EcoWatch Reviews Energy Provider Rating Methodology

This post was originally published on Eco Watch

We at the EcoWatch Reviews team rate and review deregulated energy providers in Texas based on green energy availability, cost, plan offerings and more. Our goal is to help consumers learn which electric company might best meet their needs for both budgeting and reducing their personal carbon footprint.

Our Rating System for Deregulated Energy Companies

We spoke with deregulated energy industry experts and company representatives to help determine our provider ratings. To further inform our ratings system, we wanted firsthand shopper input. So, we surveyed more than 1,000 Texans who have purchased deregulated energy, performed 10 consumer interviews and ran two focus groups.

All told, our team spent over 100 hours researching market trends, assessing the demand for, and rising supply of, green energy, as well as other energy-efficient technologies. All of these efforts were to develop a deregulated energy methodology centered around what customers care about most when shopping for an energy plan.

We reviewed 26 electricity companies, including 100% green energy companies, such as Green Mountain Energy and Rhythm Energy to electricity companies that offer largely traditional energy plans with some level of renewable energy content.

We leverage many data points for our ratings system, including our own proprietary data, industry rating reports, hundreds of electricity facts labels (EFLs) and customer review scores.

Using this information, we scored providers out of 100 and later translated those scores into five-star ratings. Our review process factors in the following criteria.

• Sustainability score (25%)
• Cost and bill predictability (25%)
• Plan features and options (25%)
• Consumer satisfaction (25%)

Categories for Scoring Retail Energy Providers

We scored green electricity companies based on company performance on five key categories. Below, you can see a breakdown of each category and how providers earn points.

Sustainability Score (25%)

The first category we review energy companies on is a sustainability score. We assess a provider’s sustainability score based on the renewable energy plans they offer. 

Electricity companies can earn top marks in this category by offering all 100% green energy plans. Providers who only offer a few green energy plans earn less points, while those that offer zero renewable energy plans score the lowest in this category.

Providers also earn more points based on other sustainability perks, such as solar buyback plans for homeowners who have their own solar systems and electric vehicle (EV) charging plans. These plans can help sustainability-minded Texans maximize the value of their other sustainability investments, such as solar panels or EVs. The more sustainable options an electric company offers, the better it will perform in our review system.

Cost and Bill Predictability (25%)

We know that energy costs are a major concern. This is borne out by our survey data, customer interviews, focus groups and personal experience. For that reason, cost and bill predictability together make up a large share of our provider ratings system.

We review rates at the three key usage levels indicated by the EFL: 500 kilowatt-hours (kWh), 1,000 kWh and 2,000 kWh, leveraging rate data for hundreds of plans from dozens of providers. Based on the variance in rates across usage levels, we evaluate a plan’s potential bill predictability. 

Our analysis allows us to assess how affordable an energy plan is for average home sizes, as well as how that plan’s rates may change due to seasonal dips in energy consumption.

The rates we review may include the following charges or fees:

• Base charges
• Energy charges per kWh
• Monthly transmission and distribution utility (TDU) delivery charges
• TDU delivery charges per kWh
• Minimum usage fees
• Bill credits
• Time-of-use discounts
• Tiered rates

We evaluate energy rates across all usage levels to determine which plans truly offer the lowest effective rates. This lets us disregard confusing rate structures, such as bill credits, times of use or tiered rates, which often cause billing surprises. Providers that offer consistently low rates earn higher marks, while those that charge higher average rates score lower.

How We Gathered Our Cost Data

Our EcoWatch Reviews team gathers electricity cost data by performing detailed research and analysis and considering survey data from more than 1,000 Texans.

• Analyzing state-required documents: We analyze rates from hundreds of individual energy plans offered through our partners at Home Energy Club using each plan’s individual EFL — a document required by the Public Utilities Commission of Texas (PUCT). We calculate each plan’s weighted average rate at 500 kWh, 1,000 kWh and 2,000 kWh to assess its cost at all usage levels.
• Customer survey: We surveyed more than 1,000 Texans in July 2024, polling customers who have purchased deregulated energy in Texas. Using this data, we gathered firsthand input on customer pricing information in terms of cost per month.

How We Score Bill Predictability

We review the EFL for all our reviewed providers’ plans, assessing rates at all advertised usage levels to score the potential predictability of an electric company’s bills. We determine how much a plan’s rate may change from the lowest usage level to the highest, calculating the average rate variance.

Using the rate variance for each plan, we’re able to determine an average variance for each provider based on all of its plan offerings.

Light companies with low price variance typically score higher. Providers that score lower typically have more rate variance.

Plan Features and Options (25%)

Deregulation has led to a huge increase in the types of plans and features energy companies offer in Texas. Each plan offering has its pros and cons, but the more features and options a provider offers, the more likely it is to have something that will suit your personal energy needs. 

Electricity companies that offer the largest variety of plan features will earn the most points, while companies that provide fewer choices will secure fewer points.

We award more points to companies that offer five or more plan options. Companies can earn additional points for varied rate structures, including time-of-use plans and gift card plans. Similarly, providers that offer 12, 24, and 36-month contracts earn more points. 

Customer Satisfaction (25%)

Our final category is customer satisfaction. Company scores in this category are based on survey data from more than 1,000 Texans about their satisfaction with their current energy provider. This allows us to assess real-world customer experience data for each company we review.

We also leverage secret shoppers on provider websites to assess how the company interacts with customers at all touchpoints. 

For a well-rounded view of customer satisfaction, we research the reputation and standing of many top energy brands in the industry using a range of independent third-party resources. For this process, we leverage the Public Utility Commission of Texas (PUCT), Consumer Affairs, Trustpilot, Google reviews, and the Better Business Bureau (BBB). 

By using direct input from customers and verified unbiased sources, we can determine a holistic understanding of a light company’s reputation with customers and within the wider deregulated energy industry. We give lower scores to providers that have low ratings in our survey and other third-party rating systems. But companies that score well on third-party sites or in our July 2024 survey data earn more points.

How To Choose the Right Sustainable Energy Company in Texas

When comparing energy companies in Texas, it’s important to account for your personal energy needs, as well as your sustainability goals. You can leverage our comprehensive rating system to see how clean energy, rates, and other plan details impact overall consumer sentiment to get a well-rounded picture of Texas energy costs.

By examining the industry from multiple angles, we can identify the most reputable, transparent, and dependable companies in the Texas energy market, taking into account both renewable energy options, total energy costs, and customer satisfaction. 

We also leverage our industry expertise to highlight potential pitfalls and surprise tactics some energy companies employ, which can have an outsized impact on your total energy costs.

Keep this in mind: your energy needs determine the best green energy company for you. In Texas, you have the power to choose your energy provider. But that power comes with the responsibility to shop actively and to pay attention to your unique needs.

Provider reviews are just one step in your energy shopping journey. We recommend comparing providers and energy rates on an energy comparison website, such as our partners at Home Energy Club. It lets you compare plans side by side, pulling quotes based on usage data.

We recommend taking the next step by determining your home’s energy usage. It’s a good idea to review your usage for an entire year to account for seasonal changes in consumption.

Once you have your usage, you can compare plans knowing you’re shopping for the energy levels that meet your needs.

When shopping on Home Energy Club, remember that you can prioritize your sustainability goals and filter plans based on 100% green energy content.

About EcoWatch Reviews

Founded in 2005 as an environmental newspaper, EcoWatch is a long-time leader in environmental news. Today, we are a digital platform still dedicated to publishing quality, science-based content on environmental issues, causes and solutions.

The EcoWatch Reviews team supplements our newsroom, aiming to connect our readers with sustainable solutions and reputable companies for a healthier planet and life. We believe that individual actions are a powerful force and that, together, we can make better choices to promote a better future for both wildlife and humanity.

To learn more visit our Dergulated Energy hub.

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