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Variable Electricity Rates in Texas

In the dynamic landscape of the Texas electricity market, you have many choices when it comes to powering your home.

Among these options, variable-rate electricity plans have emerged as a potentially attractive choice for those seeking flexibility and the opportunity to capitalize on market fluctuations.

However, before diving in, it’s crucial to understand the intricacies of these plans and weigh the potential benefits against the risks.

What are Variable-Rate Electricity Plans?

Variable-rate electricity plans are pricing structures in which the cost per kilowatt-hour (kWh) of electricity can fluctuate based on market conditions, such as wholesale prices, weather patterns, and supply and demand.

Unlike fixed-rate plans, which offer a stable price for the duration of a contract, variable-rate plans are subject to change.

Here’s a quick comparison of the key features of variable-rate and fixed-rate plans:

Feature	Variable-Rate Plans	Fixed-Rate Plans
Price per kWh	Fluctuates with market conditions	Remains constant throughout the contract
Contract length	Month-to-month	Typically 6, 12, or 24 months
Risk of price spikes	High	Low

The Potential Benefits of Variable Rates

The primary draw of variable-rate plans is their flexibility. With no long-term contracts or early termination fees, consumers can switch plans or providers when market conditions change.

This flexibility can particularly appeal to those uncertain about their long-term electricity needs, such as those who need temporary living arrangements.

Read: Month-to-Month Electricity Plans in Texas

The Risks Associated with Variable Rates

When wholesale electricity prices spike due to extreme weather events, supply disruptions, or unexpected demand surges, consumers on variable-rate plans can face high bills.

During the February 2021 winter storm in Texas, many consumers on variable-rate plans faced exorbitant electricity bills due to the sudden spike in wholesale prices.

Some customers reported bills exceeding $1,000 for just a few days of electricity use, highlighting the potential risks of these plans.

This price volatility can make budgeting for electricity costs challenging and result in financial hardship for those unprepared for sudden rate increases.

Recent Changes in the Texas Electricity Market

In the wake of the February 2021 winter storm, the Texas Legislature has taken steps to protect consumers from the risks associated with wholesale-indexed variable-rate plans.

House Bill 16, approved by both chambers, bans residential and small-business electricity customers from signing up for plans that directly pass wholesale electricity prices to customers.

This legislative change and the lessons learned from Griddy Energy underscore the importance of understanding the risks associated with variable-rate plans and the need for strong consumer protections in the Texas electricity market.

Is a Variable-Rate Plan Right for You?

Choosing a variable-rate electricity plan depends on your circumstances, risk tolerance, and willingness to manage your energy costs actively.

Consider your budget, energy usage, and market savvy before choosing.

If you accept the risks and actively manage your electricity costs, a variable-rate plan like the TXU Energy Month-to-Month Flex Forward plan may be viable.

This plan offers a low monthly rate with no long-term contract or cancellation fees, allowing you to change plans without penalty.

Enter your zip code, then click ‘All Plans’ to find and enroll in the TXU Energy Month-to-Month Flex Forward plan.

Why Fixed-Rate Plans are Recommended for Most Households

Fixed-rate electricity plans offer most Texas households the best combination of price stability, predictability, and consumer protection.

By locking in a set price per kWh for the duration of your contract, you can avoid the risk of unexpectedly high bills due to market volatility and make budgeting for your electricity costs more manageable.

While variable-rate plans can offer potential savings during low market prices, the risks associated with these plans often outweigh the benefits for the average consumer.

In light of recent market changes and the increasing focus on consumer protection, it is strongly recommended that most Texans choose fixed-rate plans to minimize their exposure to price fluctuations.

Read: Fixed vs. Variable Rate Electricity: Which is Better?

How to Choose Your Best Electricity Plan in Texas

Choosing the best electricity plan for your needs involves understanding your energy consumption patterns, priorities, and risk tolerance.

To make an informed decision, follow these steps:

Understand your energy consumption patterns and priorities.
Use ComparePower, a highly-rated energy marketplace, to compare plans and providers.
Take advantage of ComparePower’s usage-based shopping tools to find plans that align with your energy needs.
Shop with your usage history to get personalized plan recommendations.
Consider contract length, renewable energy content, and additional features.
Easily enroll in your chosen plan online through ComparePower.

Following the step-by-step guide in this article, you can save hundreds of dollars a year on your electricity bills and avoid the risks associated with variable-rate plans.

Read: How to Choose the Best Electricity Plan in Texas

Find the Best Energy Plan for Your Home

Don’t let the complexity of the Texas electricity market keep you from finding the best energy plan for your home.

Enter your zip code to get personalized recommendations and transparent pricing information so you can make an informed decision about your home’s electricity.

Compare Rates Near You

Support You Can Count On

Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.

Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.

With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.

We’re Here to Help!

Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.

Call Now

Holdover Rates

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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.

What Are Holdover Rates?

In the Texas electricity market, a holdover rate is a variable rate that 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.

Read: Texas Electricity Contract Expiration Guide

Retail Electricity Providers

In the Lone Star State, power generators are paid for the electricity they produce 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.

Read: How Electricity Contract Renewals Work in Texas

The Holdover Rate Trap

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.

Read: How to Switch Electricity Companies in Texas

Avoiding Holdover Rates

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. 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 break down the costs of each plan, including hidden fees and discounts, so that you can make apples-to-apples comparisons.
Personalized recommendations: Our algorithm 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 platform, we’re not beholden to any particular REP. 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: Get effortless reminders from ComparePower to switch plans at the right time.

I prefer simplicity over sales tactics.

By sharing my needs, I swiftly received tailored options and could enroll hassle-free. No unexpected hitches, just efficient email correspondence. Keep it straightforward and streamlined for a seamless experience, please!
Julie Parker

Say Goodbye to Holdover Rates

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.

Read: How to Choose the Cheapest Electricity Provider in Texas

Don’t spend another month overpaying for electricity. Take control of your energy costs today by comparing plans and making the switch with ComparePower.

Support You Can Count On

Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.

Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.

With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.

We’re Here to Help!

Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.

Call Now

How to Get Your kWh Usage in Texas

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.

However, your home must have a smart meter installed by a participating utility – AEP Texas, CenterPoint Energy, Oncor, Texas-New Mexico Power, or Lubbock Power and Light.

To register on www.smartmetertexas.com, you’ll need to provide:

Your name and email
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.

The key steps are:

Go to www.smartmetertexas.com and click “Sign Up”
Select “Residential” as the account type
Enter your name, email, ESIID, meter number
Search and select your retail electric provider
Create a user ID and agree to the terms
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.

Texas Electricity Satisfaction Guarantees

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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.

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 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, Frontier Utilities, and

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.

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.

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.

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.

Plan Name	Plan Length	Rate
TXU Energy - TXU Energy Flex Forward	1 months	19.3¢ / kWh
TXU Energy - TXU Energy Clear Deal 12	12 months	14.5¢ / kWh
TXU Energy - TXU Energy Saver's Discount 12	12 months	20.0¢ / kWh
TXU Energy - TXU Energy Simple Rate 12	12 months	17.7¢ / kWh
TXU Energy - TXU Energy Clear Deal 24	24 months	15.5¢ / kWh
TXU Energy - TXU Energy Saver's Discount 24	24 months	21.2¢ / kWh
TXU Energy - TXU Energy Live Your Free 12	12 months	18.6¢ / kWh
TXU Energy - TXU Energy Solar Saver 12	12 months	21.2¢ / kWh
TXU Energy - TXU Energy Solar Value 12	12 months	15.9¢ / kWh
TXU Energy - TXU Energy Free Nights & Solar Days 12 (8 p.m.)	12 months	18.5¢ / kWh

Plan Name	Plan Length	Rate
4Change Energy - Cash Money 12	12 months	14.1¢ / kWh
4Change Energy - Maxx Saver Select 12	12 months	10.7¢ / kWh
4Change Energy - One Rate 12	12 months	16.3¢ / kWh
4Change Energy - Power Maxx Saver 12	12 months	17.2¢ / kWh
4Change Energy - Maxx Saver Select 24	24 months	10.7¢ / kWh
4Change Energy - One Rate 24	24 months	15.7¢ / kWh
4Change Energy - Power Maxx Saver 24	24 months	17.2¢ / kWh
4Change Energy - Smart Thermostat 24	24 months	14.7¢ / kWh

Energy Plans with a 30-Day Satisfaction Guarantee

Discover Texas energy plans with a 30-day risk-free cancellation guarantee.

Plan Name	Plan Length	Rate
Rhythm Energy - Simply Green 13	13 months	15.9¢ / kWh
Rhythm Energy - Simply Green 16	16 months	16.4¢ / kWh
Rhythm Energy - Simply Green 18	18 months	16.4¢ / kWh
Rhythm Energy - Simply Secure 24	24 months	16.1¢ / kWh

Energy Plans with a 60-Day Plan Change Guarantee

Explore Texas energy plans with a 60-day plan change within the same provider guarantee.

Plan Name	Plan Length	Rate
Gexa Energy - Gexa Eco Saver Advantage 12	12 months	19.7¢ / kWh
Gexa Energy - Gexa Eco Saver Lite 12	12 months	19.5¢ / kWh
Gexa Energy - Gexa Eco Saver Plus 12	12 months	10.7¢ / kWh
Gexa Energy - Gexa Eco Saver Premium 12	12 months	21.2¢ / kWh
Gexa Energy - Gexa Eco Saver Supreme 12	12 months	20.4¢ / kWh
Gexa Energy - Gexa Eco Saver Value 12	12 months	14.3¢ / kWh
Gexa Energy - Gexa Light Saver 12	12 months	16.8¢ / kWh

Plan Name	Plan Length	Rate
Frontier Utilities - Frontier Saver Deluxe 12	12 months	19.6¢ / kWh
Frontier Utilities - Frontier Saver Supreme 12	12 months	21.0¢ / kWh
Frontier Utilities - Frontier Saver Value Plus 12	12 months	14.2¢ / kWh
Frontier Utilities - Light Saver 12	12 months	16.8¢ / kWh
Frontier Utilities - Frontier Saver Max 12	12 months	21.2¢ / kWh
Frontier Utilities - Frontier Saver Plus 12	12 months	10.7¢ / kWh
Frontier Utilities - Frontier Saver Value 12	12 months	19.4¢ / kWh

These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on April 21, 2024 at 8:59 pm CST. Pricing shown is based on an exact usage of 1000 kWh.

Compare Plans With Guarantees

Support You Can Count On

Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.

Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.

With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.

We’re Here to Help!

Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.

Call Now

How to Calculate Texas Electric Plan Costs

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Wondering where to get your kWh usage?

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower 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.

TXU Energy EFL — 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.

Electric Plans List Sort Low to High — 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.

Screenshot 2024 03 14 at 12.49.47 PM — Personalized Electricity Savings Calculator on ComparePower

Plann Details Bill Estimate 1 — 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

Support You Can Count On

Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.

Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.

With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.

We’re Here to Help!

Call 855-441-3030, Monday to Friday, from 8 am to 6 pm.

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What to Do When Your Address is Labeled a Business

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How to Change Your Address Type

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Why is My Address Showing up as a Business?

Wondering why your home is labeled as a “business” for electricity? It’s more common than you think.

Why Your Address Shows Business

There are a few reasons why your address might be coming up as a business or commercial property. Here’s the details:

Oops in the Paperwork: A simple error in your utility company’s records, like a typo or outdated info, could wrongfully tag your home as commercial.
Your Home’s Location: Living in a zone designated for both residential and commercial use? That might automatically put your home in the commercial category, affecting how utilities view it.
The History of Your Space: If your home once buzzed with business activities, that history might still be in the records, keeping it labeled as commercial property.
Past Owners: Homes and apartments previously owned by a business or commercial entity are often categorized as commercial. You might run into this with an old industrial building that has been converted into lofts. This affects how utilities see your space and the kind of taxes you pay. It also affects regulations like zoning laws and utility rates.
Wrong Address: Using the wrong address, especially for properties with multiple structures (like a workshop or apartment complexes), can lead to your home showing as a business. This usually happens when you enter the address for these structures instead of the specific one for your home or apartment.
New builds: For newly constructed homes, a temporary meter from the construction phase may still be in place. This can make your address show up as a business until you get your permanent meter.

Here’s What to Do

First things first, double-check the address you entered:

Apartments: Apartment complexes have multiple potential addresses. Make sure you entered the street address for your specific unit, not the complex’s main office or a generic building address. Reach out to your landlord or leasing team for the right address if you don’t have it.

Houses: Make sure you enter the street address for your home. Nearby streetlights and utility boxes can have an address almost the same as yours. You can contact the seller or landlord to get the right address.

New builds: Check with your builder to make sure they have ordered a permanent meter. You’ll need that before picking an electricity plan. And just a heads up, it can take a few days for that permanent meter to appear in the electricity market database.

If you’re switching electricity companies:

Check your past bills for the ESID. This is the code that links directly to the meter for your home or apartment. Enter that ESID in the address line and you should be all set without worrying about finding the right address.

Utility Company Contact Info

Need to contact your utility company to make sure they have the address labeled right? Here’s who to call:

Get Your Address Changed to Residential

If your property is listed as a business, your first step is to contact your utility company. Make sure they haven’t made a mistake in their system.

If your address is actually listed as a business, check out the article below to get an overview of the different steps you may need to take to get your address changed to a residential property.

Get a Business Plan

If you have a shed, garage, or light pole on your property that needs power, we’ll get you hooked up with the right business plan for your needs.

The plans are a little different and so is the process, but we still have you covered. Check out the details below.

How to Buy Business Electricity

Get Multiple Plans

If you have a few different houses, sheds, garages, or even light poles that need power we’re here to help. Check out the page below for details on getting as many plans as you need.

How to Get Electricity for Multiple Meters

Can’t find your address at all?

If you’ve made it this far down the page but can’t find your address at all you might be in a part of Texas that doesn’t have electricity choice. Check out the details on these areas below.

Municipally-owned Utilities or Co-ops

Not sure where to start?

Trying to get an electricity plan only to find your address is a business is a pain. But you’re not on your own.

Give us a call to talk to a local Texan who can walk you through all your options. We’ll make sure you get the right plan and don’t get stuck paying for anything you don’t need.

Call 855-441-3030, Monday to Friday from 8:30 am to 4:45 pm.

How to Change Your Address Type

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How to Buy Business Electricity

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

How Do I Change My Address to Residential?

When you’re setting up electricity in Texas and realize your home is mistakenly labeled as a business, it’s key to sort this out with your electricity delivery folks—your Transmission and Distribution Service Provider (TDSP) or utility company.

Fixing this ensures they know exactly what your property is and keeps everything running smoothly, from the lights to the billing.

Getting to Know TDSPs

Think of TDSPs as the behind-the-scenes crew of your electricity supply. They’re the ones making sure your electricity is flowing right and that your home is listed properly, preventing any mix-ups.

Straightening Out Your Address

Identify Your TDSP: Check a copy of an old electricity bill or take a peek at the map below to find out who’s in charge of your electricity.
Gather Your Proof: Collect documents like your lease, mortgage agreement, property tax statements, or ID to show your place is a home, not a business.
Get in Touch: Reach out to your TDSP’s customer service to tell them about the mix-up.
Submit Your Evidence: Provide the documents they ask for to back up your claim.
Stay on It: Keep an eye on the process, and don’t hesitate to follow up. Asking for a case number makes this easier.
Confirmation is Key: Once they’ve updated your address, get confirmation in writing to make sure your electricity service is set up correctly.

CenterPoint – Serving the Houston metropolitan area and surrounding cities, including Sugar Land, Baytown, Galveston, and Pasadena.

Oncor – Key areas include Dallas, Fort Worth, Arlington, Plano, Waco, Tyler, Wichita Falls, Midland, and Odessa.

TNMP – Texas New-Mexico Power serves Lewisville, Texas City, Alvin, Angleton, Dickinson, and Friendswood.

AEP Texas North – Serves northern Texas, covering areas such as Abilene, San Angelo, Vernon, and Alpine.

AEP Texas Central – Operates in the southern and central regions of the state, serving cities like Corpus Christi, Laredo, McAllen, Harlingen, and Victoria.

Tips for a Smooth Process

Act Quickly: Tackle the issue as soon as you spot it to avoid any delays or complications later.

Keep Good Records: Log every interaction with your TDSP, noting down who you spoke with, what was said, and when.

Patience Works Wonders: Remember, these updates can take a bit of time. Regular, friendly check-ins can help move things along faster.

Zoning Explained

If fixing your address doesn’t fully solve your issue because of zoning laws, you might need to look into adjusting how your property is classified.

Zoning laws are basically the community’s rulebook for land use, ensuring that homes, businesses, and industries all fit together nicely. They determine where different types of buildings can go, keeping everything in balance.

Changing Things Up

If you need to change your property from commercial to residential use, you’re looking at rezoning. It’s about getting the official land use to match your needs.

Or, if you want to use your property in a way that’s not usually allowed, asking for a variance is your go-to. This lets you sidestep usual restrictions without changing the overall zoning.

How to Approach Rezoning

Start with Research: Dive into your local zoning laws and talk to your neighbors to build a strong case for your change.
Apply with Confidence: Present your argument to the zoning board, explaining why your request is good for the neighborhood or why you need a variance.
Seek Expert Advice: Collaborate with zoning experts and legal advisors to make sure your proposal fits with community guidelines and has the best chance of success.

And if all else fails, remember there’s a backup plan: getting a business electricity plan. This way, you’re covered on the electricity front, even if your home is still listed as a business.

It’s about keeping things running smoothly, no matter what the paperwork says. Consider this your safety net.

Electricity Plans for Properties with Multiple Meters

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What Do I Do if I Have Multiple Meters?

Managing a Texas property with multiple meters, like a house and a garage categorized as commercial by the utility company? No worries, setting up the right electricity plans is simpler than you might think. Here’s a clear-cut way to handle it:

Check Out Your Setup: Start by figuring out what you’ve got – how many meters and what each one is for. It’s all about understanding your layout, whether it’s your main house or a garage the utility company labels as commercial.
Choose Individual Plans: It’s a good move to select a different plan for each meter. This lets you match the electricity plan closely with the meter’s classification, making management and billing much simpler.
Mixing Providers Is Fine: If you find that different providers offer better deals for your setup, go for it. Since each plan comes with a distinct account number, billing remains clear and separate, regardless of the provider.
Commercial vs. Residential Plans: The key here is the utility company’s classification of your space. If a space like a garage is considered commercial, then it’s a commercial plan you’ll need. We’re here to help you sort out the right type of plan for each meter, based on its classification.
Understand Your Contracts Inside Out: We’ll guide you through the contract details — pricing, terms, and the like — so you can choose a plan with confidence, fully informed about what you’re signing up for.

Questions? If anything’s unclear or you need some advice, just reach out. At ComparePower, we aim to make finding the right electricity plans as smooth as possible.

Call 855-441-3030, Monday to Friday from 8:30 am to 4:45 pm.

Power to Choose Texas

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