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  • Finding the True Cost of Electricity Plans

True Cost of Texas Electricity Plans

Executive Summary

Our analysis of electricity usage data from 100 Texas homes reveals a critical finding: advertised electricity rates consistently mask true costs – with one notable exception that proves why.

The data shows that the Power On 24 plan delivers the lowest annual cost for 97% of Texas households, despite not having the lowest advertised rates at standard usage levels (500, 1,000, and 2,000 kWh).

Table of Contents
  • Executive Summary
  • Problem Statement
  • Methodology
  • Small Home (656 sq ft)
  • Medium Home (1,193 sq ft)
  • Medium+ Home (2,491 sq ft)
  • Large Home (3,873 sq ft)
  • Our Largest Home (5,168 sq ft)
  • The Exception Cases (Profile 55)
  • What We Learned From All 100 Homes
  • How to Shop for Electricity
  • Bottom Line

Problem Statement

Electricity providers base their advertised rates on specific monthly usage amounts – typically 500, 1,000, or 2,000 kWh.

These rates depend on bill credits and usage tiers that only activate at exact usage levels.

The catch? Real homes never use the same amount of electricity each month, making it impossible to consistently hit these targets.

This practice results in dramatically higher costs for Texas electricity customers.

Understanding your true electricity costs requires calculations based on your complete usage data – not estimated or advertised amounts.

Even in the rare case where a bill credit plan proved advantageous, the savings amounted to just 63 cents each month.

Methodology

Our analysis examined actual electricity usage data from 100 Texas households, with homes ranging from 600 square feet, to more than 5,000 square feet.

For each home, we gathered pricing data as of 12/11/24 and determined the total annual costs across multiple electricity plans by:

  1. Analyzing real, month-by-month usage data from actual Texas homes
  2. Calculating true costs for each plan using precise usage amounts
  3. Comparing total annual costs across different plans
  4. Identifying patterns in cost differences between advertised and actual rates

This research uses real customer data, not models or estimates, providing an accurate picture of how electricity plans perform in real-world conditions.

Advertised electricity rates only show you the rate at an exact amount of electricity. What matters is your total cost throughout the year, based on your actual varying usage patterns.

These advertised rates often rely on bill credits and usage tiers that result in much higher bills throughout the year. Let’s examine five representative homes from our dataset to understand the real impact on electricity costs.

Small Home (656 sq ft)

This usage pattern represents what we consistently observe in smaller homes and apartments throughout our dataset:

MonthUsage (kWh)
January1,211
February550
March395
April320
May545
June953
July911
August1,003
September601
October472
November479
December754

Like most homes studied, usage varies significantly throughout the year – from 320 kWh in April to 1,211 kWh in January. This variation substantially impacts your actual electricity costs.

Let’s analyze how different advertised plans perform with this real usage pattern:

Cheapest Advertised Plan at 500 kWh

  • Advertised rate: 15¢ per kWh
  • What you actually pay: 19.9¢ per kWh
  • Annual cost: $1,633.51
  • Extra cost vs. best plan: $472.74

This plan looks great if you use exactly 500 kWh each month.

However, like every home in our study, this one doesn’t always use exactly 500 kWh.

When usage varies from this target – which happens every month – the rate jumps to nearly 20¢ per kWh instead of the advertised 15¢.

Cheapest Advertised Plan at 1000 kWh

  • Advertised rate: 10.5¢ per kWh
  • What you actually pay: 18.2¢ per kWh
  • Annual cost: $1,492.59
  • Extra cost vs. best plan: $331.82

The 10.5¢ rate looks impressive, but it only kicks in at 1,000 kWh usage. This home only hits that usage in August.

Every other month, you’re paying significantly more – averaging 18.2¢ per kWh across the year.

Cheapest Advertised Plan at 2000 kWh

  • Advertised rate: 12.7¢ per kWh
  • What you actually pay: 20.6¢ per kWh
  • Annual cost: $1,690.98
  • Extra cost vs. best plan: $530.21

Despite advertising a competitive rate, this plan becomes the most expensive option because the home’s usage doesn’t ever come close to hitting 2,000 kWh.

Best Plan for This Home

  • Power On 24
  • What you actually pay: 14.1¢ per kWh
  • Annual cost: $1,160.77

Like 97% of homes in our study, this plan delivers the lowest total cost because it works with real usage patterns – no usage tiers, no bill credits, no gimmicks.

Medium Home (1,193 sq ft)

This usage pattern is right in line with the average Texan who uses between 1,000 and 1,200 kWh each month:

MonthUsage (kWh)
January635
February432
March476
April641
May810
June1,616
July1,652
August1,859
September1,318
October681
November407
December466

Usage varies dramatically here from 407 kWh to 1,859 kWh – a pattern we see consistently in similar-sized homes.

Cheapest Advertised Plan at 500 kWh

  • Advertised rate: 15¢ per kWh
  • What you actually pay: 21¢ per kWh
  • Annual cost: $2,310.77
  • Extra cost vs. best plan: $771.45

The advertised 15¢ rate becomes meaningless with this usage variation.

During summer months, when usage triples, the actual rate spikes to 21¢ per kWh – resulting in much higher bills than advertised.

Cheapest Advertised Plan at 1000 kWh

  • Advertised rate: 10.5¢ per kWh
  • What you actually pay: 16.9¢ per kWh
  • Annual cost: $1,843.53
  • Extra cost vs. best plan: $304.21

That great 10.5¢ rate vanishes with varying usage.

With summer consumption consistently above 1,500 kWh, you end up paying 16.9¢ per kWh – 60% above the advertised rate.

Cheapest Advertised Plan at 2000 kWh

  • Advertised rate: 12.7¢ per kWh
  • What you actually pay: 20.5¢ per kWh
  • Annual cost: $2,251.27
  • Extra cost vs. best plan: $711.95

Even when summer usage approaches 2,000 kWh, this plan costs substantially more than advertised due to varying usage in other months.

Best Plan for This Home

  • Power On 24
  • What you actually pay: 14.0¢ per kWh
  • Annual cost: $1,539.32

As seen consistently across our study, steady pricing handles seasonal variations better, saving hundreds compared to plans with advertised “special” rates.

Medium+ Home (2,491 sq ft)

This usage pattern represents larger homes in our dataset:

MonthUsage (kWh)
January757
February665
March860
April851
May1,198
June1,620
July2,004
August1,966
September1,821
October1,227
November958
December736

Like other homes this size, summer usage (2,004 kWh) triples compared to winter months (665 kWh).

Cheapest Advertised Plan at 500 kWh

  • Advertised rate: 15¢ per kWh
  • What you actually pay: 20.5¢ per kWh
  • Annual cost: $2,998.81
  • Extra cost vs. best plan: $961.73

This home never uses the low end of advertised rates at 500 kWh in any month.

The actual rate runs 5.5¢ higher per kWh than advertised, costing nearly $1,000 more annually than necessary.

Cheapest Advertised Plan at 1000 kWh

  • Advertised rate: 10.5¢ per kWh
  • What you actually pay: 16.3¢ per kWh
  • Annual cost: $2,388.77
  • Extra cost vs. best plan: $351.69

With summer usage consistently above 1,500 kWh, this plan’s actual rate far exceeds the advertised rate, leading to significant extra costs.

Cheapest Advertised Plan at 2000 kWh

  • Advertised rate: 12.7¢ per kWh
  • What you actually pay: 19.3¢ per kWh
  • Annual cost: $2,835.92
  • Extra cost vs. best plan: $798.84

Even though usage reaches 2,000 kWh in peak months, varying usage throughout the year results in much higher actual costs.

Best Plan for This Home

  • Power On 24
  • What you actually pay: 13.9¢ per kWh
  • Annual cost: $2,037.08

Large Home (3,873 sq ft)

This usage pattern represents larger homes in our dataset:

MonthUsage (kWh)
January6,136
February3,830
March3,798
April3,810
May3,454
June4,440
July4,718
August4,300
September3,492
October2,774
November2,434
December4,270

Like other homes this size, even the lowest month (2,434 kWh) exceeds all advertised rate tiers.

Cheapest Advertised Plan at 500 kWh

  • Advertised rate: 15¢ per kWh
  • What you actually pay: 23¢ per kWh
  • Annual cost: $10,933.87
  • Extra cost vs. best plan: $4,454.49

The 500 kWh advertised rate becomes irrelevant. The actual rate runs 8¢ higher per kWh than advertised, resulting in over $4,400 in unnecessary annual costs.

Cheapest Advertised Plan at 1000 kWh

  • Advertised rate: 10.5¢ per kWh
  • What you actually pay: 17.6¢ per kWh
  • Annual cost: $8,359.53
  • Extra cost vs. best plan: $1,880.15

The actual cost runs 67% higher than the advertised rate when applied to real usage patterns.

Cheapest Advertised Plan at 2000 kWh

  • Advertised rate: 12.7¢ per kWh
  • What you actually pay: 16.3¢ per kWh
  • Annual cost: $7,750.21
  • Extra cost vs. best plan: $1,270.83

Even the highest advertised usage tier falls well short of this home’s typical monthly usage.

Best Plan for This Home

  • Power On 24
  • What you actually pay: 13.6¢ per kWh
  • Annual cost: $6,479.38

Our Largest Home (5,168 sq ft)

This represents the largest homes in our dataset:

MonthUsage (kWh)
January2,844
February2,700
March2,674
April2,470
May3,885
June4,707
July5,738
August6,601
September4,752
October3,914
November2,977
December2,142

As seen across larger homes, even the lowest monthly usage (2,142 kWh) exceeds all standard advertised rate tiers.

Cheapest Advertised Plan at 500 kWh

  • Advertised rate: 15¢ per kWh
  • What you actually pay: 17.5¢ per kWh
  • Annual cost: $10,437.36
  • Extra cost vs. best plan: $4,235.95

The massive gap between actual usage and the advertised rate tier results in over $4,200 in unnecessary annual costs.

Cheapest Advertised Plan at 1000 kWh

  • Advertised rate: 10.5¢ per kWh
  • What you actually pay: 17.5¢ per kWh
  • Annual cost: $7,948.35
  • Extra cost vs. best plan: $1,746.94

The actual rate runs 67% higher than advertised when applied to this home’s usage pattern.

Cheapest Advertised Plan at 2000 kWh

  • Advertised rate: 12.7¢ per kWh
  • What you actually pay: 16.2¢ per kWh
  • Annual cost: $7,339.47
  • Extra cost vs. best plan: $1,138.06

Even plans designed for higher usage fall short with this home’s consumption patterns.

Best Plan for This Home

  • Power On 24
  • What you actually pay: 13.7¢ per kWh
  • Annual cost: $6,201.41

The Exception Cases (Profile 55)

Among 100 Texas homes analyzed, we discovered three unique exceptions where a bill-credit plan actually saved money.

This home’s usage pattern demonstrates why advertised rates and bill credits target an almost impossible usage pattern – and how this one home nearly perfectly matched it.

MonthUsage (kWh)
January1,219
February840
March1,080
April1,105
May1,225
June1,522
July1,386
August1,393
September1,202
October1,117
November793
December888

This usage pattern stands out for its consistency. Compare it to typical homes:

  • Small home example: Varies from 320 to 1,211 kWh (279% variation)
  • Medium home example: Varies from 407 to 1,859 kWh (357% variation)
  • Large home example: Varies from 665 to 2,004 kWh (201% variation)
  • This home: Varies from 793 to 1,522 kWh (92% variation)

This stability around the crucial 1,000 kWh mark makes it uniquely suited for bill credit plans. Here’s how the plans compare:

Best Plan for This Home: Saver Plus Plan 12

  • Actual average rate: 13.9¢ per kWh
  • Annual cost: $1,908.54
  • Monthly cost range: $120.53 – $209.05
  • Bill credits earned: $100 in 8 out of 12 months

This plan wins because:

  1. The home’s usage hits between 1,000-1,500 kWh in 8 months, earning the full $100 bill credit
  2. Even in the four months below 1,000 kWh, usage stays high enough (793-888 kWh) to keep base costs manageable
  3. Only one month exceeds 1,500 kWh, minimizing exposure to higher rates

Power On 24 Plan

  • Actual average rate: 13.9¢ per kWh
  • Annual cost: $1,916.09
  • Monthly cost range: $111.65 – $210.41
  • Difference: $7.55 more annually

The consistent pricing structure that saves money for 97% of homes falls just slightly behind here – by less than $8 per year or about 63 cents per month.

Other Advertised “Cheap” Plans

  • 500 kWh advertised plan: $2,234.89 annually ($326.35 more)
  • 2,000 kWh advertised plan: $2,807.14 annually ($898.60 more)

This case reveals exactly what must happen for advertised rates and bill credits to work as promised: remarkably stable monthly usage that consistently hits specific targets.

Finding only three homes out of 100 with this pattern demonstrates why these plans are designed to look better than they actually perform for real Texas households.

Even in this perfect-case scenario, the bill credit plan saved less than a dollar per month compared to Power On 24’s consistent pricing.

For the other 97 homes with more typical usage patterns, these same plans cost hundreds or thousands more annually.

Most importantly, you can only determine if you’re the rare exception who might benefit from a bill credit plan by comparing plans using your actual, full year of usage data.

Looking at advertised rates or estimating your usage won’t work – you need to see how each plan performs across all twelve months of real usage.

Without analyzing these actual numbers:

  • You can’t predict if you’ll consistently hit bill credit thresholds
  • You can’t calculate the impact of missing credits in low-usage months
  • You can’t determine if higher rates in peak months will eliminate your savings
  • You can’t see your true annual cost

This case demonstrates why shopping with your actual usage history is essential. Even though this home saved money with a bill credit plan, that only became clear after analyzing their complete usage data.

There’s no other way to know which plan will truly cost you less.

What We Learned From All 100 Homes

  1. Real Usage Patterns Never Match Advertised Tiers
    • Across all 100 homes studied, monthly usage varied significantly:
      • Small homes: 279% variation between lowest and highest month
      • Medium homes: 357% variation
      • Medium+ homes: 201% variation
      • Large homes: 170% variation
      • Our biggest sized homes: 191% variation
    • No home consistently hit the advertised usage levels
    • Seasonal changes affected every home, regardless of size
    • Larger homes showed more extreme variations
  2. Advertised Rates Consistently Mask True Costs
    • Actual rates typically ran 4-8¢ higher than advertised
    • Larger homes faced bigger gaps between advertised and actual rates
    • Bill credits and usage tiers increased costs in 98% of cases
    • The difference between advertised and actual rates grew with usage
  3. Consistent Pricing Saves Money
    • Power On 24 delivered lowest total cost for 97 out of 100 homes
    • Annual savings ranged from $300 for small homes to over $4,400 for larger homes
    • Consistent rates proved more valuable as usage increased
    • Simple rate structures outperformed complex promotional rates
  4. The Exceptions Prove the Rule
    • This volatility explains why the ‘exception home’ conditions are so rare:
      • Only 3% of homes (3 out of 100) had stable enough usage to benefit from bill credits
      • Required usage to stay between 793-1,522 kWh in all 12 months
      • Missing the 1,000 kWh credit tier in just 4 months nearly eliminated all savings

How to Shop for Electricity

  1. Know Your Usage Pattern
    • Get your full past 12 months of usage data from your electricity bills
    • Note your summer and winter peaks
    • Compare your usage to advertised rate tiers
  2. Calculate Total Annual Cost
    • Don’t focus on a single month
    • Account for seasonal changes
    • Compare total yearly costs, not advertised rates
  3. Avoid Complex Plan Structures
    • Be cautious with plans offering usage credits
    • Look for consistent pricing that works year-round
    • Consider how rate structures affect your typical usage
  4. Check if You Match the Exception Case
    • Do you stay between 1,000-1,500 kWh in at least 8 months?
    • Is your usage below 1,000 kWh still over 790 kWh?
    • Do you exceed 1,500 kWh in no more than 1-2 months?

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  • Effortless Accuracy: No more digging through old bills or estimating your usage. Live Link™ securely pulls your real consumption data with just a click.
  • Tailored Recommendations: Get plan options customized to your unique energy habits, not generic estimates.
  • True Cost Clarity: See the full picture of your electricity costs, including how seasonal changes affect your bill.
  • Big Savings: By matching you with plans that fit your actual usage, Live Link™ could save you hundreds each year.

Ready to find your best plan? Try Live Link™ now – it’s free, fast, and could be your ticket to lower electric bills.

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Bottom Line

Our analysis of 100 real Texas homes proves that advertised electricity rates consistently mask true costs. These rates depend on hitting exact usage amounts that real homes never achieve consistently.

The Power On 24 plan delivered the lowest annual cost for 97% of homes in our study, despite not advertising the lowest rates. This consistent pricing saved customers hundreds to thousands of dollars annually compared to plans advertising “cheap” rates.

The two exceptions we discovered highlight the fundamental issue: even when a home achieved the ideal usage pattern for bill credits, it saved less than a dollar per month compared to a simple, consistent rate.

For 97% of real homes, attempting to hit these “perfect” usage targets results in hundreds or thousands in unnecessary costs.

To avoid overpaying, shop based on your actual annual usage data.

Don’t rely on hypothetical averages or seemingly low rates – evaluate how plans perform with your real electricity consumption across all 12 months. Consistent, stable rates outperform bill credit promotions for virtually every household.

“Cheapest” PlanTotal Annual CostBest PlanTotal Annual CostSavings
Maxx Saver Select 122947.32Power On 24 plan2820.33126.99
Maxx Saver Select 123558.25Power On 24 plan3233.38324.87
Maxx Saver Select 123013.89Power On 24 plan2662.54351.35
Maxx Saver Select 122491.96Power On 24 plan2174.45317.51
Maxx Saver Select 122112.84Power On 24 plan1985.75127.09
Maxx Saver Select 126913.85Power On 24 plan55021411.85
Maxx Saver Select 121602.38Power On 24 plan1370.18232.2
Maxx Saver Select 123438.84Power On 24 plan3152.66286.18
Maxx Saver Select 1213023.13Power On 24 plan9632.343390.79
Maxx Saver Select 122016.11Power On 24 plan1785.12230.99
Maxx Saver Select 123174.76Power On 24 plan2974.09200.67
Maxx Saver Select 123494.19Power On 24 plan2919.64574.55
Maxx Saver Select 121453.68Power On 24 plan1269.67184.01
Maxx Saver Select 121243.15Power On 24 plan924.52318.63
Maxx Saver Select 122799.85Power On 24 plan2720.6479.21
Maxx Saver Select 122961.43Power On 24 plan2491.84469.59
Maxx Saver Select 123955.78Power On 24 plan3502.15453.63
Maxx Saver Select 122863.16Power On 24 plan2763.4599.71
Maxx Saver Select 122153.14Power On 24 plan1877.78275.36
Maxx Saver Select 128040.74Power On 24 plan6263.861776.88
Saver Plus Plan 122287.94Power On 24 plan2308.01-20.07
Maxx Saver Select 121163.99Power On 24 plan1006.19157.8
Maxx Saver Select 122762.97Power On 24 plan2695.767.27
Maxx Saver Select 124107.46Power On 24 plan3604.67502.79
Maxx Saver Select 122032.58Power On 24 plan1525.83506.75
Maxx Saver Select 123077.78Power On 24 plan2908.52169.26
Maxx Saver Select 122472.88Power On 24 plan2296.77176.11
Maxx Saver Select 122857.38Power On 24 plan2691.93165.45
Maxx Saver Select 122095.45Power On 24 plan1771.16324.29
Maxx Saver Select 123459.47Power On 24 plan3166.59292.88
Maxx Saver Select 122044.56Power On 24 plan1736.75307.81
Maxx Saver Select 1211349.84Power On 24 plan8501.052848.79
Maxx Saver Select 123421Power On 24 plan3140.57280.43
Maxx Saver Select 122948.5Power On 24 plan2821.16127.34
Maxx Saver Select 122355.25Power On 24 plan2284.8470.41
Maxx Saver Select 122862.43Power On 24 plan2560.11302.32
Maxx Saver Select 121333.68Power On 24 plan1188.53145.15
Maxx Saver Select 121211.1Power On 24 plan835.24375.86
Maxx Saver Select 122135.13Power On 24 plan1797.98337.15
Maxx Saver Select 122245.45Power On 24 plan2210.6134.84
Maxx Saver Select 122553.67Power On 24 plan2216.17337.5
Maxx Saver Select 121597.33Power On 24 plan1434.4162.93
Maxx Saver Select 121772.7Power On 24 plan1350.15422.55
Maxx Saver Select 122412.44Power On 24 plan1985.46426.98
Maxx Saver Select 121023.14Power On 24 plan775.77247.37
Maxx Saver Select 124333.16Power On 24 plan3419.24913.92
Maxx Saver Select 123429.02Power On 24 plan3146.01283.01
Maxx Saver Select 124984.89Power On 24 plan4197.9786.99
Maxx Saver Select 123197.4Power On 24 plan2989.39208.01
Maxx Saver Select 122103.85Power On 24 plan1844.45259.4
Maxx Saver Select 124146.32Power On 24 plan3630.99515.33
Maxx Saver Select 123223.83Power On 24 plan2939.68284.15
Maxx Saver Select 121863.25Power On 24 plan1546.55316.7
Maxx Saver Select 122968.83Power On 24 plan2496.85471.98
Saver Plus Plan 121908.54Power On 24 plan1916.09-7.55
Maxx Saver Select 122640.82Power On 24 plan2342.69298.13
Maxx Saver Select 125785.37Power On 24 plan4739.061046.31
Maxx Saver Select 126382.85Power On 24 plan5143.011239.84
Maxx Saver Select 129552.13Power On 24 plan7218.092334.04
Maxx Saver Select 124597.55Power On 24 plan3936.03661.52
Maxx Saver Select 121933.17Power On 24 plan1593.84339.33
Maxx Saver Select 121762.44Power On 24 plan1546.02216.42
Maxx Saver Select 121580.94Power On 24 plan1220.5360.44
Maxx Saver Select 121445.9Power On 24 plan1129.21316.69
Maxx Saver Select 123223.86Power On 24 plan2939.67284.19
Maxx Saver Select 122054.34Power On 24 plan1878.61175.73
Maxx Saver Select 123257.52Power On 24 plan2962.46295.06
Maxx Saver Select 122857.8Power On 24 plan2557.01300.79
Maxx Saver Select 125251.37Power On 24 plan4378.05873.32
Maxx Saver Select 123934.35Power On 24 plan3487.65446.7
Maxx Saver Select 121478.73Power On 24 plan1286.62192.11
Maxx Saver Select 123037.92Power On 24 plan2813.98223.94
Maxx Saver Select 121780.3Power On 24 plan1490.46289.84
Maxx Saver Select 122547.06Power On 24 plan2144.12402.94
Maxx Saver Select 122988.2Power On 24 plan2847.98140.22
Maxx Saver Select 123261.51Power On 24 plan3032.74228.77
Maxx Saver Select 12763.66Power On 24 plan600.35163.31
Maxx Saver Select 122639.87Power On 24 plan2139.22500.65
Maxx Saver Select 121762.67Power On 24 plan1478.58284.09
Maxx Saver Select 127173.72Power On 24 plan5677.71496.02
Maxx Saver Select 121805.91Power On 24 plan1643.02162.89
Maxx Saver Select 121450.28Power On 24 plan1334.96115.32
Maxx Saver Select 122255.28Power On 24 plan2217.2438.04
Maxx Saver Select 122165.76Power On 24 plan1953.91211.85
Maxx Saver Select 122912.93Power On 24 plan2459.07453.86
Maxx Saver Select 121573.57Power On 24 plan1147.89425.68
Maxx Saver Select 121260.34Power On 24 plan1071.36188.98
Maxx Saver Select 122186.56Power On 24 plan2170.7715.79
Maxx Saver Select 122595.9Power On 24 plan2447.56148.34
Maxx Saver Select 121781.87Power On 24 plan1626.77155.1
Maxx Saver Select 121116.14Power On 24 plan771.03345.11
Maxx Saver Select 122788.82Power On 24 plan2713.1975.63
Maxx Saver Select 123134.68Power On 24 plan2947187.68
Maxx Saver Select 125604.84Power On 24 plan4617987.84
Maxx Saver Select 124564.71Power On 24 plan3913.81650.9
Maxx Saver Select 122703.7Power On 24 plan2520.41183.29
Maxx Saver Select 122765.19Power On 24 plan2697.2167.98
Maxx Saver Select 121764.25Power On 24 plan1479.64284.61
Maxx Saver Select 122743.26Power On 24 plan2276.73466.53
Saver Plus Plan 122457.70Power On 24 plan2490.47-32.77

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Compare Power Author Graham Griffin
Author:
Graham Griffin
Enri author
Editor:
Enri Zhulati
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