Disclaimer: This tool is for approximation purposes only. Accuracy is not guaranteed
or implied.
The approximated monthly usage is based on an average over 12 months. Air conditioning and heating
costs can vary and often account for up to 50 percent of your home’s energy use during different
seasons.
Factors such as size of your home, weather, construction, heating and cooling equipment type,
insulation, and family living habits will influence your actual usage.
Want a More Accurate Cost Estimate? Try Live Link™
Stop guessing and start saving with Live Link™ – our advanced tool that uses your kWh usage data to find the best electricity plans.
Fetch your home kWh usage instantly (Texas residents only)
Get personalized electricity plan recommendations based on your actual usage
Discover how much you could save with plans tailored to your unique energy needs.
Calculate Your Home’s Electricity Use
This kWh calculator makes estimating your home’s electricity usage easy, whether you live in a small unit or a large house.
How It Works:
Enter a few details:
Home square footage
Number of occupants
Your energy habits (low, average, high usage)
The electricity calculator will provide an approximate monthly kWh usage amount.
This estimate accounts for factors like home size, number of people, and consumption behaviors.
For Larger Homes:
For homes over 2,000 square feet, your electricity use may be higher. As a general reference, here are estimated monthly kWh usage ranges based on home size:
2,500 sq ft – 1,250 to 2,500 kWh
3,000 sq ft – 1,500 to 3,000 kWh
3,500 sq ft – 1,750 to 3,500 kWh
4,000 sq ft – 2,000 to 4,000 kWh
4,500 sq ft – 2,250 to 4,500 kWh
5,000 sq ft – 2,500 to 5,000 kWh
Remember that your actual usage depends on many factors, such as weather, number of occupants, appliances, and more.
Use our kWh calculator for a more customized estimate, and review past bills to understand your unique usage patterns.
How Much Electricity Does a House Use?
Figuring out your electricity usage helps you pick the best energy plan and save money on bills.
How many kWh does a house use every month?
The table below provides estimates based on square footage:
Home Size (Sqft)
Estimated Monthly kWh Usage
1,000
500 – 1,000 kWh
1,500
750 – 1,500 kWh
2,000
1,000 – 2,000 kWh
2,500
1,250 – 2,500 kWh
3,000
1,500 – 3,000 kWh
3,500
1,750 – 3,500 kWh
4,000
2,000 – 4,000 kWh
4,500
2,250 – 4,500 kWh
5,000
2,500 – 5,000 kWh
Remember that these estimates can vary depending on age, insulation, outside temperature, and your consumption habits, significantly determining your energy consumption.
Key Usage Metrics
The average US home uses about 877 kWh/month. In Texas, the average home uses around 1,200 kWh/month. A 1,500-square-foot home may use 750-1,500 kWh/month.
Usage varies widely based on home size, weather, number of appliances, etc.
On ComparePower, you can easily compare electricity plans and rates in your area. You can also compare costs per kWh, contract lengths, fees, and incentives.
Consider fixed versus variable rate plans. Read provider reviews to hear real customer experiences. Find the most cost-effective electricity plan for your needs and usage.
Compare Rates Easily to Save
Using your actual kWh number lets you quickly and easily compare electricity rates. ComparePower lets you see pricing from providers based on your exact usage, ensuring you find the cheapest electricity plan for powering your home with your power to choose.
Learn how to compare rates with your kWh usage in 2-minutes ⤵️
Thank you for helping me find the best price based on how much energy I used in the last 12 months. This saved me a lot of time. We don’t use exactly 1,000 kWh every month, so using that number doesn’t show us the best price. I actually picked the second cheapest because I wanted 100% green energy. Great website, everything was easy to do!
Kristen H. (TX, United States)
New Home? Estimate Your Usage
Are you moving into a new place without past energy bills? Our kWh calculator provides a rough monthly usage estimate based on your home details. This gives you a starting point for picking an electricity plan.
Once you have a full year of usage data, you can reevaluate and switch electricity plans to better suit your needs. Accurate energy consumption information saves money.
Switch Providers and Save
Letting your energy contract expire can be costly, but switching electricity providers is easy.
The new company handles everything, including canceling your old service. The entire switch takes just minutes online, and savings can start immediately in month one.
So don’t wait – see rates in your area now and switch to save.
Compare Rates Near You ⤵️
kWh Electricity Calculator FAQs
How is kWh calculated?
kWh is calculated by multiplying an appliance’s power in kilowatts by the hours you use it. It’s like figuring out how much gas your car uses on a trip. A 2-kilowatt air conditioner running for 3 hours uses 6 kWh. This simple math helps you understand your energy use.
How to calculate kWh?
To calculate kWh, multiply your device’s power (in kilowatts) by how long you use it. Do you have watts? Just divide by 1000 first. So, a 100-watt bulb (0.1 kW) for 10 hours uses 1 kWh. It’s an easy way to monitor your electricity consumption.
How to calculate kWh cost?
Calculating kWh cost is like totaling a grocery bill. Multiply the kWh you’ve used by your electricity rate. If you used 500 kWh at 12 cents per kWh, you’re looking at $60. This simple calculation helps you understand and manage your energy spending.
How to calculate kWh per day?
To calculate your daily kWh, add up the energy used by all your appliances in 24 hours. For each device, multiply its power by how long you use it daily. This process is like creating an energy diary for your home, helping you spot where you might be using more power than you realize.
What does kWh mean?
kWh stands for kilowatt-hour. Think of it as the ‘gallon’ of electricity use. It measures how much power you’re using over time. One kWh is the energy a 1000-watt appliance uses in an hour. Understanding kWh helps you make sense of your electricity bill.
How many kWh will I use?
Your kWh use depends on your home size, appliances, and habits. An average Texas home uses about 1,000 kWh monthly. Check your past bills or use an online calculator for a personalized estimate. It’s like predicting how much gas you’ll use on a road trip.
Is 40 kWh a day a lot?
Yes, 40 kWh a day is on the high side – most U.S. households use around 30 kWh daily. But here’s what matters: your usage depends on your situation. Running central air conditioning, having a big house, or using many appliances can increase your daily usage. Track your usage to understand what’s typical for your home.
How much time is 1 kWh of electricity?
1 kWh is like an energy budget that different appliances spend at different rates. It could power a 100-watt light bulb for 10 hours or a 2,000-watt hair dryer for 30 minutes. How long it lasts depends on what you’re powering; just like how far a gallon of gas gets, it depends on your car.
How to calculate kWh from watts?
To calculate kWh from watts, divide the watts by 1000 to get kilowatts. Then multiply by the hours used. A 60-watt bulb used for 5 hours? That’s 0.3 kWh: (60 ÷ 1000) × 5 = 0.3 kWh. It’s a handy skill for understanding your energy use.
How much kWh does a house use?
The average residential electricity consumption in the United States is about 10,715 kWh per year, which translates to approximately 893 kWh per month, according to U.S. Energy Information Administration (EIA) data.
According to the U.S. Energy Information Administration (EIA), the average annual electricity consumption for a Texas residential utility customer is about 14,112 kWh per year. This translates to approximately 1,176 kWh per month.
What does 1 kWh mean?
Let’s break down a kilowatt-hour (kWh): it’s how we measure your electricity use. One kWh equals 1,000 watts of power used for one hour. Here’s a real example: if you keep a 100-watt light bulb on for 10 hours, you’ve used 1 kWh of electricity. Understanding kWh helps you track your actual power usage and avoid overpaying.
Is 2000 kWh per month a lot?
Straight talk: 2,000 kWh per month is definitely above average. Most U.S. households use between 900-1,100 kWh monthly. You might hit 2,000 kWh if you have a larger home or run the AC full blast during a Texas summer. Understanding your usage pattern is key to finding the right electricity plan.
How many kWh is 1 unit?
Simple answer: 1 unit equals 1 kWh. So when your bill shows 300 units, that’s 300 kilowatt-hours of electricity. Knowing this helps you understand precisely how much power you use and pay for. Don’t let confusing terms keep you from finding the best electricity rate.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Texas Energy Deregulation
Texans use more electricity than ever, and retail electricity providers deliver power to millions in the state.
The market has been able to absorb this massive increase in demand through the free operations of the market, not direct government controls.
Energy deregulation in Texas has helped create a robust competitive marketplace that can meet the public’s electricity needs while giving you the power to choose your home’s electricity provider.
ComparePower is a consumer service established in 2009 to assist residents of Texas in shopping for their best energy plan.
The official Texas electricity ratesyou will find on ComparePower are the same rates you’ll find calling the energy companies or visiting their websites.
Offers from competing electricity companies are presented in an easy-to-understand format, making comparing your options simple and fast.
This helps Texas consumers avoid hidden fees and advertising gimmicks by comparing plans “apples-to-apples” without wasting hours making phone calls, spreadsheets, or navigating dozens of different company websites.
Building Blocks of Deregulation
Texas has a long cultural history of independence and freedom of personal choice.
So, it’s no surprise that the state was among the first in the nation to free its electrical power grid from government control.
The first power plant in Texas was built in Galveston in the 1880s, just as the nation began rebuilding after the Civil War.
Dozens of electricity generation facilities followed, primarily relying on the state’s mighty rivers and streams to generate ample hydroelectric power.
Texas cities were electrified quickly; by the 1890s, most major cities were aglow with electrical lighting.
As anyone who has ever lived in or visited the state knows, Texas has vital natural resources.
By the end of World War II, more than one million Texan homes were connected to the electrical grid.
By the late 1960s, Texas had harnessed these resources into a robust electrical grid capable of providing power across the entire state.
Since then, ERCOT has been responsible for managing the Texan electrical grid.
As part of this responsibility, ERCOT passes rules and regulations about electric utilities in Texas.
This includes both consumer protection policies and public safety measures.
In 1975, the Texas legislature enacted the Public Utility Regulatory Act (“PURA”), which gave the State greater authority to regulate electricity rates and services.
Before PURA, cities throughout Texas were individually responsible for regulating their respective electricity rates and services.
Thus, PURA represented a significant change in Texas’s electricity regulation.
Rather than allowing electric companies to compete and deal with local communities individually, PURA allowed the state government to control electricity services.
Unfortunately, state regulation of energy markets didn’t go well under PURA.
Electricity rates skyrocketed after PURA’s enactment, mainly due to an inflated market and the need for increased electric capacity.
This prompted the Texas legislature to act again to deregulate the electricity market, hoping to decrease electricity costs for Texan consumers statewide.
Then, George W. Bush, Governor of Texas, strongly supported electricity deregulation in the 1990s.
“Competition in the electricity industry,” he claimed, “will benefit Texans by reducing rates and offering consumers more choices.”
This sentiment, shared by many in the Texas legislature, guided Texas’ energy marketplace toward deregulation.
Deregulating the electricity market
As a result, the Texas legislature passed two laws to deregulate the state’s electricity market.
First, in 1995, the Texan legislature passed Bill 373, which changed ERCOT’s responsibilities regarding utility regulation.
While Bill 373 represented a critical policy shift, it didn’t completely dismantle the state’s stronghold on electricity markets as the legislature had hoped.
For this reason, the State passed Senate Bill 7 in 2002.
Senate Bill 7 fundamentally altered how Texans get their electricity.
Before this law, electricity rates were tied by law to the cost of fuel.
Public utility commissions owned electric plants, lines, and entire customer distribution networks rather than private enterprises.
The Texas legislature hoped that restoring privatization and reducing regulations in the energy market would create a more competitive marketplace.
With higher competition, customers would see lower rates.
Despite widespread political support, complete deregulation of Texas’ electricity market wasn’t easy.
ERCOT, the entity responsible for implementing deregulation, faced early challenges shifting its internal operations to accommodate its new tasks.
In fact, on the day that the deregulation pilot project began, ERCOT experienced system failures.
Power companies sent switch requests to ERCOT, whose computer systems could not process them.
Instead, ERCOT officials had to utilize manual workarounds rather than the fully automated systems they were meant to rely on.
This setback led to significant delays in electricity services, and electricity prices started to spike in response to the volatility.
Fortunately, however, the rough start to deregulation has given way to a smoothly-operating industry.
Since Senate Bill 7 fully deregulated Texan power markets in 2002, customers have embraced the freedom to select electricity service providers.
More and more service providers are coming online, making rates even more competitive and tailored to local needs.
Over the past fifty years, energy regulation in Texas has shifted from local regulation to statewide regulation and finally to deregulation.
Texas deregulated its energy market to help make sure Texans have access to electricity at a competitive market price.
As a result, Texans across the state can now enjoy the benefits of competitively-priced electricity without the burdens of excessive government controls.
Shop Texas Electricity 👇
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Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
The U.S. Energy Information Administration (EIA) expects average wholesale electricity prices in Texas (ERCOT North Hub) to decrease to approximately $27–$ 34/MWh in 2025, down from around $35/MWh in 2024. This assumes typical demand and strong solar expansion. Under high-demand scenarios, prices may remain closer to $31–32/MWh.
Forward Strip Prices Are Much Higher
Forward contracts for 2025–2028 are trading above $50/MWh, with summer on-peak months, such as July and August, reaching prices of $110–$165/MWh in some hubs. These higher prices reflect market risk expectations for extreme weather, supply constraints, and demand growth, including data center load growth in the Dallas-Fort Worth area.
Key Takeaways for 2025
Wholesale Prices Could Drop: EIA’s forecast assumes solar output increases and favorable gas prices.
Market Pricing Is Risk‑Loaded: Forward strip pricing above $50/MWh reflects hedging against volatility and extreme events.
Natural Gas Prices Expected to Rise: Fuel costs are forecast to average $3.37/MMBtu, a 24% increase from 2024, which could offset declines in wholesale prices.
Rapid Demand Growth from Data Centers: Texas added approximately 13 TWh of data center demand between 2019 and 2023. Continued expansion may strain grid capacity and drive forward pricing higher.
Massive Solar & Storage Build‑Out: Texas plans to add tens of gigawatts of solar and battery capacity; however, project delays or transmission congestion may limit near-term price relief.
Will Texas Electricity Rates Rise or Fall in 2025?
Retail rates will likely remain steady or increase modestly. The deregulated market allows consumers to lock in fixed‑rate plans when prices are favorable. However, supply-side risks and grid upgrades are factors that could push rates higher, particularly during peak demand periods.
The January Short-Term Energy Outlook (STEO) predicts slightly higher U.S. wholesale power prices in 2025 compared to 2024, except in Texas and the Northwest. Wholesale prices are expected to average $40/MWh (up 7% from 2024) nationwide. Residential electricity prices are forecasted to rise by 2% in 2025, but are expected to remain relatively stable after adjusting for inflation.
What Influences Texas Electricity Prices in 2025?
Natural Gas Price Volatility – With higher Henry Hub projections, gas-fired generation—often the marginal price setter—could lead to increased wholesale and retail power costs.
Renewable Energy Expansion – A significant uptick in solar and battery capacity is expected to suppress wholesale prices—especially midday—but reliability for peak events remains an open question.
Demand from Large-Scale Customers – Data centers and industrial electrification are accelerating load growth. Due to concerns about grid constraints, traders added price risk to forward strips.
Extreme Weather Risk – ERCOT has identified the potential impact of summer heat and heatwaves on market prices. These conditions can trigger short-term spikes, adding uncertainty to average price predictions.
The latest Short-Term Energy Outlook (STEO) predicts continued growth in U.S. renewable power generation, led by solar capacity additions. In 2025, 26 GW of solar capacity is expected to be added, followed by 22 GW in 2026. This follows a record 37 GW of solar capacity added in 2024. Wind capacity additions are also forecasted to grow, with 8 GW projected in 2025 and 9 GW in 2026, up from 7 GW in 2024.
Forecast vs. Forward Prices Comparison
Metric
Forecast (EIA)
Market Forward Curve
Annual Average Wholesale Price
$27–34/MWh
Often $50+; summer peaks $110–165/MWh
Basis
“Normal” demand, renewables ramp-up
Risk premium for volatility, demand spikes
Purpose
Model average outcome
Price hedging or utilities’ offer prices
The January Short-Term Energy Outlook (STEO) forecasts rising Henry Hub natural gas prices in 2025 and 2026, driven by demand outpacing supply, as increased U.S. LNG export demand takes hold. The spot price is projected to average $3.10/MMBtu in 2025 and $4.00/MMBtu in 2026, up from the record low in 2024.
Compare Texas Electricity Prices
Find the most affordable electricity rates today for different residential energy usage patterns.
Compare Plans Frequently: Use tools like Compare Power to identify the best fixed-rate plans in your area.
Consider Locking In Longer Contracts: Lock rates in spring or fall when forward prices may dip slightly.
Shift Usage to Off-Peak Hours: Reduce charges by using high-use appliances during less expensive off-peak periods.
Explore Green Energy Options: Plans that incorporate solar or wind energy may provide additional savings and reduce exposure to gas price volatility.
Stay Informed on Transmission Costs: New grid investments could shift cost burdens—primarily through rate structure changes—facing residential customers unless broader reforms are approved.
Take Control of Your Energy Costs
With Texas electricity prices projected to decline in 2025, now is the time to act.
Compare rates, lock in a favorable plan, and implement energy-saving strategies to maximize your savings.
Compare Plans & Rates
Texas Electricity Prices FAQs
Here are the most frequently asked questions about Texas Electricity Prices.
What is the average residential electricity price in Texas?
The average residential electricity price in Texas is 15.30 ¢/kWh, or 8% less than the United States average.
Wholesale prices are expected to decrease, but retail rates may fluctuate due to changes in demand and market conditions.
What affects Texas electricity prices the most?
Natural gas prices, renewable energy growth, demand from large-scale users, and extreme weather. Seasonal fluctuations, such as high demand during hot summer months, can cause electricity prices to rise.
What is the average business / commercial electricity price in Texas?
The average commercial electricity price in Texas is 8.73 ¢/kWh, 29% lower than the United States average.
What electricity company has the best prices in Texas?
In the state of Texas, there are over 60 retail electric companies, each with dozens of energy plans available to consumers. However, the best electricity price for your home depends on your kWh usage, not the company.
Using Compare Power, you can explore energy plans that align with your home’s usage history to quickly find the one that best fits your kWh usage profile, regardless of the provider.
How do utilities and energy providers differ?
Utility companies are responsible for maintaining and operating the energy grid.
In a power outage, you can depend on them to restore and maintain the power lines and other equipment that deliver energy to your home or business.
ERCOT manages most of Texas’ grid, providing power to over 26 million Texans, and is a nonprofit organization. The Texas Legislature and the Public Utility Commission have regulatory oversight over ERCOT’s operations.
Why is my electricity bill so high all of a sudden?
Texas heavily relies on natural gas to generate electricity, with over half of the state’s power being sourced from natural gas.
Unfortunately, economic uncertainty has led to natural gas prices reaching all-time highs, resulting in a steady increase in electricity prices throughout the year.
Retail electricity providers (REPs) purchase electricity in advance based on their predictions of demand. As electricity becomes more expensive, REPs raise prices to ensure that they can maintain their profit margins.
If your electricity contract has expired, you may be paying a holdover rate that varies each month and is significantly more expensive than a fixed-rate contract.
Take control of your electricity costs by using Compare Power. Shop with your zip code to discover the best plans for your home and avoid high energy bills.
What is considered a reasonable electricity rate in Texas?
A reasonable electricity rate in Texas typically ranges from 10¢ to 13¢ per kWh for residential customers. However, rates vary based on location, usage patterns, and market conditions.
The best way to determine a reasonable rate for your situation is to compare offers from multiple providers using a tool like Compare Power.
Why do electricity rates vary in Texas?
Electricity rates in Texas vary due to fuel costs, seasonal changes in demand, transmission and distribution charges, and the provider’s operational costs.
Additionally, Texas has a deregulated energy market, allowing consumers to choose from numerous providers and plans, resulting in a wide range of rates.
Are electricity rates increasing or decreasing in Texas?
Electricity rates in Texas can fluctuate based on market conditions, fuel costs, and other factors.
However, per the U.S. Energy Information Administration’s forecast for 2025, wholesale power prices are expected to decrease due to lower natural gas costs and increased renewable energy generation.
Can I choose my electricity provider in Texas?
Yes, Texas has a deregulated energy market, meaning consumers can choose their electricity provider from several options.
You can compare different providers and plans to find the one that best suits your needs.
When is the best time to lock in a rate?
During periods of low demand, such as spring or fall, prices tend to be lower.
How do Texas electricity prices compare to those in other states?
Texas electricity prices are generally lower than the national average.
As of August 2025, the average residential rate in Texas was 15.30 ¢/kWh, or 8% less than the United States average.
This is primarily due to Texas’ deregulated electricity market, which fosters competition among providers, and the state’s diverse energy mix, including substantial wind power generation.
How can I find the best electricity plan in Texas?
Compare providers regularly and monitor the market for price drops.
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.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Understanding the Texas (PUC) and Your Utility Rights
When your electricity bill arrives with unexpected charges or customer service leaves you feeling more confused than before, it’s easy to wonder where to turn.
The Public Utility Commission of Texas, or PUC, is more than just a state agency—it’s here to make sure Texans get fair treatment in the utility market.
From handling consumer complaints to enforcing industry standards, the PUC exists to keep electricity providers accountable.
In this guide, we’ll explain the PUC’s functions, how to file a complaint, and how Compare Power can help you confidently navigate Texas’s energy market.
TL;DR: The PUC Texas regulates our utilities, ensuring we get fair-quality services. If you have a Texas PUC complaint, you can file a complaint, and the PUC will investigate any wrongdoing by your electricity company.
What is the Public Utility Commission of Texas (PUC)?
The Public Utility Commission (PUC) may sound like a complicated government entity.
Yet, its mission is simple: to ensure that Texans receive essential utility services—electricity, telecommunications, and water—at fair prices.
Established in 1975, the PUC was initially tasked with overseeing utility monopolies in Texas.
Utility providers held exclusive control over regions back then, which meant customers had no choice but to accept the provider in their area.
The PUC monitored these monopolies, ensuring they didn’t exploit their customers with unfair rates.
However, as the energy landscape changed, so did the PUC’s role.
How Deregulation Changed Texas’s Utility Market
In 2002, Texas lawmakers passed deregulation legislation, transforming the electricity market by allowing consumer choice and introducing competition among providers.
With deregulation, Texans were given the power to shop for electricity plans that fit their needs and budgets, spurring providers to offer better rates and services.
Since then, the PUC has become a watchdog in the deregulated market, enforcing fair practices and ensuring providers comply with industry standards.
The PUC ensures that Texas’s electricity market operates smoothly, fairly, and reliably.
The PUC and Your Electricity Plan
As a Texas consumer, the PUC indirectly influences your electricity plan options by overseeing the marketplace and holding providers accountable for fair practices.
Here’s how the PUC impacts your electric utility choice:
Monitoring Providers: The PUC monitors energy providers, ensuring they follow regulations and deliver reliable services.
Overseeing ERCOT: The PUC manages ERCOT to help ensure electricity is delivered safely and efficiently across Texas.
Protecting Consumer Rights: If a provider doesn’t uphold their end of the contract, the PUC steps in to help consumers resolve disputes.
Essentially, the PUC is your advocate, ensuring that your electricity plan and provider meet Texas standards.
How to File a Complaint with the PUC
If you’re dissatisfied with your electricity provider or believe they’ve violated your rights, the PUC is there to help.
Here’s a straightforward guide on how to file a complaint:
Step 1: Try to Resolve with Your Provider
Before involving the PUC, explaining your issue directly to your provider is a good idea.
Customer service can resolve many problems, especially if it’s a billing or service-related question.
Step 2: File an Informal Complaint
If you can’t resolve your issue with the provider, file an informal complaint with the PUC. You can do this online or by calling their customer service.
Once your complaint is submitted, the PUC will investigate by gathering evidence and reviewing the details of your case.
They’ll then present this information to your provider to encourage a fair resolution.
Step 3: Consider a Formal Complaint
If your issue remains unresolved, you can file a formal complaint, though this process is more involved and resembles a court case.
The PUC recommends consulting with an attorney for formal complaints, which can be time-consuming and require legal support.
When to Cut Ties: Sometimes, if you’re unsatisfied with the provider’s response and the issue persists, it may be best to switch providers altogether.
Understanding Your Utility Rights as a Texan
As a Texan, you have rights that protect you from unfair practices by your utility providers. Here are some key rights to be aware of:
Right to Clear Information: Providers must give you clear information about rates, terms, and conditions, often outlined in the Electricity Facts Label (EFL) for each plan.
Right to Fair Treatment: Your provider should treat you fairly and cannot discriminate based on income, race, or age.
Right to Switch: In Texas’s deregulated market, you can switch providers if you are unsatisfied with your current plan or service.
You can seek resolution through the above complaint process if your provider violates these rights.
How You Can Simplify Your Electricity Shopping
Navigating Texas’s electricity market can be overwhelming.
With so many plans and providers, it’s easy to feel lost or end up with a plan that doesn’t meet your needs.
Here’s how Compare Power helps make this process easier:
Personalized Comparisons: Enter your usage details to receive customized recommendations that show the true cost of each plan based on your consumption.
Transparent Pricing: Compare Power displays the total cost of each plan, including any base fees, so your bill is not surprising.
Trusted Providers: We screen all providers to ensure you’re selecting from reputable companies that comply with PUC standards.
Without Compare Power, you might waste time navigating confusing plan details or get stuck with an overpriced or poorly suited electricity plan.
Tips to Make the Most of Your Utility Rights
Understand Your EFL (Electricity Facts Label): Every plan has an EFL that details the rate structure, fees, and terms. Reviewing it can help you avoid unexpected costs.
Review Terms Regularly: Providers may change terms over time, especially if you’re on a variable-rate plan. Regularly reviewing your contract can help you stay aware of changes.
Stay Informed: Texas’s deregulated market offers you the power to choose but also requires staying informed. Platforms like Compare Power can simplify your search, but understanding your options is key.
Take Your Next Step with Compare Power
Now that you understand the PUC’s role and your rights as a consumer, you’re better equipped to navigate the electricity market confidently.
Whether you want to start electric service, switch providers, or find a cheaper plan, Compare Power makes the process easy and transparent.
The Power is Yours™
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Stuck in an Electricity Contract?
Locked in an electricity contract that no longer works for you?
Breaking free might seem challenging, but the good news is you’ve got options.
We’ll guide you through the process and help you switch when it benefits you—or, if it doesn’t make sense right now, set a reminder for when it’s the right time to make a move.
Breaking Free from an Electricity Contract in Texas
Moving out? Cancel your contract without penalties.
Nearing the end of your contract? You can switch up to 14 days before it expires, avoiding fees.
Instead, take this opportunity to start fresh and secure a better deal.
How to Transfer an Electricity Account to a Family Member or Roommate (When Moving Out)
If you’re the current account holder and you’re moving out, and someone else (like a family member or roommate) is staying behind, here’s how to smoothly transfer the responsibility for the electricity account:
Notify Your Provider: The current account holder needs to call their electricity provider and inform them they are moving out. This step is essential to avoid ongoing charges and prevent early termination fees (ETFs) from being applied to the existing contract.
New Account Holder Signs Up with ComparePower: Instead of transferring the existing account, the new resident (family member, roommate, etc.) should sign up for a new electricity plan through ComparePower. During enrollment, they should select the “Move-in” order type—not “Switch.” This is a great opportunity for the new resident to shop for rates and potentially secure a lower bill, as electricity rates fluctuate regularly, and they may find a better deal that suits their usage needs. To ensure no interruption in service, the move-in date should be on or before the current account holder’s move-out date.
Choose a Different Provider and Plan: It’s usually best for the new account holder to select a different plan and provider than the one the previous account holder had. By shopping around, the new resident can take advantage of current rates and avoid being locked into an old, potentially less favorable plan.
Important: If the new person selects a “Switch” order instead of a “Move-in,” the current account holder could be hit with an early termination fee (ETF). The “Move-in” option avoids penalties, as it’s treated as a fresh start for the new resident.
Following these steps will ensure a smooth transition, allow the new resident to find a better plan, and avoid unnecessary fees or service disruptions.
Should You Pay to Get Out Early?
Before you make any decisions, consider these factors:
ETF vs. savings: Compare the cost of the ETF to how much you’ll save by switching to a better plan. Sometimes, paying the fee could save you money. For a detailed guide on when it makes sense to pay your ETF and switch, check out our article on when to pay your ETF and switch electricity plans.
Service satisfaction: If your current provider’s service is unreliable or too expensive, the ETF might be a small price to pay for a better experience.
Rate changes: Have electricity rates dropped since you signed your contract? If so, switching early could save you significantly, even after paying the ETF.
Contract duration: If your contract is nearing its end, waiting it out might be smarter.
Are you moving soon? If you’re relocating, remember that you can cancel without penalty. Use this opportunity to find the right plan for your new home.
The Power to Break Free – ComparePower Is Here to Help
Navigating Texas’s electricity market can be complicated, but you don’t have to do it alone.
ComparePower makes it easy to compare plans, rates, and fees from various providers all in one place.
Whether you want to escape a bad contract or switch to a better plan, we’ve got your back.
Our platform gives you the power to make informed decisions, save money, and take control of your energy costs.
Next Steps – Time to Take Action
Enter your zip code: See personalized rates for your area.
Compare Plans: Get detailed information on rates, fees, and contract lengths.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Finding your cheapest electric rate, explained!
Looking to lower your electricity rate? This video shows you how to do it in record time with the help of ComparePower, a free service for electricity consumers in areas where they can choose who provides their energy.
Are you overpaying?
You probably know that comparing electric providers and signing up for a new rate plan can save you a lot of money.
But with all the tricky ads, teaser rates, and confusing terms, it’s hard to figure out which plan gives you the biggest bang for your buck.
Imagine taking these plans and boiling them down into the things that matter to you.
That’s what ComparePower helps you do. We provide a free resource for quickly finding your best electric rate without any headaches.
You can easily spend hours, even days, researching and comparing various electric providers when searching for your perfect plan, reading through the fine print, and decoding all the details.
With ComparePower, this process takes less than 10 minutes.
We’ve already done the homework, so you don’t have to make all the phone calls, wade through the gimmicks, and read countless documents searching for hidden fees.
We carefully evaluate the electric companies and find those with the best rates, terms, and customer feedback. We put their all-inclusive pricing into a simple format that’s easy to understand.
Know before you buy
Get an estimated monthly bill and total annual cost of ownership the second you enter your usage for every plan.
Updated 24 hours a day.
And after you’ve signed up, ComparePower keeps working.
We constantly lookout for changing rates, and we’ll alert you when it’s time to come back for a better deal.
Enter your zip code, compare your choices, and quickly land on your perfect plan.
Three steps to find your best plan
Enter your zip code, compare your options, and checkout confidence in your choice in as little as five minutes.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Deregulation is a game changer. Do you really want to gamble with the price you’ll pay for your electricity?
Are you rolling the dice to get a cheap electric rate in the newly deregulated Sharyland Service area?
Some Sharyland electricity service areas (specifically Brady, Celeste, Colorado City, and Stanton service areas) have been deregulated, leaving you with many questions…
“Do I have to go with a retail provider?”
“How can I find the cheapest electricity rates in my area?”
Deregulation does involve a learning curve. You will need to be more proactive and involved in your billing management because it’s not just one company anymore.
The saying goes, “When there’s only one dealer, it’s house rules.” That meant you got the bill, you paid it, and that’s all there was to it. A regulated industry meant Sharyland Utilities did the controlling. You had no say in anything, much less over how much you paid.
Deregulating certain Sharyland electricity service areas means a huge amount of upheaval at the beginning. At the same time, everybody gets sorted out, but ultimately, Sharyland electricity providers that provide a superior service at an excellent rate will rise while those who don’t won’t.
It also means that you have more power as a customer to choose:
a company based on how much green energy they use
a company that does not import power from outside the state or the company
a fixed-rate plan that sets the rate for a period of time regardless of how the industry is performing.
a short-term or month-to-month plan so you’re not locked in
In the end, Sharyland electricity will be available to all residents of the deregulated Sharyland electricity service area at a rate they can afford.
Here’s where you gamble with Sharyland electricity rates
Las Vegas, Nevada, is famous for its electricity: the energy, the excitement, the entertainment, and, naturally, the gambling. When you go to Vegas, you bring along a budget for gambling, ideally money you can afford to lose, and you rarely go as a special trip.
At home in Texas, “electricity” is something else entirely: it’s your favorite TV show, a home-cooked meal, and a cool home on a hot day. Are you okay gambling with your household budget every month? Now that you live in a Sharyland electricity service area that has been deregulated, you just might be doing that!
Up to now, you’ve been dealing with one company for all your power-generating and distribution needs. Under deregulation, Sharyland Utilities, while still around, is more in the back seat:
Problem with the electricity coming to your home? Call Sharyland Utilities.
Problem with the bill? Call your Retail Electric Provider (also called an “REP”).
Problem with the electricity inside your home? Well, that’s when you call an electrician.
Under the rules of deregulation, staying with Sharyland Utilities isn’t an option. If you fail to choose an REP, then one will be chosen for you. This is like you in a Las Vegas casino handing your cards over to the dealer for play. Maybe you’ll benefit… probably you won’t.
The available pool of default electric providers consists of seven candidates, ranging from Champion, who topped J D Power and Associates’ 2013 Customer Satisfaction poll for Texas energy providers (that’s the fourth year running!) down to TXU, currently down near the bottom and notorious for their high prices.
When you are assigned to a default REP, you’re put on a month-to-month plan, meaning that your rate will go up and down and you won’t actually know how much you’re being charged per kilowatt-hour until you open the bill. You won’t know if there is a charge for not having autopay on your account, for using telephone customer service, for paying by credit or debit card, all kinds of fun things could show up on the bill – “Ladies and gentlemen, faites vos jours!”
So, how do you find the cheapest electricity rates in the Sharyland electricity service area?
But how would you even go about finding the cheapest electricity rates in Brady, Celeste, Colorado City, Stanton, Mission, McAllen, etc?
You could get the list of default REPs.
You could take time out of your day to call each and every one
You could put up with high-pressure sales tactics, customer services agents still fresh on the job, and misleading information
You could hope that you’ve covered all the information you need to know
You could hope you’re making the right choice.
On the other hand, you could enter your zip code, make a couple of quick clicks, and immediately see the REPs that are available in your area and that will suit your needs.
You’ll have access to the Terms of Service and the Facts Label. Read them carefully and you’ll have all the information you need to know. Better yet, you’ll see clearly where you need to question them more closely (hint: look for phrases like “other fees or charges may apply”). The cheapest electricity rates in the Sharyland electricity service area will be a lot quicker to find if you know how to avoid wasting time calling those who simply will not suit.
Don’t let someone else make your play for you. Enter your zip code to get the pricing and plan details you need for a winning strategy.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace.Get unbiased, accurate information backed by our commitment to editorial integrity.
Feeling overwhelmed by the Texas power market? You’re not alone.
With a myriad of Texas power companies to choose from, understanding Texas electricity deregulation can seem daunting.
But here’s the good news: it doesn’t have to be.
This comprehensive guide will demystify the Texas energy market. And the best part?
We’ll show you how ComparePower can make your electricity shopping experience as smooth as a Texas breeze.
TLDR: Texas boasts a deregulated electricity market, allowing consumers to choose their providers. ComparePower simplifies this choice by offering an easy platform to compare plans and rates.
This document details a specific electricity plan, including the price per kilowatt-hour (kWh), contract term, power generation source, and any additional fees.
Making the Most of the EFL with ComparePower
At ComparePower, we make it easy to compare EFLs from different providers.
Our user-friendly platform allows you to compare plans on an apples-to-apples basis, ensuring you find the best fit for your needs.
Each plan type has pros and cons; the best choice depends on your needs and circumstances.
Let ComparePower Guide You
Not sure which plan is right for you? ComparePower is here to help.
Our platform provides detailed information about each plan type, helping you make an informed decision.
The Power to Choose
In Texas, the power to choose your electricity provider is more than just a slogan—it’s a reality. And with ComparePower, it’s easier than ever.
ComparePower: Your Ally in the Texas Power Market
ComparePower is your ally in the Texas power market.
Our platform allows you to compare electricity plans from different providers in your area, ensuring you find the best plan for your needs and budget.
Don’t Navigate the Texas Energy Market Alone
Understanding Texas power doesn’t have to be complicated.
With ComparePower, you have a trusted partner to guide you through the Texas energy market.
Our platform allows you to compare electricity plans from different providers in your area, ensuring you find the best plan for your needs and budget.
Texas Deregulation FAQs
The number of electricity companies and energy plans in Texas is due to the state’s deregulated electricity market, which allows for competition among private companies.
This competition leads to various energy plans for customers to choose from, giving them the power to select the best plan for their needs and budget.
Choosing the right energy provider and plan in Texas can be a bit overwhelming, but there is a key factor you can consider to help you find the right plan for your home: your kWh usage.
Your kWh usage allows you to compare plans based on your specific energy usage needs.
When you understand your monthly usage, you can look for plans that offer rates that align with your usage patterns.
Furthermore, knowing your kWh usage will also enable you to compare plans from different providers and compare the costs of each plan on an equal footing.
Call your electric company if you have any issues with your electricity account or need to discuss billing options.
Call your utility company if there is a power outage affecting your neighborhood.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Understanding the Real Cost of Texas Electricity Plans
Have you ever looked at an electricity bill and wondered how they came up with that number?
Let’s cut through the complexity and understand precisely what you’re paying for.
The Basic Formula Behind Your Bill
Your electricity costs come down to a simple formula:
Texas electricity plans often use tiered rates, like bulk pricing at the grocery store. Here’s what that might look like:
Using up to 500 kWh: 16.5¢ per kWh 501-1000 kWh: 12.5¢ per kWh Over 1000 kWh: 11.5¢ per kWh
This is where simple calculators can mislead you – your actual rate changes based on how much power you use.
Hidden Costs That Can Surprise You
Watch out for:
Minimum usage fees (yes, charges for using too little electricity)
Time-of-use rates (paying more during peak hours)
Bill credits (getting money back at specific usage levels)
Seasonal rate changes
Three Steps to Compare Plans Accurately
Pull your past 12 months of bills – this is crucial
Note your highest and lowest usage months
Calculate costs at three levels:
Your typical usage
Summer peak (usually August)
Winter/mild month (often April/May)
Ready to Master Your Electricity Costs?
If you want to take control of your electricity costs, you have three options:
Quick Comparison: Use our calculator to see plan costs at your usage levels. It’s fast and easy, but you’re relying on our math.
Do It Yourself: Follow our detailed spreadsheet tutorial to build your calculator. You’ll learn to handle tiered rates, credits, and seasonal changes. This is perfect if you want complete control and understanding.
Hybrid Approach: Use comparison tools for initial screening, then verify the best options with your calculations using our tutorial.
You can skip the calculations entirely. Live Link™ automatically pulls your real usage data and finds your best plan in minutes.
No spreadsheets, no manual calculations, no guesswork – connect your usage data and get personalized plan matches based on your actual consumption patterns.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
Prior to 2002, electricity plans in Texas fell into one of three categories: the electric company’s way, the way the electric company wanted it, and whatever the electric company said.
Now Retail Electric Providers (REPs) have a few ways they structure their plans, each of which has different contract terms as well as its own advantages and disadvantages.
The number one rule in finding the right power plan is to understand your usage.
This 2-minute video that explains everything you need to know ⤵️
Super easy to shop and compare for power, especially if you know your monthly history and review a spreadsheet. I was not hassled with calls or handing out my personal information until I was ready to switch services.
Michael M. (TX, United States)
Fixed-rate
The simplest plan is the Fixed Rate energy plan – this means that for the entire term of your contract, which is typically a minimum of three months but can go up to 24 months, your rate will not change.
This is easy for you because there’s no real guesswork involved – you know what your rate is going to be when you wake up tomorrow and next week and next month right up until your contract term ends.
Not so great if the rates drop and you end up paying more than everybody else, though, and of course, you’re almost certain not to get the same rate if you re-up your contract. But you never know: you might luck into a lower rate.
Indexed rate
Then there’s the Indexed electric plan.
This one can be on a monthly or term basis with a rate that’s calculated by a formula (which they will gladly share with you) with the base being the public index or some other publicly available information.
Variable-rate
The third option is the Variable-rate plan, the one that surprises you every month.
Did it go up? Did it go down?
Even though the company generally isn’t obligated to notify you of any rate changes.
Historically the monthly variance hasn’t been excessive with Variable rate plans, so it may be a reasonable compromise between the locked-in stability of the Fixed Rate plan and the volatility of the Indexed plan.
In Texas, the power to choose is yours and it depends, ultimately, on you: your personality, your preferences, and your spending habits.
If you’re a conservative type of person who likes to know exactly how much to budget each month, then the Fixed Rate is probably a better one for you.
If you’re a devil-may-care, put-the-pedal-to-the-metal type, go ahead and fly with the Indexed plan.
If you like a reasonable chance of savings with maybe not quite so much risk, then definitely you might like the Variable-rate plan.
Use ComparePower to research the available offers before you make your final selection – you can never go wrong with getting all the information you need for the best decision.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
