Fall is Your Best Shot at Cheap Electricity

After a decade in the Texas energy market, I’ve observed a consistent pattern: fall offers the best electricity rates.

The shoulder season brings milder weather and lower electricity demand, making fall and spring the best times to lock in competitive fixed-rate electricity plans.

Most people overlook this, but shopping plans in autumn could save significant money on your bill.

Here’s what you need to know to take advantage of this seasonal opportunity.

What is the Shoulder Season?

It’s fall and spring when the weather’s decent.

No one’s cranking the AC or heater, so electricity demand drops.

That means cheaper rates for you.

Why Fall Rates Are Lower

Summer’s over. The grid’s not stressed.

Providers have excess power to sell. The result?

They slash prices to get your business, offering you a window to lock in lower rates.

Post-Summer Market Reality

As soon as that last 100-degree day hits, demand plummets, and rates usually follow.

But watch out—natural gas prices play a big role here.

For example, when gas prices spiked in 2022, electricity rates surged, even in the fall. And don’t forget, a harsh winter forecast can still mess with the market.

Lock In Now or Pay Later

Fall is your golden ticket to a fixed-rate plan.

Lock in a low rate now, and you’re set for winter, when prices typically skyrocket.

Switching from a variable-rate plan (or a holdover rate) could save you hundreds of dollars annually.

If you stay on a variable rate, prepare for bill shock when winter hits.

Beware the Odd-Term Trap

Here’s an insider secret: those 3, 7, or 9-month plans on Power to Choose?

They’re designed to screw you. Why?

Because they’ll land your renewal smack in the middle of summer when rates are sky-high.

I stick to 12-month or 24-month plans to avoid renewing when rates peak.

How to Shop Smart

• Compare fixed-rate plans. Variable rates can lead to unpredictable bills.
• Use Live Link™. It pulls your usage data, so you know exactly what you’ll pay.
• Start shopping 2-3 weeks before your contract expires.

Take Control of Your Electricity Bill

Fall is your chance to secure a deal that’ll save you hundreds over the year.

If you’re on a variable holdover rate or your contract ends soon, now’s the time to shop.

Remember, in Texas, electricity and timing are everything. Shop smart, save big.

And to ensure you’re getting the best deal, use Live Link™ to compare plans based on your real usage.

Factors Driving Texas Electricity Prices

Texas electricity rates are unpredictable, rising and falling based on several key factors.

Here’s what you need to know to get ahead and avoid overpaying.

Key Takeaways

1. Demand and extreme weather increase Texas electricity rates, especially in summer and winter.
2. Natural gas prices are directly linked to electricity costs—lock in a fixed rate to avoid hikes.
3. Live Link™ helps you compare plans and rates for your home energy consumption.

1. Too Many Texans, Not Enough Power

Texas has added over 4 million new residents since 2010.

More people means more AC units cranking in summer, pushing the grid to its limits.

What It Means For You: In the summer of 2023, prices jumped 800% in one day. Ouch.

Fix It: Lock in a fixed-rate plan now. Don’t wait for the next heatwave.

2. Natural Gas Prices Are a Rollercoaster

Over 45% of Texas’ electricity comes from natural gas.

When gas prices triple (like they did from 2020 to 2022), your bill follows.

What It Means For You: Variable-rate plans are a gamble. You could win, but you could also lose big.

Fix It: Get a fixed-rate plan when gas prices dip. It’s like buying insurance for your electric bill.

3. Texas Weather is Extreme, and So Are the Prices

Remember the 2021 winter storm? Electricity hit $9,000 per megawatt-hour.

That’s 180 times the normal price.

What It Means For You: Extreme weather = extreme bills, especially on variable-rate plans.

Fix It: Again, fixed-rate plans are your friend. They protect you from weather-related price spikes.

4. Grid Upgrades Aren’t Free

ERCOT improved the grid after the 2021 storm, which is great for reliability but not great for your short-term bill.

What It Means For You: You’re paying for a better grid, whether you like it or not.

Fix It: You can’t avoid these costs but can offset them by using less electricity. Time for some LED bulbs?

5. Renewable Energy: It’s Complicated

Texas leads in wind and solar, providing nearly one-third of the state’s power.

Wind and solar are cheaper overall but unreliable during peak times.

What It Means For You: When renewables can’t keep up, expensive backup power kicks in.

Fix It: Look for plans that offer free nights or weekends. Use major appliances during these off-peak times.

6. “Power to Choose” Doesn’t Always Mean Lower Prices

Big names like TXU or Reliant often charge more. Why? Brand recognition and big marketing budgets.

What It Means For You: Sticking with a familiar brand might cost you.

Fix It: Use Live Link™ to compare real, usage-based rates. Don’t fall for fancy ads.

7. Future Outlook: More of the Same

Expect rates between 14-18¢ per kWh. But with Texas weather, who knows?

What It Means For You: Rates fluctuate, but you can still find deals.

How to Save

• Efficiency Pays: Upgrade to energy-efficient appliances and habits.
• Shop Smart: Lock in fixed rates in spring or fall when demand is low.
• Get Personal: Use Live Link™ to compare plans based on your real usage, not averages.

Take Action Now

Don’t let confusing electricity rates drain your wallet.

Connect to Live Link™ and find a plan that fits your usage.

→ Cut Your Electric Bill with Live Link™

Live Link™ shows you personalized rates based on your actual usage—no guesswork, no surprises—just savings.

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.

An In-Depth Analysis by Compare Power

Executive Summary

Navigating Texas’s deregulated electricity market can be challenging for consumers.

With over 130 Retail Electric Providers (REPs) offering a multitude of plans, many Texans may unknowingly choose options that lead to higher electricity bills than necessary.

This white paper presents an in-depth analysis conducted by Compare Power, highlighting significant discrepancies between advertised electricity rates and the actual costs incurred by consumers.

By modeling usage data across various consumption levels, we demonstrate how selecting a plan that aligns with actual usage patterns can result in substantial annual savings.

We also introduce Compare Power’s innovative solution, Live Link™, designed to help consumers make informed decisions and reduce their electricity expenses.

Introduction

Since the deregulation of the Texas electricity market in 2002, residents have had the freedom to choose their electricity providers.

While this was intended to foster competition and lower prices, the abundance of options has made it challenging for consumers to identify the most cost-effective plans for their needs.

The complexity of electricity plans and confusing rate structures often lead to consumers overpaying for electricity.

Background

The Texas Electricity Market Landscape

The deregulation allowed consumers to select from various REPs, breaking up regional utility monopolies.

As of 2024, more than 130 REPs operate in Texas, offering hundreds of plans through direct sales and comparison websites.

While beneficial in theory, this variety has introduced complexities that make it difficult for consumers to navigate the market effectively.

Regulatory Framework and Market Complexity

The Public Utility Commission of Texas (PUCT) requires REPs to disclose charges clearly through Electricity Facts Labels (EFLs).

These labels help consumers compare plans by outlining key terms, rates, and fees.

However, the increasing complexity of plan structures, including tiered rates and conditional credits, has diminished the effectiveness of EFLs in aiding consumer decision-making.

Problem Statement

The rise of intricate plan structures—such as free nights and weekends, bill credits, and tiered pricing—has made it challenging for consumers to compare electricity plans accurately.

Many of these plans feature complex rate structures that can obscure the true cost of electricity.

Relying solely on advertised rates often leads consumers to select plans with higher annual costs, sometimes hundreds or thousands of dollars.

Objectives

Our study aims to:

1. Analyze Actual Costs: Based on modeled usage data, determine consumers’ true cost for advertised electricity plans.
2. Compare Advertised and Actual Costs: Assess how plans advertised as cheapest at specific usage points compare to other popular plans when actual consumption is considered.
3. Evaluate Savings Potential: Identify the potential savings consumers can achieve by selecting plans that match their actual electricity usage patterns, using tools like Live Link™.

Methodology

Data Modeling

We modeled electricity usage for seven consumption levels representative of different household types:

• 500 kWh per month
• 750 kWh per month
• 1,000 kWh per month
• 1,174 kWh per month (average usage in Texas)
• 1,500 kWh per month
• 2,000 kWh per month
• 3,000 kWh per month

To account for seasonal variations, we applied weather-adjusted monthly multipliers based on historical usage patterns:

Month	Multiplier
January	1.35
February	1.10
March	0.80
April	0.70
May	0.85
June	1.20
July	1.40
August	1.35
September	1.00
October	0.75
November	0.95
December	1.30

These multipliers adjust base monthly usage to reflect typical seasonal consumption in Texas.

Plan Selection

We analyzed seven electricity plans chosen based on their market prominence and advertised rates at specific usage levels:

1. Rhythm Energy Simply Green 23 (identified as the most cost-effective plan across all usage levels)
2. Gexa Energy Eco Saver Plus 12
3. TXU Energy Live Your Free 12
4. 4Change Energy Cash Money 12
5. Frontier Utilities Saver Value 12
6. Frontier Utilities Saver Plus 12
7. Frontier Utilities Saver Premium 12

Types of Plans Analyzed

We focused on three main types of electricity plans:

1. Fixed-Rate Plans: Offer a consistent rate per kilowatt-hour (kWh) throughout the contract period.
2. Free Nights and Weekends Plans: Provide different rates or free electricity during designated off-peak hours or days.
3. Bill Credit Plans: Offer credits on the bill when certain usage thresholds are met, significantly affecting the average rate per kWh.

Cost Calculation

For each plan and usage level, we calculated the total annual cost by incorporating all elements of the rate structure:

• Energy Charges: Cost per kWh consumed.
• Base Charges: Fixed monthly fees.
• Transmission and Distribution Service Provider (TDSP) Charges: Fees set by the local utility for delivering electricity.
• Credits and Discounts: Any bill credits or discounts applied when specific conditions are met.

This approach ensured that cost comparisons reflected the true financial impact on consumers, not just the advertised rates.

Key Findings

1. Discrepancy Between Advertised and Actual Costs

• Significant Differences: Plans advertised as the “cheapest” at specific usage levels often resulted in higher annual costs when actual consumption patterns were applied.
• Up to 40% More Expensive: Some advertised cheapest plans cost consumers up to 40% more annually than the most cost-effective plan identified in our analysis.

2. Impact of Usage Patterns and Seasonal Variations

• Variable Costs: Electricity costs vary significantly based on individual usage patterns and seasonal changes.
• Plan Performance Fluctuations: Certain plans performed well during specific months but were less cost-effective over the entire year due to fluctuations in consumption.

3. Potential Savings for Consumers

• Substantial Savings: By choosing plans that align with their actual usage, consumers could save between 6% and 40% annually.
• High-Usage Households: By selecting the right plan, households using around 3,000 kWh monthly could save over $3,700 annually.

4. Complexity of Plan Structures

• Consumer Challenges: Complex rate structures make comparing options and identifying the most cost-effective plan difficult.
• An advantage to Providers: This complexity can obscure the true cost of plans, potentially benefiting electricity providers over consumers.

Detailed Savings Analysis

Below is a summary of potential annual savings when choosing the most cost-effective plan (Rhythm Energy Simply Green 23) compared to other plans at various usage levels.

Savings at 500 kWh Average Monthly Usage

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$1,054.72	–	–
Gexa Energy Eco Saver Plus 12	$1,550.16	$495.44	31.96%
Frontier Utilities Saver Plus 12	$1,550.16	$495.44	31.96%
4Change Energy Cash Money 12	$1,395.22	$340.50	24.40%
TXU Energy Live Your Free 12	$1,331.87	$277.15	20.81%
Frontier Utilities Saver Value 12	$1,325.70	$270.98	20.44%
Frontier Utilities Saver Premium 12	$1,448.16	$393.44	27.17%

Average Savings with Best Plan: $378.83 (26.12% less on average)

Savings at 750 kWh Average Monthly Usage

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$1,426.41	–	–
Gexa Energy Eco Saver Plus 12	$2,167.50	$741.09	34.19%
Frontier Utilities Saver Plus 12	$2,167.50	$741.09	34.19%
4Change Energy Cash Money 12	$1,899.66	$473.25	24.91%
TXU Energy Live Your Free 12	$1,810.22	$383.81	21.20%
Frontier Utilities Saver Value 12	$1,794.82	$368.41	20.53%
Frontier Utilities Saver Premium 12	$2,023.50	$597.09	29.51%

Average Savings with Best Plan: $550.79 (27.42% less on average)

Savings at 1000 kWh Average Monthly Usage

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$1,948.57	–	–
Frontier Utilities Saver Premium 12	$2,845.45	$896.88	31.52%
Frontier Utilities Saver Value 12	$2,700.65	$752.08	27.85%
TXU Energy Live Your Free 12	$2,493.57	$545.00	21.86%
4Change Energy Cash Money 12	$2,305.27	$356.70	15.47%
Gexa Energy Eco Saver Plus 12	$2,174.45	$225.88	10.39%
Frontier Utilities Saver Plus 12	$2,174.45	$225.88	10.39%

Average Savings with Best Plan: $500.40 (19.58% less on average)

Savings at 1174 kWh Average Monthly Usage (Average Texan)

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$2,150.90	–	–
Frontier Utilities Saver Premium 12	$3,191.48	$1,040.58	32.60%
Frontier Utilities Saver Value 12	$3,128.18	$977.28	31.24%
TXU Energy Live Your Free 12	$2,794.85	$643.95	23.04%
4Change Energy Cash Money 12	$2,576.10	$425.20	16.51%
Gexa Energy Eco Saver Plus 12	$2,439.38	$288.48	11.83%
Frontier Utilities Saver Plus 12	$2,439.38	$288.48	11.83%

Average Savings with Best Plan: $610.66 (21.18% less on average)

Savings at 1500 kWh Average Monthly Usage

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$2,833.39	–	–
Frontier Utilities Saver Value 12	$4,325.59	$1,492.20	34.50%
TXU Energy Live Your Free 12	$3,655.26	$821.87	22.48%
Frontier Utilities Saver Premium 12	$3,601.59	$768.20	21.33%
4Change Energy Cash Money 12	$3,305.34	$471.95	14.28%
Gexa Energy Eco Saver Plus 12	$3,029.72	$196.33	6.48%
Frontier Utilities Saver Plus 12	$3,029.72	$196.33	6.48%

Average Savings with Best Plan: $657.81 (17.59% less on average)

Savings at 2000 kWh Average Monthly Usage

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$3,721.11	–	–
Frontier Utilities Saver Value 12	$5,950.53	$2,229.42	37.46%
TXU Energy Live Your Free 12	$4,816.95	$1,095.84	22.75%
4Change Energy Cash Money 12	$4,530.40	$809.29	17.86%
Gexa Energy Eco Saver Plus 12	$4,522.68	$801.57	17.72%
Frontier Utilities Saver Plus 12	$4,522.68	$801.57	17.72%
Frontier Utilities Saver Premium 12	$4,335.18	$614.07	14.16%

Average Savings with Best Plan: $1,058.63 (21.28% less on average)

Savings at 3000 kWh Average Monthly Usage (Large Home)

Plan	Annual Cost	Savings with Best Plan	Savings (%)
Rhythm Energy Simply Green 23	$5,496.58	–	–
Frontier Utilities Saver Value 12	$9,200.43	$3,703.85	40.26%
Gexa Energy Eco Saver Plus 12	$7,508.63	$2,012.05	26.80%
Frontier Utilities Saver Plus 12	$7,508.63	$2,012.05	26.80%
TXU Energy Live Your Free 12	$7,140.37	$1,643.79	23.02%
4Change Energy Cash Money 12	$6,980.51	$1,483.93	21.26%
Frontier Utilities Saver Premium 12	$6,252.38	$755.80	12.09%

Average Savings with Best Plan: $1,935.25 (25.04% less on average)

Implications for Texas Consumers

1. Misleading Advertised Rates

Consumers may be misled by advertised rates that seem attractive but don’t reflect actual costs based on their usage patterns. Relying solely on these rates can lead to substantial overpayment.

2. Importance of Personalized Plan Selection

Selecting an electricity plan that matches one’s actual usage pattern is crucial for maximizing savings. Personalized analysis is essential to identify the most cost-effective options.

3. Need for Comprehensive Comparison Tools

There’s a clear need for tools that analyze real usage data and simplify comparing complex electricity plans, enabling consumers to make informed decisions.

4. Regulatory Considerations

The complexity of plan offerings may require enhanced regulatory oversight to ensure transparency and protect consumer interests. Simplifying EFLs and standardizing plan presentations could help in this effort.

Compare Power’s Solution: Live Link

Introduction to Live Link

Compare Power has developed Live Link™, a tool designed to empower consumers by providing personalized electricity plan recommendations based on their historical usage data.

How Live Link Works

• Smart Meter Integration: Live Link securely connects to a consumer’s smart meter, accessing detailed usage data while ensuring privacy.
• Personalized Analysis: The tool analyzes the consumer’s unique consumption patterns, considering daily and seasonal variations.
• Customized Plan Recommendations: Live Link compares available electricity plans, calculating the expected annual cost for each based on the consumer’s actual usage.
• Transparent Cost Projections: Consumers receive clear, easy-to-understand cost projections, enabling informed decision-making.

Benefits for Consumers

• Accurate Cost Estimates: Provides realistic cost expectations, eliminating surprises on electricity bills.
• Time Savings: Simplifies the plan selection process, saving consumers time.
• Financial Savings: Helps identify plans that offer significant annual savings based on usage.

Conclusion

The Texas deregulated electricity market offers consumers the freedom to choose, but with that freedom comes the challenge of navigating a complex array of plans and pricing structures.

This study highlights how consumers can incur unnecessary costs when relying solely on advertised rates and underscores the importance of selecting plans that align with actual usage patterns.

Live Link™ addresses this challenge using real usage data to provide personalized, transparent plan comparisons.

By empowering consumers with accurate information and simplifying the selection process, Live Link™ enables Texans to make informed decisions that can lead to substantial savings.

Compare Power remains committed to innovation and consumer advocacy as the electricity market continues to evolve.

We strive to bring clarity and transparency to energy choices in Texas, ensuring that every Texan has access to the tools and information necessary to make the best decisions for their household’s energy needs.

Note: All data and findings presented in this report are based on modeled usage patterns and the analysis of available electricity plans as of September 4, 2024. Actual savings may vary based on individual circumstances and changes in market offerings.

---

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.

What Are You Really Paying for Electricity?

When shopping for an electricity plan, it’s easy to focus on the advertised rates you see on provider websites or comparison marketplaces like Power to Choose.

But here’s the truth: those rates only tell part of the story.

The true cost of your electricity plan is based on your home’s unique electricity usage patterns, not just the numbers you see advertised.

To avoid overpaying, it’s important to understand how your real usage interacts with each plan’s pricing formula.

Let’s explore what a plan’s true cost means for you and how to find it.

Key Takeaways

• Advertised rates only apply to exact usage levels: Small changes in your electricity usage can lead to significantly higher costs than the advertised rates suggest.
• Providers often use advertised rates to make plans seem cheaper: While these rates may look appealing, they don’t reflect what most households actually use each month, leading to unexpected bills.
• Find the true cost of each plan: Live Link™ lets you see the real price based on your actual usage, helping you avoid pricing traps and save money.

What Is a Plan’s True Cost?

The true cost of an electricity plan is the actual price you’ll pay over time based on your monthly electricity usage.

It factors in all the variables that affect your bill, not just the prices advertised for 500 kWh, 1,000 kWh, or 2,000 kWh of usage.

While the advertised rate might give you an idea of what you’ll pay at a specific usage point, the true cost reflects what you’ll pay as your energy consumption fluctuates throughout the year.

Advertised Rates Don’t Tell the Full Story

The advertised rates you see are based on exact usage scenarios that often don’t match your actual consumption.

For example, you might see a plan offering 10.9 cents per kWh at 1,000 kWh, but if your usage is 857 kWh in one month and 1,274 kWh in another, you’ll likely end up paying something different than that advertised rate.

Here’s why:

• Advertised rates are static: They only apply to those exact usage points, which means they don’t account for how your energy needs change over time.
• Your usage is dynamic: Energy consumption fluctuates based on the weather, household activities, and lifestyle changes. Unless your usage matches the exact advertised usage every month (which is rare), the advertised rate won’t reflect your actual costs.

To understand what you’re paying, you must look at the true cost.

How to Calculate a Plan’s True Cost

Calculating a plan’s true cost might sound complicated, but it can be done manually with some effort, or you can simplify the process with Live Link™.

Here’s how to calculate it manually:

1. Review Your Past Usage: Look at your electricity bills for the past 12 months. This gives you a picture of your energy use throughout the year, including high-usage months (like summer) and low-usage months.
2. Factor in All Plan Costs: Don’t stop at the advertised rate. Consider base charges, TDU delivery fees, and any pricing tiers. Hidden fees can quickly add up, making a plan more expensive than it initially seems.
3. Create a Spreadsheet: To get a full picture of each plan, you’ll need to build a spreadsheet and calculate the costs for each month based on your past usage. This means plugging in your monthly usage and applying the charges from the Electricity Facts Label (EFL) for each plan. You’ll also need to factor in delivery charges, base fees, and bill credits. If you’re interested in doing it manually, check out our step-by-step guide here: How to Manually Calculate Electric Plan Costs.

Or, save yourself the time and effort:

Use Live Link™ to instantly calculate the true cost of any electricity plan.

Live Link™ automatically pulls your real usage data, applies the charges for the plan, and shows you what you’ll actually pay—without needing to build a spreadsheet or do any manual calculations.

Both options work, but Live Link™ can save you hours of manual work and help you find the right plan faster.

Why Knowing a Plan’s True Cost Matters

Understanding a plan’s true cost is the key to avoiding overpaying for electricity.

You must choose a plan that fits your needs and budget, determining the price based on your actual consumption patterns rather than advertised rates.

Here’s why it’s so important:

• Predictable Bills: When you understand a plan’s true cost, your bill has fewer surprises. You’ll know what to expect, even when your usage fluctuates.
• Better Decision Making: Knowing a plan’s true cost means you can compare competing offers more accurately and make smarter decisions about which one is best for your home.
• Long-Term Savings: Choosing a plan based on its true cost—instead of chasing the lowest advertised rate—can save you hundreds of dollars over the course of a year.

Don’t Rely on Advertised Rates Alone

Choosing an electricity plan based solely on the advertised rate can lead to higher bills and unexpected charges.

That’s why it’s so important to understand your true cost—the amount you’ll actually pay based on your unique energy consumption patterns.

Discover Your True Cost Today

Stop guessing what you’ll pay for electricity.

Connect your home to Live Link™ and automatically pull your real usage history.

Instantly and accurately see each plan’s true cost and find the plan that fits your home and budget—without any surprises.

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.

Spot Hidden Costs and Avoid Pricing Traps

So, you’re shopping around for an electricity plan in Texas, and you see rates displayed on provider websites, ads, and shopping marketplaces.

But what do those rates really mean, and is that what you’ll actually pay?

These rates, called advertised rates, are required by law and are based on specific monthly usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh.

At first glance, it might seem like an easy way to compare plans — but here’s the catch: almost no one uses exactly 500, 1,000, or 2,000 kWh of electricity each month.

Key Takeaways

• Advertised rates can be misleading: These rates only apply at specific usage levels (500, 1,000, or 2,000 kWh), meaning your actual cost can be much higher if your usage doesn’t match exactly.
• Most plans hide the true cost: Providers design plans to look appealing at certain usage points, but the real cost of the plan often spikes if your usage fluctuates even slightly.
• Find your true cost: Live Link™ helps you avoid misleading rates and shows you plans’ real cost based on your energy use.

What Are Advertised Electricity Rates?

Advertised rates are the prices energy providers are required to display for their plans, based on the specific usage points mentioned above.

They’re designed to help you compare plans easily, but the truth is, these rates only reflect what you’ll pay if your monthly usage is exactly at those points.

Since almost no one uses exactly 500, 1,000, or 2,000 kWh every month, the advertised rate that caught your attention might not be what you end up paying.

Let me explain why these rates can be misleading and how they affect your electricity bill.

How Advertised Rates Can Be Misleading

Electricity providers in Texas are required to display rates for 500 kWh, 1,000 kWh, and 2,000 kWh of monthly usage, pulled directly from each plan’s Electricity Facts Label (EFL).

While this helps consumers quickly compare plans, these rates only apply if you use exactly those amounts.

For example, a plan may advertise 10.9 cents per kWh at 1,000 kWh, but if your usage is 999 kWh or 1,001 kWh, your cost could increase significantly.

Providers often design their plans to look cheap at these specific usage points, but the price per kWh can spike if your usage falls outside those exact numbers, leaving you with a much higher bill than expected.

Since most people’s usage fluctuates month to month, it’s easy to get caught off guard.

Why Your Usage Fluctuates

Your electricity consumption varies depending on the time of year, how many people are in your home, and even how much time you spend there.

• In the summer, your usage might spike because of air conditioning.
• In the winter, it could dip if you don’t need as much heat or energy.
• Other factors, like guests or lifestyle changes, can also impact how much electricity you use each month.

Because your usage fluctuates, advertised rates rarely reflect what you’ll actually pay on your electricity bill.

How We Fixed the Problem

We built Compare Power to solve this exact problem.

Unlike other comparison websites, Compare Power goes beyond showing you the advertised rates at 500 kWh, 1,000 kWh, or 2,000 kWh.

Instead, we factor in your actual usage history to show you the true cost of a plan over time.

This way, you can see what you’ll really pay, even when your usage fluctuates.

The Historical Usage Calculator

Years ago, we introduced the Historical Usage Calculator, which lets you input your past electricity usage to see how different plans would impact your costs over the course of a year.

It smooths out those spikes and dips in your usage and reveals the true cost of a plan based on your actual consumption patterns.

By factoring in your high-usage months (like those hot Texas summers) and lower-usage periods, you can avoid plans that seem affordable at first but end up costing you more.

Millions of Texans have used Compare Power to make smarter, more informed electricity decisions.

With over 72,000 5-star reviews, the Historical Usage Calculator has helped countless Texans save on their bills.

Introducing Live Link™

Now, we’ve made it even easier with Live Link™.

Instead of manually entering your past usage, Live Link™ automatically pulls your real usage data from your Transmission and Distribution Utility (TDU).

Here’s how Live Link™ simplifies the process:

• No manual entry: Your usage data is pulled directly from your TDU.
• Accurate comparisons: We use your real usage history to calculate the actual cost of electricity plans available to you.
• Instant results: With just a few clicks, you’ll see which plans are truly the best fit for your household’s energy consumption.

Live Link™ takes the guesswork out of finding the right plan for your home.

How to Avoid Advertised Rate Traps

So, how do you avoid falling into these traps? The key is not to rely solely on the rate advertised at 1,000 kWh or any other fixed point.

Instead, focus on how a plan works across a full year of usage.

Here’s what you can do:

• Look for flat-rate plans: These plans offer consistent pricing across different usage levels, so you’ll have fewer surprises even when your usage fluctuates.
• Know your usage: You can log into your electricity provider’s dashboard, use Smart Meter Texas for 15-minute interval data, or use Live Link™ to pull your real usage data for accurate comparisons automatically.
• Use Live Link™: Live Link™ lets you compare plans based on your actual consumption rather than relying on advertised rates that may not apply to you.

Don’t Be Fooled by Advertised Rates

Advertised rates are only a small part of the story when it comes to choosing the right electricity plan.

Very few people use exactly 1,000 kWh every month, and plans that seem cheap at that usage level can be far more expensive when your actual usage is considered.

Live Link™ gives you the full picture of each plan’s cost, helping you find the best deal for your home without any surprises.

Start Saving Today

Ready to see how much you could save?

Connect your home to Live Link™, instantly access your usage data, and find the best electricity plan tailored to your household.

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.

When to Pay Your ETF and Switch Providers

Sometimes, staying in your current electricity contract could cost you more than paying the Early Termination Fee (ETF) and switching to a better plan.

In Texas’ ever-changing electricity market, rates can shift significantly, and sticking with an outdated plan could mean paying more than necessary.

So, how do you know if paying the ETF and switching is smarter?

Here’s a simple way to answer that question without overwhelming math.

Key Takeaways

• Paying the ETF may save you more than staying in your current plan. Use Live Link™ to find better deals instantly.
• Live Link™ pulls actual usage data, accurately comparing plans in seconds without manual input.
• If your savings after subtracting the ETF are positive, switching plans is a smart financial move.

1. Use Live Link™ to Find the Best Deals

Rather than guessing or spending time manually gathering your electricity usage data, Live Link™ simplifies the process.

It pulls your electricity usage directly from your current provider, allowing you to compare plans matching your usage patterns in seconds.

With Live Link™, you can instantly see if switching to a new plan will save you money—and how much you can expect to save over time.

There is no need to dig out old bills or make rough estimates. It’s quick, easy, and based on real data.

2. Compare Annual Costs

Once you’ve used Live Link™ to pull up your options, compare the annual cost of your current plan versus the new plan you’re considering:

• Current Plan: Log in to your provider’s dashboard to view the past 12 months of bills. If you don’t have a full year’s worth of data, you can estimate the remaining months based on past usage patterns. Look at similar months from last year, especially for seasonal changes like summer or winter, when electricity usage may vary.
• New Plan: Use Live Link™ to see the projected annual cost of a new plan based on your actual usage.

3. Factor in the ETF

Next, look at your current contract’s Early Termination Fee (ETF). Most providers in Texas charge this fee if you break the contract early, but the savings from switching might still outweigh the cost.

If you’re feeling stuck in a contract and unsure about your options, check out our guide on getting out of an electricity contract for more insights.

• Potential Savings: Subtract the new plan’s annual cost from your current plan’s yearly cost to determine how much you could save.
• Subtract the ETF: To ensure the switch is financially worthwhile, subtract your Early Termination Fee (ETF) from the potential savings. If the remaining savings are still positive, switching makes sense.

Switching is a good decision if your total annual savings after subtracting the ETF are still positive.

Real-World Example

Let’s assume your current plan costs $1,800 per year, and switching to a new plan could bring that down to $1,500 per year. That’s a $300 annual savings.

If your ETF is $150, you would subtract that from your $300 savings, leaving you with a net savings of $150.

In this case, paying the ETF and switching to the new plan is smart since you’ll save $150 even after the fee.

When Switching Is a Smart Decision

There are specific situations where paying the ETF and switching makes clear financial sense:

1. Significantly Lower Rates: If rates have dropped since you signed your contract, switching to a lower plan could save you hundreds.
2. Mismatch Between Plan and Usage: A better-fitting plan could lower your bills if your current plan doesn’t match your actual usage.
3. Moving: If you’re moving to a new home, you might think transferring your electricity service is the easiest option. However, it’s often not the best choice. Your new home will likely have a different electricity usage profile, meaning the plan that worked for your old home might not be the best fit for your new one.
   Instead of transferring, switching to a new plan tailored to your new home’s usage can help you avoid being locked into an unfavorable deal. Moving is the perfect opportunity to shop for a plan that matches your new usage needs and could save you money in the long run.

Why Long-Term Savings Matter

While paying the ETF is a one-time expense, the savings from switching to a cheaper plan will benefit you over the entire length of your new contract.

Use Live Link™ to compare plans quickly based on your actual usage, and you’ll know immediately whether switching makes sense for your situation.

Switching can feel like a big step, but it’s worth it when the math shows you’ll save in the long run.

With Live Link™ doing the heavy lifting, it’s a no-brainer to compare plans and see how much you can save.

Connect Live Link Now →

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.

It’s More Than Just Shopping for Electricity

We all make choices daily—some small, like picking a restaurant, and others more impactful, like choosing an electricity provider.

But what if there was a smarter way to navigate these decisions?

One that saved you time, money, and effort without sacrificing quality?

When finding the best electricity plan, there’s a better approach than going directly to a provider’s website.

Let’s explore why a comparison marketplace is your ultimate solution.

Key Takeaways

• ComparePower saves time by showing comparisons between electricity plans from multiple providers.
• Marketplaces offer exclusive rates not available directly from providers.
• Unbiased, transparent comparisons make finding the best electricity plan easier with Compare Power.

The Challenge of Choice: Quality, Effort, and Cost

We consider three main factors when making decisions: quality, effort, and cost.

Whether choosing a streaming service or an energy plan, we want reliable service, minimal hassle, and the best price.

Choosing an electricity plan works the same way. But not all methods of choosing are equal.

Let’s break down the three primary ways to pick an energy plan and how each impacts your experience:

Three Ways to Pick an Electricity Plan

1. Go Direct: Stick with a Known Provider

Many people choose to stick with a provider they’ve seen advertised or have used before. It feels easy and familiar.

But here’s the catch: you’re only seeing one company’s offers, which could mean missing out on better rates from competitors.

Worse, you might be talking to a salesperson rather than an unbiased advisor.

And let’s be honest—sometimes, you might not even be speaking with someone based in Texas who understands your needs.

It limits your options and often leaves you with fewer choices at a higher price.

2. Do It Yourself: The Deep Dive into Multiple Websites

If you’re diligent and enjoy comparison shopping, you might hop from website to website. This takes time—lots of it.

You’ll need to read through the Electricity Facts Label (EFL) and Terms of Service on each provider’s site to understand pricing, hidden fees, and contract terms.

To get an apples-to-apples comparison, you might have to create your own spreadsheet.

But even then, you could miss critical details that affect the total cost. It’s exhaustive, and you’ll likely end up overwhelmed.

3. The One-Stop Shop: Use a Comparison Marketplace

Here’s where it gets easier. A marketplace gathers plans from various companies in one place, giving you side-by-side comparisons of costs, features, and terms.

It saves you the time and hassle of checking each provider’s website individually.

Plus, you can filter the options based on your specific needs—whether you’re looking for a fixed-rate plan or one with renewable energy options.

You can even enroll directly through the marketplace, often in under 10 minutes.

Why a Marketplace is Your Best Bet

Why spend hours jumping between provider sites when you can see everything in one place?

A marketplace is like your personal assistant for electricity shopping.

It sifts through dozens of plans, presents only the most relevant options, and helps you make the smartest choice.

And it’s not just about convenience—you also get transparency, better rates, and exclusive offers that providers may not share directly on their own sites.

Think about it this way: a marketplace like ComparePower does the heavy lifting.

You can focus on what matters most to you—the lowest rate, the most reliable provider, or a plan that matches your energy usage.

Why Trust a Marketplace Over Going Direct?

At Compare Power, we’ve spent over a decade helping Texans navigate the complex energy market. We’re not here to sell you a specific provider but to help you find the best deal.

Here’s why you should consider using a marketplace like ours:

• Exclusive Rates You Won’t Find Elsewhere: Providers often offer special rates to marketplaces like ComparePower that you won’t see on their own websites.
• Transparency and Unbiased Comparison: Unlike calling a sales rep, a marketplace shows you the real prices, terms, and conditions—so you can make an informed decision.
• Time-Saving Convenience: You can compare rates and features with a few clicks and even read customer reviews. All the information you need is presented in one place, making it easier to choose without second-guessing.

How ComparePower Operates

We created Compare Power to simplify electricity shopping for Texans.

Our platform aggregates plans from top, reliable providers, presenting them in an easy-to-understand format so you can compare your options without confusion.

Why Not All Providers Make the Cut

Not every provider is listed on Compare Power. Why?

Some companies lack the technology to integrate seamlessly into our platform, while others are too new or lack the transparency we require for a trustworthy recommendation.

We aim to provide only the best options that meet high service standards, technology, and customer satisfaction.

How We Get Paid (and Why It Doesn’t Affect You)

ComparePower earns commissions when customers sign up through our site, but this doesn’t influence how we rank providers.

We aim to offer an unbiased comparison based on your needs, ensuring you get the best deal.

These commissions allow us to offer our service at no cost to you, saving you time and energy.

Why Comparison Marketplaces Are the Smartest Choice

Shopping for electricity shouldn’t be hard or time-consuming.

Using a marketplace like ComparePower, you streamline the process, find better deals, and ensure you’re making an informed decision.

Going direct to a provider may feel more straightforward, but it limits your choices and can cost you more in the long run.

Don’t spend hours switching between sites—let ComparePower simplify your decision-making.

With transparency, better rates, and an easy-to-use platform, ComparePower helps you control your electricity costs.

Ready to Make the Switch? Here’s How:

1. Enter Your Zip Code: This lets us show you the most accurate rates for your area.
2. Compare Plans: Look at side-by-side comparisons of costs, features, and contract terms.
3. Start Saving: Enjoy lower energy costs without the hassle.

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.

What You See Isn’t What You Pay

You’ve seen the ads: “Lock in a low rate per kWh.”

Sounds like a steal, right?

But here’s the thing—those advertised rates? They’re rarely what you’ll actually pay.

It’s a classic bait-and-switch tactic designed to get you hooked, only to have you pay a higher bill later.

Let’s break down why.

Key Takeaways

• Advertised rates are tied to specific usage amounts, like 1000 kWh, but your usage fluctuates, so you’re likely paying more than advertised.
• Live Link™ connects to your TDU and pulls your real usage data, matching you with the best plan—no guessing, no surprises.
• Don’t worry about confusing fine print—Live Link™ does all the heavy lifting.

The Truth About Advertised Rates

Here’s the reality: those low rates you see are tied to specific usage amounts.

It’s a great rate if you use exactly 500, 1000, or 2000 kWh. But here’s the catch—your usage is never that exact.

Your energy use fluctuates month to month, so if you use more or less than that magic number, the rate you actually pay can be much higher.

It’s a trick designed to make the rate look low, but your bill doesn’t reflect what you thought you signed up for.

Why Your Usage Makes All the Difference

Let’s keep it simple—your electricity rate depends on how much energy you use. But your usage? It changes.

It’s high one month (hello, summer AC bills), and lower the next month.

If you’re not using exactly what the plan expects, those advertised rates? Gone.

This fluctuation means you’re almost always paying more than what you saw in the ad.

They’re banking on you not hitting that perfect usage number.

Avoid the Trap with Live Link™ (No Guesswork)

Here’s the solution: you don’t have to guess what you’ll pay. You don’t have to match arbitrary usage numbers to get a good rate.

Live Link™ connects directly to your TDU (Transmission and Distribution Utility) and pulls your real usage data—so you can see what you’re actually using.

Then, it finds the best plans that fit your actual energy habits. No guesswork, no surprises.

Instead of hoping you hit the right usage, Live Link™ helps you find the right plan for what you already use.

No more wondering why your bill doesn’t match the ads.

No Fine Print, No Hidden Fees

Let’s be honest—no one wants to dig through fine print to figure out what they’re really paying.

And with Live Link™, you don’t have to.

It automatically filters through all the confusing terms, tiers, and hidden fees.

You get the real deal—just the best plans that match your home’s actual energy usage.

No surprises. No reading between the lines. Live Link™ does it all for you.

Ready to Stop Overpaying?

Electricity doesn’t need to be complicated. Live Link™ takes the guesswork out of finding the right plan.

It connects to your TDU, pulls your real usage data, and shows you the best plan for you.

No confusing fine print, no hidden fees—just a plan that fits your usage.

Ready to find the right plan for your home? Connect with Live Link™ It’s Free →

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.

Why Pay More for a Big-Name Electricity Company?

When choosing an electricity provider in Texas, you’ve probably seen the big brand names—TXU, Reliant, Direct Energy.

They’re everywhere. Billboards, commercials, social media ads.

But here’s a little secret: who you choose doesn’t really matter. Yeah, you read that right.

The truth is, the electricity itself is the same no matter which company you go with.

So why pay more for a fancy name? Let’s break it down.

Key Takeaways

• Electricity is the same no matter which provider you choose—don’t pay more for a brand name.
• Big-name providers charge more due to marketing costs, while smaller providers offer better rates.
• Use Live Link™ to compare plans based on your real usage and start saving.

What You’re Actually Paying For

Most Texans don’t realize this, but their electricity comes from the same place—their local Transmission and Distribution Utility (TDU).

Whether you sign up with TXU, Reliant, or one of the smaller guys, your power is delivered through the same wires by the same TDU.

In other words, there’s no difference in reliability or service quality between providers.

Your lights won’t flicker more with a smaller company, and you won’t get more “reliable” electricity from a big-name brand.

It’s the same power flowing through the same infrastructure, no matter what.

So, what are you paying for with those big-name providers?

Marketing.
That’s it. TXU, Reliant, and others spend a fortune on advertising to make sure you know their name. But advertising doesn’t keep your home powered. It just drives up their prices.

The Real Cost of Big-Name Brands

Let’s talk numbers. You’ve probably seen ads boasting rates like “$0.10 per kWh!” It sounds great on the surface, but here’s the catch: those rates are usually tied to exact usage amounts—like 500, 1000, or 2000 kWh per month.

And unless you’re measuring your power usage to the exact kWh every month (spoiler alert: you’re not), you’re not going to hit those numbers perfectly.

The rate you actually pay will vary depending on your real usage, and with big brands, it’s usually higher than what’s advertised.

And if you don’t switch plans at the end of your contract, you could be stuck paying even more thanks to holdover rates, which can skyrocket with market fluctuations.

That’s right—while TXU or Reliant might look good on paper, the actual bills you receive could be much higher than you expected.

Smaller Providers Offer Better Deals (Without the Hype)

Here’s where the smaller guys come in.

While the big brands are spending millions on advertising, smaller electricity providers in Texas are cutting through the noise by offering better rates.

They don’t have massive marketing budgets to pay for, so they can afford to pass the savings directly to you.

What does that mean?

It means you’re getting the same electricity, for less money.

Smaller providers can offer plans that are more tailored to your actual energy needs without the gimmicks of “free nights” or “free weekends” that are often tied to confusing terms and conditions.

Why Would You Pay More for a Name?

Think about it: would you pay extra for a loaf of bread just because of the brand on the packaging, even if the ingredients are exactly the same as the cheaper option?

Of course not. You’d go with the one that gives you the most value for your money.

Electricity is no different.

The brand name on your electricity bill doesn’t matter.

What matters is how much you’re paying and how well the plan fits your usage.

So why would you overpay just because you recognize the name?

How to Find the Best Electricity Plan (for Less)

Now that you know the truth about big-brand electricity providers, how do you find the best plan for you?

Simple: Compare plans based on your actual usage.

That’s where a service like Live Link™ comes in handy.

Instead of picking a plan based on ads, you can connect your home’s real kWh usage and instantly find the plan that gives you the best rate—automatically.

No guesswork. No calculating. No overpaying for a name.

The Bottom Line

Whether you go with TXU, Reliant, or a smaller provider doesn’t matter.

The power is the same. The real difference is in the price, and smaller providers often offer better deals without all the marketing fluff.

So, before you sign up for another big-name brand, ask yourself: why pay more for a name?

Start comparing plans based on what really matters—your actual energy needs—and stop overpaying for the same electricity.

Frequently Asked Questions

Ready to Stop Overpaying?

Stop paying for a name and start saving on your electricity bill. Use Live Link™ to find the best plan for your actual usage, and start putting that extra money back in your pocket.

Check out Live Link™ and start saving now →

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.