Texas · Commercial energy procurement
Make Your Next Texas Electricity Contract a Modeled Decision
Compare supplier offers, contract structures, term lengths, and ERCOT exposure against your actual load before you sign.
For Texas businesses, multi-site operators, property groups, and manufacturers. Start with a recent bill, interval data, or a quick usage estimate.
The problem
The Lowest Quoted Rate Is Not Always the Lowest Realized Cost
A commercial contract’s final cost depends on your load shape, usage timing, TDU territory, start date, product structure, pass-through exposure, congestion, ancillary charges, and ERCOT volatility. Two businesses can sign the same quoted rate and pay very different amounts.
Rate Is One Variable
Pass-throughs, load shape, and term structure can move realized cost more than the headline rate.
Structure Matters
Fixed, index, and block + index products leave different risks with the buyer.
Timing Matters
The same contract can price very differently depending on when you lock and when it starts.
What you receive
A Decision You Can Defend, Before You Sign
Modeled Expected Cost
Your load run against the current ERCOT forward view, giving an expected all-in annual cost for each option rather than a single quoted rate.
Downside Cases
P90 and tail-scenario costs for each structure, so you can see what a hot summer or a scarcity event would do to your budget.
Contract Comparison
Supplier offers side by side on structure, term, pass-throughs, and exit terms, not just the headline rate.
Timing Analysis
Whether current conditions favor locking now, waiting, shortening or extending term, or starting later.
Execution
When you choose an offer, our team works with you and the supplier to put the contract in place.
Exposure Alerts
Once our team sets up your account and risk profile, we re-check your market exposure daily and alert you when it crosses the limits you set.
Contract structures
Compare Fixed, Index, and Block + Index Contracts Before You Sign
Fixed-Rate Contracts
Energy price locked for the term. Budget certainty and protection from ERCOT price swings, at the cost of any downside participation.
- Best for
- Businesses that value certainty, budgeting stability, and protection from volatility.
- Key risk
- If market prices fall after signing, the business may be locked into a higher rate.
Index Contracts
Energy priced off the wholesale market. Savings in calm conditions, with direct exposure to price spikes.
- Best for
- Larger buyers with risk tolerance and flexible operations.
- Key risk
- Costs can rise quickly during ERCOT volatility. Texas law (Utilities Code §39.110) bars wholesale-indexed products for small commercial customers.
Block + Index Contracts
A fixed block covers part of the expected load, and the remainder floats with the index.
- Best for
- Larger or more sophisticated buyers that want partial protection while keeping some market participation.
- Key risk
- The wrong block size can over-hedge, under-hedge, or leave unexpected exposure.
ERCOT
Built for the ERCOT Market
Market Timing
Forward prices, weather, gas, and reserve margins all move the cost of locking today versus later.
Contract Risk
Each structure carries different exposure to ERCOT volatility. We model stressed conditions, not just today's prices.
Regional Exposure
Pricing varies by load zone and TDU territory. Congestion, weather, and load growth differ by region.
Market context: Watt Alpha energy intelligence
How it works
01
Share your usage
Upload a recent bill, usage history, or interval data, or enter a quick estimate. We read your current contract and load profile.
02
Model the options
Fixed, index, and block + index options run across ERCOT scenarios, with expected cost, downside cases, and the tradeoffs between them.
03
Decide and execute
You choose. Our team puts the contract in place with the supplier and, if you want, sets up exposure alerts for the term.
Know the Cost and the Downside Before You Sign
Watt Alpha is a PUCT-registered broker. Suppliers pay us a commission when a contract is signed through us, and some engagements carry an agreed advisory fee instead.
Model my next contract→Frequently asked questions
What is a Texas commercial energy broker?
A Texas commercial energy broker helps businesses compare electricity supply options, evaluate contracts, and procure power from retail electricity providers. Watt Alpha models each option against your actual load and current ERCOT conditions, then helps put the chosen contract in place.
How does Watt Alpha make money?
Suppliers pay Watt Alpha a commission when a contract is signed through us. Some engagements carry an agreed advisory fee instead. Our Broker Disclosure explains both, and compensation never changes how options are modeled or ranked.
Is the lowest commercial electricity rate always the best option?
No. The lowest quoted rate may not produce the best realized outcome if the contract includes unfavorable terms, pass-through exposure, poor timing, or a structure that does not fit the customer's usage profile.
What information do you need to analyze my business?
A recent electricity bill is usually enough to begin. For a deeper analysis, interval usage data, contract details, meter list, renewal date, and annual usage history can improve the recommendation.
What is the difference between fixed and indexed electricity contracts?
A fixed contract provides more budget certainty by locking in a set energy price. An indexed contract exposes the customer more directly to market pricing, which can create savings in favorable conditions but more risk during volatile periods. Texas law does not allow wholesale-indexed products for small commercial customers.
What is a block + index electricity contract?
A block + index contract allows a business to hedge a portion of expected usage at a fixed price while leaving the remaining usage exposed to index pricing. It can balance protection and flexibility when structured correctly.
Does Watt Alpha only work in Texas?
Yes. Watt Alpha works only in the competitive ERCOT market in Texas, where businesses can choose their retail electricity supplier.
Can Watt Alpha help if I already have a broker?
Yes. Watt Alpha can review your current contract, evaluate whether your current strategy fits your usage profile, and provide a second opinion before renewal.
Can Watt Alpha help multi-site businesses?
Yes. Multi-site businesses are a strong fit because usage, contract timing, meters, suppliers, and regional exposure can become difficult to manage manually.
When should I start reviewing my commercial electricity contract?
Many businesses should begin reviewing options 6 to 12 months before contract expiration, depending on usage size, market conditions, and risk tolerance. Waiting until the last minute can limit your options.
What are 4CP charges on a Texas commercial electricity bill?
4CP charges are transmission costs that ERCOT allocates to large Texas commercial customers based on their average demand during the four coincident peaks — the single highest 15-minute system-demand interval in each of June, July, August, and September. A business that curtails load during those four intervals reduces the transmission charges it pays throughout the following year.
What is a demand charge on a commercial electricity bill in Texas?
A demand charge is the portion of a Texas commercial electricity bill priced on your highest rate of consumption in kilowatts — typically the peak 15-minute interval of the billing month — rather than total kilowatt-hours used. Texas TDU tariffs such as Oncor's also apply a ratchet, billing at least 80% of your highest demand from the prior eleven months.
What is the difference between matrix and custom pricing for business electricity in Texas?
Matrix pricing quotes smaller Texas businesses from a supplier's pre-published rate table keyed to load zone, contract term, and start month, while custom pricing builds a rate from the facility's own interval usage data. Suppliers generally reserve matrix tables for accounts using less than roughly 1,000,000 kWh a year, so larger ERCOT loads are always priced custom.
What is load factor and why does it change my business electricity rate in Texas?
Load factor is a Texas business's average electricity demand divided by its peak demand over a billing period, and it measures how flat the facility's consumption runs. A 24/7 plant running near 90% load factor is cheaper for an ERCOT supplier to serve — and prices lower — than a 35% load-factor office that concentrates usage in expensive afternoon hours.
Can a business renegotiate or blend and extend an electricity contract in Texas before it ends?
Yes — Texas electricity suppliers will restructure a commercial contract mid-term through a blend-and-extend, which blends your remaining contracted rate with today's lower market price in exchange for extending the contract term. The move only pays when ERCOT forward prices sit below your contracted rate, and the blended rate must be tested against simply riding out the existing term.
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Topics · IronHorse Power, Hudson Energy, Texas Electricity Providers, Provider Risk Grades, Forward Power Prices, ERCOT, Public Utility Commission of Texas, Compare Plans at Your Usage