Waco Electricity Rates

Contents

1 Waco Electricity Rates
2 How Does Energy Choice Work?
3 Oncor Utility Company Operates in Waco
4 Contact Oncor for Power Outages
5 Choosing a Retail Energy Provider
6 Are you looking for a long-term or short-term energy plan?
7 Are you searching for a provider that offers 100% renewable energy options?
8 Energy Providers Based in Texas
9 Direct Energy
10 Just Energy
11 Texpo Energy
12 Frontier Utilities
13 ClearView Energy
14 View by City
15 Clean Energy
16 Electricity Rates

Thanks to legislation widely known in the state as Texas Senate Bill 7 (SB7), Waco residents are now able to shop and compare Retail Energy Providers (REPs) for a lower supply rate. Before energy deregulation, the utility companies had a monopoly over the supply and delivery of electricity to their customers. This meant if a customer was unsatisfied with the service the utility provided, there was nothing they could do. Due to energy choice, Waco electricity rates offered by REPs are some of the most competitive in the country.

Waco, Texas is situated between Austin and Dallas with a population size just above 135,000. The city is home to Baylor University, a private Baptist research university with more than 16,000 students. The university also represents the largest employer in the city followed by Waco Independent School District.

How Does Energy Choice Work?

If you recently moved to Waco from a regulated city then you may be wondering how energy deregulation works. The electric bill is split up between two sections – the delivery charge and supply charge.

Delivery Charge – The delivery charge is known as the Transmission and Distribution Utility (TDU) charge. This is the regulated portion of the electric bill and charged by the utility company. This is the cost to maintain the lines and wires to deliver the electricity to your home or business. Given the logistics involved, the customer will not be able to shop around for another utility company.

Supply Charge – The supply charge represents the deregulated portion of the electric bill. This is the cost the Retail Energy Providers (REPs) charge to generate the electricity the customer is estimated to use during the term of the contract. The customer has the power to shop around for a lower supply rate on their electric bill.

If you change energy providers, you will still receive one electric bill from the utility company that incorporates both the delivery and supply charge. This method of billing is known as single billing and is the most common and preferred method. The only thing that will change is the lower supply rate you pay!

Oncor Utility Company Operates in Waco

Waco residents fall under the service area of the Oncor Utility Company. The company is responsible for maintaining the infrastructure needed to safely deliver the power to the point of service. If you live in Waco, then you can expect your electric bill to come from Oncor.

Contact Oncor for Power Outages

If you experience a power outage or any disruption of service, then you will need to contact Oncor. If you change REPs, Oncor will still be responsible for resolving any disruption of power the customer experiences.

Contact Information: 1-888-313-4747

Choosing a Retail Energy Provider

According to the U.S. Energy Information Administration, Texans enjoy lower electricity rates than compared to the national average. This is good news for Waco residents looking to pay less on their electric bills.

Electricity	Texas	U.S. Average	Time Period
Residential	11.98 cents/kWh	13.14 cents/kWh	May 2020
Commercial	7.66 cents/kWh	10.44 cents/kWh	May 2020
Industrial	4.75 cents/kWh	6.48 cents/kWh	May 2020

Before selecting a REP, there may be a few questions you need to ask yourself.

Are you looking for a long-term or short-term energy plan?

Long-term energy plans are perfect for when the energy market is low. The energy market can be extremely volatile so if prices are low it will be a good idea to take advantage and lock in a long-term fixed rate. This will protect the customer from any spikes in the energy market for the duration of the contract. However, if the market continues to fall the customer may be stuck paying a higher rate. Most long-term energy agreements come with a cancellation fee if the customer switches energy providers before the term expires.

Short-term energy plans give the customer the flexibility to switch energy providers and receive a lower rate during a bear market. However, if the energy market increases the customer may be stuck paying a much higher rate. If you don’t plan on staying in the same spot for too long a short-term plan may be right for you. Long-term energy plans cannot be transferred to a new home.

Are you searching for a provider that offers 100% renewable energy options?

More states are implementing a Renewable Portfolio Standard (RPS). The RPS requires energy providers to have a certain percentage of electricity that is sold within the state to come from renewable energy sources. This creates artificial demand and encourages third party generators to enter the renewable market space. The increase in supply gives customers more options to choose from.

A growing number of energy providers are now offering customers 100% green energy plans. The amount of electricity a customer is expected to use during the term of the energy plan will come from renewable energy sources and uploaded onto the power grid. Retail Energy Providers will either generate the electricity directly or purchase Renewable Energy Certificates to meet this demand. Examples of renewable energy sources include solar, wind, and hydropower.

It is important to note renewable-energy plans are not as competitive as the more conventional plans. Energy generation from conventional plans come from sources such as coal, natural gas, and nuclear power. These sources are much more cost-effective. If you plan on going green, expect to pay a high premium.

Energy Providers Based in Texas

Texas has no shortage of energy providers for Waco residents to choose from. The majority of providers are based in Houston and Dallas but supply services in most deregulated Texas markets. Below are just a few energy providers that are known for their competitive rates and outstanding customer service.