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The Weather’s Costly Grip on Your Texas Electricity Bill

If you’ve lived here for any time, you know our weather is plain wild.

Scorching summer days where you could fry an egg on the sidewalk, followed by bone-chilling winter storms that have us scrambling for layers – it’s a cycle as predictable as your electricity bill spiking with each extreme.

And believe me, those spikes can burn a hole in your pocket.

Let’s examine how Texas’ bipolar weather swings impact the price we pay to keep the lights on and the AC humming.

The Scorching Summers of Texas

Ah, summer in Texas – an actual test of survival when temps blast past 100°F.

With everyone cranking the AC to Arctic levels, our electricity demand skyrockets. Just look at July 2018, when we hit a record peak of over 73,000 megawatts, pushing the grid to its limits.

For folks on variable energy plans directly tied to market rates, electricity bills are doubling or even tripling compared to milder months.

The Electric Reliability Council of Texas (ERCOT) often operates at total capacity during these sizzling stretches, underscoring the immense strain on our energy resources.

The hotter it gets, the more those utility costs burn.

Old Man Winter’s Icy Grip

Most Texas winters are pretty mild, but when an Arctic blast like 2021’s Winter Storm Uri arrives, we feel it – and not just the chill, but the financial pain, too.

As temperatures plummeted and we huddled for warmth, the electricity grid was overwhelmed, leading to widespread outages.

Those who kept power were slapped with astronomical bills reaching the thousands for a month.

It was a harsh reminder that extreme cold can freeze our wallets just as much as blistering heat.

When Storms and Droughts Leave Their Mark

It’s not just temperature extremes that are hitting our hip pockets. Major hurricanes like Harvey in 2017 leave devastation in their wake, requiring costly repairs and upgrades for damaged electricity infrastructure.

The recovery efforts, partially funded by higher utility rates, showcase how these storms have a lingering economic impact that extends well beyond the initial cleanup.

Droughts are more subtle culprits – like the severe one in 2011 that hampered hydroelectric power generation, forcing greater reliance on pricier fossil fuels that get passed along to consumers.

Keeping An Eye on Climate Change’s Rising Costs

With climate change steadily intensifying, Texas faces even more weather whiplash: hotter summers, colder winter blasts, and super-charged storms.

A trend towards warmer temperatures and increasingly volatile weather patterns suggests that the impact of weather on our electricity bills will only worsen.

Sadly, this doesn’t bode well for our electricity costs, which are likely to see wilder spikes as these meteorological extremes stress our power grid more in the years ahead.

Protecting Yourself from Weather’s Wallet Wallop

So, what can you do to safeguard your finances from the unpredictable nature of Texas weather?

One smart move is to explore fixed-rate electricity plans, which can provide stability amidst the chaos.

You can also invest in energy-efficient home upgrades, like better insulation or a smart thermostat, to help minimize the impact of extreme temps on your bills.

The Bottom Line

So there you have it—a crash course on how Texas’ schizophrenic weather affects electricity bills.

From summer scorchers to arctic freak-outs, hurricane havoc, and drought-driven price hikes, keeping our homes comfortable comes at an increasingly unpredictable cost as these extreme conditions squeeze our power resources and wallets.

While policymakers and regulators grapple with long-term solutions, all we Texans can do for now is brace for impact and keep a wary eye on those utility statements amid our state’s wildly variable climate.

Understanding this complex relationship between weather and energy costs is crucial for everyone – from the folks in charge to the average Joe just trying to keep the lights on.

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.

Discover the Perfect Storm of Factors Driving Up Your Energy Costs

Are you tired of nearly fainting every time you open your electricity bill?

Trust me, you’re not alone. We’ve all been there, wondering how our energy costs could have skyrocketed so much.

But here’s the thing: it’s not just one culprit but a sneaky combination of factors that could be draining your energy budget.

Let’s dive in and uncover the shocking truth together.

Is Texas Weather Wreaking Havoc on Your Bills?

Texas weather is notorious for its extremes; those wild temperature swings can dramatically impact your electricity bills.

Understanding how the weather affects your energy consumption is the first step in taking control of your costs.

Here are some key ways the weather could be driving up your bills:

• Scorching summers forcing your AC to work overtime
• Frigid winters send your heating costs through the roof
• Hurricanes and droughts leave a lasting mark on energy prices

Is Your Home an Undercover Energy Vampire?

Even if you’re vigilant about your energy consumption, your home itself could be working against you.

Hidden inefficiencies can silently drain your energy budget without you even realizing it. Identifying and addressing these issues is crucial to keeping your bills in check.

Watch out for these typical home energy vampires:

• Ancient HVAC systems guzzling electricity like there’s no tomorrow
• Shoddy insulation lets your precious cool or warm air escape
• Outdated appliances and drafty windows silently sabotage your budget

Are Your Daily Habits Secretly Spiking Your Energy Costs?

Your daily habits and lifestyle choices affect your electricity costs more than you might think.

Knowing how your actions impact energy consumption can help you make smarter, more cost-effective decisions.

Here are some lifestyle factors that could be inflating your bills:

• Working from home and blasting the AC all day
• Hosting extra family members or spending more time in your backyard oasis
• Leaving electronics plugged in 24/7 and falling prey to phantom loads

Exploring Other Reasons for High Electricity Bills

While weather, home inefficiencies, and lifestyle changes are common culprits behind sky-high electricity bills, they’re not the only factors at play.

Not convinced? Check out these other causes of high electricity bills or get help paying yours:

Take Control of Your Energy Budget (One Small Change at a Time)

Knowing how weather, home inefficiencies, and lifestyle changes can drive up your electricity costs, you’re already on the path to a more energy-efficient future.

Remember, every little bit counts; even minor adjustments can add significant savings over time.

So don’t let the shock of your Texas electricity bills paralyze you – use it as a catalyst for positive change.

With the right mindset, tools, and information, you can take control of your energy consumption and start enjoying a more comfortable, affordable home life.

Let’s tackle this together, one small change at a time.

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.

Uncover the Secrets of Your Electricity Bill (and Save Some Serious Cash)

Hey there, I know that sinking feeling when you open up a sky-high electricity bill.

Your heart races, your palms sweat, and a million anxious thoughts start swirling.

What the heck happened? Is this for real?

First off, take a deep breath. We’ve all been there, and you’re not alone.

High bills can happen for various reasons, and they’re not always as dire as they seem at first glance.

But I get it – that doesn’t make the sticker shock any less awful.

The good news is that there are ways to investigate your billing mystery and dispute any funny business.

And I’m here to walk you through it, step by step.

Welcome to your crash course on auditing the hell out of your electricity bill.

We’ll dig into the nitty gritty of your statements and usage to puzzle out what’s going on.

So grab your latest bill, a calculator, and maybe a soothing beverage. We will do this together, and by the end, you’ll feel way more in control of your electricity costs.

Sound good? Fantastic. Take a deep breath, and let’s dive in…

Preparing for Your Audit

Electricity bills can be complex, with various charges and terms that may seem confusing at first glance.

Start by familiarizing yourself with the key sections of your bill: 

Summary of Charges: This section provides an overview of the total amount due, including energy charges, delivery charges, taxes, and other fees.

Detailed Usage: Here, you’ll find information about your electricity consumption during the billing period, usually measured in kilowatt-hours (kWh).

Rate Information: This section details the price per kWh you’re charged for electricity, which may vary depending on your plan. 

No idea what you are looking at? Check out How to Read Your Electricity Bill to get up to speed.

Gathering Necessary Documents

A thorough audit requires a bit of legwork to collect: 

Past Electricity Bills: You’ll want to have a bare minimum of 12 months of past bills on hand to dive into the problem. 

It’s even better if you have a full two years of bills to get a sense of year-over-year change. 

You should be able to access these on your electricity company’s account portal or by digging through your old mail. 

Electricity Contract: Get a hold of your Electricity Facts Label (EFL) and your Terms of Service (TOS). Digital copies should be available in your account portal, or your electricity company may mail you a copy. 

These contain all the details about the fees your electricity company can charge you.

Your Usage: The last and most important is your historical electricity usage data. 

I know it sounds scary, but if you have your bills, you already have this data right in front of you.

And if, for some reason, your bill doesn’t make your usage obvious: Hop onto Smart Meter Texas

Setting Up Your Audit Workspace

Now that you have all your docs in one place, it’s time to set up your workspace for the audit. I recommend using a spreadsheet app like Excel or Google Sheets. 

If you’re more of the old-school type, you can do this all by hand. Regardless of what tools you use, the more organized you are, the easier it is to spot any issues with your bills.

Here’s a list of helpful tools you’ll want: 

• Spreadsheet 
• Calculator 
• Notepad and pen 

Whether using a spreadsheet or handwriting, I recommend setting up a table like the screenshot below to organize your work. 

With your audit workspace ready and your documents at hand, you’re well-prepped to dive into the details of your electricity bill.

Step 1: Fill In Your Data 

All right, here comes the fun part. Your first step is to go through your bills line by line and fill out the spreadsheet. 

The most important columns are kWh Usage, Cost per kWh, and Total Charges. 

These will give you an overview of where your bill is currently. Here’s what mine looks like now all filled in:

Now, to address a few elephants before we dive into what we’re looking at here:

1. If you check my copy’s math, you’ll notice things don’t add up. I’ve left out the taxes that add around four to five dollars a month to keep the Other Fees/Credits column cleaner, and to be honest, I didn’t want to do the extra math.

I’d highly recommend you include those small charges to be as thorough as possible.

2. You’ll notice that in October 2023, there was a big credit on my bill, and I only paid $22.07 for electricity that month. That was very nice, but I had already paid that money.

The credit is my initial deposit to start the plan, being refunded after 12 months of service. You must figure out what is happening if you encounter anything unusual like this.

Now, let’s dive into our analysis.

Step 2: Check for Usage Jumps

Alright, let’s start digging into your bills. We first want to look at any patterns or trends in your monthly electricity usage. 

Doing this analysis gives you a better understanding of how much power you typically use and what factors may be causing spikes. 

Looking at my example usage, you’ll see that my apartment used 733 kWh on the low end of things and hit a peak of 1,576 kWh in August 2023. 

The main reason to check for trends is to identify any anomalies or months where your usage was high compared to the norm. 

You’ll see from mine that January of this year had a big spike in usage. Those are the months we want to dig into. 

Big spikes could signal an issue like a malfunctioning appliance sucking up way more electricity than it should. 

Or maybe a billing error charged you for too much usage that month. 

Seasonal Patterns 

Before we discuss the anomalies on your bill, I want to address seasonal patterns quickly. 

Texas has pretty consistent seasonal patterns regarding usage. Most summers, think June through August. Your usage will jump as it gets hot outside. 

Then, after we make it through the fall, assuming we get some fall weather, our cold winters will also drive up your usage as you heat your home. 

Any time in between, you’ll see lower usage when the weather is mild. The important thing to remember here is that you want to “normalize” your billing data based on the season. 

Expect it to be higher in the summer and winter, but it shouldn’t exceed what you usually see. 

If you see massive spikes in the summer or winter, that could indicate: 

• Your heating system is inefficient and driving up costs 
• You have poor insulation, leading to heated/cooled air leaking out 
• There could be issues with your thermostat settings 
• Or maybe you’re just cranking electric space heaters on 

Here’s what summers and winters look like for my apartment.

Year-Over-Year Changes

In addition to checking monthly and seasonal weirdness, look at how your total annual usage changes from one year to the next. 

Did it jump up a lot after doing a significant home renovation that increased your square footage?  

Or did your usage drop after upgrading to new energy-efficient appliances and windows?  

Identify what lifestyle changes correlate to the increases or decreases you see. 

Heads up – if your provider raised rates one year, your annual costs could be higher even if usage stayed flat. 

If you’re on a fixed-rate contract, they would’ve sent you a renewal letter to sign before this could take effect. 

And if you just signed one, that might be why you got a high bill. 

So, keep an eye on the cost per kWh to distinguish legitimate usage changes from pure pricing hikes. 

Unexplained Anomalies

Circling back to those weird individual monthly spikes – if you can’t point to any specific reasons, like heat waves, new appliances, etc., to explain them, that could indicate: 

• A faulty appliance or HVAC system undergoing a repair issue and running way less efficiently 
• Potential problems with your electrical wiring, meters, or utility service  
• Errors in the meter reading or billing calculations resulting in overcharges 

Those types of anomalies are where being detailed with this analysis pays off. Please don’t ignore them! 

We’ll discuss diagnosing those a little further down the page. But first, you’re probably wondering about that crazy January bill I got. 

If you’re sitting there connecting the dots, thinking that almost $400 seems nuts for an apartment electricity bill, I’m right there with you. 

I checked everything I could think of, going through our steps here. And unfortunately, the answer is boring. 

Check my usage that month. I used over 2,100 kWh monthly, while most apartments use more than 500 kWh. 

Guess what? I was working from home for almost a week since I was sick.

I ran my desktop, multiple monitors, laptop, TV, had my iPad plugged in, and pretty much anything else in my apartment that uses electricity. 

My wife took a day or two off work to hang out with me. If you remember, it was dang cold in January, and my apartment uses electric heat. 

So, I think it’s pretty clear why my usage was so high and I got a high bill. I used a lot of electricity and had to pay for it. 

Not all high bills mean you have to worry. Here are some common reasons legit usage spikes may happen that aren’t necessarily cause for concern:

• Heat wave or cold snap making your heating/cooling work overtime 
• Having more house guests than usual 
• Running extra equipment like portable heaters or dehumidifiers 
• New energy-hungry appliances like a hot tub or electric vehicle charger 

Step 3: Evaluate Your Usage

If you’re still reading, I’m guessing we haven’t pinpointed exactly what’s going on with your bill. 

We checked for trends and got a high-level view of your usage patterns. But what if the usage you got charged for wasn’t what you used? 

It sounds crazy, but it happens occasionally, and the best way to check is to verify the usage on your bill with your Smart Meter data. 

The reason this is so important? 

Your monthly usage and how much you pay for it are the two biggest factors affecting your bill. 

You want to ensure that no misreadings, billing errors, or efficiency issues artificially inflate that number. 

Smart Meter Data

Most Texas homes, apartments, and commercial buildings have smart meters installed that can be accessed anytime. 

The best part is that these smart meters let you get granular when analyzing your usage. If you want to dig in down to 15-minute intervals, you can. 

This gives you the most precise picture of how and when you use electricity.

Plus, you can double-check to ensure your electricity company charges you for something you’re not using. 

Accessing the Data

There are two options for how you access data from your smart meter.

First, we will use the data from your electricity company. 

That’s the data you see on your bill, so if we want to double-check that data, we should probably consider the second option. 

Door number two leads us to Smart Meter Texas, where you can make an account. 

With your bills in hand, it’s easy to access and analyze the data. If you’re unsure what you’re doing, check the link above for a walkthrough on setting up your account and digging in. 

You’ll see monthly, daily, and 15-minute interval data from there. 

Evaluate What You See 

Now, it’s time to check and see if your electricity company is billing you fairly. Double-check the usage column on your spreadsheet or table for each month. 

See if it matches what you were charged for on your bill. The two should match exactly or be very close. 

If not, there could be an issue with the meter reporting incorrect readings, or your company is getting estimations instead of actual data. 

Understanding Billing Cycles

Quick side note here. It’s important to understand that bills don’t necessarily cover full calendar months of usage. 

Utility companies read meters, and providers cycle bills on their schedules every 28-32 days. 

So your “March” bill may include a few days from late February and early April if that’s when the meter readings happened. 

Don’t assume the billing period covers the complete 3/1 – 3/31 unless you verify the exact meter read dates. 

No Smart Meter? No Problem

If you don’t have a smart meter or can’t access that data for some reason, don’t worry. You can still manually record meter readings yourself each month. 

Most electric meters have an easy-to-read digital display that cycles between showing the latest reading and other meter information. Make a habit of writing that number down on the same day every month. 

Then, compare your recorded readings to the “meter read” line on your utility bills. If they don’t match up, there could have been an error. 

Potential Discrepancies

So what if you go through all this effort verifying meter readings, and the totals still don’t quite match the kWh usage on your bill? It’s time to put on your detective hat and dig in.

Possible reasons could include: 

• Misaligned bill cycle dating that needs to be checked 
• Errors or gaps in smart meter data reporting 
• Mistakes by meter readers or providers estimating usage incorrectly 
• Issues with your meter itself requiring testing/calibration 

Don’t panic if minor discrepancies exist in the 1-2% range. That can happen. But if you’re seeing variances over 5% with no good explanation, you’ll want to take that up with your electric company. 

Do More With Your Data

Beyond verifying the total, reviewing the hourly/daily breakdowns lets you see your patterns of when you use the most electricity. 

Is there a big spike in the evenings when everyone gets home? Or does usage ramp up more in the afternoon when summer heat maxes out? 

Identifying those peak times can help target where to focus efficiency efforts.

Like adjusting thermostat schedules, running appliances overnight, or upgrading to more efficient models of those energy hogs. 

Remember that, in rare cases, smart meters can have reporting glitches and miss recording data. 

If you see straight zeros for certain days/times when you know the home wasn’t vacant, it’s worth double-checking that those periods didn’t get underreported.

Step 4: Check the Cost per kWh

Your usage trends are mapped out; check. Cross-referenced billed usage and your smart meter data, check. 

Next up is checking if you’re being charged the correct rate on your monthly bills. 

Why check rates? Remember, the cost per kWh is one of the biggest line items that affect your bill. 

You want to make sure the rate charged matches what’s laid out in your contract.  

Otherwise, even a tiny overcharge on the rate will be multiplied across all your usage, and you’ll be ripped off. 

Fixed vs. Variable Rates 

If you’re like most Texans and have a fixed rate, it should be pretty straightforward to double-check the rate listed on your bill and compare it to the rate on your EFL. 

I wouldn’t be doing my job if I didn’t note here that the rate you see on that EFL isn’t precisely what you end up paying. 

Your EFL lays out the “calculation” for the rate you should be paying. The frustrating part is that it usually means what you pay for 500 kWh isn’t the same as what you pay for 1,500 kWh. 

You’ll need to do some math to determine how your rate is calculated.

Dive into the details: How to Calculate the True Cost of Any Texas Electricity Plan

The general rule of thumb is that your bill will show what you were charged for your usage, so it should be relatively straightforward to check the math. 

For those living wild with a variable-rate plan, you’ll likely need to check your company’s website or historical rate notices to find the accurate rate for each billing cycle month. 

Either way, make a note of that rate for each monthly bill. 

Verifying the Charges

In your spreadsheet, calculate the supply charge portion of each monthly bill based on the appropriate rate and your total kWh usage. So, for example: 

• July 2022 Usage: 1200 kWh  
• Contracted Rate: $0.098 per kWh 
• Expected Supply Charge: 1200 kWh x $0.098 = $117.60 

Then, compare your calculated expected charge to what was billed on that month’s statement’s supply or energy portion. 

If the amount billed is higher than expected, it could indicate that you were overcharged on rates for that month. 

Rate Overcharges 

Any significant overcharges on supply rates are worth disputing with your provider. The impact can increase over 12 months, so don’t let it slide. 

For instance, you were billed at $0.11 per kWh instead of the $0.098 contracted rate. 

That’s just a $0.012 difference multiplied by 1000 kWh monthly usage.

You overpaid $12 for that one billing cycle alone. 

Now, add that up for every month of the year. That’s over $200 down the drain you could’ve used for something else. 

Prorated Rates 

One scenario that can confuse you is when providers calculate bills with prorated rates for partial months if meter readings don’t align with your billing cycle dates. 

For example, maybe your July bill was: 

• 15 days at $0.10/kWh  
• 16 days at $0.12/kWh 

This results in a blended average rate that might look higher than your fixed contract price but is technically correct based on the calendar proration. 

Just be aware of potential situations like that when investigating rates. 

One Final Caveat on Rates 

The last thing I want to mention about the electricity rate side is that I am only covering what I would call straightforward plans here. 

Straightforward plans don’t include anything like bill credits or time-of-use discounts like free nights and weekends. 

If you are on a plan with bill credits or time-of-use discounts, the rate you pay can jump wildly depending on whether you are getting those discounts. 

That means you could get a discount and a reasonable rate one month, and the next, you could miss out on it and be stuck with a high bill. 

If you have one of these plans, I highly recommend diving into our Calculating the True Cost of Any Texas Electricity Plan page I mentioned. 

It covers the details of calculating the costs of these types of plans alongside the exact formulas you’ll need.

Dive into the details: How to Calculate the True Cost of Any Texas Electricity Plan

Step 5: Check Other Charges on Your Bill 

The fifth and final step you’ll want to take is going through all the other charges on your bill. 

Things like: 

• Delivery/TDSP fees from your utility 
• Metering charges or monthly base fees 
• State taxes and utility assessments 
• Any miscellaneous “other” charges 

These other line items can contain incorrect calculations, fees that violate your contract terms, or charges for which you don’t understand the justification. 

Double-check these charges with your contract’s current TDU fees and the TOS doc.  

Identifying and disputing those can lead to significant savings as well. 

Delivery Charges 

For delivery charges (TDSP, TDU, or transmission fees), you should look up the approved rates for your specific utility and delivery area. 

Remember that they can change twice yearly, so you might see a change on your bill when updated. 

Calculate the delivery charge based on your monthly kWh usage and compare it to what’s on your bill. 

Anything weird may be an overcharge worth disputing. 

Fixed Fees 

Whether it’s a flat monthly charge, metering fee, minimum usage fee, or anything else – verify that any fixed recurring fees match what’s listed as allowable in your contract’s EFL and TOS documents. 

Taxes & Other Charges 

For taxes and other percentage-based charges like utility assessments, validate that the percentage rates and calculations based on your usage are accurate. 

Check that sales tax is being applied correctly to only the energy supply and delivery charges, not duplicated on top of taxes already included. Identify any erroneous charges you can’t find defined. 

When in doubt, have your provider explain each charge line by line and substantiate it with your contract details. 

Don’t let ambiguous “other charges” slide if you don’t get a clear justification. 

Auditing, Disputing & Savings 

And there you have it – you’ve audited your electricity bills like a forensic accountant. 

You’ll uncover anything wrong with your bill by analyzing historical trends, verifying meter readings, checking rates, and scrutinizing every line-item charge. 

You can dispute with evidence and get corrections or credits issued from there. 

Over time, mastering this process puts you in control of your monthly electricity costs. Any savings might not seem massive monthly, but they can add up over a year. 

More importantly, the power is yours to hold your electric providers accountable to the agreed-upon rates and terms. 

FAQs

How do I read my electricity bill? 

Start by locating these key sections:  

• Summary of total charges for the period 
• Meter usage readings in kWh   
• Detailed line items like energy supply charges, delivery fees, taxes   
• Rate/plan details showing price per kWh

No idea what you are looking at? Check out How to Read Your Electricity Bill to get up to speed.

What should I do if I find discrepancies on my bill?

First, validate any suspected errors by checking rate/fee details against your contract terms. Gather evidence like calculations and past bills for reference.

Contact your provider and politely request an explanation or correction. If that doesn’t work, file a formal complaint with the Public Utility Commission of Texas (PUCT). 

How can I reduce my electricity bill?

Give these a try to cut down your electricity costs:

• Implement energy efficiency upgrades like insulation, weatherization, and new appliances. 
• Choose an electricity plan optimized for your usage patterns and rates. 
• Practice energy-saving habits with programmable thermostats when you use electricity. 
• Consider renewable energy options like green plans or solar. 

Is switching electricity plans worth the effort?

If your usage patterns or household situation has changed, switching plans can save hundreds per year by better aligning with your needs. 

But factor in any termination fees from your current contract against potential savings. Sometimes, waiting for your contract term to end makes more sense.

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.

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:

1. Understand your energy consumption patterns and priorities.
2. Use ComparePower, a highly-rated energy marketplace, to compare plans and providers.
3. Take advantage of ComparePower’s usage-based shopping tools to find plans that align with your energy needs.
4. Shop with your usage history to get personalized plan recommendations.
5. Consider contract length, renewable energy content, and additional features.
6. 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.

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:

1. 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.
2. 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.
3. 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:

1. Go to www.smartmetertexas.com and click “Sign Up”
2. Select “Residential” as the account type
3. Enter your name, email, ESIID, meter number
4. Search and select your retail electric provider
5. Create a user ID and agree to the terms
6. Complete registration using the temporary password emailed to you

In Summary

Keeping tabs on your kWh electricity consumption allows you to analyze usage patterns, identify cost-saving opportunities, and monitor the impacts of any energy efficiency initiatives.

Leveraging tools like Smart Meter Texas lets you take control of your energy costs and footprint in Texas.

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

Satisfaction Guarantees

In the competitive Texas electricity market, electricity companies are marketing “satisfaction guarantees” to instill confidence and attract new customers.

But what do these enticing promises entail for consumers? To shed some light on satisfaction guarantees, we reviewed the details of leading providers’ policies and terms of service.

The takeaway: While guarantees can provide benefits, the reality is often more nuanced than the marketing suggests.

The Guarantee Landscape

Before diving deeper, let’s clarify the two main types of electricity guarantees you’ll find:

Risk-Free Cancellation Period —This is the most consumer-friendly form of satisfaction guarantee. It provides new customers with a set window (typically 30-60 days) to cancel their contract entirely without any termination fees if they are unsatisfied with pricing, fees, or the service itself. Providers with a risk-free cancelation window include TXU Energy, 4Change Energy, and Rythm Energy.

Plan Switching Window — More limited than complete cancellation, these guarantees allow new enrollees an introductory period (e.g., 30 or 60 days) to switch between the various plans offered by that same provider without penalty. However, they do not permit terminating your contract with the company during this window. Providers with a plan-switching window include Gexa Energy and Frontier Utilities.

Understanding Guarantee Start Dates

Electricity providers calculate your guarantee period using three different methods, which can significantly impact its value:

• Enrollment Date: Your guarantee starts the day you sign up. This means the clock starts ticking immediately, even if your service hasn’t begun.
• Service Start Date: Your guarantee begins on your requested service start date. This ensures your full guarantee period aligns with actual service.
• Activation Date: Your guarantee begins when electricity starts flowing to your home. Like service start date, this protects your evaluation time.

Quick tip: Planning ahead? Watch out for guarantees that start at your enrollment date. Here’s why: If you sign up 60 days before your service starts with a 60-day enrollment date guarantee, your guarantee could expire before you get any power. Choose a provider with a service start or activation date guarantee to ensure you get your full evaluation period.

Electricity Companies With Risk-Free Cancellation

A legitimate cancellation window is the gold standard for evaluating a provider risk-free. Our review found two noteworthy examples.

TXU Energy 60-Day Total Satisfaction Guarantee

TXU Energy offers one of the more consumer-friendly satisfaction policies, the prominently marketed “Total Satisfaction Guarantee.”

This guarantee allows new residential customers a 60-day window to reconsider their plan selection.

If it’s not the perfect fit, you can switch to any other TXU plan or cancel service entirely—with no termination fees or penalties.

You remain responsible for any billed and unbilled charges.

4Change Energy 60-Day Satisfaction Guarantee

4Change Energy acknowledges that customer preferences can change.

If, within 60 days of your contract start date, you find your 4Change Energy plan isn’t the right fit, they’ll work with you to make it right.

This means 4Change Energy will help you switch to one of their energy plans that better suits your usage and preferences, or they’ll let you cancel your contract entirely without any penalties.

The only thing you’d owe is for the electricity you’ve used up to the cancellation.

This 60-day satisfaction guarantee is available to new 4Change Energy customers on their first plan with the company.

Rhythm Energy 30-Day Test Drive

Rhythm Energy’s policy provides a 30-day window for new enrollees to cancel without early termination fees.

New customers have 30 days from their start date to evaluate Rhythm’s service. Within that 30-day window, you can cancel without paying an early termination fee.

After the first 30 days, Rhythm will charge an early termination fee of $10-$20 for each month remaining on the contract if you cancel.

It’s important to note that while well-intentioned, 30 days is not enough to evaluate an energy company’s service, as it’s barely enough time to receive your first bill.

Electricity Companies With Plan Switching Flexibility

While more limited than full cancellation rights, these providers allow new customers an introductory period to switch between the company’s available plans without penalties.

Gexa Energy 60-Day Happiness Guarantee

Gexa Energy provides 60 days for new residential customers under their “Happiness Guarantee.”

If you are dissatisfied with your Gexa Energy residential plan within 60 days of activation, you can switch to any other eligible plan they provide without facing any penalties.

This “Happiness Guarantee” is a one-time offer exclusive to new residential customers.

It allows a seamless transition to a plan that better suits their needs. Upon switching plans, the contract term resets.

Frontier Utilities 60-Day Happiness Guarantee

Frontier Utilities offers a 60-day “Happiness Guarantee” to new residential customers.

If you are unsatisfied with your initial plan, you can switch to another eligible plan without penalties within 60 days of service activation.

This option is available once for new customers, and upon switching, the contract term for the new plan begins.

Just Energy’s 60-Day Satisfaction Guarantee

Just Energy gives you 60 days from your service start date to test your plan.

Not satisfied?

You can switch to any other Just Energy plan without paying termination fees. But watch out – like Gexa and Frontier, you’re limited to switching between Just Energy plans only. Canceling service completely still triggers penalties.

The Minimum Industry Baseline

It’s important to note that the above policies go beyond the legally required baseline protection for Texas electricity customers.

Per PUCT regulations, all providers must allow a 3-day rescission period for customers switching services: “Customers have the right to rescind (cancel) the terms of service within three federal business days after receiving the contract documents, without penalty.”

This 3-day rescission window only applies to customers switching to a new retail electric provider.

It does not extend to new service activations where the customer did not previously have electricity service established.

So, while a safety net, the 3-day rescission cannot be considered an actively marketed “satisfaction guarantee” – it is simply the mandatory minimum protection you should be aware of.

Loopholes Undermine Perceived Benefits

While satisfaction guarantees provide theoretical flexibility in allowing risk-free evaluation, the review identified several glaring shortcomings in the fine print that undermine these perceived benefits.

• Short risk windows that likely do not span enough complete billing cycles for proper cost evaluation, as exemplified by Rhythm’s 30-day cancellation period. With those providers, customers have little opportunity to evaluate pricing and service quality risk-free before being locked into contracts.

• Policies that only permit switching between that provider’s plans – not full cancellation rights if unsatisfied with the service overall, as seen with Gexa and Frontier. While avoiding termination charges is valuable, these policies still bind customers to future terms with the same provider if they are unsatisfied.

Maximizing Your Guarantee Value

Here’s how to protect yourself:

1. Smart Timing

• With enrollment date guarantees, wait until a week before your start date to sign up
• With service start or activation date guarantees, you can enroll early without losing time to test out your plan

2. Keep Records

• Screenshot your enrollment confirmation showing guarantee details
• Write down who you talked to and when about your guarantee
• Save every bill you get during your guarantee period

3. Set Reminders

• Mark down your guarantee start date
• Set an alert for one week before expiration
• Schedule time to review your first bill

4. Act Fast

• Don’t wait until the last minute to use your guarantee
• Review your plan details and first bill as soon as they arrive
• Give yourself buffer time for customer service responses if you need changes

A Case for Standardized Guarantees

While some providers offer more flexibility than others, advocates argue the overall inconsistency across the market shows a need for standardized satisfaction guarantees for consumers.

We recommend prioritizing plans that suit your household’s usage profile and budgetary needs. Then, any short-term risk flexibility should be evaluated as an added potential benefit.

Moving In? Select a Plan with a Guarantee

Electricity plans with satisfaction guarantees are particularly beneficial when you move into a new Texas home.

They offer a valuable period during which you can assess your electricity usage in a real-life context, providing a practical way to determine if your selected plan fits your new home.

Opting for plans with a longer, 60-day satisfaction guarantee is advisable, as it affords you at least two months to gauge your consumption patterns.

While having a full year’s data would ideally offer the best insight into your energy needs, a 60-day evaluation period is significantly better than none.

This timeframe is crucial for deciding whether to stick with your initial plan or switch to one that might better suit your consumption habits in your new environment.

These policies exceed the minimum legal requirements and underscore the providers’ commitment to customer satisfaction and flexibility.

Choosing an electricity plan with a 60-day guarantee assures you that you can reassess your decision, making the transition to a new home or adjusting to new consumption patterns less stressful.

Electricity Companies with Satisfaction Guarantees

Here’s a brief overview of electricity providers with policies that go beyond the minimum legal requirements and provide greater flexibility and peace of mind when choosing an electricity plan.

• TXU Energy: Offers a 60-day Total Satisfaction Guarantee, allowing new residential customers to cancel their service or switch to another TXU plan without any termination fees.
• 4Change Energy: Provides a 60-day Satisfaction Guarantee, during which customers can switch to another 4Change Energy plan or cancel their contract without a penalty if unsatisfied.
• Rhythm Energy: Features a 30-Day Test Drive, which allows new enrollees to cancel their plan within 30 days without early termination fees.
• Gexa Energy: New residential customers are covered by a 60-day Happiness Guarantee, which allows them to switch to any eligible Gexa plan without penalties if they’re not happy with their initial choice.
• Frontier Utilities: Offers a 60-day Happiness Guarantee, allowing new residential customers to switch plans without incurring penalties within the first 60 days of service activation.
• Just Energy: Provides a 60-Day Satisfaction Guarantee from your service start date to test your plan. You can switch to any other Just Energy plan without paying termination fees.

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 - Flex Forward	1 months	18.0¢ / kWh
TXU Energy - Clear Deal 12	12 months	15.9¢ / kWh
TXU Energy - Live Your Free 12	12 months	19.6¢ / kWh
TXU Energy - Saver's Discount 12	12 months	21.8¢ / kWh
TXU Energy - Simple Rate 12	12 months	18.6¢ / kWh
TXU Energy - Clear Deal 24	24 months	16.9¢ / kWh
TXU Energy - Saver's Discount 24	24 months	23.0¢ / kWh
TXU Energy - Ultimate Season Pass 12	12 months	19.6¢ / kWh
TXU Energy - Solar Saver 12	12 months	21.8¢ / kWh
TXU Energy - Solar Value 12	12 months	17.5¢ / kWh
TXU Energy - Free Nights & Solar Days 12 (8 pm)	12 months	19.9¢ / kWh

Plan Name	Plan Length	Rate
4Change Energy - Cash Money 12	12 months	15.9¢ / kWh
4Change Energy - One Rate 12	12 months	16.7¢ / kWh
4Change Energy - Power Maxx Saver 12	12 months	19.1¢ / kWh
4Change Energy - Maxx Saver Select 24	24 months	11.1¢ / kWh
4Change Energy - One Rate 24	24 months	16.7¢ / kWh
4Change Energy - Power Maxx Saver 24	24 months	19.1¢ / kWh
4Change Energy - Power Savvy Saver 12	12 months	18.0¢ / 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

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	21.0¢ / kWh
Gexa Energy - Gexa Eco Saver Lite 12	12 months	20.4¢ / kWh
Gexa Energy - Gexa Eco Saver Plus 12	12 months	11.1¢ / kWh
Gexa Energy - Gexa Eco Saver Premier 12	12 months	20.4¢ / kWh
Gexa Energy - Gexa Eco Saver Value 12	12 months	16.0¢ / 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	21.0¢ / kWh
Frontier Utilities - Frontier Saver Plus 12	12 months	11.0¢ / kWh
Frontier Utilities - Frontier Saver Premier 12	12 months	20.4¢ / kWh
Frontier Utilities - Frontier Saver Value 12	12 months	20.4¢ / kWh
Frontier Utilities - Frontier Saver Value Plus 12	12 months	16.0¢ / kWh
Frontier Utilities - Frontier Straight Power $175	12 months	17.5¢ / kWh
Frontier Utilities - Light Saver 12	12 months	16.7¢ / kWh

These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on April 22, 2025 at 1:43 am CST. Pricing shown is based on an exact usage of 1000 kWh.