Texas Commercial Electricity for Small & Large Businesses

Commercial electricity contracts in Texas are negotiated based on your business's actual usage profile — including kWh consumption, peak demand (kW), load factor, and operating hours. Unlike residential plans, commercial rates aren't published on Power to Choose; instead, brokers and suppliers price each contract individually based on your TDU territory, contract length, and load shape. Commercial bills also include demand charges, TDU pass-through fees, and non-bypassable utility charges that work differently than what you'd see on a home electric bill.

The right term depends on where the market is and how much price stability your business needs. In a falling market, shorter 12-month contracts let you re-shop sooner. In a rising market, locking in 24 or 36 months protects you from future increases. Most Texas businesses we work with land on 24 or 36 months because it balances rate competitiveness with budget predictability. We model both scenarios for every client before signing.

A fixed-rate plan locks your generation price for the full contract term, so your rate per kWh never changes. An indexed plan ties your rate to the wholesale ERCOT market — it can be lower on average but moves up and down monthly. A hybrid plan blends the two: part of your load is fixed, part floats with the market, giving you both protection and flexibility. The right choice depends on your usage profile, risk tolerance, and how actively you want to manage energy costs.

We're paid directly by the Retail Electric Provider you ultimately sign with — not by you. The fee is a small fraction of a cent per kWh, fully disclosed, and built into the rate the supplier quotes. You pay nothing for our shopping, contract analysis, or ongoing account management, and you'll never receive a separate invoice from us. Because we work with 25+ suppliers, we have no incentive to push one over another — our job is finding you the best fit.

Yes — Texas suppliers offer "future-dated" contracts that begin the day after your current contract expires, with no early termination penalty. The sweet spot for shopping a new commercial electricity contract is 6 to 12 months before your current term ends. That gives us a full window to monitor the market, identify favorable pricing dips, and lock in a rate before your current supplier auto-renews you onto a higher hold-over rate.

A Letter of Authorization is a standard industry form that gives us permission to request your historical electricity usage data from your local TDU (the wires company). It does not commit you to switching providers, signing a contract, or paying anything. It only lets us pull the 12-month usage history we need to get accurate quotes from suppliers. You can revoke it at any time.

Demand charges are billed based on your highest 15-minute peak power draw (measured in kW) during the billing period, not your total energy consumption. For many commercial customers, demand charges can account for 30–50% of the total bill. Reducing your demand peaks — by shifting equipment runtime, staggering startups, or adding load controls — can dramatically lower your overall electricity costs even without changing your supply rate.

Suppliers price commercial contracts based on how predictable and "well-shaped" your usage is. A business that consumes electricity steadily across the day and week — like a warehouse or data center — is cheaper for a supplier to serve, so it gets better rates. A business with sharp peaks during high-cost ERCOT hours, like a restaurant during dinner rush in August, is more expensive to hedge and pays a premium. Our team analyzes your load profile and matches you with the suppliers that price your exact shape most aggressively.

Not necessarily. Multi-site businesses can usually consolidate all locations under a single master commercial electricity agreement, which simplifies billing, gives you one renewal date, and improves your buying power because suppliers price aggregated load more aggressively. We handle aggregated procurement for retail chains, restaurant groups, multi-family operators, and franchise owners across Texas regularly.

If you don't sign a new contract before your current one ends, your supplier will move you onto a "hold-over" or month-to-month rate — which is almost always significantly higher than what you were paying. This is one of the most common (and most expensive) mistakes commercial energy buyers make. We track every client's contract end date and proactively re-shop the market before the renewal window closes, so you're never caught flat-footed.