Retail Electricity Providers in Lubbock

Retail Electricity Companies

Electricity providers are regulated by the Public Utility Commission of Texas (PUC or PUCT). The PUC sets the rules and regulations for how REPs operate, as well as how they are allowed to market and sell electricity.

If you can believe it, retail electricity providers (REPs) never touch the electricity they sell you. Like a grocery store or a gas station, they purchase products in bulk (in this case electricity) to get a really low price or rate and then sell it to end users (businesses and homes).

But don’t REPs differ in terms of quality of product or service?

Not really. Electricity is electricity. It’s the same form of energy (electrons) sent to your home or business on the same power lines no matter how REPs try to sell it.

Many electric companies tout an “easy setup”, service that is “24/7”, even plans that “fit your needs.” Sounds exceptional but none of those things are beyond ordinary. Easy setup… every company has online setup. Service 24/7… all REPs source to technicians at the same local company. Custom plans… how about just offering the lowest price?

There are only a handful of relatively minor factors that differentiate one REP from another. We’ll explain.

Issues with retail electricity providers

There are over 100 REPs in Texas and a good number that will offer electricity plans in Lubbock. Some REPs are borderline deceptive with their marketing language and promotions. Others design plans that have hidden fees or are only available for a limited time for the first part of the agreement.

When choosing an electricity provider, it is important to compare prices and plans carefully. It is also important to read the fine print of any plan before signing up. It is tough for those of us in the industry to navigate and can be downright impossible for first timers.

What’s the difference between electric providers and why is one REP better than the next?

Product: No Difference

Like any other commodity, the electricity you buy and received is the same no matter who you buy it from.

Customer Service: Some Difference

Most REPs have the same baseline customer service for customers. Some websites are easier to use than others and some REPs offer apps to manage your account. Like any other service or product you buy, double check reviews from multiple sources.

Plans & Prices: BIG DIFFERENCE

REPs offer a variety of electricity plans: fixed-rate electricity plans, variable-rate electricity plans, market rate plans, and renewable energy plans. Avoid variable rate or market rate plans. They are incredibly risky. They only type of plan you should consider are fixed-rate electricity plans. If you want electricity derived from renewable energy sources, just be sure it is a fixed rate.

Then, how can one electricity company offer a better rate than the next?

~ How much electricity they buy in bulk, in advance (the more they buy, the cheaper it is)

~ How efficiently they run their operation (they are basically a customer service company)

~ How much profit they want to make (avoid variable rates and watch hidden fees)

That’s it. Hard to believe, no?