Sugar Land’s electricity rates fall in the same service area as Houston. Thanks to energy deregulation, Sugar Land’s residents can shop for a competitive electric supplier and lower the supply rate on the electric bill. Before energy deregulation, the utility company had a monopoly on both the delivery and supply costs charged to its customers. With the passage of Texas Senate Bill 7 (SB7), the generation costs became “unbundled” allowing Retail Electric Providers (REPs) to enter the market. The increase in competition has the effect of pushing down energy prices. Texas now enjoys some of the lowest electricity rates in the country.

Sugar Land is located 20 miles southwest of Houston with a population of just over 118,000 as of 2019. Given its name, it should be no surprise that Sugar Land was home to a large sugar plantation located right off the Brazos River. Sugar Land is home to the headquarters of Imperial Sugar.

Sugar Land Utility Companies

CenterPoint Energy

If you’re moving to Sugar Land soon, then you will need to set up your electric service with CenterPoint. CenterPoint is the utility company in Sugar Land that is responsible for maintaining the power lines that deliver electricity to homes and businesses. The cost to maintain the infrastructure is known as the delivery charge and represents the regulated portion of the electric bill. This regulated charge is overseen by the Public Utility Commission of Texas.

Contact CenterPoint for Power Outages

Customers living in Sugar Land that experience a power outage or any disruption of service should report the issue to CenterPoint. The utility company is responsible for fixing any issues that relate to power outages.

  • Contact Information: 1-800-332-7143

Understanding the Electric Bill

The two main charges that make up the electric bill are the delivery and supply charge. If the customer switches to another Retail Electric Provider, they will still receive one electric bill from the utility company (CenterPoint) that will incorporate both charges. This method of billing is known as single billing and is the most common method in all deregulated markets.

Delivery Charge – The delivery charge is the regulated portion of the electric bill. As mentioned above the delivery cost is charged to the customer by CenterPoint. Sugar Land residents will not be able to shop around for a different utility company. Given the logistics involved, it will be impossible for another utility company to deliver the electricity to your home or business.

Supply Charge – The supply charge is the deregulated portion of the electric bill. This is the cost of generating the electricity the customer is estimated to use during the term of the energy agreement. Energy choice allows the customer to shop around for different energy plans and save money on their bill.

How to Choose a Retail Electric Provider (REP)

There are over a dozen of Retail Electric Providers based in Texas that offer customers a variety of energy plans to choose from. If you’re new to energy choice, trying to decide which energy plan is right for you might be overwhelming. When shopping for a supplier there are a few questions you may need to ask yourself. Knowing what you’re looking for and understanding the energy plan can maximize your savings.

Is this a Fixed or Variable Rate Plan?

The most common residential plans include fixed and variable rate plans. Fixed rates do not change during the term of the energy agreement and will protect the customer from any increases in the energy market. However, these plans do come with a cancellation fee if the customer cancels or changes Retail Electric Providers before the term expires. Most suppliers will waive the cancellation fee if the customer moves to a new location.

Variable rates can fluctuate monthly. Most variable-rate plans are month-to-month allowing the customer to leave without paying a cancellation fee. However, variable rates are not tied into a commodity and can change at the sole discretion of the provider. It’s not uncommon for variable rates to double or even triple in a single billing period.

Any Additional Fees?

If you come across a low supply rate that seems too good to be true, it probably is. Electric Providers can provide a rate that looks appealing but will also come with additional fees. The most common fee is the meter base charge fee. This will be added to the electric bill as a different charge. Once the customer adds up all the charges, they will find out the energy plan costs more than initially thought.

Is there a Cancellation Fee?

Most energy plans will come with a cancellation fee. If you lock in a long-term plan and cancel a few months later, you can expect to be hit with a hefty fee. Energy providers may waive the cancellation fee if the customer sells the home.

When will I be Switched to the new Provider?

Texas’s electricity markets are more advanced than other areas of the country. If you’re switching REPs in Texas, then the supplier will let you choose the exact date in which you want to be switched over. The switch will be overseen by the local utility company.

Do I have to Cancel with my old Provider?

If you sign up with a new energy provider, then you will not have to cancel with your old provider. The new energy provider will notify the local utility company who will then oversee the switch. It will be impossible to be charged by two separate Retail Electric Providers during the same billing period.

Green Energy Options

100% renewable energy plans are becoming more common among energy providers. If you’re looking to reduce your carbon footprint then this plan might be right for you. 100% of the electricity generated from these plans will come from renewable energy sources. Renewable energy sources are considered to be more environmentally friendly than compared to conventional sources of generation. However, green energy plans are often more expensive so be prepared to pay a high premium if you go down this route.

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