The Deregulation of Texas state energy allows more than 6 million power consumers the liberty to choose their energy supplier. The ability to handpick a plan that is best suited for families also eased the financial burden of many households for a fixed expenditure every month. You can easily browse and choose from top electricity companies to find the cheapest electricity rates in Texas. However, it is imperative to understand the different types of plans provided by major utility companies in order to determine the cheapest electricity rates in Texas. Prepaid plans Prepaid electricity plans do not require a deposit, a credit check, or any long-term commitment for that matter. These plans are a very popular choice among Texans with many electricity companies providing some of the cheapest electricity rates in Texas through prepaid plans. In a prepaid plan, an amount is paid upfront for electricity usage. The service provider will send you monthly usage and outstanding balance notifications. Variable plans Plans with variable preferences are offered for a shorter duration and there is no binding contract. In variable plans, the electricity rates will fluctuate on a monthly basis depending on the rise and fall of market electricity prices. You can also find the cheapest electricity rates in Texas with a variable plan.