1. The Advertised Rate Is Misleading
The rate you see on PowerToChoose is not the rate you pay.
Every plan listed shows an "average price per kWh" at three usage levels: 500, 1,000, and 2,000 kWh. The problem:
- Most Texans don't use exactly 500, 1,000, or 2,000 kWh
- Bill credit plans look cheap at the threshold but cost more everywhere else
- TDU delivery charges are buried in the fine print
- The rate changes dramatically depending on your actual usage
| Advertised Rate | Actual Rate at 800 kWh | Actual Rate at 1,500 kWh |
|---|---|---|
| 9.9¢/kWh (at 1,000) | 12.1¢/kWh | 10.8¢/kWh |
| 8.5¢/kWh (at 2,000) | 14.2¢/kWh | 11.1¢/kWh |
That "cheap" 8.5¢ plan? It's a bill credit plan that only hits 8.5¢ if you use exactly 2,000 kWh.
2. The 5-Step Comparison Method
Step 1: Know Your Usage Pattern
Check your last 12 months of bills. Note: - Monthly kWh totals - Summer peak (July/August) - Winter low (March/April) - Your average across all 12 months
Step 2: Identify Your Plan Type Match
| Your Pattern | Best Plan Type | Why |
|---|---|---|
| Steady 800-1,500 kWh | Fixed rate | Predictable, no traps |
| Consistently >2,000 kWh | Bill credit | Credits offset higher base rate |
| 50%+ nighttime usage | Free nights | Rare — verify with smart meter data |
| Variable month-to-month | Fixed rate | Avoid plans with usage thresholds |
Step 3: Calculate Total Cost, Not Rate
Multiply your actual monthly usage by the plan rate. Add TDU delivery charges (~$40-55/month). Add taxes (~2.5%). That's your real cost.
Step 4: Read the EFL
The Electricity Facts Label is the only document that matters. Check: - Base charges - Minimum usage fees - Bill credit thresholds and amounts - Early termination fees - Contract length
Step 5: Compare Annual Cost
Don't compare monthly rates. Compare projected annual cost using your actual 12-month usage pattern. A plan that's $5/month cheaper in winter but $15/month more in summer costs you $60 MORE per year.
3. Common Traps to Avoid
Trap 1: Bill credit plans below threshold. A plan with a $75 credit at 1,000 kWh looks great — until you use 950 kWh and miss the credit entirely. Your bill jumps $75.
Trap 2: Free nights with daytime AC. 65-70% of typical Texas home usage happens during the day. "Free" nights means you're paying 14-16¢/kWh for most of your electricity.
Trap 3: Short-term teaser rates. Some plans offer a low rate for months 1-3, then jump. Read the full EFL.
Trap 4: Ignoring TDU charges. Two plans with the same energy rate can differ by $10-15/month in total cost depending on TDU territory and base charges.
4. The Fastest Way to Compare
You can do all of this manually — pull 12 months of bills, read EFLs, calculate costs at your actual usage levels, factor in TDU charges and credits.
Or you can upload your bill and we'll do it in 30 seconds. We simulate every available plan against your actual usage pattern, including TDU charges, bill credits, time-of-use rates, and seasonal variation.
The result: Your actual projected cost on each plan, not an estimate at some arbitrary usage level.
Fastest way to find out
Upload your bill and we'll tell you exactly what's wrong and how to fix it.
Upload Your Bill →Frequently Asked Questions
What is the best electricity plan in Texas?
There's no single best plan. The cheapest plan depends on your usage pattern, TDU territory, and whether you hit bill credit thresholds. A plan that saves your neighbor $300/year might cost you $200 more.
Should I use PowerToChoose to compare plans?
PowerToChoose is a good starting point to see what's available, but the rates shown at 500/1000/2000 kWh don't reflect real costs for most households. You need to calculate costs at your actual usage level.
How often should I compare electricity plans?
At minimum, before your contract expires. Ideally, check once a year. New plans launch regularly and your usage pattern may have changed. Don't let your contract auto-renew to a variable rate.
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This article is for informational purposes only. Electricity rates and plans change frequently. Always verify current rates before switching.