How to Choose the Best Electric Plan in Dallas, Fort Worth, or Houston?

If you’re moving to Dallas, Fort Worth, or Houston, one thing you’ll quickly learn is this: electricity works differently in Texas.

Because these cities operate in a deregulated energy market, you don’t just get assigned a provider. You have to choose your electricity plan, and there are more options than most renters expect.

So how do you know which electric plan is actually right for you? Let’s break it down.

What Does “Deregulated Energy” Mean in Texas?

In deregulated Texas cities like Dallas, Fort Worth, and Houston, multiple electricity providers compete for your business. That means:

• You choose your provider
• You choose your contract length
• You choose your pricing structure
  

More competition can mean better pricing, but it also means more room for confusion if you’re not sure what you’re looking at.

The 5 Main Types of Electricity Plans in Texas

Understanding the differences is the first step to choosing the right plan for your lease and lifestyle.

1. Fixed-Rate (Flat-Rate) Plans

Best for: Renters who want consistency, stability, and no bill surprises.

This is the most common, and most stable option for renters.

With a fixed-rate electricity plan, your price per kilowatt-hour (kWh) stays the same for the entire contract term (typically 6, 12, or 24 months). Even if demand spikes during a Texas summer, your rate does not change.

Pros:

• Predictable monthly pricing
• Protection from seasonal market spikes
• Easier budgeting
  

Cons:

• May include an early termination fee if you cancel before your contract ends. However, if you have a valid forwarding address, you can get out of your plan without paying this!
  

For most apartment residents in Dallas, Fort Worth, and Houston, this is the safest and smartest choice, especially during high-demand summer months.

2. Variable-Rate Plans

Best for: Short-term flexibility, but riskier if you plan to stay longer than a few months.

With a variable plan, your rate can change month to month based on market conditions.

Pros:

• Typically no long-term contract
• Flexible

Cons:

• Rates can increase significantly during peak seasons
• Harder to predict your monthly bill

3. Bill Credit Plans

Best for: Homeowners; someone who is doing high usage by default and doesn’t have to think about it. 

Bill credit plans give you credits back once you hit a certain usage limit. 

Pros:

• Big savings if your monthly kWh stays in the “sweet spot” where the credit applies

Cons:

• If you fall just under the threshold, your effective rate can spike, losing the credit but still pay the higher base rate/fees.
• The advertised ¢/kWh can be misleading because the credit is baked into the math, and often doesn’t reduce delivery charges. 
• Works poorly for variable usage (travel months, mild weather) because you may qualify some months and miss others. 

4. Prepaid Electricity Plans

Best for: Renters rebuilding credit or needing short-term flexibility.

With prepaid plans, you pay upfront and reload your balance as you use energy.

Pros:

• No deposit required
• Often credit-friendly

Cons:

• Rates may be higher
• Service can disconnect if your balance runs out

Plan Features

Along with types of plans, there are also plan features where you can get even more customizable based on what you are looking for/what you prioritize. 

1. Free Nights & Weekends
   • This offers free or discounted electricity during designated off-peak hours, typically overnight or on weekends. While you aren’t charged during those “free” windows, rates during peak daytime hours are often higher than average. The savings only work if you can shift most of your energy use, like laundry, dishwashers, or EV charging, to those off-peak times and limit daytime consumption. “Off peak” times can differ by electric company, with the most popular time range being around 9pm to 6am. 
2. Green/Renewable
   • Wanna go green? Some electric companies source electricity from renewable energy credits (like wind or solar). They can be structured as fixed or variable. Check how much renewable energy the company includes in their plans to see if it’s what you are looking for. 

So, Which Electricity Plan Is Right for You as a Renter?

If you’re renting in Dallas, Fort Worth, or Houston and want:

• Predictable bills
• Protection from Texas summer rate spikes
• A contract that aligns with your lease term
• Less stress managing fluctuating costs

Afixed-rate electricity plan is typically the best fit.

That’s why when we connect clients with electricity options through our Concierge partner, Compare Power, we guide them toward vetted fixed-rate plans that offer clarity, transparency, and stability.

Final Thoughts – Concierge Can Help!

Choosing an electricity plan in Texas doesn’t have to feel overwhelming, but choosing the wrong type can cost you. Understanding the difference between fixed-rate, variable, bill credit, and the different plan features gives you the power to make an informed decision. And if you’re moving in Dallas, Fort Worth, or Houston, starting with a fixed-rate plan is usually the simplest way to protect your budget and avoid surprise bills.

Our Concierge specialists can run a search to find the best electricity providers for your needs, using Compare Power, to make sure you get premier pricing, and even sign you up/process your orders! Service and providers vary by market.