How to Compare Texas Electricity Plans (Without Getting Tricked)
Estimated costs are informational. Provider rates and plan terms may change. Confirm current details directly with the provider.
Shopping for electricity in Texas is more complex than it looks. With hundreds of plans from dozens of providers, advertised rates that depend on hidden usage thresholds, and delivery charges that most comparison sites omit, making it easy to pick a plan that looks great and then discover your bill is much higher than expected. This guide explains how to do it right.
Step 1: Know your usage
Before comparing any plans, find your actual monthly kWh usage. Look at your last 12 months of electricity bills, not just one month, because Texas usage varies enormously between summer (heavy A/C) and winter.
- Your electricity bill (look for “kWh used” on each month's statement)
- Your provider's online account (usage history charts)
- Your smart meter data (SmartMeterTexas.com for most Texas homes)
If you don't have 12 months of history, use seasonal Texas averages as a starting point: typical summer usage is 1,200–1,800 kWh for a 1,500–2,000 sq ft home; winter is 700–1,100 kWh.
Step 2: Compare at your actual usage, not 1,000 kWh
Most comparison sites only show rates at 1,000 kWh/month. This is the PUC benchmark, but it's meaningless if your actual usage is 700 kWh or 1,600 kWh.
Many plans have bill credits that only activate at exactly 1,000 kWh. A plan showing 8 cents/kWh at 1,000 kWh might effectively cost 13 cents/kWh at 700 kWh — because the $50 credit that made the rate look good simply doesn't apply. Always enter your real kWh when comparing.
Step 3: Include delivery charges
Your electricity bill includes both energy charges (set by your retail provider) and delivery charges (set by your TDU utility — Oncor, CenterPoint, AEP, or TNMP). Many comparison tools only show the energy charge.
TDU delivery charges typically add 3–5 cents/kWh to your effective rate. If a comparison site isn't including them, the rates shown are not your actual bill cost.
Step 4: Check for bill credits and base charges
Before choosing a plan, open the Electricity Facts Label (EFL) and look for:
- Bill credits: Discounts that apply only at certain usage thresholds (e.g., "$50 off if you use 1,000–2,000 kWh"). Check whether your typical usage falls inside the credit range.
- Base charges: A flat monthly fee regardless of usage. A $9.95 base charge adds about 1 cent/kWh at 1,000 kWh and nearly 2 cents/kWh at 500 kWh.
- Tiered rates: Different per-kWh rates for different usage bands. The advertised rate may only apply to a specific tier.
- Early termination fee (ETF): Typically $10–$20 per remaining month in the contract. A 12-month plan with a $175 ETF costs $175 to cancel after 3 months.
Step 5: Consider contract length vs. your situation
24-month fixed plan at a competitive rate provides 2 years of bill certainty. The savings from a lower locked-in rate can be substantial over time.
Match your plan term to your lease. If your lease ends in 8 months, a 6-month plan avoids ETF risk. Check exactly when the contract ends relative to your move-out date.
Month-to-month plans have no ETF. They cost slightly more per kWh but give you full flexibility. Good for new arrivals, short-term situations, or during market uncertainty.
Step 6: Read the Electricity Facts Label before signing up
The EFL is the official plan disclosure document. Before enrolling, confirm the rate you were quoted, the contract term, the ETF amount, and the exact bill credit thresholds. Every plan on TrueBill links directly to its official EFL PDF.
What to ignore
- ✕Advertised cents/kWh rates without context — always verify at your actual usage.
- ✕"Average" bills from provider marketing materials — they may assume favorable usage conditions.
- ✕Cash rewards, sign-up bonuses, or gift cards unless you've already confirmed the plan rate is competitive.
- ✕Provider rankings on sites that receive referral commissions from the plans they rank (bias risk).
Continue Comparing Smarter
Compare plans by estimated cost at your usage, then verify final pricing terms directly with the provider before enrolling.