New Texas homeowners will quickly learn that in most parts of the state, you get to choose your electricity provider. But that freedom also means there are trade‑offs to weigh. Our experts at Move Concierge can walk you through how to choose a provider (especially as a newcomer), and explain the pros and cons of fixed versus month‑to‑month plans to help you make the best decision for your household. 

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Why Texas is different: deregulation, your rights, and pitfalls

In much of Texas, the electricity market is deregulated: while the utility company still owns and operates the wires, poles, and handles outages, you can pick which Retail Electric Provider (REP) supplies your power. Roughly 80–85 % of Texans live in deregulated areas — though some cities, municipally owned utilities, or electric co‑ops have opted out. 

This means when your home is connected, your utility (for example, Oncor, CenterPoint, AEP, etc.) will handle the physical delivery and transmission, but your provider (the REP) handles billing, pricing, and the contract for the electricity itself.

Because of competition, REPs often advertise “teaser” or promotional rates, bill credits, or perks (free nights, renewable content, rewards). But the devil is in the details — so choosing the right plan for your household is key.

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First steps: how to shop as a newcomer

If you’ve just moved, here’s a process you can follow:

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1. Check whether your ZIP code is deregulated. Use tools like Power to Choose (Texas’s official rate‑board), or private rate comparison sites. If your area is not competitive, you might not have choices. 
2. Understand the “Electricity Facts Label” (EFL). Every plan must include a disclosure (EFL) that breaks down the energy charge, fees, taxes, early termination charges, renewable percentage, etc. Reading it carefully is crucial because advertised rates can hide significant conditions. 
3. Check contract length, early termination fees, and renewal behavior. All fixed-rate plans penalize you if you leave early, and providers will automatically switch you to a variable rate at the end of the term if you do not do anything.
4. Compare baseline rates. Effectively all plans with advertised perks, such as free nights, are too good to be true and result in higher costs for the homeowner than the straightforward rate. 

Once you’ve narrowed a few plans, run a rough monthly cost calculation (rate × usage) plus fees to see the comparative cost under normal and high-usage months.

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Locking in vs. month-to-month: trade‑offs explained

Month-to-Month (a.k.a. variable / no-contract plans)

Pros:

• Maximum flexibility. You can switch providers anytime without paying an early termination fee. 
• Potential to catch a falling rate. If electricity rates are usually high due to recent extreme weather, waiting to lock in a rate once fixed rate prices drop could prove beneficial. 

Cons:

• Volatility & unpredictability. Your rate can change monthly, sometimes sharply. In high-demand months (e.g. summer heat waves) you could see steep increases. 
• Harder budgeting. Without knowing your rate in advance, your bill might swing higher unexpectedly. 
• Usually more expensive both short and long term. Historically, many electricity consumers who remain on variable plans end up paying more than those who locked in when rates were favorable.

Fixed-Rate (locked-in contract for a term)

Pros:

• Stability & predictability. You know exactly what your cost per kWh will be over the contract term, even if market rates climb. 
• Protection from spikes. Especially in Texas, during summer heat or stress events, wholesale prices often surge; a fixed contract insulates you. 
• Plan for your budget. Because your rate is stable, it's easier to forecast electricity costs over months.
• Promotional advantages possible. Longer-term contracts sometimes give you lower baseline rates that variable plans can’t match. 

Cons:

• You lose flexibility. If you move, or want to switch plans mid‑term, you will pay a penalty for breaking your contract (early termination fee).
• Missing out on rate drops. If wholesale rates fall, you're locked into your higher rate.
• Locking in “bad timing.” If you pick a fixed contract when rates are peaking, specifically during the summer months, you might overpay relative to future variable rates. Historically, September through April, you will usually be better off with a contract. 
• Contract expiration risk. All plans will default to a variable rate at expiration if you don’t actively switch. You should watch your renewal terms. The variable rate will usually be the same or higher, never lower. 

How to decide 

Here’s a decision framework you can use as someone new in a home:

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1. Estimate your risk tolerance. Do you prefer predictability or are you okay with some fluctuation to chase savings? Variable rates will only potentially lead to savings if you stay on it for 1-2 months and then switch to a fixed rate.
2. Look at your likely peak use months. For many Texans, summer (air conditioning) drives the highest electricity use. Locking in a rate before summer heat hits can be wise.
3. Consider contract length carefully. A 12‑ or 24‑month term is often a balance between stability and flexibility.
4. Build in a “switch buffer.” The company you are with will usually offer a renewal contract at an equal or higher price, even if prices have dropped overall. Your best bet is to find a new provider every year or every time your contract expires.
5. Use short fixed or variable only as interim if needed. If you’re unsure about the long-term, a short fixed (3 months max) or variable plan may be okay — but with the understanding of higher risk.

Moving into a new home in Texas gives you a rare opportunity: the power to pick your electricity provider. But with that choice comes complexity. A fixed-rate plan can reward you with predictability and protection against spikes — especially beneficial in a state prone to extreme weather and volatile energy markets. A month-to-month plan offers maximum flexibility and a chance to ride downward trends, but exposes you to risk and budgeting uncertainty. Because of this, many consumers lean toward locking in a reasonable, fixed contract of moderate length (12–24 months) and monitoring the market as the contract nears expiration. That approach balances protection without overcommitting to a long term that might backfire. At Move Concierge, our experts are on hand to walk you through the complexities of choosing the right provider so that you can make the best decision for your household.