How Texas Electricity Rates Are Rigged

Providers advertise prices based on ideal conditions — not how real Texans use electricity. Here’s how to see what a plan actually costs using your real usage.

  • Compare Power
  • Texas Electricity Rates Are Rigged to Look Cheaper Than They Are

Texas Electricity Rates Are Rigged to Look Cheaper Than They Are

While researching Texas electricity rates, I came across a Medium article that stood out — wedged between Reddit threads about high bills and confusing plans.

The author downloaded their Smart Meter data, built a spreadsheet, and reverse-engineered the real cost of their electricity plan.

This is the right way to shop. Time-consuming, but right.

And it’s precisely why we built Compare Power.

For over a decade, we’ve been helping Texans avoid misleading electricity plans by analyzing their power usage—no spreadsheets required.

Principales conclusiones

  • Advertised electricity rates in Texas are often misleading. They only apply at specific usage levels, such as 1,000 kWh.
  • Your real cost depends on how you use electricity. Most people overpay without realizing it.
  • Live Link™ does the math for you. It pulls your Smart Meter data and shows you the cost of each plan.
  • Don’t guess. Don’t get gamed. Shop with your real usage, not made-up averages.

👉 Find your best plan with Live Link™

Why Advertised Electricity Rates Are Misleading

When you see a plan that says 10.9¢/kWh, that rate only applies if your usage is exactly 1,000 kWh.

Go slightly above or below that number, and the real cost can jump.

He aquí por qué:

  • Plans often include tiered pricing, minimum usage fees, or bill credits.
  • These gimmicks are designed to make the advertised rate look cheap at a specific usage point (like 1,000 kWh).
  • Most Texans don’t consistently hit that number. Your actual bill will be based on your real usage, not a marketing benchmark.

The result? You think you’re getting a deal, but you end up overpaying.

The Spreadsheet Method (Manual Way)

In that Medium article, the author:

  • Pulled 12 months of 15-minute Smart Meter Texas data.
  • Calculated how much electricity was used during peak vs off-peak hours.
  • Applied those patterns to a Time-of-Use plan, advertising 17.1¢/kWh.

Because they used most of their electricity overnight (charging a Tesla), the actual cost came out to 11.6¢/kWh.

However, for someone running A/C or appliances during the day, that same plan would have cost a lot more.

It’s a great breakdown. If you’d like to try it manually, we explain the step-by-step process here.

The Better Way – Save Time With Live Link™

Most people don’t have the time or desire to build a spreadsheet just to shop for power.

That’s why we created Live Link™.

Live Link™ pulls your Smart Meter data instantly and runs the analysis for you.

With Live Link™, you get:

  • No guesswork – Plans matched to your real usage patterns
  • No spreadsheets – We connect directly to your utility’s usage history
  • No surprises – See your actual cost before you sign up

Forget advertised rates. Shop based on your real usage.

Don’t Pay for the Wrong Plan

This is the mistake most people make:

  • They select a plan that appears inexpensive on paper.
  • Their usage doesn’t match the advertised kWh.
  • Their bill ends up way higher than expected.

Live Link™ fixes that.

Stop shopping by guesses and gimmicks. Start with your real data.

👉 Try Live Link™ Free

Teaser rates cost you. Find a plan that fits—and saves.