Compare Commercial Electric Rates In Your Zip Code
Shopping for a new commercial energy provider shouldn’t be difficult. At Quick Electricity, it’s easy to find the best electric utility rates for your business within your zip code. We cover Texas all other US states with deregulated energy.
Quick Electricity uses your zip code to instantly display competitively priced electricity rate plans in your area.
We’ve simplified commercial energy pricing by providing the lowest electricity rates per zip code. Depending on where you operate your business, we provide a diverse list of energy plans and promotions from the best suppliers near you. Selecting an electric rate plan online takes as little as 5 minutes.
The Best Commercial Electricity Providers by Zip Code
Electricity suppliers across the United States and Canada are competing for your business. Whether you operate a large warehouse space or manage a small boutique, we have a competitive kWh rate plan to suit your energy needs.
We work alongside the nation’s top energy providers including Constellation, Direct Energy, Green Mountain Energy, Reliant and Engie to find the lowest kWh rate within your postal code. With the most trusted names in deregulated energy, you can rest assured you’re getting the best deal on your business electric rate.
For a quick, same day quote on commercial electricity, use our electricity plan search.
Want to know more? Email Us or learn more about business electricity.
Why Electricity Rates Vary By Zip Code
Electricity rates vary across the United States based on zip code and different electricity providers. Zip codes can identify which utility or electricity provider services your area and the cost of that electricity. Depending on the state, utility and electricity provider, you could pay anywhere from a few cents to over $1 per kWh of electricity.
Generally, electricity rates tend to be more expensive in larger metropolitan areas such as New York City, Los Angeles, Chicago, and Dallas. Large cities tend to pay more for electricity due to a larger demand for energy and increased regulatory costs as well as higher taxes and fees.
Rural areas tend to have the most competitive electricity rates due to the abundance of natural resources (e.g. coal, natural gas) and less regulation over how those resources can be used. Rural communities may also be able to take advantage of lower wholesale rates due to lower demand.
Electricity rates in certain zip codes can also differ depending on the time of day. Although most Americans generally pay the same rate throughout the day, some areas have time of use (TOU) rates where the utility charges different electricity rates depending on the time of day. For example, at peak times like evenings and weekends, the rate you pay for electricity can be much higher than at off-peak times.
How Often Do Electric Rates Change Within My Zip Code?
Commercial electricity prices are adjusted based on the type of energy plan you have, regardless of your zip code:
- If you have a variable-rate or indexed-rate plan, electricity prices are adjusted each month based on the wholesale market.
- Indexed-rate plans are also known as market-rate plans.
- If you have a fixed-rate plan, your electricity provider will “freeze” your kilowatt-hour price for the entire duration of the contract. However, there are penalties if you switch to another plan before the contract ends.
- Prepaid electricity plans can have either fixed rates or variable rates, depending on the specific plan you choose.
As mentioned before, TDU charges in your area are updated twice per year in March and September, regardless of your electricity plan. If you have a fixed-rate plan when this happens, the kWh price charged by the retail electric provider is not changed, but the TDU charge is updated.
Who Determines the Electricity Rates for Businesses?
The Texas power sector is a free market, which means commercial electricity providers can set kilowatt-hour prices at their discretion. In the case of market-rate plans, electricity prices are determined with a pricing formula and a publicly available index.
- Since retail electric providers compete for customers, those who charge excessively high rates are likely to go out of business.
- However, many REPs manage to sell electricity plans that seem cheap at first, but you end up paying much more due to hidden charges or misleading conditions.
Consider that electricity prices are affected by supply and demand. This means you can expect higher rates during summer, when homes and businesses use their air conditioners at full power. Electricity prices can also spike during extreme cold weather, since buildings rely on their space heating systems – this happened in Texas in February 2021 during Winter Storm Uri.
In Texas, TDU charges are updated in March and September, with approval from the Public Utility Commission. Your retail electricity provider has no control over TDU charges.
The PUCT has a useful database with all the electricity charges approved in Texas, along with a list of Electricity Facts Labels (EFL).
How Many Texas Electric Companies Operate Within One Zip Code?
If you live in an energy deregulated area of Texas, there are plenty of electricity companies that can sell business energy plans in your zip code. As of 2024, the Public Utility Commission of Texas (PUCT) has an official list of 136 Retail Electric Providers (REP) in the Lone Star State. Considering that each REP may offer more than one electricity plan, there are dozens of options in the market. However, the specific electricity plans available depend on your location in Texas. To narrow down your options and save time, you can compare electricity plans by ZIP code.
It’s important to know that there are actually two types of energy companies who are involved in your power bills:
- Retail Electricity Provider (REP): The company selling you kilowatt-hours, or electricity plan.
- Transmission and Distribution Utility (TDU): The company in charge of power lines, utility poles, transformers and other grid components in your area. They charge a fixed monthly fee, plus a variable fee per kWh.
Technically there is no limit to the number of REPs who can sell electricity plans in a single zip code (as long as they meet PUCT requirements). However, there is only one TDU in any given location. Regardless of your electric provider, the TDU adds their delivery charge per kilowatt-hour.
In other words, you can choose among many REPs to provide the kilowatt-hours you consume, but there is only one TDU in charge of the local grid. This means you can choose the kilowatt-hour price, but the delivery cost per kWh is set by your local TDU.
Do I Live in a Zip Code With Electricity Choice?
Quick Electricity has a map of the United States showing the regions covered by the deregulated market, along with a list of states where energy choice is available.
You can also use our ZIP code search tool to compare electricity plans available in your location.