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Energy Providers in Texas
Energy and electricity are two of the most important things in the country. Because electricity is thought of as the primary type of energy, the two terms are often used interchangeably. However, it’s important to note the differences between electricity and energy when discussing energy providers in Texas. All electricity companies are energy providers, but not all energy providers are electricity companies. In this article, we will look at the similarities and the differences between the two. We’ll also discuss everything you need to know about choosing the right energy provider for your needs.
What is an Energy Provider?
An energy provider is any type of company that provides energy to homes and businesses in Texas. Some companies provide energy to electricity companies who then offer it to you. Some companies make sure that electricity gets from your provider to your home, which makes them an energy provider as well.
There are thousands of different companies in Texas that can be described as energy providers. Some of them you have to deal with, while others you never even realize existed.
What are Different Types of Energy Providers?
If you’re confused about the different types of energy providers and which ones you should be familiar with, this section is for you. There are four different types of energy-providing companies, and all three of them work together to bring electricity into your home.
Gas and Oil Companies
Electricity is created by taking resources such as gas and oil and converting them into electricity. We won’t go into the full scientific detail of how electricity is produced, but it has to come from somewhere. Gas and oil are the two main resources that are converted into electricity, but there are others as well.
Texas is one of the leaders in alternative electricity sources, which include solar power, hydropower, and wind turbines. No matter what form of energy is used, there has to be a company that harnesses its power to produce electricity. While companies that use renewable resources to create electricity often do so themselves, gas and oil companies usually sell their goods to Energy Generating companies.
Energy Generating Providers
Energy generating providers are the companies that take gas and oil and convert it into electricity. Once again, there’s no need to go into specific detail about how this is done, but they’re step two in the electricity-providing process. Once energy generating companies create electricity, they then sell it to retail electric providers.
Retail Electric Providers
Retail electric providers, or REPs, are the energy providers that you buy electricity from. REPs operate similarly to any other business that sells goods might. They purchase electricity from energy generating companies at wholesale value and resell it to you at a premium. REPs are the only one of the four energy-providing companies that you deal with first-hand. They’re the ones who send you your monthly power bill, and what you pay them is used for profit as well as to pay the other energy providers that they deal with.
Transmission & Distribution Utilities
Transmission & Distribution Utilities, or TDUs, are the energy providers who literally provide electricity to your home. They’re the companies that own and install the power lines, poles, and electric meters that take electricity from REPs to your home. If there’s a power outage or a downed power line, TDUs are the boots on the ground that repair the problem and restore electricity. A decent chunk of your monthly power bill goes towards paying TDUs.
Which Energy Provider has the cheapest rates?
Despite all the different energy providers in Texas, there’s only one type that you need to worry about. REPs are the electricity company that you purchase electricity from and work with on a daily basis. If there’s a power outage, you contact them, and they contact the TDUs.
Because Texas has deregulated energy, electricity is a competitive market, and not all REPs have the same prices. The prices they offer depend on how much it costs them to purchase electricity and get to your home. Frontier Utilities and Express Energy currently offer the cheapest electricity rates at 7.5 cents/kWh. However, the cheapest electricity isn’t always the best electricity.
Cheap electricity is often subjected to hidden rates and fees that spike the cost of electricity. If you’re not careful, you can end up paying twice as much as what you initially signed up for. The best way to find cheap electricity is to use EnerGenie. Contact us to start the process of finding the best electricity rates near you!
How Many Energy Providers are There in Texas?
Now that you know all the different types of energy providers in Texas, it’s easier to distinguish the differences between them. It also makes sense why there are so many energy providers in the Lone Star State.
- There are over 500 companies that develop electricity via renewable resources.
- There are over 150 REPs.
- There are over 100 gas and oil companies.
- There are thousands of power plants throughout the state that operate as TDUs.
How do I Choose the Best Energy Provider for Me?
Because there are hundreds of REPs offering thousands of electricity plans, choosing the right one is extremely difficult. You can spend hours, if not days, compiling research to make an informed decision. Or, you can sign up for electricity in Texas using EnerGenie. We use smart technology to find the best electricity plan for your home or business using a series of algorithms.
All we need is your address and some personal information about your energy usage, and we will take care of the rest. EnerGenie is an electricity shopping assistant that signs you up for an electricity plan and then manages it for you. We ensure that you’re not getting hit with hidden fees and sneaky price points. Contact us to get the process started, and we’ll have you enrolled in the best electricity plan for you within hours.
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