Dallas Electricity Rates and Plans (May 2024)

Here at EcoWatch, we strive for a more sustainable planet and encourage our readers to do their part when feasible. As such, we’ve chosen to highlight some of the best electric companies in Dallas that offer 100% renewable energy. The cheapest electricity plan in Dallas is “Gexa Eco Saver Plus 12” from Gexa Energy, which has per-kWh rates of just 11.3 cents. The chart below shows renewable energy plans and prices available throughout the Dallas area. 

*Rates will vary based on your TDU. You’ll see the above rates if your TDU is CenterPoint Energy. These rates include the utility’s current charge of $0.04 cents per kWh. Rates are according to Texas’ Public Utilities Commission and are subject to change.¹

On average, a non-renewable plan might cost around 1 cent per kWh less than a clean energy plan. If you use 1,000 kWh per month, that will be about a $10 difference. If you’re outside of Dallas, you can check out this page for electricity rates around Texas.

How to Choose the Best Electricity Plan in Dallas

When searching for the best electricity rates in Dallas, keep in mind that rates and the average cost of electricity can vary based on numerous factors, so you may be given a different electric rate than that of your neighbors. Here are a few things to consider:

Types of Electricity Plans in Dallas

When choosing an energy provider in Dallas, you’ll be presented with a few plan options. Here’s an overview of the types of electric plans offered in Dallas, as well as their pros and cons, so you can pick which plan works best for you.

Fixed-Rate vs Variable-Rate Plans

Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout the entire duration of your contract. Note that “fixed rate” does not mean that your electric bill will be exactly the same every month. Instead, it means the rate you pay per kilowatt-hour (kWh) of electricity won’t change. So, your bills will still be higher during months you use more electricity.

If you prefer paying month-to-month instead of being locked into a length-based contract, you may consider a variable-rate electric plan. Variable rate means — you guessed it — the price you pay is based on variables in the energy market. The price per kWh will increase or decrease depending on supply and demand. We saw the biggest risk of the variable-rate plan during the winter storm of February 2021, when millions were in the dark due to a massive power outage. Texans who kept their lights on paid the price, with at least one customer facing an electric bill over $16,700.² Texas power companies were reportedly overcharged $16 billion dollars by the electric grid operator.

Green Energy Plans

Green energy plans are those that supply electricity from renewable energy sources. That’s going to be primarily wind and solar energy in Texas.7

Some REPs may have Green-e Verification or a similar certification to ensure that the electricity is responsibly generated, transmitted and distributed. Non-green energy plans, at least in Texas, rarely meet 25% of their total energy from renewable sources.³ Most green energy REPs will still offer variable- and fixed-rate plan options; the main difference is where their energy comes from.

Your Energy Usage

The amount of electricity your household consumes may affect the rate you pay per kWh. Most REPs offer tiered plans based on average energy usage. Tiered-rate energy plans are often called “V-shaped plans” because the rates are more expensive for people who use the least and most amounts of energy and are lowest for those in the middle.

For example, in a typical tiered plan, customers who use around 500 kWh or 2,000 kWh per month will pay more than those who use around 1,000 kWh per month. According to Oncor, the average customer uses 1,300 kWh per month.⁴

Contract Length

The length of the contract will also play a factor in the cost of your electricity. As with most things, the longer you commit to one provider, the better deal you’ll get. We’ll discuss the different types of electricity plans in the next section.

A word of caution: Read the fine print and ask questions before you sign. Many contracts come with startup fees as well as cancellation fees for early termination. And while some Dallas electricity providers advertise a $10 cancellation fee, the fine print may read that it’s really $10 per month left on the contract.

Electricity Facts Label

When shopping for energy, always ask for a provider’s Electricity Facts Label (EFL). Similar to a nutrition label you see on your favorite snacks, an EFL will give you all of the information about a company’s electricity prices, contract lengths and terms, sources of generation, and emission levels.⁵Here’s an example of what that’ll look like:

Watchouts

There are some scams that are prevalent in areas where energy markets are deregulated, including Dallas. Some homeowners have reported people pretending to be representatives of local electric companies calling to demand immediate payment for past-due bills and even going door-to-door promising lower monthly bills if the homeowner purchases special monitoring equipment. Always opt to check and pay your bills online, if possible, and contact your provider directly if you’re unsure if someone claiming to be a rep is actually affiliated with them.

Aside from scams, it’s important to pay close attention to your REP’s contract to ensure you fully understand the terms. Look for high cancellation fees (over $100) for backing out of contracts early, and make sure you understand if and when your rate can change. Fixed rate plans will always have the same rate, but variable rate plans have rates that can spike. Neither is exclusively better than the other, but you should be aware of which you’re agreeing to.

Understanding Deregulated Energy in Dallas

Dallas has had a deregulated energy market since 2002, allowing residents to shop for their own electricity providers.⁶ There are over 100 different energy companies — and more still popping up — competing for your business. Looking at energy rates and plans can help you narrow down your choices.

The city’s retail electricity providers (REPs) offer plans that vary in price, contract terms, quality and environmental impact. On top of paying your REP, you’ll be charged an additional fee from your transmission and delivery utility company (TDU) to cover the cost of delivering electricity, meter reading, wiring and more.

If you live in or near the Dallas-Fort Worth metropolitan area, your TDU is likely Oncor.⁷ Oncor’s current rates are about $0.045 per kWh of power usage, plus a monthly charge of $4.23. You’ll pay these charges no matter what energy plan or provider you choose, and they’ll be baked into the monthly bill from your provider.

What’s the Difference Between Utility Companies and Electricity Provider Companies in Dallas?

It’s easy to get mixed up when it comes to utility companies and electricity providers, but it’s important to understand the difference, especially in Texas, where the energy market is deregulated.

A utility company or electricity producer is a company that generates energy, whether that’s from burning natural resources like coal, generating nuclear power or using solar or wind farms to produce renewable energy. These utility companies produce the power and maintain delivery systems like power lines, but they don’t deliver the electricity to customers. Instead, they charge a fee per kWh to electricity providers, who act as the intermediaries between the utility companies and the retail customers.

Electricity providers don’t generate energy. Instead, they sign contracts with production companies and then charge retail customers a fee per kWh above what they pay the utility companies. The electricity providers handle marketing, billing and processing, and they compete with one another to bring down costs and offer customers options.

You can shop for your own electricity provider, but your utility company is fixed and can’t be changed.

Dallas Electricity Rate Trends

*This information comes from the U.S. Energy Information Administration

The electricity prices in Dallas have gone up over 34% in the past decade alone, with the largest increase occurring between 2021 and 2022. COVID didn’t have any major impact on the price of energy in Dallas, but, according to the EIA, nationwide spikes in the price of fossil fuels and delivery caused the bump in price through 2022 and 2023. Unfortunately, many experts believe that electricity prices will continue to rise in the future, especially as more homeowners adopt renewable energy and power production costs increase to cover operating costs.

Choosing an Electricity Plan When Moving to Dallas

If you’re moving to the Dallas area, your home will automatically be serviced by a production and distribution company, and you cannot choose which company serves your home. However, before you settle in, you’ll need to find an REP that aligns with your budget and has a plan that appeals to you and set up service in advance of your move-in date. Most REPs will take 24 to 48 hours before connecting you after you sign up for an energy plan. Some take longer, and others have same-day energy plans that can connect you within just a few hours.

You can ask your real estate agent for recommendations, but in most cases, your best bet is to shop online for a provider that works for you. You’ll just need to provide some basic information before shopping for a plan, including your name, address, and contact information. If you’re signing up for a no-deposit plan, your REP will need your social security number to conduct a credit check, as well.

How to Switch Electricity Plans in Dallas

Switching electricity plans in Dallas is simple, quick and straightforward. The entire process from start to finish should only take a few minutes and could end up saving you money every single month on energy for your home. You can follow the steps below to find a provider that works for you and make the switch today.

1. Scroll to the top of this page and enter your zip code.
2. Choose whether you’re switching providers or if you just moved to Texas and need new service. If you’re getting new service, then you don’t need to worry about paying a cancellation fee for your current provider. If you’re currently enrolled in a contract with a different provider, you should contact them or check your contract for information on cancellation fees.
   Some providers don’t charge an early cancellation fee, and others charge $200 or more. In the next step, if you choose to have a live advisor help you, they can do the necessary research for you and potentially even help you reduce the cancellation fee.
3. You have three options to choose from. Advisor Plus+ is a paid service, but a live representative will help you choose the best plan for your needs. This is beneficial, as the cheapest plan isn’t always the best. The advisor will consider fixed and variable-rate plans, go over when you tend to use electricity to get the best time-of-use rates, check your bill to see how much electricity you use per month to secure the best prices and more.
   EnergyBot Advisor is a free service, and a plan is chosen for you based on criteria that you enter. This option delivers a less customized selection, but it should still meet the needs of most customers.
   Standard View is also a free service, but it requires the most work on your part, as you’ll need to look at the plan options and choose one manually. You’ll see the contract term, rate, discounts, renewable energy percentage and more for each plan available in your area.
4. If you chose one of the first two options in the previous step, you’ll get on-screen prompts to help you make the switch from your current provider to the new one selected for you. If you chose the Standard View prompt, you’ll get a list of providers with plan rates and terms, and you can simply click on Select Plan to move forward.
5. Finally, you’ll be prompted with a button that will take you to the provider’s site. You’ll also be told what plan to look for once you’re there to sign up and lock in your new rate.

Best Electric Companies in Dallas