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Learn about Texas electricity companies, energy plans, and rates and how to save money on your electricity bill.

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Clever Ways to Lower Your Texas Electricity Bill

As spring unfolds in Texas, we’re treated to pleasant temperatures, colorful blossoms, and sun-filled days.

It’s the perfect time to explore energy-saving opportunities and lower your electricity bill.

While we bid farewell to winter and enjoy the warmer days ahead, let’s explore some practical tips to keep those pesky electricity bills in check. Ready? Let’s dive in!

Shop Around for the Best Electricity Plans

The competitive electricity market in Texas allows you to choose from various providers and plans. Check your electricity contract end date.

If your electricity contract has expired or expiring soon, it’s time to re-shop and save money by finding a deal that suits your needs and budget.

You can compare electricity rates, contract lengths, renewable energy options, and more with Compare Power. By switching to a more affordable energy plan, you could save a substantial amount on your electricity bill.

Embrace Natural Ventilation and Cooling

Make the most of spring’s fresh air and cool breezes by opening windows and doors instead of relying on heaters or air conditioners.

Using fans, blinds, curtains, and shades helps regulate temperature and airflow in your home.

Keep your air conditioner well-maintained and set it to a reasonable temperature. Remember that every degree above 78°F saves you up to 7% on cooling costs.

Opt for Energy-Efficient Appliances and Lighting

Upgrading to energy-efficient appliances and lighting can significantly impact your electricity bill. Look for ENERGY STAR-labeled appliances which meet the EPA’s strict energy efficiency standards.

Switch to LED bulbs, which use 80% less energy and last up to 25 times longer than incandescent bulbs. Plus, they produce less heat, helping to keep your home cooler.

Maximize savings by turning off or unplugging devices when not in use. Power strips and smart plugs make it easy to control multiple devices with one switch or an app.

Your Turn to Save

Spring offers a fantastic opportunity to save on your electricity bill in Texas. Follow these simple strategies:

  • Compare electricity plans and providers.
  • Utilize natural ventilation and cooling.
  • Upgrade to energy-efficient appliances and lighting.

These steps can significantly lower your electricity consumption while maintaining comfort and convenience in your home.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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TLDR: Maximize winter energy savings by using your home’s historical kWh usage to find the best energy plan. Comparing energy plans with your electricity usage can lead to lower energy bills and more informed decision-making. Learning energy-saving tips and regularly reviewing your plan can also help reduce costs.

Maximizing winter energy savings

Winter months can bring great joy with the festive season, but they can also be harsh on your wallet due to increased energy consumption. Heating homes and offices can consume a lot of energy and significantly increases energy bills. With energy prices constantly fluctuating, finding an energy plan that fits your usage and budget is more important than ever. This is where your historical kWh usage comes in.

Understanding historical kWh usage

A kilowatt-hour is a unit of energy used to measure electricity consumption. Your historical kWh usage data records how much energy you have consumed over a specific period, typically one year. This data lets you find the perfect energy plan by comparing energy plans according to how you use electricity.

To access your historical kWh usage data, check your monthly energy bills or log into your energy provider’s account dashboard. Understanding this data is important in finding an energy plan that fits your usage and reduces energy bills.

How to use historical kWh usage to find the perfect energy plan

Comparing Texas electricity rates based on your historical kWh usage is easy. Start by collecting your historical kWh usage data monthly for one year. Enter your usage history on ComparePower’s historical usage calculator. Compare plan prices based on your historical kWh usage.

Comparing energy plans with your historical kWh ensures that you select a plan that fits your consumption pattern, reduces energy bills, and helps you make an informed decision based on your actual usage rather than just an estimated average.

Check out this short 2-minute video to learn how shopping with your usage works on ComparePower.

What length plan should I choose?

A common question we get when switching is the term length of the contract.

Is it best to choose a 12, 24, or 36-month plan? The length of your energy plan depends on your individual needs and preferences.

A 12-month plan offers stability, predictability, and the flexibility to shop again in 12 months.

A 24-month plan provides a longer period of stability in energy rates, but you may miss out on lower energy bills if rates go down.

A 36-month plan offers the longest period of rate stability. This term is ideal if you find a rate you like and prefer to lock that in for an extended period.

It can be difficult to predict electricity prices as supply and demand, fuel prices, government regulations, and weather conditions influence them. The energy market is highly dynamic and constantly changes, making it challenging to predict future prices accurately.

Ultimately, assessing your energy needs and considering the current market rates is best before deciding on a plan length. You may also want to consider the plan’s flexibility and the penalty fees for early termination.

When can I switch providers?

While you can switch electricity plans at any time, it is important to note that some providers may charge an early termination fee (ETF) if you end your contract before the end of the term.

The ETF is designed to compensate the provider for any losses they may incur from ending the contract early.

Before switching plans, be sure to review the terms and conditions of your current contract and consider the ETF fees involved.

In some cases, the potential savings from switching to a new plan may outweigh the ETF fees, so it’s important to do the math and weigh your options carefully. You can quickly do the math with ComparePower by plugging in your kWh usage and letting us crunch the numbers for you.

It is also worth noting that some providers may offer ETF-free plans, so be sure to consider all your options and choose the plan that best meets your needs and budget.

Starting service for a new home

If you don’t have access to the previous usage history for your new home, you can estimate your electricity usage. You can also ask the previous landlord for a copy of their kWh usage history for 12 months.

Tips to maximize savings this winter

Aside from finding the perfect energy plan, several other tips can help you maximize your energy savings this winter.

First, familiarize yourself with the different types of energy plans and rates available. There are fixed-rate, variable-rate, and prepaid plans, each with advantages and disadvantages.

Conserving energy and reducing usage during winter is another way to reduce energy bills. Simple changes, such as lowering your thermostat, sealing drafty windows, and using energy-efficient lighting, can help you save electricity.

Finally, it’s important to regularly review and adjust your energy plan to ensure you are always getting the best deal.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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Are you a first-time shopper for electricity in Texas?

Feeling overwhelmed by the myriad of choices and complex terms? Don’t worry!

This guide is designed just for you. We promise to provide you with useful insights about electricity plans and how to shop for electricity in Texas.

Plus, we’ll introduce you to ComparePower, your ultimate tool for comparing power in Texas.

TL;DR: In Texas, you have the power to choose your electricity plan. We recommend movers get a 12-month, fixed-rate plan with a satisfaction guarantee for their first plan.

Understanding Electricity

Before we dive into shopping, let’s understand what we’re shopping for.

Electricity is measured in kilowatt-hours (kWh), and this is what you pay for.

As a first-time shopper, you might not know your usage yet, and that’s okay.

ComparePower can help you estimate your usage based on the size of your home and your lifestyle.

Decoding Electricity Plans

There are three main types of electricity plans in Texas: fixed-rate, variable-rate, and prepaid plans.

  • Fixed-rate plans lock in your electricity rate for the duration of your contract, protecting you from market fluctuations.
  • Variable-rate plans allow your rate to vary based on market conditions.
  • Prepaid plans let you pay for your electricity upfront, without the need for a long-term contract or a credit check.

Choosing the Right Electricity Provider

With ComparePower, choosing an electricity provider is a breeze.

Our platform allows you to compare energy in Texas from a variety of providers, all in one place.

We consider factors like contract length, renewable energy options, customer service, and of course, price.

So, you can trust that you’re getting a comprehensive comparison when you use ComparePower.

Switching Providers Made Easy

Once you’ve chosen a provider and plan, the switching process is typically straightforward.

Most providers will handle the switch for you, and there should be no interruption to your service.

With ComparePower, you can rest easy knowing we’ve got your back every step of the way.

Find the Right Plan Today

Shopping for electricity in Texas for the first time doesn’t have to be intimidating.

With a little guidance and the right tools, you can find a plan that fits your needs and could potentially save you money.

Remember, the power to choose your electricity provider is in your hands. Use it wisely, and use ComparePower to make the process easier.

New to Texas Electricity FAQs

Power to Choose is the official electric choice website of the Public Utility Commission of Texas.

It allows all electric providers to list their offers for free.

As a consumer, you can visit the site, enter your zip code, and compare a list of providers, plans, and prices in your area.

However, ComparePower offers a more user-friendly experience with easy-to-understand information, making it a preferred choice for many Texans.

The provider with the cheapest electricity rates can vary depending on your location and the time you’re shopping.

Rates can change frequently, so it’s important to check ComparePower regularly to get the most up-to-date information.

There are over 70 retail electricity providers in Texas, thanks to the deregulated energy market.

This gives consumers a wide range of options when it comes to choosing a provider. With ComparePower, you can easily compare all these options in one place.

The “best” energy company can vary depending on your specific needs and preferences.

Some consumers might prioritize low rates, while others might look for renewable energy options or superior customer service.

It’s important to research and compare different providers to find the one that’s best for you. And with ComparePower, this process is easier than ever.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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If you’re reading this, your electricity provider in Texas likely went out of business, and you are now with another provider known as a Provider of Last Resort or POLR.

Here is what you need to know to make an informed energy decision for your household.

POLR transitions usually default to variable market rates, also called holdover rates.

Your Provider of Last Resort could honor your previous rate with your former electric company, but that is not guaranteed. Check the details of your new contract to find out exactly what you are paying.

In most cases, you are paying the Provider of Last Resort an expensive holdover rate.

Holdover rates are subject to changes in market conditions and are significantly higher than those for a fixed-rate contract.

Switch providers on ComparePower to a fixed-rate plan that will be easier to budget and cheaper than a holdover rate.

Get a fixed-rate contract with a low rate in minutes.

What is a Provider of Last Resort, or POLR?

POLR service, or Provider of Last Resort, is a safety net for you when your preferred retail electric provider (REP) cannot maintain service. 

Instead of utilities providing backup electric service to customers, the POLR structure requires competitive REPs to fill the service gap if any REP exits the market.

This temporary service should be used only in exceptional circumstances, such as when a REP goes out of business.

The Public Utility Commission of Texas (PUC) appoints certified REPs to provide POLR service in each service region every two years.

Large REPs must participate as POLRs, and smaller providers may volunteer.

Find a low rate and switch energy providers instantly.

What are my options if my electric provider goes out of business?

Getting dumped to a POLR is not ideal. There’s no getting around that, but you can now find a great new rate for your home.

You do not have to stay with your provider of last resort. You can choose your provider on ComparePower.

Shop with your usage, compare pricing for your home, and checkout with the right plan in as little as five minutes.

We’ll show you all-inclusive pricing, so you know exactly what your bills will look like.

Find plans that match your needs and avoid all the gimmicks that providers throw at you.

Will my power go out?

There is no interruption of power during a POLR transition. If you are in good standing, which means you’ve paid your electricity bills on time, your utility company will continue to deliver power to your home.

When do you get POLR electric service?

Retail energy is a high-risk commodity business, and REPs must purchase electricity ahead of time to support electricity demand.

If a REP has not purchased enough electricity to serve their customers, they are forced to purchase real-time electricity to meet their customer’s needs.

And if the Electricity Reliability Council of Texas (ERCOT) views the upcoming market prices as risky, they may demand more collateral from your REP to cover the costs.

If your REP cannot cover the costs of real-time electricity or put up enough collateral, they can quickly go out of business, and you’ll be placed on a POLR plan.

This is precisely what happened after Winter Storm Uri when demand skyrocketed, and real-time electricity prices hit all-time highs.

Who is your Provider of Last Resort?

The PUCT determines the Texas POLR list and updates it every two years.

The largest providers are required to serve as a POLR, and smaller providers may choose to take part to share the burden.

Current POLR providers are listed below by delivery area:

– Oncor: TXU Energy
– Centerpoint: Reliant Energy
– TNMP: TXU Energy
– AEP: TXU Energy

How does POLR electric service work?

If you end up on a POLR plan, don’t worry. The POLR system was implemented to keep your lights on so you won’t be stuck in the dark.

The first thing that will happen is that you’ll be notified that your electricity service has been transferred to a POLR.

You’ll receive a notice from the PUCT letting you know that your REP is no longer servicing your home, and soon your POLR will send information about the plan you are being placed on.

Your contract with your former REP will be terminated, and your contract details will likely not be carried over.

Any payment or billing arrangements on your old electricity plans, such as average billing or Auto Pay, are also terminated.

The new POLR plan you are placed on will be month-to-month with no contract and will have a variable rate.

This means that the cost of your electricity will change each month and can be extremely expensive.

If you are hearing warning bells going off, you are right to assume that you don’t want to stay on a POLR plan for long.

The good news is that you can shop for a new electricity plan without any penalties.

When you’re transferred to a POLR, you have 15 days to switch to another plan with that POLR, or you can shop to find the best rate for your home.

Don’t wait. Switch providers here in as little as 5 minutes and enjoy savings on your energy bill month after month.

Search for a low electricity rate and enroll online in minutes.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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Moving to a new apartment in Texas?

You’re probably wondering how to get an electricity account so you can get your keys.

Well, you’re in the right place! This article will guide you through the process of setting up your electricity in a breeze.

And the best part? You’ll learn how to get the best rates using ComparePower.

TL;DR: To get an electricity account for your apartment, enter your zip code, compare plans, and checkout in as little as 10 minutes with proof of service. With ComparePower, you can easily compare rates and choose the best plan for your needs.

How to Get an Electricity Account

Step 1: Understand the Texas Electricity Market

Texas has a deregulated electricity market, which means you have the freedom to choose your electricity plan.

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

We make it easy for you to compare electricity plans from different providers based on your location and usage.

New to Texas?

Check out New to Texas: Here’s How Electricity Works to get up to speed.

Step 2: Determine Your Electricity Needs

Before you choose an electricity plan, you need to understand your electricity needs.

How big is your apartment? How many people will be living there? Do you have energy-efficient appliances?

Knowing the answers to these questions will help you choose a plan that fits your needs and budget.

If you’re unsure what your electricity usage will look like, try out our kWh calculator to get an estimate.

Step 3: Choose Your Electricity Plan

Once you’ve determined your needs, it’s time to choose a plan.

But don’t worry, you don’t have to do it alone.

ComparePower helps you to compare rates, contract terms, and different providers with transparent, all-inclusive pricing.

We’ve done the hard work for you, so all you have to do is choose.

Step 4: Checkout With Your Plan

After choosing a provider, it’s time to checkout.

You’ll need to provide some personal information, such as your name, address, and Social Security number.

You’ll also need to specify a start date for your service.

Step 5: Pay the Deposit (If Required)

Some electricity providers may require a deposit, especially if you don’t have a credit history.

But don’t worry, ComparePower will show you all of your deposit options if one is required.

And the good news? Your deposit will be refunded or credited to your account after a certain period of on-time payments.

Step 6: Check Your Email

You’ll have a confirmation email from ComparePower within minutes of finishing checkout and a confirmation from the electricity company shortly after.

Electricity companies can take up to several hours to process orders, so it may take some time for their confirmation email to show up.

Once you have your confirmation emails, you should be all set to get your keys from your leasing agent.

Shopping Considerations

Before you start comparing providers and plans, it’s important to consider the following:

  • Know Your Needs: Have a clear understanding of your electricity needs. Consider factors like your average electricity usage, peak usage times, and whether you’d prefer a fixed vs. variable rate plan.
  • Look Beyond the Rate: While the rate is an important factor, it’s not the only thing to consider. Be sure to look at the contract length, early termination fees, and any special features or incentives. Remember, the cheapest plan may not always be the best fit for your needs.
  • Consider Renewable Energy: Texas is a leader in renewable energy, particularly wind power. Many electricity providers offer plans that include a percentage of renewable energy. If you want to reduce your carbon footprint, ComparePower can help you find a green energy plan that fits your needs.

If you haven’t settled on an apartment yet, you might want to consider looking for an apartment on the first floor of the building.

First-floor apartments tend to maintain temperatures better than those on higher floors. This means it will stay cooler in the summer and warmer in the winter.

Heating and cooling significantly impact your electricity usage each month, and finding an apartment that regulates the temperature can save you hundreds of dollars each year.

You can also look for apartments with energy-efficient appliances already installed. These appliances are designed to avoid excessive electricity usage and won’t use electricity while not in use.

Get Started Today

Setting up electricity in your Texas apartment doesn’t have to be a daunting task.

With ComparePower, you can do it quickly, easily, and affordably. Compare plans today and get the best rates for your electricity needs.

Apartment Electricity FAQs

What uses the most electricity in an apartment?

Air conditioning and heating costs can vary and often account for up to 50 percent of your home’s energy use during different seasons.

How long does it take to get the electricity turned on?

Most providers offer same-day service if you submit a request before 2 pm. A few providers can even get your lights on as late as 6 pm on weekdays.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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Hey there, Texas! Are you tired of staring at your electricity bill, wondering if you could be saving more?

You’re not alone. The good news is you’ve come to the right place.

We’re about to dive deep into short-term vs. long-term electricity contracts, and by the end of this article, you’ll know exactly which type of contract is the best fit for you.

Stick around, and let’s save you some money!

TL;DR: Short-term contracts offer flexibility, and long-term contracts give you stability. Your lifestyle and budget determine which is best for you.

Short-Term vs. Long-Term Electricity Contracts

You’re here because you’ve got questions. Is a short-term electricity contract worth it, or should you go for a long-term deal?

We get it; it’s a big decision. But don’t sweat it; we’ve got your back.

Your Life, Your Choice

Here’s the thing: There’s no one-size-fits-all answer.

If you plan to stay put for a while, a long-term contract might be your best bet. But if you’re the adventurous type who likes to keep their options open, a short-term contract could be right up your alley.

Short-Term Electricity Contract Benefits

The beauty of short-term contracts is the freedom they offer.

You’re not tied down, and if electricity rates drop, you can jump ship and snag a better deal.

That’s what we call electricity contract flexibility.

If you play your cards right, you can start your contract when demand is low, securing those sweet, low short-term electricity contract rates.

But Wait, There’s a Catch

While short-term contracts can be a bargain hunter’s dream, they come with their own set of risks.

You could find yourself paying through the nose if you’re not diligent about switching companies at the end of your contract.

Long-Term Electricity Contract Advantages

With long-term contracts, you can kick back and relax.

You lock in a rate and enjoy the peace of mind that comes with long-term electricity contract stability.


Long-term contracts are a budgeter’s best friend.

Your rate stays the same, making it easier to plan your finances.

Plus, you won’t have to think about shopping for a new plan for at least a year.

The Downside: Early Termination Fees

Before jumping into a long-term contract, remember that breaking it could cost you. Early Termination Fees (ETF) can be a couple hundred dollars if you aren’t careful.

Is a Short or Long-term Contract Better For You?

The short answer is that it depends. Unfortunately, there is no straightforward answer to tell you which will work best for you.

You’ll want to take a hard look at what you want from your electricity plan before deciding what type of contract you want to sign.

Most ComparePower customers choose 12-month fixed-rate electricity plans.

Your Next Steps

We’re not just another platform; we’re your ally in the quest for the perfect electricity plan.

Our user-friendly interface makes it easy to compare plans, and transparent pricing means you know exactly what you’re getting.

Compare rates and find your best plan today.

Contract Length FAQs

What time of year is electricity the cheapest?

Electricity prices in Texas fluctuate throughout the year, depending on demand.

Summer and winter see the highest electricity demand as people heat and cool their homes.

Conversely, spring and fall are usually when electricity rates are the lowest.

How long are energy contracts?

Energy contracts range in length from three months up to 36 months. The most common term lengths are 6, 12, 24, and 36 months.

Do I need to match my contract length to my lease?

There is no need to match your contract length to your lease. Instead, we recommend picking the contract length that gives you the best rate for your unique electricity usage.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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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 unexpected electricity bills and feeling out of control with your energy consumption?

Welcome to the world of Smart Meter Texas (SMT), where you can take charge of your electricity usage, find the best plans, and save big on your bills.

Combining the strengths of ComparePower with your data from Smart Meter Texas is the easy button for finding your best electricity plan.

In this article, we’ll unravel the secrets of Smart Meter Texas and how it can revolutionize your energy management.

TL;DR: Smart Meter Texas is a free tool that provides detailed energy data, helping you manage your electricity usage. With ComparePower’s tools and your data, you can easily find the best electricity plan for your home.

What is Smart Meter Texas?

Understanding Smart Meter Texas:

Smart Meter Texas is more than just a database; it’s your personal energy assistant.

By storing daily, monthly, and 15-minute interval energy data, SMT gives you quick access to your electricity use, meter information, and more.

It’s a joint venture owned and managed by major Texas energy companies and endorsed by the Public Utility Commission of Texas.

Why You Should Use Smart Meter Texas:

Reading your meter might seem like a puzzle, but SMT simplifies it all.

With an account, you can view your usage throughout the day, week, or month, making it easy to plan and cut back on your electricity usage.

Plus, you can shop for electricity plans accurately on ComparePower, ensuring you choose the plan that saves you the most money.

How Smart Meter Texas Works: A Step-by-Step Guide

Viewing Your Usage with Smart Meter Texas:

With SMT, managing your energy consumption is a breeze.

In just 5 minutes, you can find your latest electric bill, enter the required details, and view your 15-minute, daily, and monthly readings.

All you need is internet access and your electricity bill.

When and Who Should Use Smart Meter Texas?

Whether you want to reduce electricity usage during peak times or switch from your current provider, SMT has your monthly usage history ready.

Drop that usage into ComparePower’s tools, and you’ll see exactly what your bill will look like.

The savings might just shock you.

Smart Meter Texas: Your Partner in Savings and Efficiency

Is Smart Meter Texas Free?

Yes, Smart Meter Texas is a free service provided by the Public Utility Commission of Texas and the electricity industry in Texas.

It lets you access your smart meter data, view your energy usage patterns, and track your electricity consumption.

How Can I Speak to a Representative at Smart Meter Texas?

Need assistance? You can call Smart Meter Texas customer service hotline at 1-844-217-8595.

Take Control with ComparePower: Your Next Steps

Start Saving on Your Texas Electricity Bill:

Ready to take control of your energy consumption?

Use Smart Meter Texas to find when your usage peaked and plan to reduce electricity usage during those times.

ComparePower is here to help you shop confidently, knowing that you are getting the best plan for your home in just a few minutes.


Smart Meter Texas is not just a tool; it’s a pathway to smarter energy management, savings, and efficiency.

With ComparePower, you can leverage the power of Smart Meter Texas to find the best electricity plans tailored to your usage.

Don’t miss out on the opportunity to take control of your energy consumption.

Start using Smart Meter Texas today and discover the difference it can make.

Start saving on your Texas electricity bill.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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Ever found yourself staring at your electricity meter, utterly puzzled about what those numbers and dials mean? You’re not alone.

But here’s the good news: by the end of this article, you’ll be able to read your meter like a pro.

We will demystify the process and show you how to calculate your electricity usage.

Plus, we’ll introduce you to ComparePower, your go-to platform for all things electricity in Texas. Ready? Let’s dive in!

TL;DR: There are several different types of electricity meters, but each one does the same thing. Once you learn how to read your meter, you can calculate your usage and find ways to save on electricity.

Unraveling the Mystery: How to Read Your Electricity Meter

Decoding the Standard Electric Meter

Standard electric meters, also known as analog meters, are common in many Texas homes.

These meters feature a series of dials that record the amount of energy used. To read them, stand directly in front of your meter, with the meter at eye level.

Each dial has ten numbers (0 – 9) and a pointer like a clock hand. Read the dials from right to left.

If a hand points between two numbers, always select the lower number. If the hand is between 0 and 9, choose 9.

Navigating the Digital Power Meter

Digital electric meters display your current energy usage on an LCD screen.

Reading these meters is straightforward: Read the numbers from left to right and write it down in the same order.

Every time the number increases, another kWh has been used.

Mastering the Smart Meter

Smart meters are becoming increasingly popular in Texas due to their ability to provide real-time information about energy usage.

To read a smart meter, look at the digital display. The number shown is your current meter reading.

Most smart meters also have a button that allows you to view your historical energy usage.

The Art of Reading a Dial Meter

Dial meters are a bit more complex but don’t worry, we’ve got you covered.

Each dial runs in the opposite direction of the one before it. If a hand points directly at a number, look at the dial to the right.

If it has passed zero, use the higher number.

How to Calculate kWh from Electric Meter Reading

Once you’ve read your meter, you can calculate your electricity usage by subtracting the previous reading from the current one. This will give you the number of kWh used during that period.

Understanding Your Electricity Bill

In Texas, your electricity bill is calculated based on the number of kWh used and the rate charged by your electricity provider.

The rate can vary depending on your plan and the time of day when the electricity is used.

Why Choose ComparePower?

ComparePower is your one-stop platform for all your electricity needs in Texas.

We provide a comprehensive list of electricity plans from various providers, allowing you to compare rates and choose the best plan for your needs.

With ComparePower, there are no hidden fees or surprise charges. What you see is what you get.

We understand that every household has unique energy needs, and we’re committed to helping you find the perfect plan that fits your lifestyle and budget.

Take Control of Your Energy Consumption

Understanding how to read your electricity meter is the first step to taking control of your energy consumption.

With this knowledge, you can monitor your usage, make informed decisions about your energy use, and potentially save on your utility bills.

Ready to take the next step?

Remember, every kWh counts, so start reading your meter today and take control of your energy consumption with ComparePower.

Electricity Meter FAQs

An electric meter is a device that measures your electricity usage. It is usually located where electricity enters your home through power lines, and you can read your usage to help lower your electricity bill.

All meters work similarly to the mileage on your car and record the total amount of power your residence or business has used since the meter was installed.

Your electric meter might seem like a foreign object on the side of your home or apartment, but modern smart meters make it easy to understand your energy usage. 

With these meters, you can quickly get a real-time readout of your electricity usage, calculate your yearly averages, and find easy ways to conserve energy and save money.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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Have you ever been surprised by an unexpectedly high electricity bill?

It’s a common experience for many Texas residents, given the state’s extreme weather fluctuations.

But what if there was a way to make your electricity bills more predictable? That’s where average billing comes in.

TL;DR: Average billing is a system that calculates your average energy usage over the past 12 months and charges you that amount each month. It’s designed to smooth out the peaks and valleys in your energy bills, making them more predictable. However, it’s not a one-size-fits-all solution.

What is Average Billing?

Average billing is a billing method designed to keep your electricity bills consistent, regardless of the season.

Instead of paying for the exact amount of electricity you use each month, which can vary significantly, average billing calculates your average usage over the past 12 months and charges you that amount.

This method helps to even out your energy costs, making budgeting easier.

How Does Average Billing Work?

The process of average billing involves calculating the average energy usage over the past 12 months.

This average is then billed to the customer each month. If a customer uses more energy than the average in a given month, the difference is added to a deferred balance.

Conversely, if a customer uses less energy than the average, the difference is subtracted from the deferred balance.

This balance is periodically reviewed and adjusted to ensure that it doesn’t become too large.

Average Billing vs Regular Billing

Regular billing can be unpredictable, with your bill going up and down each month based on your actual usage.

On the other hand, average billing provides a more consistent monthly bill.

However, it’s important to note that with average billing, you’re still responsible for all the electricity you use – it just spreads the cost out more evenly.

The Pros and Cons of Average Billing

Average billing offers several benefits, including predictable bills that make budgeting easier.

However, it also has its drawbacks. For instance, you could end up with a deferred balance if you consistently use more energy than your average.

And if you decide to stop average billing, you’ll need to pay off that balance.

Alternatives to Average Billing

While average billing can be a great tool for managing your electricity costs, it’s not the only option.

You could also consider creating your own average billing plan by setting aside money during months of low usage to cover higher bills during months of high usage.

Another option is to look into plans that use bill credits to help offset the cost of higher usage.

Is Average Billing Worth It?

Whether average billing is worth it or not depends on your individual circumstances.

If you value predictability and ease of budgeting, average billing could be a great fit.

But if you’re a low-energy user, or if you’re not keen on tracking a deferred balance, you might prefer regular billing.

How to Switch to Average Billing

If you decide that average billing is for you, the next step is to make the switch.

This usually involves contacting your electricity provider directly and requesting to switch to average billing.

Keep in mind that you’ll need to pay off any deferred balance when you switch.

Why Choose ComparePower?

ComparePower is here to make your electricity shopping experience as straightforward as possible.

We help you compare plans from different providers, so you can find the one that best fits your needs.

And if you have questions about average billing or anything else, our friendly, Texas-based team is always ready to help.

Historical Usage Shopping

At ComparePower, we also offer the option of shopping with your home’s historical usage profile. This can help you compare energy plans more accurately and find the best deal for your specific usage patterns.

Take Control of Your Electricity Bills with ComparePower

Average billing can be a useful tool for managing your electricity costs, but it’s not the only option.

Whether you choose average billing or regular billing, ComparePower is here to help you find the best electricity plan for your needs.

Start comparing plans today and take control of your electricity bills.

Average Billing FAQs

Are you wondering if average billing is worth it?

The unfortunate side of average billing is that you don’t end up saving any money at all. Each month your electricity provider adjusts your bill to smooth out any spikes in usage. 

Say it’s March, and you get surprised with some great weather. The clouds blow away, and you wear shorts and t-shirts for a week, so you crank up the air conditioning. 

You enjoyed the sun, got a tan, and now you have extra electricity charges you haven’t paid for. The difference between your average bill and your actual charges is set aside in a deferred balance. 

Your provider is happy to keep track of anything you owe them and ensure you don’t underpay, regardless of the difference. 

If you use less electricity, you can end up with a negative balance or a credit on your account. When your contract ends, your provider will apply for any credit on your account to your last bill. 

At the end of the year, you’ve still paid for all of your electricity usage and haven’t saved a dime. 

Average billing is a great option for someone looking for a stable electricity bill throughout the year and isn’t afraid of keeping an eye on it. 

If you have a good understanding of your usage and are stable in your home, keeping an eye on your deferred balance should be easy to avoid surprises at the end of your contract. 

You’ll have an easier time planning out your monthly finances without worrying about what the weather is doing. 

Stable electric bills could also be great for someone on a fixed income. You’ll have more consistent bills and won’t have to guess when planning your finances. 

Considering a new pool or maybe an electric vehicle in the future? You’ll want to wait on average billing if you think your usage patterns will change. 

A big change in your usage can lead to underpayment on your bill and a big deferred balance. You could be stuck with a massive bill to settle anything you owe to your provider at the end of your contract. 

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.

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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 feeling lost and overwhelmed when it comes to choosing an electricity plan in Texas? You’re not alone.

The world of electricity contracts can be confusing, but it doesn’t have to be.

In this guide, we’ll demystify electricity contracts, giving you the insights you need to make informed decisions.

Whether you’re considering 12-month energy contracts, 24-month electricity plans, or even 36-month electricity contracts, we’ve got you covered.


  • Know Your Contract: Understand the terms, Electricity Facts Label (EFL), and your rights.
  • Choose Wisely: From short-term electricity plans to long-term contracts, know what suits you.
  • Avoid Pitfalls: Don’t let your contract expire and overpay. ComparePower is here to help.

Understanding Electricity Contracts

Electricity contracts are legal agreements between you and your energy retailer.

They include details about charges, terms of service, and your rights as a consumer.

Understanding these elements can help you choose the best energy plan and avoid surprises on your bill.

Reading the Fine Print: EFL, TOS, and YRAC

The Electricity Facts Label (EFL), Terms of Service (TOS), and Your Rights as Consumer (YRAC) are crucial documents in your contract.

They provide standardized information about charges, obligations, and protections.

ComparePower ensures you have access to these details, making your decision-making process seamless.


The first document you must understand in your contract is the Electricity Facts Label (EFL), one of the most vital parts. 

The Public Utilities Commission of Texas (PUCT) mandated that all electric companies provide standardized information about their contracts via the EFL.

In the EFL, you will find information on the charges for your electricity, including the cost per kilowatt-hour (kWh) and any extra fees associated with the production and distribution of electricity. 

Learn how to read your Electricity Facts Label.

Terms of Service 

Next, read and understand the Terms of Service (TOS). This is the legally binding part of your contract. 

It is similar to the terms and conditions you agree to when using other products and will give you information about the obligations both parties must fulfill.

Your Rights as a Consumer 

Finally, you’ll find “Your Rights as a Consumer” (YRAC). 

This document details federal protections in place, like the company’s responsibility to not discriminate based on gender, race, religion, and other rights you have.

This can include your right to privacy or the company’s obligation to notify you of certain changes and seek your consent when necessary.

Navigating Contract Lengths

Short-term Electricity Plans: Flexibility at a Cost

Short-term contracts, lasting less than a year, offer flexibility but can be risky. Prices fluctuate, and renewing at an inopportune time, like the hot Texas summer, can be costly. ComparePower recommends 12-month plans for a balance between affordability and convenience.

Long-term Contracts: Stability and Savings

Long-term electricity contracts, ranging from 12 to 36 months, allow you to lock in a rate and budget effectively. They often come with lower charges, but be mindful of early termination fees.

Fixed-Rate vs. Variable-Rate Electricity Contracts

Fixed-Rate Electricity Contracts: Predictable and Popular

Most Texans prefer fixed-rate plans, where the rate remains the same throughout the contract. It leads to more predictable bills, aligning with ComparePower’s commitment to transparency and ease.

Variable-Rate Electricity Contracts: A Gamble with Rewards

Variable-rate plans let you pay market prices, saving when rates drop but paying more when they rise. It requires daily control of usage, but ComparePower can guide you in making the best choice.

Which is better: Fixed-Rate vs Variable-Rate Electricity

Additional Considerations: Green Options, Deposits, and More

From 100% Green plans and Free Nights & Weekends to avoiding deposits, ComparePower helps you navigate additional features and requirements.

We’re here to assist you in finding a no-deposit plan quickly and efficiently.

Contract Expiration

Make sure your contract does not expire. Not doing anything is by far your most expensive option. 

You’re automatically put on a holdover rate when your contract expires, fluctuating based on market conditions, resulting in unexpectedly high electricity bills.

Set a reminder here, and we will notify you when it’s time to switch.

Contract Renewal Cycle

Generally, you want to avoid contracts with short or odd-numbered terms as these will expire when electricity demand is at its peak and prices are high.

Learn how electricity contract renewals work in Texas.

Canceling an Electricity Contract

You can cancel anytime, but early termination fees may apply. Moving out lets you cancel your contract without fees.

Take Action

Ready to take control of your energy future?

ComparePower is your trusted partner in finding the best electricity contracts for your home.

Don’t let confusion hold you back. Compare rates, make an informed decision, and enjoy the power to choose with ComparePower.

Electricity Contract FAQs

Will I lose power if my electricity contract expires?

No, you will not lose power if your electricity contract expires.

Your current provider will continue to provide power to you, but at a high rate, called a holdover rate. 

Do not let your contract lapse. Shop with your home’s historical usage on ComparePower and find the right plan for your home in 10 minutes.

Can I cancel an electricity contract?

You can easily cancel your electricity service by calling your electricity provider when you move out. Early termination fees do not apply when moving out.

If you are looking to switch providers, you have 14 days before the end of your contract to switch providers without penalty.

If you just switched companies, you can cancel within three days by contacting the company directly.

Cancellations are possible at any time, but switching providers before the end of your contract may result in an early termination fee.

Support You Can Count On

Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.