you pay for using 1,000 or 2,000 kWh. For that reason, it’s important to choose your energy provider based on how much electricity you plan to use on a monthly basis.
Why are There so Many Energy Providers in Texas?
The main reason for the vast amount of energy providers that sell electricity in Texas is because of deregulation. However, the reason there are so many energy providers outside of REPs is because of how big and lucrative Texas is. There are lots of flat, wide open spaces, which are perfect for wind farms, and solar companies.
The ground in Texas is also rife with fossil fuels and natural resources. In terms of creation and distribution, Texas produces more oil and natural gas than any other state in the country. Because of the combination of a competitive electricity market, wide open spaces, and seemingly unlimited natural resources, Texas is the perfect state for all types of energy providers.
How do I Choose the Best Energy Provider for Me?
As with most things, the best electricity prices are typically offered by the best companies, which are REPs with your interests in mind rather than just their own. GoodCharlie Energy is one of those few companies. While we might be a new REP, we have years of experience in the world of Texas electricity. We also have the mission of looking out, not just for you but for every member of your household, including your dogs.
In fact, we offer our customers a pet emergency fund, 24/7 vet video access, and a promise to support local shelters. Our goal is to provide you with the best electricity rates and service in Texas and make sure that dogs in Texas are safe and cared for. If you want the best electricity rates in Texas and care about dogs as much as we do, look no further than GoodCharlie Energy.
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