How business shopping differs from home shopping
A small business reads the same kind of label as a home, at different usage levels: 1,500, 2,500 and 3,500 kWh a month. Where a plan has demand charges, the label assumes a 30 percent load factor to produce its prices. If your usage sits far from those levels, or you have demand charges, ask for a quote based on your own usage history.
Source: 16 Tex. Admin. Code § 25.475, information disclosures to residential and small commercial customers. Rule text checked October 9, 2026. Rules can change, so confirm on the Public Utility Commission of Texas site before you rely on a detail.
What to read in a business contract
- The term and the exit. Early termination fees for commercial contracts can be larger than for homes.
- Renewal. The default after the term, and when notices are due.
- Pass-through charges. Which delivery and grid charges are included and which are added.
- Demand charges. A charge based on your highest use in a short period, which can matter more than the energy price.
- Moving or closing. What happens if you move the business or close a location.
Brokers and how they are paid
Many businesses shop through an energy broker. A broker can save time, and many are paid by the provider through the price you pay. That is not wrong, but you should ask how the broker is paid, whether the quotes cover all providers or only some, and whether the commission is included in the rate.
Get quotes in writing
A short checklist
- Gather twelve months of bills and note your highest-use month.
- Collect labels from at least three providers for the same term.
- Compare the total annual cost, not only the rate per kWh.
- Set a reminder for the notice period before the term ends.
Sources and rules
Frequently asked questions
Can a Texas business choose its electricity provider?
In competitive areas, yes. Small commercial customers can choose a retail electric provider, while the delivery company stays the same.
What usage levels are on a small business Electricity Facts Label?
The label states the average price at 1,500, 2,500 and 3,500 kWh a month for small commercial customers.
How far ahead must a fixed rate contract expiration notice arrive for a small business?
The final notice must be sent at least 14 days before the contract expires.
Should I use an energy broker?
A broker can save time. Ask how it is paid, which providers it quotes and whether its fee is built into the price.