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Aug. 3, 2020
Dallas is one of the biggest cities in Texas and the ninth-largest in the United States, with a population of 1.35 million. The entire Dallas-Fort Worth metroplex has a population of 6.8 million and is one of the major hubs in Texas. Dallas residents can choose who supplies their electricity due to energy deregulation. Residents can save on energy by comparing Dallas electricity rates and find the best electricity plans for them. Here’s how Dallas’ electricity market works, and how to save on energy and get the best Dallas electricity rates.
Texas is the largest energy-producing state in the US, and also generates the most wind energy. However, most green energy plans and renewable energy projects are focused on the Houston area. While electric companies offer green energy options in Dallas, not many residents have adopted them yet.
For all Dallas residents, the electricity bill is divided into two main categories – supply and delivery services.
The supplier is responsible for electricity generation, and its rates depend on the cost of production. All electricity providers can offer different rates because their generation processes are different. The most well-known retail electricity providers in the Dallas area include Pulse Power, Frontier Utilities, Gexa Energy (Gexa Saver Deluxe), 4Change Energy (Maxx Saver), Just Energy, TXU Energy, Direct Energy, First Choice Power, TriEagle Energy, Green Mountain Energy, and Payless Power, among others.
All these electricity companies offer different energy plans and rates. It’s best to learn about their price per kilowatt-hour (kWh), cancellation fees, and early termination fees, among other things, before making a decision.
The delivery services are provided by your Transmission and Distribution Utility (TDU) – your utility company. Otherwise known as the Transmission Distribution Service Provider (TDSP), the utility company delivers your electricity, maintains power lines, and manages power outages. TDU charges include the cost of delivering electricity and maintaining the network.
Other delivery charges include the PUC Assessment – a fee assessed by the Public Utility Commission of Texas (PUCT). You’ll also find a Gross Receipts Reimbursement Charge, sales tax charges, and non-recurring fees for service initiation. In the Dallas area, your local utility company is Oncor.
You can learn more about Dallas electricity rates and tariffs here.
Ever since the Texas energy market was deregulated in 2002, energy companies have been competing to provide cheap electricity rates. As a result, Dallas residents can choose from several electric providers with varying energy rates and plans.
Due to service providers trying to offer cheap electricity rates, Texas electric rates have become lower than the national average. It has also opened up the opportunity for green energy providers to offer cheaper electricity prices.
If you don’t choose any energy provider, you will be assigned a Provider of Last Resort (POLR). The POLR in Oncor’s service areas in TXU Energy and Reliant Energy. While the POLR rates are approved and regulated by the PUCT, they are relatively higher due to added costs.
To get the best electricity rates, you should choose a retail electric provider (REP). You can use the POLR rates as your Price to Compare to check what energy provider offers the best rates and plans.
All Dallas residents can choose from several energy companies and can shop through various energy prices. While some companies may offer low rate plans, others may offer benefits, such as free nights and average rate billing, among others.
You can compare each company’s plans and rates to get the best plan for you. You can search and try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Dallas electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the free savings calculator to find out how much you could save in each case.
Every energy supply company offers different plans, rates, and term lengths. You can change your energy supplier at any time.
To change your energy supplier, get a copy of your energy bill to check what rate you’re getting and what company is supplying your electricity. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
You can use Arbor to find the best rate in your area by using our free savings calculator.
You’ll also find different types of plans being offered by the energy companies. These are the three plan options you’ll find in Dallas.
Fixed-Rate Plans: Fixed-rate plans tend to lock in energy rates for a certain period of time, so you have to pay the same amount. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
Variable Electricity Plans: Variable-rate plans are often month-to-month contracts where rates can vary according to the demand and price of electricity. While you don’t have to worry about deposits or termination fees, the rates can fluctuate excessively in some seasons.
Prepaid Electricity Plans: Prepaid plans let you deposit money into an account so that your energy company deducts your energy bill depending on your electricity usage. However, such plans often have daily charges, and their rates can fluctuate each month.
Many plans may ask you to make a deposit to start your service. However, plans available through Arbor never require a deposit.
All Dallas residents get their electricity delivered by Oncor. However, they can choose from several energy suppliers. You can use the Price to Compare or the rate you’re currently paying to compare it with the plans offered by other retail electric providers.
You can check what plan offers the best Dallas electricity rates and make an informed decision.
You should also check out how you can save on your energy bill with Oncor. But electricity is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in Dallas.
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