Most Texas commercial electricity procurement ends the same way: a business owner receives a renewal offer from their current provider, compares it to one or two competing quotes they solicited directly, and signs whatever looks lowest. That process produces above-market rates consistently because it misses the fundamental mechanic of how Texas commercial electricity pricing actually works.
In Texas's deregulated market, retail electricity providers reprice commercial accounts daily based on ERCOT wholesale market conditions. The rate a provider quotes you on Monday may be 0.3¢/kWh different from their Tuesday quote for the same account. More importantly, the rate any single provider quotes you in a direct conversation is almost always higher than what they'd bid in a competitive auction — because in a direct conversation, they know you're not simultaneously seeing 24 other bids.
This guide explains exactly how to compare commercial electricity quotes correctly in Texas: what data you need before requesting quotes, what the line items on a commercial quote actually mean, and why the reverse auction format consistently produces lower rates than any direct comparison process.
Commercial electricity quotes in Texas are account-specific. Two businesses in the same building on the same street can receive materially different quotes because their load profiles — the shape and timing of their electricity consumption — are different. Providers price risk based on what your account will look like over the contract term, and they need real data to do that.
Before requesting any quote, pull the following from your last 12 months of electricity bills:
Total kWh consumed per month. This is the most basic input. You need 12 months of monthly totals, not just your average, because seasonal patterns matter. A Dallas office building that uses 40,000 kWh in February and 90,000 kWh in August has a very different risk profile for a provider than one that uses 60,000 kWh consistently year-round.
Peak demand in kW per month. This appears on commercial bills as your highest 15-minute interval power draw during the billing period. For accounts above 20 kW — which includes most commercial businesses beyond small retail — demand charges represent 30–50% of your total bill. A quote that doesn't address demand structure is an incomplete quote.
Your current supply rate (the energy charge). This is the per-kWh rate your current REP charges for the electricity itself, separate from Oncor, CenterPoint, or AEP Texas delivery charges. It's labeled "energy charge" or "supply charge" on your bill. This is the benchmark you're trying to beat.
Your contract expiration date and early termination fee. You need to know when your current contract ends and what it costs to exit early. This determines whether you're shopping for a forward-start contract or an immediate switch.
If you have your 12-month usage history and account number, a PUCT-licensed broker can pull your interval data directly from the TDU and provide a more accurate quote than monthly totals alone would support.
When you receive a commercial electricity quote in Texas, you're looking at four distinct cost components. Providers vary in how they present these, and comparing only the headline rate without understanding all four will lead you to select the wrong contract.
Supply rate (energy charge): The per-kWh rate the REP charges for the energy itself. This is the competitive piece — what varies between providers and what a reverse auction drives down. Typical range for Texas commercial accounts in April 2026: 7.0–9.5¢/kWh depending on account size and load profile.
TDU delivery charge: The regulated delivery fee your transmission and distribution utility (Oncor in most of Dallas-Fort Worth, CenterPoint in Houston, AEP Texas in West Texas and South Texas) charges to deliver electricity to your building. This is identical for every business on the same rate class in the same TDU territory regardless of which provider you choose. It is non-negotiable. A quote that bundles this into a single "all-in" rate is less transparent than one that shows it separately — make sure you can see both components.
Demand charge: For accounts above 20 kW, your bill includes a demand charge based on your peak 15-minute power draw in the billing period. This has two sub-components: the TDU's demand charge (fixed, regulated) and any demand-related component in your supply contract. Some providers include demand in the supply rate; others structure it separately. For high-demand operations like manufacturing facilities or convenience stores, the demand structure can matter as much as the supply rate.
Contract terms: Length, early termination fee structure, auto-renewal clause, and whether the contract includes pass-through provisions that allow the provider to adjust rates for regulatory changes. A 7.5¢/kWh supply rate with a punitive ETF and an aggressive auto-renewal clause is a worse contract than an 8.0¢/kWh rate with a clean exit structure.
For a deeper walkthrough of every line item on your Texas commercial electricity bill, see our guide on how to read a Texas commercial electricity bill.
The most common comparison method — calling three or four providers directly and comparing their quotes — has a structural problem. Commercial supply rates reprice daily in Texas based on ERCOT forward market conditions. When you call Provider A on Monday and Provider B on Wednesday, you're not comparing the same market. Provider A's Monday quote reflects Monday's ERCOT forward pricing; Provider B's Wednesday quote reflects Wednesday's pricing, which may be materially different.
More importantly, providers price direct inquiries differently than they price competitive bids. In a direct conversation, a provider knows you're a single prospect asking for a quote. They don't know whether you're also talking to competitors. They quote a rate that reflects their standard commercial pricing for your account size, which typically includes margin for the possibility that you'll accept it without shopping further.
In a blind reverse auction, every provider bids knowing they're competing against 24+ other suppliers simultaneously. That competitive pressure compresses margins and produces rates 1.0–2.5¢/kWh below what the same providers would quote in a direct conversation for the same account.
On a 60,000 kWh/month account, a 1.5¢/kWh improvement from an auction versus a direct comparison process saves $900/month — $21,600 over a 24-month contract. That difference comes entirely from the structure of the comparison, not from the accounts being different.
Every Texas retail electricity provider is required by PUCT rules to provide an Electricity Facts Label (EFL) for every commercial plan. The EFL is the standardized disclosure document that shows the plan's rate structure, contract term, cancellation fee, and auto-renewal terms. Never sign a commercial electricity contract without reviewing the EFL.
Key items to check on the EFL: the supply rate at multiple usage levels (some plans have tiered rates that change at different consumption thresholds), the early termination fee structure (is it per-kWh for remaining months, a flat dollar amount, or a percentage of remaining contract value?), the auto-renewal clause (what notice period triggers automatic renewal, and what rate applies if you don't act?), and whether the contract includes pass-through provisions for regulatory charges.
The auto-renewal clause is the single most consequential contract term for most Texas commercial accounts. A contract that auto-renews onto a variable holdover rate at an unfavorable price can cost more in months 25 and 26 than the entire 24-month contract saved. See our guide on Texas commercial electricity contract auto-renewal for the specific language to watch for.
The final and most commonly missed step in comparing commercial electricity providers is evaluating total delivered cost rather than supply rate alone. Total delivered cost is supply rate + TDU delivery charges + applicable taxes and fees, expressed as an all-in cents-per-kWh figure for your specific account.
Two quotes with identical supply rates can produce different total bills if one has a demand charge rider and the other doesn't. Two quotes with different supply rates can produce identical total bills if one bundles delivery charges and the other shows them separately. The only valid comparison is total cost for your specific account over the proposed contract term.
A PUCT-licensed broker who runs competitive auctions for Texas commercial accounts does this comparison automatically — presenting every bid in a standardized format that shows total delivered cost for your usage profile so you can compare actual all-in cost rather than headline rates.
For context when evaluating quotes you receive, here are current supply rate ranges for Texas commercial accounts across the major TDU territories as of April 2026:
Oncor territory (Dallas-Fort Worth, Waco, Tyler, Midland): 7.2–8.9¢/kWh supply for 24-month fixed. All-in with Oncor delivery: approximately 11.0–14.0¢/kWh depending on meter classification.
CenterPoint territory (Houston, Galveston): 7.4–8.8¢/kWh supply for 24-month fixed. All-in with CenterPoint delivery: approximately 11.5–14.5¢/kWh.
AEP Texas territory (Corpus Christi, West Texas, San Antonio area): 7.5–9.0¢/kWh supply for 24-month fixed. All-in varies significantly by rate class.
If you're receiving quotes above 14¢/kWh all-in and your contract is more than 12 months old, you are almost certainly paying above-market rates. The current commercial electricity rates page shows live market context.
The relevant question isn't how many providers you contact — it's whether you're seeing simultaneous competitive bids or sequential direct quotes. A reverse auction with 25+ providers submitting blind bids simultaneously is categorically more competitive than calling 25 providers one at a time. The blind bidding structure eliminates information asymmetry and drives genuine competition.
Every contract cycle — ideally 90 days before your current contract expires. Waiting until expiration means either accepting a holdover rate while shopping or locking in at summer peak pricing. Spring procurement (March through May) consistently produces the most competitive forward rates for Texas commercial accounts ahead of summer ERCOT demand increases.
Yes. Reviewing the market mid-contract is worthwhile to understand whether your current rate is above market. If it is, we calculate whether the early termination fee makes an early switch economically worthwhile. For accounts that lapsed onto holdover rates, switching is almost always cost-effective even accounting for any ETF.
Power to Choose (powertochoose.org) is a PUCT-managed marketplace primarily designed for residential customers. Most commercial plans are not listed there. Commercial procurement requires submitting your actual load profile to providers — usage history, demand data, interval data — rather than a ZIP code and estimated usage. A broker who runs commercial auctions works with your actual account data and presents bids structured for commercial contracts, not residential plans.
Submit your most recent electricity bill to EnergyBrokerTX and we'll run a competitive reverse auction with 25+ licensed Texas providers, present every bid in a standardized total-cost comparison, and walk through the results with you. No cost to your business. No obligation. PUCT License #BR260054. Serving Dallas, Houston, Fort Worth, Frisco, and all of Texas.
