Calculate the Real Cost of an Electricity Plan

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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:

Monthly Bill = (Base Energy Rate × kWh Used) + Monthly Fee + (TDU Delivery Charge × kWh Used) + TDU Monthly Fee

Let’s break this down with a real example:

Base rate: 12.5¢ per kWh
Monthly service fee: $9.95
TDU Delivery: 4.5¢ per kWh
TDU monthly fee: $5.00

At 1,000 kWh, your bill would be:

Base energy: $125.00
Service fee: $9.95
Delivery: $45.00
TDU fee: $5.00
Total: $184.95

Where It Gets Interesting: Tiered Rates

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.

Want the Easy Button? Try Live Link™ – It’s Free

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.

Find Your Best Plan with Live Link™ →

Want to Go Deeper?

Our step-by-step spreadsheet tutorial shows you exactly how to build a custom calculator that handles:

Tiered rate calculations
TDU charges
Bill credits
Seasonal patterns
Annual cost projections

You’ll learn to create a tool to compare any electricity plan and track costs throughout the year.

The Bottom Line

Whether you use comparison tools or build your calculator, understanding how your electricity costs are calculated puts you in control.

You’ll spot better deals, avoid surprise charges, and make informed decisions about your electricity plan.

Electricity Cost FAQs

How to calculate the real cost of an electricity plan?

You can input your historical usage data to calculate the real cost of an electricity plan on ComparePower.

With your usage, you can compare plans based on the total annual cost and choose the best plan for your space.

ComparePower always shows you the total annual cost of each plan so you can make an informed decision about your electricity plan.

How can I find the cheapest electricity plan in Texas?

Finding the cheapest electricity plan is quick and easy with ComparePower.

Enter your monthly usage or estimate with our kWh calculator, and we’ll automatically show you the cheapest electricity plan for your home.

There is no need to search around through dozens of websites.

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.

Call a Power Advisor →

Texas Power Plans: Fixed-Rate, Variable-rate, or Indexed

Author:

Brad Gregory

Editor:

Ryan Hatch

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.

After deregulation, the Public Utility Commission of Texas decided that it was too complicated a system.

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.

Find out if a fixed rate or a variable rate is best for you.

Your choice, your power to choose

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.

Call a Power Advisor →

10 Secrets To Lowering Average KWH

Author:

Graham Griffin

Editor:

Enri Zhulati

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.

Are you tired of high electricity bills?

What if there’s a way to lower your kWh usage, reduce energy consumption, and save money?

This guide will reveal ten secrets to reducing your kWh usage, specifically tailored for Texas residents. Plus, we’ll show you how ComparePower can make the process of finding the best electricity plan for your needs a breeze.

TL;DR: In this article, we’ll uncover ten secrets on using less kWh per day, the benefits of energy-efficient appliances, and various ways to save electricity.

Secret 1: Invest in Energy-Efficient Appliances

One of the most effective ways to lower your electricity bill is using energy-efficient appliances. These appliances, often marked with an ENERGY STAR rating, use less energy without compromising performance.

Secret 2: Control Your Temperature Smartly

In Texas, controlling your home’s temperature is crucial, especially during the hot summers. A programmable thermostat can help you manage your AC usage more effectively, leading to substantial savings.

Secret 3: Be Mindful of Your Appliance Usage

Your appliances continue to use energy even when they’re off but still plugged in. This is known as ‘phantom load.’ By turning off power strips when the connected devices are not in use, you can reduce this phantom load.

Secret 4: Optimize Your Water Heating

Lower the temperature of your water heater to around 120 degrees Fahrenheit to reduce energy consumption. Also, insulating your hot water pipes can prevent heat loss, saving both energy and money.

Secret 5: Cook Efficiently

Using a microwave instead of a conventional oven can save a significant amount of energy. If you do use an oven, avoid unnecessary preheating.

Secret 6: Make Smart Laundry Choices

Wash full loads and use cold water whenever possible. Consider air-drying clothes on a clothesline outside—after all, Texas has plenty of sunshine!

Secret 7: Choose Your Lighting Wisely

Maximize natural light during the day and turn off lights when not in use. Switch to energy-efficient LED bulbs, which use less energy and last longer than traditional incandescent bulbs.

Secret 8: Seal and Insulate Your Home

Proper insulation and sealing can prevent air leaks and keep your home comfortable, reducing the need for heating and cooling.

Secret 9: Use Energy-Efficient Windows

Energy-efficient windows can keep the heat out during the summer and keep the warmth in during the winter, reducing your need for heating and cooling.

Secret 10: Maintain Your HVAC System

Regular maintenance of your heating, ventilation, and air conditioning (HVAC) system can ensure it runs efficiently, reducing your energy consumption.

Take Control of Your Energy Consumption Today

Lowering kWh usage in Texas doesn’t have to be a daunting task.

By making a few changes in your daily habits and using ComparePower to find the best electricity plan for your needs, you can take control of your energy consumption.

So, what are you waiting for? Start saving energy, lower your electricity bill, and make the smart choice with ComparePower today!

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.

Call a Power Advisor →

Switch Electricity Companies in Houston

Author:

Brad Gregory

Editor:

Ryan Hatch

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.

Switch to Savings in Houston

Many people think switching electricity providers is more trouble than it’s worth.

You may have heard horror stories in the past, rumors of endless paperwork, having to call to disconnect, expensive switching fees, and unexpected power outages. This is not the case.

Switching providers is fast, easy, and painless

There’s no need to settle for a bad deal.

It’s easier than you think to find the right energy plan for you.

With the deregulation of Houston’s electricity market, many power companies in the greater metropolitan area compete for your business.

Still, even with all these choices available, you may find yourself stuck in a plan paying more than you care to, afraid it may be too much of a hassle to switch to a better option.

Compare rates in Houston and switch providers in minutes

If you’re dissatisfied with the amount you’re paying in energy costs every month, there are a few easy steps to find a utility plan that best suits your home or business.

Here’s what you need to know to compare electricity rates in Houston and switch providers today

Your new provider will handle everything, and there’s no “break-up” call with your old provider.

Switching electricity providers is fast and simple if you know what to do. The first information you need is that ComparePower will take care of everything.

Many fear the dreaded “break-up” phone call.

Who would want to take the time to explain to some customer service representative why you want to move to a better plan? Thankfully, this call is not necessary.

If you wish to switch electricity providers, you must place a simple, quick order here at ComparePower.

No phone calls are necessary.

Give basic personal information, provide the home or business address the plan is for, and select your electric service start date.

All you need to do after that is sit back and save.

Of course, finding the right plan in the first place can prove time-consuming.

That’s why ComparePower displays all the best plans with the best rates in a standard, easy-to-use platform. You won’t have to search through countless advertisements on dozens of different sites.

ComparePower is a free, unbiased service listing the best deals in your area by respected and trusted providers. You can easily organize and shop for energy according to your individual preferences.

Your power won’t go out

There’s no risk in switching providers. If you decide to leave your current energy company to find a better deal, you don’t need to worry about your power suddenly going out.

It’s against the law in Texas for a supplier to shut off a consumer’s electricity simply because they decided to switch.

State lawmakers included this safeguard when they worked to deregulate the energy market.

It’s also important to remember that the utility provider you purchase your power from is typically separate from the company that handles the distribution and transmission of the energy from the grid to your home or business.

The distribution and transmission utility has no stake in which supplier you take your business to.

If you use ComparePower to find your best electricity plan, there is no catch. There are no hidden fees. No bias.

ComparePower’s service ensures you’re free to shop around and compare rates with ease and peace of mind.

Your turn to switch electric companies

The average user of ComparePower saves more than 25% when switching their electricity plan. Finding a great energy plan should be free, fast, and simple – and now it finally is. Enter your zip code above to compare electricity rates in Houston quickly and easily.

Switching providers Houston FAQs

How to switch electricity companies in Houston?

Switching electricity providers in Houston on ComparePower is a simple process that allows customers to compare plans and providers in Houston, taking into account factors such as pricing, contract length, and any special promotions or discounts that may be available.

ComparePower’s unique feature is the ability to input historical usage data which allows customers to compare plans and providers based on their specific usage profile. The process starts with visiting ComparePower.com, entering your zip code for Houston, comparing plans and providers, inputting your usage data, choosing a new plan, signing up for it, and confirming the switch.

ComparePower.com will contact the current provider and handle all the details of the switch.

How do I find my kWh usage?

To get your kWh usage, you can check your electricity bills for the past 12 months, contact your electricity provider for a statement or report, and use a smart meter or an energy monitor to track usage in real time. Once you have your annual usage, you can use it to compare plans and providers on ComparePower.com to calculate the best energy plan according to your home’s specific usage profile.

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.

Call a Power Advisor →

Saving money on electricity: 5 ways that you’ll wish you’d seen sooner

Author:

Graham Griffin

Editor:

Enri Zhulati

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.

Are you feeling the pinch of high electricity bills? You’re not alone.

But here’s the good news: saving money on electricity is easier than you think.

In this guide, we’ll share some insider tips and tricks to help you lower your electric bill.

And the best part? You can start implementing these strategies today.

TL;DR: The best way to save money on electricity is to find a better plan for your home with ComparePower. Lifestyle changes and home improvements can also majorly impact your electricity bills.

Find a Cheaper Energy Company

In deregulated energy markets like Texas, you have the power to choose your energy provider.

But with hundreds of options, it can be overwhelming. That’s where ComparePower comes in.

Our easy-to-use tool helps you compare energy plans in your region, making it a breeze to find a plan that suits your situation. No gimmicks, no sales, just information.

Weatherstripping

Keeping your house cool doesn’t do much if that conditioned air leaves your house. Weatherstripping your windows and doors is a simple and effective way to prevent this.

Thermostat Management

Did you know that tiny variations in your thermostat can make a massive difference in your electricity bill?

We’ll share some easy tips for thermostat management that can help you stay cool without overspending.

Window Treatments

In Texas, the sun can fry an egg. Installing shades, blinds, or other window treatments is a great way to keep the hot sun from heating up your home.

LED Lighting

Switching to LED lighting is one of the best ways to save money on electricity. These bulbs use less energy and last longer than traditional bulbs.

Take Control of Your Electricity Bill with ComparePower

Saving money on electricity in Texas doesn’t have to be a daunting task.

With these strategies and ComparePower by your side, you can take control of your electricity bill.

Remember, every little bit helps, and over time, these savings can add up to a significant amount.

So, don’t wait. Start your journey to lower electricity bills with ComparePower today!

Saving on Electricity FAQs

How to save money on electricity in Texas?

There are several ways to save money on electricity in Texas, such as comparing and switching plans, monitoring and reducing usage, considering a variable rate plan, using a smart meter, taking advantage of Time-of-Use rates, using renewable energy, and seeking assistance.

By taking these steps, you can reduce your energy usage and lower your bills in Texas; it’s important to find the best strategy for you and keep an eye on the market for new promotions and discounts.

Remember that saving money on electricity in Texas may require a combination of different strategies, and it’s important to find the one that works best for you.

How to save money on electricity in Texas with ComparePower?

Saving money on electricity in Texas with ComparePower can be done by comparing plans and providers on the website, inputting your historical usage data, choosing the best plan that fits your needs and budget, signing up for the new plan, and confirming the switch.

ComparePower’s calculator will use your usage data to show you the plans that will be the most cost-effective for your specific usage profile, thus allowing you to make an informed decision and find the best plan for you.

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.

Call a Power Advisor →

Category: Energy Made Easy

Understanding the Real Cost of Texas Electricity Plans

The Basic Formula Behind Your Bill

Where It Gets Interesting: Tiered Rates

Hidden Costs That Can Surprise You

Three Steps to Compare Plans Accurately

Ready to Master Your Electricity Costs?

Want to Go Deeper?

The Bottom Line

Electricity Cost FAQs

How to calculate the real cost of an electricity plan?

How can I find the cheapest electricity plan in Texas?

Is this Page Helpful?

Fixed-rate

Indexed rate

Variable-rate

Your choice, your power to choose

Is this Page Helpful?

Secret 1: Invest in Energy-Efficient Appliances

Secret 2: Control Your Temperature Smartly

Secret 3: Be Mindful of Your Appliance Usage

Secret 4: Optimize Your Water Heating

Secret 5: Cook Efficiently

Secret 6: Make Smart Laundry Choices

Secret 7: Choose Your Lighting Wisely

Secret 8: Seal and Insulate Your Home

Secret 9: Use Energy-Efficient Windows

Secret 10: Maintain Your HVAC System

Take Control of Your Energy Consumption Today

Is this Page Helpful?

Switch to Savings in Houston

Switching providers is fast, easy, and painless

Compare rates in Houston and switch providers in minutes

Here’s what you need to know to compare electricity rates in Houston and switch providers today

Your power won’t go out

Your turn to switch electric companies

Switching providers Houston FAQs

How to switch electricity companies in Houston?

How do I find my kWh usage?

Is this Page Helpful?

Find a Cheaper Energy Company

Weatherstripping

Thermostat Management

Window Treatments

LED Lighting

Take Control of Your Electricity Bill with ComparePower

Saving on Electricity FAQs

How to save money on electricity in Texas?

How to save money on electricity in Texas with ComparePower?

Is this Page Helpful?