1. How PowerToChoose Calculates Rates
PowerToChoose shows an "average price per kWh" at three fixed points:
| Usage Level | What It Shows |
|---|---|
| 500 kWh | Rate for low-usage homes |
| 1,000 kWh | Rate for average homes |
| 2,000 kWh | Rate for high-usage homes |
The calculation: Total cost at that usage level ÷ kWh = displayed rate.
This includes energy charges and TDU delivery, but the rate is only accurate at that exact usage level. Move 100 kWh in either direction and the effective rate changes — sometimes dramatically.
2. Why Your Bill Doesn't Match
Reason 1: Bill credits distort the rate.
A plan with a $75 credit at 1,000 kWh shows 8.5¢/kWh on PowerToChoose (at 1,000 kWh). But at 800 kWh — no credit — your effective rate is 14.2¢.
Reason 2: Base charges dilute at higher usage.
Most plans include a monthly base charge ($5-10). At 500 kWh, that adds 1-2¢/kWh to your rate. At 2,000 kWh, it's negligible.
Reason 3: Tiered rates shift.
Some plans charge different rates at different usage levels. The rate at 1,000 kWh may be completely different from 1,200 kWh.
| Your Usage | PowerToChoose Shows | You Actually Pay |
|---|---|---|
| 800 kWh | 10.2¢ (at 1,000) | 12.8¢/kWh |
| 1,300 kWh | 10.2¢ (at 1,000) | 11.1¢/kWh |
| 1,800 kWh | 9.1¢ (at 2,000) | 10.4¢/kWh |
The gap between "advertised" and "actual" can be 2-4¢/kWh — that's $24-48/month on typical usage.
3. What PowerToChoose Doesn't Show You
- **Seasonal variation.** You use 900 kWh in March and 2,100 kWh in August. The "best" plan is different for each month.
- **Time-of-use impact.** Free nights plans show a blended rate, but your actual cost depends on when you use electricity.
- **Usage pattern matching.** A summer-peaking household has a completely different cost profile than a flat-usage household, even at the same average kWh.
- **TDU charge variations.** CenterPoint, Oncor, AEP, and TNMP all have different delivery charges. Same energy rate, different total cost.
- **Taxes and fees.** The displayed rate includes TDU but varies on pass-through fees.
4. How to Find Your Real Cost
Option 1: Manual calculation. Pull your last 12 months of usage. For each plan you're considering, calculate the cost at each month's usage level. Add TDU charges. Sum the 12 months. That's your actual annual cost.
Option 2: Upload your bill. We simulate every available plan against your actual 12-month usage pattern. You see projected annual cost — not a rate at some arbitrary usage level.
The difference matters. We regularly see cases where the #1 plan on PowerToChoose (sorted by lowest rate) is actually the #15 cheapest plan for a specific household's usage pattern.
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
Is PowerToChoose trustworthy?
Yes — it's run by the Public Utility Commission of Texas and all listed rates are real. The issue isn't accuracy, it's that showing rates at only 500/1000/2000 kWh doesn't tell you what YOU'll pay.
Should I sort by lowest rate on PowerToChoose?
Sorting by lowest rate at 1,000 kWh is a reasonable starting point, but don't make your decision based on that ranking alone. Bill credit plans dominate the top of that list, and they're only cheap if you hit the threshold every month.
What does the EFL show that PowerToChoose doesn't?
The Electricity Facts Label shows the full rate structure: base charges, tiered rates, credit thresholds, minimum usage fees, and early termination fees. It's the contract. PowerToChoose just shows the summary.
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This article is for informational purposes only. Electricity rates and plans change frequently. Always verify current rates before switching.