Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
The Hidden Costs Driving Up Your Texas Electricity Bill
When Diane, a hard-working single mom from Houston, opened her electricity bill, she was stunned. Her monthly statement had skyrocketed from $120 to an eye-watering $185 – and she had no idea why. Diane felt frustrated, confused, and worried about how this unexpected expense would impact her tight budget.
Unfortunately, her story is all too common in Texas. Countless residents pay “holdover rates” without even realizing it. In this article, we’ll explain holdover rates, why they exist, and—most importantly—how to protect yourself from falling victim to this costly trap.
Table of Contents
What Are Holdover Rates?
In the Texas electricity market, a holdover rate is avariable ratethat your Retail Electricity Provider (REP) automatically applies to your account when your fixed-rate contract ends and you are in electricity limbo (i.e., between contracts).
These rates are inextricably tied to the real-time market price of electricity, which can fluctuate wildly and soar during high demand.
While holdover rates are legal, many Texans find this practice misleading and unfair, taking advantage of their busy lives and limited time.
In the Lone Star State, power generators are paid for their electricity in an energy-only market. You (the consumer) don’t purchase electricity directly from power generators. Instead, you rely on a Retail Electricity Provider as an intermediary.
Your REP is tasked with forecasting demand and purchasing the right amount of electricity in advance, often through fixed-rate contracts, to meet projected needs. When your fixed-rate contract with your REP expires, and you haven’t chosen a new plan, you may unknowingly be placed on a holdover rate.
For REPs, holdover rates safeguard against the uncertainty of not knowing how much electricity to purchase for customers whose contracts have expired. By switching these customers to a variable rate, REPs can adjust their purchases based on actual consumption, minimizing their risk of buying too much or too little power.
However, this risk-mitigation strategy comes at a steep cost for consumers, who are left exposed to the volatile whims of the real-time electricity market.
Your Electricity Plan
If you’ve ever been shocked by a sudden spike in your Texas electricity bill, you might be one of the many Texans who have been switched to a “holdover rate” without realizing it.
So, how can you tell if you’re on a holdover rate? Start by scrutinizing your latest electricity bill or logging into your REP’s online portal. Look for terms like “variable rate” or “month-to-month” in your plan details. Also, look for the contract expiration date. If your contract has expired, you’re likely on a holdover rate.
The good news is that you can take control of your electricity costs and avoid falling victim to holdover rates. To protect yourself from the financial burdens of holdover rates, start by marking your contract expiration date on your calendar and setting a reminder to begin shopping for a new plan at least a month in advance.
As your contract nears its end, dedicate time to researching and comparing plans from various REPs. Utilizing comparison tools, like those offered by ComparePower, can help you find the most competitive plan based on your unique usage patterns.
In Texas, you can switch electricity providers without incurring early termination fees within 14 days of your contract expiration date.
Texas Administrative Code, Title 16, Part II, Chapter 25, Subchapter R, §25.475
Make your switch within this window to avoid being rolled onto a costly holdover rate. Repeat this process annually to ensure you always secure a competitive electric rate for your home.
Stuck in a contract? Schedule a reminder, and we’ll help you find a better plan before your contract expires.
How ComparePower Helps
We empower you (the Texas energy consumer) with the tools and information to make informed decisions and avoid costly pitfalls like holdover rates. ComparePower gives you access to:
Transparent pricing information:We offer all-inclusive pricing and break down the costs of each plan, including hidden fees and discounts, so that you can make apples-to-apples comparisons.
Personalized recommendations:Live Link™ analyzes your unique usage data to identify the plans that will save you the most money based on your electricity consumption.
Unbiased advice: As an independent marketplace, we’re not beholden to any particular electricity company. Our sole focus is helping you find the best plan for your needs and budget.
Step-by-step guidance: Our friendly Texas-based customer service team will walk you through the switching process and ensure a seamless transition to your new plan.
Reminders when it’s time to switch: ComparePower will remind you to switch plans at the right time.
Easy to use, helped me choose the right power plan for me.
After reading about the shocking truth behind holdover rates and how to avoid them, you may wonder how to choose the best electricity provider in Texas.
Switching electricity providers is one of the easiest ways to save money on your energy bills in Texas. Don’t let holdover rates drain your wallet for another month. Start comparing plans today and take control of your energy costs with ComparePower.
Take Control of Your Energy Costs
The following article will guide you through selecting the best provider and plan for your home. You’ll learn:
The role of retail electricity providers and how they differ from utility companies
Why price should be the primary factor in choosing a provider
How to calculate the true cost of an electricity plan based on your usage
The difference between fixed-rate and variable-rate plans
How to use ComparePower’s tools to compare plans and find the best deal
With this knowledge, you can confidently shop for a new electricity plan and take control of your energy costs.
Don’t spend another month overpaying for electricity. Take control of your energy costs today by comparing plans and making the switch with ComparePower.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
To obtain your kilowatt-hour (kWh) electricity usage data in Texas, there are three main methods available:
Review the meter readings section of your monthly electricity bill from your retail electric provider. This will show your current and previous meter readings in kWh, allowing you to calculate usage.
Log in to your provider’s online account dashboard if offered. Most providers give online access to view historical month-by-month kWh usage data.
Sign up for Smart Meter Texas (SMT), a free platform endorsed by the Public Utility Commission of Texas. SMT allows residential customers with smart meters from participating utilities to access detailed 15-minute interval data, daily readings, monthly billing info, and more.
Method 1: Review Your Electricity Bill
Your retail electric provider’s monthly electricity bill contains your kWh usage for that billing period. Locate the “meter readings” section or “electricity consumption” to find the current and previous meter readings in kWh. Subtract the previous reading from the current reading to calculate your usage.
Method 2: Login to Your Provider’s Online Dashboard
Most retail electric providers in Texas offer online account dashboards where you can view your historical kWh usage data month by month. You must register for an online account on your provider’s website to access this.
Method 3: Sign Up for Smart Meter Texas
Smart Meter Texas allows Texas residential customers to access detailed energy usage data, including 15-minute interval data, daily readings, and monthly billing information.
ESIID number and meter number (found on your electricity bill)
The name of your retail electric provider
Once registered, you can log in to view your energy usage graphs and tables, export data to CSV/XML, set up automated data deliveries via subscriptions, and more.
Complete registration using the temporary password emailed to you
In Summary
Keeping tabs on your kWh electricity consumption allows you to analyze usage patterns, identify cost-saving opportunities, and monitor the impacts of any energy efficiency initiatives.
Leveraging tools like Smart Meter Texas lets you take control of your energy costs and footprint in Texas.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Satisfaction Guarantees
In the competitive Texas electricity market, electricity companies are marketing “satisfaction guarantees” to instill confidence and attract new customers.
But what do these enticing promises entail for consumers? To shed some light on satisfaction guarantees, we reviewed the details of leading providers’ policies and terms of service.
The takeaway: While guarantees can provide benefits, the reality is often more nuanced than the marketing suggests.
Table of Contents
The Guarantee Landscape
Before diving deeper, let’s clarify the two main types of electricity guarantees you’ll find:
Risk-Free Cancellation Period —This is the most consumer-friendly form of satisfaction guarantee. It provides new customers with a set window (typically 30-60 days) to cancel their contract entirely without any termination fees if they are unsatisfied with pricing, fees, or the service itself. Providers with a risk-free cancelation window include TXU Energy, 4Change Energy, and Rythm Energy.
Plan Switching Window— More limited than complete cancellation, these guarantees allow new enrollees an introductory period (e.g., 30 or 60 days) to switch between the various plans offered by that same provider without penalty. However, they do not permit terminating your contract with the company during this window. Providers with a plan-switching window include Gexa Energy and Frontier Utilities.
Understanding Guarantee Start Dates
Electricity providers calculate your guarantee period using three different methods, which can significantly impact its value:
Enrollment Date: Your guarantee starts the day you sign up. This means the clock starts ticking immediately, even if your service hasn’t begun.
Service Start Date: Your guarantee begins on your requested service start date. This ensures your full guarantee period aligns with actual service.
Activation Date: Your guarantee begins when electricity starts flowing to your home. Like service start date, this protects your evaluation time.
Quick tip: Planning ahead? Watch out for guarantees that start at your enrollment date. Here’s why: If you sign up 60 days before your service starts with a 60-day enrollment date guarantee, your guarantee could expire before you get any power. Choose a provider with a service start or activation date guarantee to ensure you get your full evaluation period.
Electricity Companies With Risk-Free Cancellation
A legitimate cancellation window is the gold standard for evaluating a provider risk-free. Our review found two noteworthy examples.
TXU Energy 60-Day Total Satisfaction Guarantee
TXU Energy offers one of the more consumer-friendly satisfaction policies, the prominently marketed “Total Satisfaction Guarantee.”
This guarantee allows new residential customers a 60-day window to reconsider their plan selection.
If it’s not the perfect fit, you can switch to any other TXU plan or cancel service entirely—with no termination fees or penalties.
You remain responsible for any billed and unbilled charges.
4Change Energy 60-Day Satisfaction Guarantee
4Change Energy acknowledges that customer preferences can change.
If, within 60 days of your contract start date, you find your 4Change Energy plan isn’t the right fit, they’ll work with you to make it right.
This means 4Change Energy will help you switch to one of their energy plans that better suits your usage and preferences, or they’ll let you cancel your contract entirely without any penalties.
The only thing you’d owe is for the electricity you’ve used up to the cancellation.
This 60-day satisfaction guarantee is available to new 4Change Energy customers on their first plan with the company.
Rhythm Energy 30-Day Test Drive
Rhythm Energy’s policy provides a 30-day window for new enrollees to cancel without early termination fees.
New customers have 30 days from their start date to evaluate Rhythm’s service. Within that 30-day window, you can cancel without paying an early termination fee.
After the first 30 days, Rhythm will charge an early termination fee of $10-$20 for each month remaining on the contract if you cancel.
It’s important to note that while well-intentioned, 30 days is not enough to evaluate an energy company’s service, as it’s barely enough time to receive your first bill.
Electricity Companies With Plan Switching Flexibility
While more limited than full cancellation rights, these providers allow new customers an introductory period to switch between the company’s available plans without penalties.
Gexa Energy 60-Day Happiness Guarantee
Gexa Energy provides 60 days for new residential customers under their “Happiness Guarantee.”
If you are dissatisfied with your Gexa Energy residential plan within 60 days of activation, you can switch to any other eligible plan they provide without facing any penalties.
This “Happiness Guarantee” is a one-time offer exclusive to new residential customers.
It allows a seamless transition to a plan that better suits their needs. Upon switching plans, the contract term resets.
Frontier Utilities 60-Day Happiness Guarantee
Frontier Utilities offers a 60-day “Happiness Guarantee” to new residential customers.
If you are unsatisfied with your initial plan, you can switch to another eligible plan without penalties within 60 days of service activation.
This option is available once for new customers, and upon switching, the contract term for the new plan begins.
Just Energy’s 60-Day Satisfaction Guarantee
Just Energy gives you 60 days from your service start date to test your plan.
Not satisfied?
You can switch to any other Just Energy plan without paying termination fees. But watch out – like Gexa and Frontier, you’re limited to switching between Just Energy plans only. Canceling service completely still triggers penalties.
The Minimum Industry Baseline
It’s important to note that the above policies go beyond the legally required baseline protection for Texas electricity customers.
Per PUCT regulations, all providers must allow a 3-day rescission period for customers switching services: “Customers have the right to rescind (cancel) the terms of service within three federal business days after receiving the contract documents, without penalty.”
This 3-day rescission window only applies to customers switching to a new retail electric provider.
It does not extend to new service activations where the customer did not previously have electricity service established.
So, while a safety net, the 3-day rescission cannot be considered an actively marketed “satisfaction guarantee” – it is simply the mandatory minimum protection you should be aware of.
Loopholes Undermine Perceived Benefits
While satisfaction guarantees provide theoretical flexibility in allowing risk-free evaluation, the review identified several glaring shortcomings in the fine print that undermine these perceived benefits.
Short risk windows that likely do not span enough complete billing cycles for proper cost evaluation, as exemplified by Rhythm’s 30-day cancellation period. With those providers, customers have little opportunity to evaluate pricing and service quality risk-free before being locked into contracts.
Policies that only permit switching between that provider’s plans – not full cancellation rights if unsatisfied with the service overall, as seen with Gexa and Frontier. While avoiding termination charges is valuable, these policies still bind customers to future terms with the same provider if they are unsatisfied.
Maximizing Your Guarantee Value
Here’s how to protect yourself:
Smart Timing
With enrollment date guarantees, wait until a week before your start date to sign up
With service start or activation date guarantees, you can enroll early without losing time to test out your plan
Keep Records
Screenshot your enrollment confirmation showing guarantee details
Write down who you talked to and when about your guarantee
Save every bill you get during your guarantee period
Set Reminders
Mark down your guarantee start date
Set an alert for one week before expiration
Schedule time to review your first bill
Act Fast
Don’t wait until the last minute to use your guarantee
Review your plan details and first bill as soon as they arrive
Give yourself buffer time for customer service responses if you need changes
A Case for Standardized Guarantees
While some providers offer more flexibility than others, advocates argue the overall inconsistency across the market shows a need for standardized satisfaction guarantees for consumers.
We recommend prioritizing plans that suit your household’s usage profile and budgetary needs. Then, any short-term risk flexibility should be evaluated as an added potential benefit.
Moving In? Select a Plan with a Guarantee
Electricity plans with satisfaction guarantees are particularly beneficial when you move into a new Texas home.
They offer a valuable period during which you can assess your electricity usage in a real-life context, providing a practical way to determine if your selected plan fits your new home.
Opting for plans with a longer, 60-day satisfaction guarantee is advisable, as it affords you at least two months to gauge your consumption patterns.
While having a full year’s data would ideally offer the best insight into your energy needs, a 60-day evaluation period is significantly better than none.
This timeframe is crucial for deciding whether to stick with your initial plan or switch to one that might better suit your consumption habits in your new environment.
These policies exceed the minimum legal requirements and underscore the providers’ commitment to customer satisfaction and flexibility.
Choosing an electricity plan with a 60-day guarantee assures you that you can reassess your decision, making the transition to a new home or adjusting to new consumption patterns less stressful.
Electricity Companies with Satisfaction Guarantees
Here’s a brief overview of electricity providers with policies that go beyond the minimum legal requirements and provide greater flexibility and peace of mind when choosing an electricity plan.
TXU Energy: Offers a 60-day Total Satisfaction Guarantee, allowing new residential customers to cancel their service or switch to another TXU plan without any termination fees.
4Change Energy: Provides a 60-day Satisfaction Guarantee, during which customers can switch to another 4Change Energy plan or cancel their contract without a penalty if unsatisfied.
Rhythm Energy: Features a 30-Day Test Drive, which allows new enrollees to cancel their plan within 30 days without early termination fees.
Gexa Energy: New residential customers are covered by a 60-day Happiness Guarantee, which allows them to switch to any eligible Gexa plan without penalties if they’re not happy with their initial choice.
Frontier Utilities: Offers a 60-day Happiness Guarantee, allowing new residential customers to switch plans without incurring penalties within the first 60 days of service activation.
Just Energy: Provides a 60-Day Satisfaction Guarantee from your service start date to test your plan. You can switch to any other Just Energy plan without paying termination fees.
Compare Companies Offering Guarantees
Electricity Plans with Satisfaction Guarantees
Explore electricity plans featuring satisfaction guarantees designed to meet your needs confidently.
Energy Plans with a 60-Day Satisfaction Guarantee
Compare Texas energy plans with a 60-day risk-free cancellation guarantee.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Calculate Costs for Texas Electric Plans
Choosing the right electricity plan can be daunting, especially when comparing different providers and understanding the potential costs based on monthly kWh usage.
In this guide, I’ll walk you through a step-by-step process of manually calculating the cost of any electricity plan in Texas using a spreadsheet.
I’ll explain every thought process and step in detail so you can follow along and calculate the costs confidently, even if you’ve never done this.
TL;DR: Regardless of your chosen method, always analyze each plan individually to ensure an accurate comparison. Manually calculating Texas electricity plan costs using a spreadsheet is the most accurate way to compare plans, but it can be time-consuming and complex. For a quicker and easier way to compare plans based on your actual usage, try ComparePower’s savings calculator.
It’s Your Choice
Comparing electricity plans in Texas can be daunting, especially when trying to make sense of the complex language and calculations found in the Electricity Facts Label (EFL). You have two options:
Option 1: The Long Hard Way Follow the step-by-step guide in this article to manually calculate the cost of each electricity plan using a spreadsheet. This approach requires time, effort, and a keen eye for detail as you navigate the EFL and input the necessary data into your spreadsheet. While this method can help you understand the components that make up your electricity bill, it can be tedious and time-consuming.
Option 2: The Faster, Easy Way Skip the manual calculations and let ComparePower’s savings calculator do the work. Enter your zip code, follow the prompts to enter your usage, and instantly find plans tailored to your unique usage patterns. See each plan’s monthly and annual costs and get the necessary information.
Easily Compare Electric Plans & Rates
Before You Begin
To get started, you’ll need the following information:
The Electricity Facts Label (EFL) of the plan you’re considering
Your monthly kWh usage data for the past 12 months
A spreadsheet application (e.g., Microsoft Excel or Google Sheets)
Electricity Facts Label (EFL): Below is an example of the Electricity Facts Label (EFL) we’ll use throughout this guide. You can find the EFL for the plan you’re considering on the provider’s website or by contacting them directly.
Sample Electricity Facts Label
kWh Usage is Required
Your kWh usage is required if you want to follow along with your custom usage.
Pro tip: You can easily access your monthly electricity consumption data from past bills, online accounts, or Smart Meter Texas.
Mock kWh Usage: If you want to follow along, use this kWh usage profile:
Jan 972
Feb 928
Mar 821
Apr 921
May 1032
Jun 1402
Jul 1947
Aug 2432
Sep 1892
Oct 1432
Nov 1213
Dec 1003
Step-by-Step Guide
Step 1: Open up a spreadsheet Google Sheets or Excel, it doesn’t matter. To manually calculate Texas electricity plan costs, basic to intermediate Excel or Google Sheets skills, including entering data, creating formulas with IF statements, and using the SUM function.
Step 2: Set up the column headers a. Open a new spreadsheet and create the following column headers: Month, kWh Usage, Base Charge, Energy Charge, TDU Delivery Charges, Bill Credit, and Total Monthly Cost.
Step 3: Enter the months a. In the “Month” column, enter the names of the months from January to December.
Step 4: Enter the kWh usage data a. Locate your monthly kWh usage data for the past 12 months. b. In the “kWh Usage” column, enter the corresponding usage data for each month.
Step 5: Determine the base charge a. Open the EFL for the plan you’re considering. b. Look for the “Base Charge” or “Customer Charge” in the EFL. In this example, it’s listed as “$9.95 per month.” c. In the “Base Charge” column, enter $9.95 for each month.
Step 6: Calculate the energy charge a. In the EFL, find the “Energy Charge” section. In this example, it’s listed as: 0-1200 kWh: 10.9000¢ per kWh >1200 kWh: 17.8000¢ per kWh b. To calculate the energy charge, we’ll use an IF statement in the spreadsheet: =IF(B2<=1200,B20.109,12000.109+(B2-1200)*0.178) If the usage (B2) is less than or equal to 1200 kWh, multiply the usage by $0.109. If the usage is greater than 1200 kWh, multiply the first 1200 kWh by $0.109 and the remaining kWh (B2-1200) by $0.178, then add the two results together. c. Enter this formula in the “Energy Charge” column for the first month and drag it down to apply it to all months.
Step 7: Obtain the TDU Delivery Charges a. In the EFL, look for the “TDU Delivery Charges” section. b. The EFL states “**For updated TDU delivery charges go to txu.com/tducharges.” Click on this link. c. On the page, find the charges for your specific TDU. In this example, we’re using Oncor. d. Note down the “TDU Delivery Charges per Month” ($4.23) and “TDU Delivery Charges per kWh” ($0.045403).
TDU Delivery Charges (Oncor):
Step 8: Enter the TDU Delivery Charges per Month a. To calculate the TDU Delivery Charges for each month, we’ll use the following formula: =(B2 * $0.045403) + $4.23 Multiply the monthly kWh usage (B2) by the TDU Delivery Charges per kWh ($0.045403) and add the TDU Delivery Charges per Month ($4.23). b. Enter this formula in the “TDU Delivery Charges” column for the first month and drag it down to apply it to all months.
Step 9: Determine the bill credit a. In the EFL, look for any bill credits. In this example, it states “A bill credit of $30 will be applied for each billing cycle in which usage is 800 kWh or more.” b. To calculate the bill credit, use an IF statement: =IF(B2>=800,-30,0) c. Enter this formula in the “Bill Credit” column for the first month and drag it down to apply it to all months.
Step 10: Calculate the total monthly cost a. To calculate the total monthly cost, we’ll add up the base charge, energy charge, and TDU Delivery Charges, then subtract the bill credit: =C2+D2+E2+F2 b. Enter this formula in the “Total Monthly Cost” column for the first month and drag it down to apply it to all months.
Step 11: Calculate the total annual cost a. To calculate the total annual cost, sum up the “Total Monthly Cost” column with this formula: =SUM(G2:G13)
Compare Every Plan This Way
When comparing electricity plans, it’s important to recreate the spreadsheet for every plan you’re considering.
Each plan has its unique pricing structure, discounts, and additional charges, which can significantly impact your total annual cost.
By inputting the specific details of each plan into the spreadsheet, you’ll be able to compare the costs and make an accurate, informed decision.
Don’t rely on general assumptions or limited pricing information from the EFL.
Total Annual Cost
When comparing different electricity plans, consider the total annual cost rather than the monthly expenses.
The total yearly cost considers any discounts or additional charges that may apply in certain months but not others, as your usage will differ monthly in any given year.
Focusing on the annual cost gives you a more accurate picture of each plan’s overall expense.
To compare plans using this spreadsheet method:
Create a separate spreadsheet for each plan you’re considering.
Follow the steps outlined above to calculate the total monthly cost for each plan.
Calculate the total annual cost for each plan by summing up the monthly costs.
Compare the different plans’ total annual costs to determine which offers the most savings based on your usage.
Plans are listed by total yearly cost.
Detailed Pricing Breakdowns
If you’re calling providers directly, asking a representative, or using a shopping site like Power to Choose, be wary if they can’t produce a detailed pricing breakdown for your specific usage patterns.
A reputable provider or comparison marketplace should be able to give you a clear picture of your total monthly and annual costs based on your home’s unique energy consumption.
If they can’t provide this level of detail, it may be a sign that they’re not being fully transparent about their pricing or that they lack the tools to calculate your costs accurately.
Personalized Savings Calculator
In this guide, we’ve discussed manually calculating the cost of an electricity plan in Texas using a spreadsheet.
While this approach gives you a detailed understanding of how your electricity bill is calculated, it can be time-consuming and requires navigating complex language and calculations.
Alternatively, you can use ComparePower’s savings calculator to compare and save on your electricity plan without the hassle.
Enter your usage and instantly see the true cost for any plan.
Get pricing details for your specific monthly usage, including total charges, the average price per kWh, and a detailed breakdown of how your bill is calculated.
The pricing is all-inclusive, so your electric bill will have no hidden charges or surprises.
This approach lets you see the exact price for each plan based on your home’s unique energy consumption patterns instead of the limiting prices in the EFL.
Personalized Electricity Savings Calculator on ComparePower
Detailed bill breakdown on ComparePower.
Compare Plans with Your Usage
To save time and effort, ComparePower’s savings calculator lets you compare plans based on your usage in just a few minutes.
Watch this 2-minute video to see how easy it is:
Your Next Steps to Finding the Best Electricity Plan
Following this detailed, step-by-step guide, you can manually calculate the cost of any electricity plan in Texas using a spreadsheet.
Double-check your formulas and use the correct EFL and TDU Delivery Charges page values.
When comparing plans, focus on the total annual cost to get a more accurate picture of the overall expense.
Remember, whether you calculate costs manually or use an online comparison tool, always recreate the process for every plan you’re considering to ensure an accurate comparison.
Understanding your electricity costs and carefully evaluating your options can help you make an informed decision and save hundreds of dollars on your annual electricity expenses.
If you have more questions or need help finding the right plan for your household, contact ComparePower’s local experts.
You can shop confidently and control energy costs with personalized recommendations and transparent pricing.
Easily Compare Electric Plans & Rates
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Power to Choose Texas
Whether facing an expiring contract, dealing with an unexpectedly high bill, or moving to a new home, choosing the right electricity plan can save you hundreds of dollars annually.
While well-intentioned, Power to Choose often falls short. It frequently misleads consumers with partial pricing, hidden fees, and confusing plan structures.
In this guide, we’ll explore Power to Choose in depth, honestly review its strengths and limitations, and introduce you to a better alternative that simplifies your search for the best electricity plan.
The program allows residents in many Texas cities to select their electricity provider, allowing consumers to choose the best plan for their home or business.
Power to Choose Review
Let’s dive into how the state-run website works, where it shines, and why it often fails to help Texans find their best electricity plan.
How Power to Choose Works
Enter your ZIP code on the website to verify if your area participates in the deregulated energy market.
Explore available plans using the comparison tool to understand contract lengths, rate types, and other features.
Select and enroll with your chosen retail energy provider’s website or by calling directly.
Benefits of Power to Choose
It provides a central hub for comparing multiple providers
Offers a user-friendly interface for basic comparisons
Managed by the PUCT, providing a level of oversight
Electricity plans on the Power to Choose website.
Why Power to Choose Falls Short
Power to Choose, the state-run electricity comparison site, often leaves consumers confused and potentially misled. Here’s why:
No Personalization
Power to Choose doesn’t consider your unique energy needs or usage patterns. It presents a one-size-fits-all list of plans based on three specific usage levels (500, 1000, and 2000 kWh), which may not reflect your actual usage.
Hidden fees
The Electricity Facts Label (EFL) and Terms of Service are often filled with jargon and hidden fees, making it difficult to understand a plan’s true cost.
Confusing Plan Structures
Tiered rates and complex pricing models are challenging to understand, and actual costs for your specific usage are difficult to calculate.
Overwhelming Options
With hundreds of plans from dozens of providers, many users experience “analysis paralysis,” feeling overwhelmed by too many options.
Lack of Quality Control
Power to Choose doesn’t vet the listed providers or plans, potentially exposing consumers to unreliable companies.
Power to Choose Alternative
If you’re looking for a better way to shop for electricity in Texas, ComparePower is the best alternative to Power to Choose.
Unlike Power to Choose, ComparePower allows you to enter your energy usage and provides personalized rates tailored to your needs.
The Compare Power Difference
With all-inclusive pricing that reveals the total cost of each plan—eliminating hidden fees—and a selection of vetted providers, ComparePower makes it easy to shop confidently.
Plus, our user-friendly interface and expert support ensure you find the best plan without the hassle.
All-Inclusive Pricing, No Hidden Surprises
We show you the total cost of each plan, including all those pesky charges that can inflate your bill.
With all-inclusive pricing, you won’t experience sticker shock when you open your monthly bill.
You can shop confidently, knowing that all providers on our platform have been vetted.
User-Friendly
Our platform is designed to be intuitive and easy to use while offering advanced tools like Live Link™ for those who want to maximize their savings.
We explain the fine print and help you find a plan that fits your budget and lifestyle.
No-Deposit Options
We simplify the search for no-deposit electricity plans in Texas by instantly comparing options, ranking them from lowest to highest deposit, and allowing you to enroll online easily.
This makes it easier for consumers with credit concerns or tight budgets to access power without upfront costs.
Expert Support
Our team of local energy experts is always ready to answer your questions and provide personalized recommendations.
We’re here to guide you through the process and ensure you make the best choice for your needs.
Power to Choose vs. ComparePower
Feature
Power to Choose
ComparePower
Pricing Accuracy
Based on preset usage levels
Based on your actual usage
Provider Vetting
No vetting process
Pre-screened providers only
Personalization
One-size-fits-all approach
Tailored recommendations
Customer Support
Limited
Expert guidance available
User Experience
Can be overwhelming
Streamlined and intuitive
Pricing Transparency
Hidden fees may apply
All-inclusive pricing
Tools and Resources
Basic comparison tools
Advanced features and educational resources
Power to Choose Electricity Rates
As of June 2025, the average electricity rate in Texas is 15.30 ¢/kWh.
Here’s a quick overview of rates in major Texas cities today:
Power to Choose doesn’t list business electricity rates, but Compare Power does. We simplify the process, secure custom pricing, and help your business save.
Commercial energy plans can be riddled with complex terms and conditions. We understand this, so we make it our mission to simplify the process for you.
Our team of experts will break down the fine print and answer any questions you have, ensuring you fully understand your chosen plan before you sign up.
We’ve helped countless businesses find the most cost-effective energy plans, and we’re confident we can do the same for you.
If you selected an electricity plan through Power to Choose, you must pay your bill directly to the provider you signed up with, not to Power to Choose. Your provider will send you monthly bills with instructions on how to pay, which may include online, phone, mail, or in-person options. Pay your bill by the due date to avoid late fees or service interruptions.
No, the Power to Choose website, operated by the Public Utilities Commission of Texas (PUCT), does not list business electricity rates. The website is designed to help residential consumers compare and select electricity plans from various providers in Texas.
However, businesses in Texas can still take advantage of the deregulated electricity market and shop for competitive rates from multiple providers. This is where ComparePower comes in.
ComparePower is an unaffiliated, independent marketplace that helps Texas businesses compare electricity rates from over 30 providers and find the right energy plan for their needs. Whether you have a small business with a monthly electricity bill under $1,000 or a large commercial facility with complex energy requirements, ComparePower has solutions tailored to your business.
For small businesses, ComparePower offers an online marketplace where you can instantly compare rates from multiple providers and enroll in a plan that fits your budget and energy usage. The process is simple and transparent and can be completed online in just a few minutes.
If you have a larger business with higher energy consumption, ComparePower’s business energy experts can provide personalized assistance and custom rate quotes. They will analyze your company’s energy needs, help you navigate procurement projects, and even assist with industrial installation design and rebate opportunities.
Yes, Power to Choose is a legitimate website operated by the Public Utilities Commission of Texas (PUCT), a state government agency responsible for regulating the Texas electricity market. The PUCT created Power to Choose to provide Texas residents with an unbiased, transparent platform to compare electricity plans from various providers.
The information on Power to Choose, including plan details, pricing, and provider information, is submitted directly by the electricity companies and is subject to PUCT oversight. Providers must follow strict rules and regulations when listing their plans on the website to ensure accuracy and fairness.
However, it’s essential to understand that Power to Choose is a marketplace, not a regulatory body. While the PUCT strives to ensure the information on the website is accurate and up-to-date, it’s still the consumer’s responsibility to thoroughly review plan details, contract terms, and provider reputation before signing up for an electricity plan.
If you have concerns about a specific provider or plan listed on Power to Choose, contact the PUCT’s Customer Protection Division for assistance or file a complaint.
While Power to Choose is a valuable resource for Texas residents to compare electricity plans, it has some limitations. The website only provides a basic comparison of plans based on price, contract length, and renewable energy options, but it doesn’t consider a consumer’s specific electricity usage patterns. This means the plans listed on Power to Choose might not always be the most cost-effective or suitable for your household.
ComparePower, on the other hand, offers a more comprehensive and personalized approach to comparing electricity plans. As an unaffiliated, independent marketplace, ComparePower provides several advantages over Power to Choose:
Usage-based recommendations: ComparePower analyzes your historical electricity usage data to provide tailored recommendations based on your unique energy needs. This ensures you find the most affordable plan that fits your consumption habits, saves money, and prevents unexpected high bills.
Transparent pricing: ComparePower displays all fees, charges, and contract terms upfront, so you know exactly what you’re signing up for. There are no hidden costs or surprises down the line.
Expert support: If you need assistance, ComparePower’s team of local energy experts is available to help you find the right electricity plan for your home. They can answer your questions, provide personalized recommendations, and help you make an informed decision.
Time-saving tools: With ComparePower’s user-friendly platform, you can quickly filter and compare plans from multiple providers in one place. The streamlined enrollment process allows you to sign up for your chosen plan in just a few clicks.
Business electricity rates: Unlike Power to Choose, which only caters to residential consumers, ComparePower also helps Texas businesses compare and select electricity plans tailored to their needs.
While Power to Choose remains a helpful starting point for exploring electricity plans in Texas, ComparePower offers a more advanced, user-centric alternative to help you find the best plan for your specific needs, save money, and avoid the pitfalls of choosing an unsuitable plan based on limited information.
PowertoChoose.org, the official website of the Public Utility Commission of Texas (PUCT), allows consumers to compare electricity rates from various providers in their area. The website lists plans with their corresponding rates, contract lengths, and renewable energy content.
However, there are a few limitations to how Power to Choose presents electric rates:
Limited usage pricing: Power to Choose only displays rates for three predefined usage points (500, 1000, and 2000 kWh per month), which may not accurately represent your household’s electricity consumption.
Lack of personalization: The rates shown on Power to Choose are generic and do not consider your specific usage patterns, which can significantly impact your monthly costs.
Potential for hidden fees: While Power to Choose displays the average price per kWh for each plan, it may not always include all the fees, charges, and other costs that can affect your final bill.
In contrast, ComparePower offers a more accurate and personalized approach to comparing electric rates:
Usage-based rates: ComparePower analyzes your historical electricity usage data to provide rate comparisons tailored to your specific consumption patterns. This ensures you get the most accurate estimate of your monthly costs under each available plan.
Transparent pricing: ComparePower displays all fees, charges, and contract terms upfront, so you know exactly what you’re signing up for. There are no hidden costs or surprises down the line.
Apples-to-apples comparison: ComparePower’s advanced algorithm calculates the total monthly cost for each plan based on your usage data, allowing you to compare plans side-by-side and easily make an informed decision.
Personalized recommendations: If you need assistance, ComparePower’s local energy experts can provide personalized recommendations based on your usage patterns, budget, and preferences.
While Power to Choose is a good starting point for exploring electric rates in Texas, ComparePower provides a more comprehensive and accurate way to compare rates based on your unique needs. By considering your actual usage data and providing transparent pricing information, ComparePower helps you find the best plan for your household, ultimately saving you time and money.
ComparePower offers a more personalized and transparent approach to comparing plans. By analyzing your unique usage data and providing straightforward, upfront pricing information, we help you find the most cost-effective strategy for your specific needs.
Finding comprehensive, unbiased reviews of the platform can be challenging.
You can read our in-depth review and analysis, where we highlight several key issues with the Power to Choose platform:
Lack of quality control: Power to Choose doesn’t vet the electricity providers or plans listed on its site, meaning consumers may encounter offers from unreliable or poorly rated companies.
Confusing plan information: The Electricity Facts Labels (EFLs) and Terms of Service documents provided on Power to Choose can be challenging to understand, containing complex jargon, hidden fees, and unclear terms.
No personalization: Power to Choose doesn’t consider a consumer’s unique energy needs, usage patterns, or preferences, making it hard to find the most suitable plan for their household.
Limited customer feedback: While Power to Choose displays a complaint ratio for each provider, it lacks detailed information about customer experiences, making it difficult to gauge the quality of service each company offers.
In contrast, ComparePower offers a more user-friendly and reliable alternative to Power to Choose. Their platform provides:
Personalized recommendations based on your actual energy usage
Pre-screened providers with a proven track record of reliability and customer service
Clear, transparent pricing with no hidden fees or confusing terms
An easy-to-use interface with helpful tools and resources to guide your decision-making
Exceptional customer support from local energy experts
While Power to Choose may seem like the go-to resource for comparing electricity plans in Texas, it’s crucial to be aware of its limitations and consider alternative platforms offering a more comprehensive, transparent, and user-focused approach.
ComparePower has over 70,010 reviews from verified customers.
Beyond Power to Choose
While well-intentioned, the Power to Choose often overwhelms Texans and potentially misleads.
We’re on a mission to Unscrew Texas from confusing electricity bills.
Get personalized recommendations based on your energy habits and see transparent, all-inclusive pricing upfront so you can confidently shop and take control of your energy costs.
Ready to see how much you could save? Enter your ZIP code to start your personalized comparison.
The Power is Yours™
Why Texans Trust ComparePower
Transparent Pricing: No hidden fees or guesswork—just clear, all-inclusive rates.
15+ Years Serving Texas: We’ve helped millions of fellow Texans save on their electricity
5-Star Customer Service: With over 75,396 verified reviews, we’re known for our dedication to helping Texans save.
Fast, Secure Sign-Up: Find your ideal plan and enroll in minutes
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Understanding Charges on Your Bill
When you open your monthly electric bill in Texas, you’ll likely see a whole host of different charges, fees, and taxes on there.
While electricity retailers structure their bills differently, some charges appear frequently across providers.
From ubiquitous fees like TDU delivery costs to Competition Transition Charges, this article demystifies every line item on your Texas electric bill.
Struggling with high electricity bills? Learn proven strategies to reduce your electricity costs, from simple energy-saving tips to finding better rates.Lower your electric bill today →
Table of Contents
Bundled vs Unbundled Pricing
You may also notice that some companies offer bundled pricing plans while others use unbundled pricing models.
Both bundled and unbundled pricing have their advantages. Bundled pricing offers simplicity and ease of understanding, while unbundled pricing provides transparency and a detailed breakdown of charges.
The choice between these two often depends on the preference of the customer and the options offered by the Retail Electric Provider.
Here’s the key difference:
Bundled Pricing: In a bundled pricing structure, all charges associated with your electric service are included in the price per kilowatt-hour (kWh). This means that the rate you see per kWh is comprehensive and includes various costs such as energy charges, TDU delivery charges, and any other fees. This simplification makes it easier to understand your bill, as you’re primarily looking at one consolidated rate for your electricity usage.
Unbundled Pricing: Unbundled pricing, on the other hand, separates these charges on your bill. This means that your bill will itemize each component of the electric service. For example, you might see a separate line item for the energy charge, TDU delivery charges, and other fees. Unbundled pricing provides a more detailed breakdown of your electricity costs, which can be useful for understanding exactly what you’re paying for.
Both bundled and unbundled pricing have their advantages. Bundled pricing offers simplicity and ease of understanding, while unbundled pricing provides transparency and a detailed breakdown of charges.
The choice between these two often depends on the preference of the customer and the options offered by the Retail Electric Provider.
The Most Common Electric Bill Charges
While your bill format depends on your Retail Electric Provider (REP), here are the most common charges you’ll likely see:
Base Charge – This fixed monthly fee covers basic operating costs for your electric provider. It applies regardless of your actual energy usage.
Energy Charge – This charge is based on your electricity usage each month, measured in kilowatt-hours (kWh). The more energy you use, the higher this charge will be.
TDU Delivery Charges – This fee covers electricity delivery costs for the Transmission and Distribution Utility (TDU) that operates power lines in your area.
Advanced Metering Charge – Texas has required advanced smart meters, which leads to this small monthly charge to cover associated costs.
Taxes – A variety of sales taxes and municipal fees may appear, most commonly up to about 3% of charges.
Regulatory Charges – These fees imposed by the Public Utility Commission of Texas cover its operating costs and other regulatory program costs.
Other Common Electric Charges
Depending on your specific electric plan and provider, your monthly bill may also include:
Customer Charge or Monthly Service Fee – Much like the base charge, this is a fixed monthly fee that doesn’t depend on your energy use.
Demand Charge – For commercial and industrial customers, this charge is based on your highest electricity demand during the month.
Metering Charge – This covers meter reading, maintenance, and equipment costs.
Renewable Energy Charge – For power plans advertising renewable energy, this charge helps support those cleaner energy sources.
Less Common Charges
Some electric bills may have additional one-time fees or lesser-known recurring charges such as:
Disconnection/Reconnection Fee – If your power was shut off for non-payment, reconnecting may incur this charge.
Late Payment Penalty – If you pay your bill after the due date, your provider may assess a one-time penalty.
Outage Credit – You may receive a credit if you experience a major prolonged outage.
Equipment Fees – These fees can apply to special equipment like a transformer or power quality meter leased from your utility.
All Charges & Fees Defined
Texas electricity bills can be packed with confusing charges like “PUC Assessments,” “Advanced Metering Fees,” and more – this list breaks down what each charge on your electric bill means.
Base Charge: A flat fee is applied each month regardless of the amount of kilowatt-hours (kWh) used.
Current Charges: These include the current charges for electric service as detailed in the terms of service document, along with applicable taxes and fees.
Demand Charge: Based on the rate at which electric energy is delivered to or by a system at a given instant during the billing cycle.
Energy Charge: A charge based on the energy consumed (kWh).
Meter Charge: Assessed to recover Transmission and Distribution Utility’s (TDU’s) charges for metering your consumption.
Recurring and Non-Recurring Charges: These identify and itemize recurring charges other than for electric service and any non-recurring charges such as late fees, returned check fees, restoration of service fees, etc.
Late Payment Penalty: A one-time penalty not exceeding 5% may be charged on a delinquent bill.
Sales Tax and Other Charges: These include sales tax collected by authorized taxing authorities.
Transition Charge: To cover the costs associated with the transition to competition.
System Benefit Fund: A non-bypassable charge set by the PUC for energy efficiency and customer education programs.
Miscellaneous Gross Receipts Tax Reimbursement: A fee assessed to recover the miscellaneous gross receipts tax imposed on retail electric providers.
Nuclear Decommissioning Fee: Assessed only by the local wires company or transmission and distribution utility to cover the cost of safely removing a nuclear generation facility from service.
Minimum Usage Fee: Also known as a bill credit this fee is added when a customer’s usage falls below a certain threshold. Learn how to make minimum usage fees work for you (not against you) with your home kWh usage.
Advanced Metering Charge: A charge for electric delivery companies to recover the costs for their Advanced Metering Systems, which is shared among all electricity users in the TDU’s service territory.
Energy Efficiency Cost Recovery Factor: A charge to recover a TDU’s costs for energy efficiency programs, provided it’s a separate charge exclusively for that purpose and approved by the Public Utility Commission.
PUC Assessment: A fee to recover the statutory fee for administering the Public Utility Regulatory Act.
TDU Delivery Charges: These are charges to cover the cost of moving electricity from the generation plant to your home.
Transmission Distribution Surcharges: One or more TDU surcharge(s) on a customer’s bill in any combination, including charges billed as tariff riders by the TDU.
Amount Due: The total amount due by the due date of the bill, which may include a past due amount.
REP Charges: Retail Electric Providers may bundle all charges associated with your electric service into the price per kWh or separate the charges.
Regulatory Charges: These could include fees imposed by governmental agencies, which are not always explicitly named in the charges list but are sometimes included in the PUC Assessment or other line items.
Renewable Energy Charges: Charges related to the procurement of renewable energy sources, if applicable.
Early Termination Fee: Applicable if you cancel a contract with a fixed term before its expiration date.
Credit Balances and Adjustments: Reflects adjustments from previous billing errors, credits for overpayment, or adjustments due to metering inaccuracies.
Billing and Payment Convenience Fees: Charged for using certain types of payment methods (like credit cards) or receiving paper bills.
Cost Recovery Factors: Charges to recover costs related to specific grid or utility investments besides the Energy Efficiency Cost Recovery Factor.
Connection and Disconnection Fees: Charged for connecting or ending electric service.
Billing Cycle Charges: These can include fees related to the duration of the billing cycle.
Payment Assistance Program Contributions: Bill option to contribute to programs that assist others with paying electricity bills.
Green Energy Surcharges: Associated with sourcing renewable energy for a green energy plan.
Customer Service Fees: Charged for certain types of customer service interactions.
Deposits: Used to secure payment based on credit history. Usually refundable.
Demand Response Program Credits: Credits for participating in programs to reduce usage during peak times.
Franchise Fees: Charged by utilities for the use of public land for their infrastructure.
Credit Check Fee: Charged by some providers to check credit when establishing service, especially if a deposit is required.
Returned Payment Fees: Charged if a payment doesn’t clear due to insufficient funds.
Restoration of Service Fees: Charged if your service is disconnected and needs to be restored.
Paper Bill Fee: Charged by some companies for sending paper bills instead of electronic billing.
Auto-Pay Discount: Discount offered for setting up automatic payments.
Smart Thermostat Incentives or Credits: Associated with managing energy usage through an enrolled smart thermostat.
Community Solar Participation Fees or Credits: Associated with participating in a community solar program.
Contract Renewal Fees: Uncommon fee that some providers charge for renewing a contract.
Outage Credits: Credits are provided in some cases for prolonged outages.
Grid Contribution or Infrastructure Maintenance Fees: Grid maintenance or infrastructure improvements charges.
Renewable Energy Certificates (RECs) Purchases: Charges related to purchasing RECs to offset energy usage.
Payment Arrangement Fees: Charged by some providers for setting up payment plans for overdue bills.
Out-of-Cycle Meter Reading Fees: Charged if a customer requests a meter reading outside the normal schedule.
Equipment Rental Fees: Charges for renting or leasing special equipment installed at the customer’s location.
Third-party Service Charges: Charges for services from third parties are included in the electric service offering.
Emergency Power Restoration Charges: Charges to cover extraordinary power restoration costs following major outages.
Voltage Monitoring Fees: Charges for businesses or high-usage residential customers who require voltage monitoring.
Energy Consultation Fees: Charges for personalized energy consultation services.
Administrative Fees: General fees for account maintenance.
Prepayment Service Charges: Charges associated with prepaid electricity plans.
Environmental Compliance Fees: Charges to cover costs related to environmental regulations and compliance.
Capacity Charges: Charges related to the capacity of electricity required or reserved, especially for commercial customers.
Peak Demand Charges: Charges based on the highest level of power used during peak periods, for some commercial customers.
Carbon Offset Fees: Pay for carbon reduction projects to offset carbon footprint.
HVAC Efficiency Program Fees: Associated with programs to improve HVAC efficiency.
Load Management Program Fees: Charges or incentives related to managing energy usage during peak periods.
Smart Grid Fees: Charges to support smart grid technology development and maintenance.
Thermostat Adjustment Service Charges: Charges for services that remotely adjust thermostats to save energy.
Customized Billing Charges: Charges for non-standard or more detailed billing reports per customer request.
Energy Audit Fees: Charges for audits aimed at identifying home or business energy savings opportunities.
Rate Schedule Fees: Additional charges related to specific rate schedules like time-of-use or tiered rates.
Power Factor Adjustment Charges: Charges or credits for commercial customers based on the power factor (a measure of electrical efficiency) of their equipment.
Excess Usage Charges: Charges for usage exceeding a certain threshold, per some plans.
Infrastructure Upgrade Fees: Charges to cover costs of upgrading electrical infrastructure.
Service Visit Fees: Charges if a technician visit is required and not covered by standard service.
Billing Correction Fees: Charges for correcting billing errors.
Legal or Regulatory Compliance Fees: Charges to cover costs related to complying with regulations.
Standby Service Charges: Charges for customers with backup generation relying on the grid for standby service.
Emergency Service Fees: Additional fees for electrical emergency response services.
Voltage Regulation Charges: Charges for customers requiring specific voltage level maintenance.
Capacitor Installation & Maintenance Fees: Charges for installing and maintaining power factor correction capacitors.
Power Adjustment Factors: Bill adjustments based on changes in electricity generation/purchase costs.
Seasonal Rate Adjustments: Rate changes based on season (summer/winter).
Renewable Energy Program Participation Fees: Charges related to participating in specific renewable energy programs.
Reactive Power Charges: Charges related to reactive power for industrial customers.
Energy Storage Service Fees: Charges for using utility-provided energy storage solutions.
Billing Adjustment Fees: Charges for adjusting bills due to disputes or errors per customer request.
Online Account Management Fees: Charges for online account tools or mobile app access.
Demand Response Incentive Payments: Credits or incentives for participating in demand response programs to reduce usage during peak demand times.
Grid Access Charges: Charges for accessing the electrical grid, especially in cases where the customer generates some of their power.
High Bill Alert Service Fees: Charges for services that notify customers when usage is unusually high.
Late Payment Interest: Interest charged on overdue payments.
Customer Assistance Program Contributions: Voluntary bill contributions to help other customers pay bills.
Outage Monitoring Service Fees: Charges for advanced outage monitoring and reporting services.
Surge Protection Service Fees: Charges for utility-provided surge protection equipment or services.
Service Initiation Fee: A one-time charge applied when first establishing service to cover administrative setup costs.
Payment Processing Fees: Charges to cover transaction costs of certain payment methods.
Distribution Cost Recovery Factor (DCRF): Allows utilities to recover capital investments in infrastructure between rate cases.
State Colleges and Universities Discount: A discount is available to state colleges and universities.
Solar Credits/Incentives: Credits or rebates related to solar panel installation/usage.
Electrical Infrastructure Relocation Charges: Charges utilities can assess related to relocating electrical infrastructure at a customer’s request.
Primary Service Charge: An additional charge imposed by some utilities for large industrial or commercial customers receiving primary voltage service.
Power Generation Service Charge: For customers participating in a buy-back program where excess energy is sold to the utility.
LED Light Bulb Incentives: Some utilities offer rebates for installing energy-efficient LED light bulbs.
Electric Vehicle Charging Credits: Rebates or incentives related to installing EV charging infrastructure.
Utility Reward Points: Some plans allow customers to earn reward points for paying bills, which can be redeemed for gifts/prizes.
Electricity Bill Charges FAQs
Why do I see “Taxes” on my Texas electricity bill?
These are state/local sales taxes, fees, and surcharges authorized by different taxing authorities.
What are the recurring fees I have to pay monthly?
At minimum – a base charge, energy usage charge, and utility delivery fees recur monthly.
What additional charges might be on my bill?
Potential charges range from meter reading fees to regulatory assessments, equipment charges, renewable energy fees, etc.
Don’t Sweat Your Electric Bill
Understanding all the charges on Texas electric bills allows you to accurately compare pricing between different plans and providers. If you see unfamiliar fees on your bill, contact your electricity retailer and request an explanation.
As always, the energy experts at ComparePower are available to answer any questions about electric plan choices and costs in Texas-deregulated areas.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Early Termination Fees
Hey there! If you’re reading this, chances are you’re staring down Early Termination Fees (ETFs) for one of the following reasons:
You’re planning to move and need to get out of your Texas electricity contract pronto.
You’re on the hunt for a more affordable energy plan.
Or you’re regretting signing up for your current electricity contract and want to make a change.
Lucky for you, we’ve got your back. Below, you’ll find out how ETFs work, how to avoid them, and how to switch and save, even if it means paying for an ETF.
Key Takeaways
You don’t have to pay an ETF if you are moving or are facing economic hardship.
The Public Utility Commission of Texas (PUCT) limits the amount an electricity company can charge you for terminating your contract early.
You can save money, even if you pay an ETF, by switching to a better electricity plan for your home.
What Exactly Are Early Termination Fees?
Early Termination Fees (ETFs) are, drumroll please, fees you are charged if you want to terminate your electricity contract early.
Any time you sign up for an electricity contract, you’ll see an ETF noted on the Electricity Facts Label (EFL).
These fees come in a few different varieties and can range from $20 per month remaining on your contract to anywhere in the ballpark of $250.
Why do they exist?
To put it simply, ETFs exist because electricity companies buy the electricity for your home before you even sign up for service.
Since they’ve already paid for the electricity, they put an ETF in place to protect that investment.
If you were to sign up for a plan and then cancel a month in, the electricity company would be stuck with that extra electricity and no way to make money.
Ultimately, business is business, and the electricity companies want to protect their money, even if it means taking yours.
Different Types of ETFs
As we mentioned earlier, there are two different kinds of ETFs you’ll see:
Flat Fees: This is a set fee, usually between $100-250, charged no matter when you cancel your contract.
Variable/Prorated Fees: These fees decrease as you get further into your contract. The later you cancel, the less you pay. Most are $20 per month remaining on your contract.
Limits on ETFs to Protect You
While ETFs are in place to protect businesses, the Public Utility Commission of Texas (PUCT) has rules to prevent excessive fees. Here’s the cap:
For residential customers: $20 or 10% of the remaining contract value, whichever is higher.
These limits keep providers from locking you into a contract with steep ETFs.
When Are You Not Charged an ETF?
Under PUCT §25.475, you’re off the hook for ETFs if:
You’re facing extreme financial struggles and can’t afford your bills.
You’re permanently moving away from your service address.
There’s been a death in the family.
The provider fails to uphold the contract terms.
Avoiding ETFs
If you’re moving out of your Texas home, you don’t have to pay these ETFs. Just call your provider to cancel and give them proof of your move.
You’re exempt if you face financial hardship or issues with your provider’s service. In these cases, you can contact your provider for more details.
And if you want to switch at the end of your contract, you have a 14-day window to make that change without being charged.
Electricity Companies that Will Cover Your Early Termination Fee
When you switch to Rhythm Energy, the company will cover up to $150 in early termination fees from your previous electricity provider.
Plus, they offer a 30-day Easy Energy Promise, which means you’ve got one month to try Rhythm out or leave early without a penalty.
How can you get reimbursed for my electricity company’s early termination fees if you switch to Rhythm?
Within 60 days of starting service on a qualifying Rhythm plan, send Rhythm Energy an email with the following attached:
A copy of your bill from your old supplier showing you were charged an early termination fee to switch to Rhythm.
A copy of the payment made for the final bill, reflecting that the final payment was made, including the ETF.
Their team will verify the documentation and complete the reimbursement process as soon as they receive it. Please keep your account current and pay your bills with Rhythm on time so you can receive your reimbursement after your 91st day of active service with Rhythm. The reimbursement will be applied in loyalty points equal to the value of your old supplier’s early termination fee, up to $150, which can be redeemed for bill credits.
Please note: You will only be eligible for this early termination fee reimbursement once, and participants in any of Rhythm’s Solar Buyback plans or Variable Plans are not eligible. Customers must not have any past-due charges to qualify for the credit to be applied.
Could Switching Save You Money Despite an ETF?
It’s possible. Even with an ETF, a switch could save you money in the long run if you’re overpaying for electricity.
Your first step towards savings is getting your home’s electricity usage and dropping it into our usage tool. You’ll instantly see monthly bill estimates and the total cost of each electricity plan.
Then, all it takes is some simple math to see which plan will save you the most money. Check out the video below to see what it looks like:
Very helpful, ComparePower makes switching providers stress-free. I plugged in my kwh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!
Sure, Early Termination Fees (ETFs) help make those attractive promotional electricity rates possible, but you’ve got options to avoid them altogether:
No-Contract Plans: Want the freedom to switch whenever? Opt for slightly pricier month-to-month plans that come without the burden of ETFs.
Prepaid Electricity: With these plans, you pay upfront for what you use. When you stop the service, there’s no remaining balance, so no ETFs.
Take Control and Save Now
Want to avoid the risk of early termination fees later? Check out the most up-to-date fixed-rate electricity plans and reliable no-contract options.
Enter your zip code below and explore the best deals available near you.
See Today's Lowest Texas Electricity Rates
Stories from Texans Like You
At ComparePower, we’re all about making sure Texans like you get straightforward, fair electricity choices with no nasty shocks.
Our marketplace is packed with upfront pricing, genuine local support, and recommendations customized for your home. Consider us your local advisor, guiding you to the perfect energy plan.
Take a peek at the real-life stories from Texans who’ve used ComparePower. See how we’ve turned the often baffling task of choosing electricity plans into a breeze for you, the consumer — the one paying for this stuff.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Are you seeking assistance paying your electricity bill in Texas?
Several programs stand ready to support low-income families in managing their electricity and other utility expenses.
Let’s explore these programs in detail to help you find one that can help.
TLDR: Texas offers various assistance programs to help residents manage their electricity bills. This article is a comprehensive guide spotlighting Senate Bill 1976, Lifeline, Link-Up, and other essential programs. Find out how to qualify and apply for the assistance you need.
On This Page
Senate Bill 1976
This bill, initiated on September 1, 2017, empowers electric providers to offer benefits to their low-income customers.
To qualify, you must be enrolled in the Supplemental Nutrition Assistance Program (SNAP) or Medicaid, and the name on the program must match the name on the electric bill.
Note that self-enrollment is not permitted for the electric matching program. Contact your electric provider to inquire about their participation and the benefits they offer. For more details, call 1-866-454-8387.
Comprehensive Energy Assistance Program (CEAP)
The CEAP is a flagship initiative to assist low-income households in meeting their energy needs.
This program focuses on helping families reduce their energy bills by offering financial assistance and energy education, promoting energy conservation and efficiency.
The Lifeline Program helps low-income families by offering a discount on monthly telephone or internet bills.
While not directly related to electricity, having access to communication services can indirectly help you manage your electricity needs more effectively.
Qualification is based on the total household income being at or below 150% of the federal poverty guidelines or if the individual is receiving assistance from programs like Medicaid, SNAP, or Low-Income Home Energy Assistance Program.
Lifeline offers a discount of up to $12.75 on the basic monthly telephone rate for those who qualify.
The Link-Up program is designed to lessen the cost of initiating new telephone services for qualifying low-income residents living on approved tribal lands. It offers a 100% discount (up to $100) on telephone installation charges.
This initiative by the Texas Department of Housing and Community Affairs aims to assist qualified low-income Texans in enhancing the energy efficiency of their homes.
Priority is given to households with small children, elderly residents, or disabled individuals.
Understanding the eligibility criteria is crucial before applying to any of the above programs. Here, we break down the general requirements and documentation needed to apply.
Income-based Eligibility
Most programs have income-based eligibility criteria; your household income must fall below a certain threshold to qualify.
It’s important to gather proof of income and other necessary documents before applying.
Special Circumstances (Elderly, Disabled, etc.)
Certain programs offer additional benefits or have separate criteria for individuals with special circumstances, such as the elderly or disabled.
Check the specific requirements for each program to find the best fit for your situation.
Documentation Required
When applying, be prepared to provide necessary documentation, including proof of income, identification, and proof of residence.
Having these documents ready can streamline the application process.
How to Apply for Assistance Programs
Navigating the application process can sometimes be daunting. Here is a step-by-step guide to help you apply for the assistance programs available in Texas.
Step-by-step Guide to Applying
For more detailed information and to apply, visit the official websites of the programs mentioned above.
Research the Programs: Start by researching the programs available and identifying the ones you are eligible for.
Gather Necessary Documents: Compile all the necessary documents as mentioned in the eligibility criteria section.
Fill Out the Application: Complete the application form with accurate and truthful information.
Submit the Application: Submit your application through the official website or at the designated centers.
Follow-Up: After submission, keep track of your application status and follow up as necessary.
Tips for a Successful Application
Ensure to fill out the application form completely and accurately.
Seek assistance if you encounter difficulties during the application process.
Be patient, as processing times can vary between programs.
Contact Information for Assistance
If you need further assistance or have questions, don’t hesitate to contact the respective program’s customer service or helpline.
Need Help Lowering Your High Electricity Bill?
Are you looking for ways to reduce your high electricity bill in Texas? From comparing rates and switching providers to implementing energy-saving tips, our comprehensive guide offers practical solutions to help you take control of your energy costs.
Discover how you can lower your electricity bill and find relief from overwhelming expenses. Read the full article to learn more about the steps you can take to start saving money on your electricity bills today.
Are you seeking assistance with your electricity bills in Texas? We’ve compiled and answered some of the most frequently asked questions to guide you through the process.
What benefits does Senate Bill 1976 offer to Texans?
Senate Bill 1976 allows electric providers to assist low-income SNAP or Medicaid customers. Contact your electricity provider for more details.
How do I know if I am eligible for these programs?
Eligibility is primarily based on income, with specific criteria for special circumstances such as elderly or disabled individuals.
What is the application process for these programs?
The application process involves researching the programs, gathering necessary documents, filling out the application form, submitting it through official channels, and following up on the status.
Where can I find more information or seek assistance?
You can find detailed information and contact details for assistance on the official websites of the programs mentioned in this article.
How can the Lifeline program assist me with telephone bills?
Lifeline offers discounts on basic monthly telephone rates for qualifying low-income individuals. Learn more about eligibility and application on their official website.
What support does the Link-Up program offer?
The Link-Up program helps reduce the cost of initiating new telephone services for qualifying low-income residents living on approved tribal lands. Visit their website for more information.
How can victims of family violence get assistance?
Victims of family violence can have their electric service deposit waived. The TCFV website has more information and the necessary certification letter.
What is the Weatherization Assistance Program?
This program offers energy audits and installation of weatherization measures to increase energy efficiency for qualified low-income Texans. Apply through your retail electric provider.
In Summary
In Texas, we believe in community and supporting each other. We hope this guide serves as a valuable resource for obtaining the assistance you need to manage your electricity bills effectively.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Texas Energy Assistance
The Texas Energy Assistance Program, part of the Comprehensive Energy Assistance Program (CEAP), is designed specifically for low-income households.
From immediate relief to long-term stability, this guide equips you with everything you need to regain control and keep your home powered.
Table of Contents
What is the CEAP?
CEAP is a critical support system provided by the Texas Department of Housing and Community Affairs (TDHCA). Aimed at Texans grappling with energy expenses, CEAP offers immediate aid, crisis intervention, and long-term energy management support. It’s more than financial aid; it’s a commitment to Texans in need.
How to Apply
You can apply through your local community service agency. The TDHCA’s website offers information on this and other valuable community programs. It’s your gateway to discovering the support available to you.
Program Eligibility
Review the LIHEAP guidelines to understand the specific criteria, including income levels and household requirements. Understanding these guidelines ensures that you know exactly what support you qualify for.
Available Assistance
CEAP’s comprehensive aid includes:
Immediate assistance with energy bills
Crisis support for urgent needs
Co-payment solutions for ongoing expenses
Utility-related home repairs to keep you comfortable
These multifaceted benefits are tailored to help Texans navigate energy costs with confidence.
Other TDHCA Resources
Beyond energy assistance, the TDHCA provides a variety of support services, including housing assistance. Be sure to explore the full range of programs that can benefit you and your family.
The Texas Energy Assistance Program is here to empower Texans struggling with energy costs. With this guide, you’re now equipped to tap into the resources that will keep your home energized and comfortable.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Reliant Texas Bonus 24
Looking to switch to Reliant’s Texas Bonus 24 plan? Hold on a minute. That $600 bonus might look shiny, but what if I told you there’s a way to save even more?
TLDR: Reliant’s plan might seem like a deal, but the numbers tell a different story. The lowest rate on ComparePower could save you $744 a year even after the $600 bonus is applied to the Texas Bonus 24.
Is Reliant’s Bonus 24 Energy Plan right for you?
You might be drawn to the $600 bonus offered by Reliant’s Texas Bonus 24 plan. But before you jump in, let’s examine the numbers carefully to see if it’s truly the best deal for you.
Reliant’s plan will cost you $3216 a year for 2000kWh per month – and that’s with the bonus! The lowest rate today on ComparePower for the same kWh usage will cost you $2471.76 for the year.
Simply put, that’s $744.24 more in your pocket, even with the $600 bonus factored into Reliant’s plan. Without that bonus, your savings soar to $1344.24 over Reliant’s Bonus 24 Plan.
Don’t be lured by gimmicks. If a deal sounds too good to be true, there’s a good chance it is.
The Math Behind the Numbers
Reliant Texas Bonus 24 Plan
Rate: 15.9 ¢/kWh (Centerpoint)
Monthly Usage: 2000 kWh
Monthly Cost: $318
Annual Cost Before Discount: $3816
Discount: $600
Annual Cost After Discount: $3216
Lowest Rate on ComparePower
Rate: 10.3 ¢/kWh
Monthly Usage: 2000 kWh
Monthly Cost: $206
Annual Cost: $206 * 12 = $2471.76
Savings by Choosing a fixed-rate Plan on ComparePower today:
$3216 – $2471.76 = $744.24
What Does This Mean for You?
Imagine you’re shopping for a new car. You see one with a big rebate, but the gas mileage is terrible.
Sure, you save upfront, but you’ll pay more at the pump all year long. That’s what’s happening here with Reliant’s plan.
ComparePower’s lowest rate is like finding a car with a great price and excellent gas mileage.
You save upfront, and you keep saving all year long. It’s a win-win.
How to Shop Energy Rates in Texas
The number one rule in finding the right power plan is to understand your usage.
The easiest way to get 12 months of usage history is to log into your provider dashboard. You can also create an account with Smart Meter Texas to get usage readings for your home in 15-minute intervals.
This 2-minute video explains everything you need to know ⤵️
About Reliant Energy
Reliant Energy, part of the NRG Energy family, is a well-known electricity provider serving millions of homes and businesses across Texas.
With a commitment to innovation and community support, Reliant offers a diverse range of energy plans, including fixed-rate, renewable, and prepaid options.
While their Texas Bonus 24 plan may catch the eye with its $600 bonus, it’s essential to look beyond the immediate incentives.
Reliant’s deep Texas roots and dedication to environmental initiatives are commendable, but a careful examination of rates and long-term costs is crucial for consumers seeking the best value.
Read next: Learn how to maximize your energy savings with your kWh usage history on ComparePower.
Switching to Reliant’s Texas Bonus 24 plan might feel like snagging a bargain at first glance.
But it’s like buying a pair of shoes on sale that doesn’t quite fit. Sure, you saved some money upfront, but you’ll pay for it later with every uncomfortable step.
Take a closer look, compare the rates, and choose what really fits your needs and budget. Sometimes the shiniest offer isn’t the best deal in the long run.
Reliant Texas Bonus 24 FAQs
Navigating the world of electricity plans can feel like a maze. You’ve got questions, and we’ve got answers.
Here are answers to the most common queries about Reliant’s Texas Bonus 24 plan and ComparePower’s lowest rate.
Is Reliant’s Texas Bonus 24 plan really a good deal?
It might seem so, but the math shows you could save $744 with ComparePower’s lowest rate.
What’s the catch with Reliant’s plan?
The catch is the higher rate per kWh. It’s like buying a car with a rebate but paying more for gas all year.
Where can I find a better deal?
ComparePower offers rates that could save you money in the long run. It’s like shopping around for the best car price instead of falling for the first rebate you see.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
