Not understanding the system, I overpaid — but I quickly grew tired of that. I decided to educate myself. Eventually, I figured out a system. My Watchdog Nation Guide to Electricity Savings is built on the idea that companies should be judged two ways — by lowest rate and by company reputation. When the stars align, the right company is obvious. (Note: This doesn’t apply to customers in mandatory electricity co-ops or municipal-owned utilities.)

TDU Delivery Charge: TDU stands for transmission and delivery utility — in other words, the utility company in your area that is actually piping the energy from the power generation companies into your home. (Remember, REPs in Texas are just the middleman.) The TDU delivery charge is set by the utility and is consistent from plan to plan and provider to provider within its service areas. For example, AEP , the TDU for Corpus Christi, charges the same delivery fee for all TXU, Direct Energy, and Reliant plans. You don't typically get a choice in utility company, and therefore, these fees are pretty much unavoidable, non-negotiable, and won't factor into choosing an electricity plan or provider.
9. Check out your favorite. After you find a company with a rate and contract length you like, learn more about it. One way is to do an Internet search of the company. Place the company’s name in various searches beside these search terms: scam, rip-off and complaints. If the company has a troubled history, find out before you sign up. If only a few results come up from disgruntled customers, don’t worry. But if there are several dozen, continue with a quick search of the company’s Better Business Bureau record. And then, most important, return to powertochoose.org and below the name of the company, you’ll see “Complaint Scorecard” and “Complaint History.” Click on those links and learn more about the company.
In this free market competing electricity retailers buy electricity wholesale from private power generators to sell at retail to around 85% of Texas residents. The partnership between generators and retailers is governed by the Electric Reliability Council of Texas, or ERCOT, which attempts to balance the power grid’s electricity supply and demand by purchasing small amounts of electricity at 15-minute intervals throughout the day.
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