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.
Beat the Texas Energy Game And Win
Power to Choose might seem like the answer to finding a great electricity plan, but those endless options and confusing jargon can make you feel more lost than empowered.
You’re not alone. The Texas electricity market, by design, keeps you in the dark, making it hard to know if you’re getting a fair deal.
Here’s the thing: You don’t have to be powerless.
Sure, the state’s Power to Choose website helps—in a way. But you must go deeper if you’re serious about finding a plan that saves you money and fits your needs.
As a consumer advocate with ComparePower, I will provide the necessary tools and knowledge. By the end of this article, you will know how to decipher plans, find your best fit, and save money on your power bill.
Table of Contents
A Brief History (with a Side of Drama)
In 1999, everything changed with the introduction of Senate Bill 71.
This groundbreaking legislation marked the beginning of deregulation, promising to bring competition to the market and drive down prices for Texans.
The idea was simple: allowing multiple electricity providers to compete for customers would lower prices and improve service, creating a win-win situation for everyone.
However, while deregulation has led to lower prices for some Texans, it has also created a new level of confusion and frustration when choosing an electricity plan.
In the years since deregulation, some electric companies have resorted to sneaky pricing tactics, hidden fees, and deceptive marketing practices to lure unsuspecting customers.
A 2018 Dallas Morning News article2 exposed the troubling trend of misleading electricity plans on the state’s Power to Choose website.
The article revealed how some providers were gaming the system to make their plans appear cheaper than they actually were.
It highlighted a particularly egregious example:
“She found one plan listed at 2.3 cents per kilowatt-hour for a customer averaging 1,000 kilowatt-hours. But usage isn’t perfectly steady: A typical consumer might use 1,400 kilowatt-hours in August but only 700 in April, Corona said.”
For reference, at the time, the average electricity rate was around 10c/kWh in Texas. Today, the average electricity rate in Texas is 14.25¢/kWh3
With such plans, the low price often only applies to a particular usage level, such as exactly 1000 kWh.
Coincidentally, 1000 kWh is the default usage level set on the Power to Choose site and other comparison marketplaces.
These low prices were essentially math tricks that deceived many Texans into thinking they were paying one price when they were actually paying something else.
Finding your best energy plan in the ever-evolving Texas energy market requires being a savvy and informed shopper.
Helpful, But Limited
Realizing that a Wild West energy market would be chaos, the Texas legislature created the powertochoose.org website in 2002.
The Public Utility Commission of Texas (PUCT) manages the website.
Here’s how it works:
- Zip Code: You type in your zip code, and a list of plans in your area appears.
- Filtering: You can sort by contract length, whether you want a fixed or variable rate plan, and whether you’re into renewable energy.
- Plan Basics: Each listing shows the price per kilowatt-hour (kWh), renewable energy percentage, and cancellation fees.
What Power to Choose Does
Let’s be fair, the Power to Choose website has some good points:
- Central Hub: Comparing plans in one place is better than scrambling across dozens of company websites.
- User-Friendly: The site is fairly easy to navigate.
- Unbiased…Mostly: The PUCT manages it, so the info is not skewed directly from any particular company.
- Minimum Usage Filter: Sixteen years after its launch, a toggle was finally added to filter plans with usage discounts and bill credits. The toggle is on by default, filtering usage discount plans that reward you by issuing a credit on your bill. These plans, however, could benefit if your home’s usage profile is ideal for a plan’s usage discount threshold.
Limitations of Power to Choose
So why is it so hard to find a good electricity plan in Texas? The problem is that Power to Choose has a serious limitation.
It only shows pricing information for three usage tiers – 500, 1000, and 2000 kilowatt-hours (kWh) per month.
But most households don’t fit neatly into those categories, which makes it tough to get an accurate picture of what you’ll pay.
Finding the Right Electricity Plan
I’ll never forget the day Maria called me from Houston, her voice trembling with frustration and despair.
She had signed up for an electricity plan she found on Power to Choose, which seemed like a dream come true—a low, fixed rate for a set contract term.
It was supposed to give her peace of mind and predictable monthly bills.
But after a few months, Maria’s bills skyrocketed, leaving her stunned and confused.
The truth became clear as we dug deeper into her plan’s Electricity Facts Label (EFL).
That enticing low rate only applied if her usage hit exactly 1000 kWh each month—not a kilowatt-hour, more or less.
The reality is hardly anyone uses precisely 1000 kWh month after month.
Life happens—the summer heat waves roll in, holiday guests visit, or you’re away on vacation for a few weeks.
Your electricity usage naturally ebbs and flows, but Maria’s plan was a rigid trap.
Maria’s story is heartbreakingly common. In my years as a Consumer Advisor at ComparePower, I’ve heard from countless Texans who have fallen victim to similar plans.
They’re lured in by seemingly low rates and the promise of stability, only to find themselves trapped in a web of hidden catches and soaring bills.
The financial impact is only part of the picture.
It’s the emotional toll that strikes me – the stress, the frustration, the sense of betrayal that comes with feeling like a faceless corporation has tricked you.
But here’s the thing: it doesn’t have to be this way.
If Maria had shopped with her home’s unique usage data on ComparePower, she could have found a plan tailored to her needs that would have given her true bill stability and savings.
No more crossing her fingers and hoping her usage hits some magic number.
That’s the power of shopping with your usage, and it’s a core part of what sets ComparePower apart.
We don’t just show you generic rates – we crunch the numbers based on your home’s actual energy consumption so you can find a plan that fits like a glove.
But I’m getting ahead of myself. Later, we’ll explore the magic of usage-based shopping further.
For now, know that Maria’s painful story is all too familiar in the Wild West of the Texas electricity market.
This is a big part of why I’m so passionate about the work we do at ComparePower—no one should go through what Maria did, not when there’s a better way.
Using Power to Choose
Here’s how to make Power to Choose work for you:
- Know Your Usage4: Don’t guess. Past bills show your average monthly usage in kilowatt-hours (kWh). That’s your best comparison tool.
- EFL is Your Friend5: That Electricity Facts Label on each plan has the nitty-gritty on pricing, fees, and contracts.
- Bust Out the Calculator6: Calculate yearly costs using your usage. This will give the most accurate picture.
- Beware of Red Flags7: Watch for plans with minimum usage fees or too-good-to-be-true introductory rates.
Your Key to Deciphering Plans
The Electricity Facts Label (EFL) is like the nutritional information panel on the side of any packaged food. It may look daunting, but we’ll break it down so you can tell exactly what’s in your electricity plan.
Think of it like this:
- Price per kWh: This seems straightforward, but beware of plans where the price drastically changes based on how much you use (tiered pricing) or if you use it during peak hours (time-of-use plans).
- Base Charge: This is like a mandatory cover charge, added monthly, regardless of how much you use.
- TDU Delivery Fees: This covers the cost of getting electricity to your home via wires and poles. It’s not part of your plan; everyone pays these to their local utility company, regardless of which company they choose.
- Contract Term: This tells you how long you’re locked into your chosen plan. If you leave early, you might have to pay a hefty cancellation fee.
- Percent Green: This lists if the power comes from renewable energy.
Important Note: Think of the EFL as a map to help you get your total electricity cost. Factors outside the EFL, like your individual usage, can drastically affect the final bill. Understanding the EFL is integral to making smart choices, not the whole story.
Beyond the Price
Choosing an electricity plan in Texas isn’t just about price.
You’ve got to consider the rate type (fixed or variable), how long you want to be committed, and whether going green is worth the extra cost.
Here’s the breakdown:
- Fixed Rate: Your price per kWh is locked in for the length of your contract.
- Variable Rate: Your price fluctuates with the wholesale energy market.
- Contract Length: Typical options are 6, 12, 24, or 36 months. Canceling early might mean paying a cancellation fee.
- Renewable Energy: You’ll see plans advertised with a percentage of renewable energy. Sounds great, right? The sad truth is that just like restaurants can slap a “natural” label on anything, electricity companies can play tricks with these terms. Sometimes, those percentages don’t mean your electricity is directly powered by wind or solar.
Pro-Tip: There is no single plan type that’s always best. It depends on your household’s energy usage pattern, your risk tolerance (can you handle a bill spike?), and how much you value supporting renewable energy.
Informed Energy Decisions
Ok, I know what you’re thinking. The Power to Choose website can be helpful, but it’s a lot to consider.
That’s where ComparePower can help. We’re your ally in finding your best plan.
We work tirelessly to gather and analyze data on the plans available in your area from every provider in our marketplace – many of whom you’ll find on Power to Choose.
And when we present that information to you, we don’t just focus on the headline price per kWh.
We dive deep into the nitty-gritty details, breaking down all the fees, charges, and fine print that can turn what looks like a great deal into a costly nightmare.
But here’s the thing – we’re not beholden to any particular Retail Electric Provider (REP). Our loyalty is to you, the consumer.
We succeed when you find a plan that meets your needs, fits your budget, and gives you peace of mind.
The Power of Usage-Based Shopping
Remember Maria’s story from earlier? How she got stuck with a plan that only offered that low rate if she used exactly 1000 kWh each month?
That’s a perfect example of why generic, one-size-fits-all electricity plans can be a minefield.
Just one month’s electricity usage doesn’t give you the whole picture.
Your power needs can change from summer to winter, so one month is just a tiny snapshot. Like this:
To understand your yearly costs and find the best plan, you must look at a full 12 months of usage spread across all the seasons.
That yearly view shows the big picture of your regular habits and expenses rather than basing decisions on a single month that could be an outlier.
This is the right way to compare plans and shop in Texas.
We call it usage-based shopping, and it’s at the heart of everything we do.
Here’s how it works: when you shop for electricity plans on ComparePower, we don’t just show you a list of generic rates.
Instead, we ask you to enter your home’s energy usage data. You can find this information on your past electricity bills.
Armed with this data, our advanced algorithm crunches the numbers to estimate your monthly costs under each available plan.
We consider the base price per kWh and any tiered rates, bill credits, or other usage-based incentives that could impact your bottom line.
The result? A personalized list of plans, ranked by estimated cost based on your unique usage patterns.
No more guessing games or mental math – just clear, transparent pricing information tailored to your household.
But the benefits of usage-based shopping don’t stop there.
Entering your usage history for the past 12 months and see how your costs could vary month-by-month throughout the year for each plan. Like this:
This is a game-changer in Texas with seasonal temperatures and energy use swings.
Imagine seeing, in advance, how a plan’s rates would impact your summer cooling bills or your winter heating costs.
With our usage-based shopping tools, that’s not just possible – it’s easy.
Of course, we know that past usage isn’t always a perfect predictor of future needs.
That’s why you can adjust your usage estimates for anticipated changes, such as a new baby on the way, a planned home renovation, or installing energy-efficient appliances.
Get accurate, personalized cost estimates to choose a plan with confidence.
No more crossing your fingers and hoping for the best – just clear, data-driven insights to help you make an informed decision.
That’s what usage-based shopping is all about – the tools and information you need to find an electricity plan that truly fits your life.
It’s a smarter, more transparent way to shop, and it’s just one of the many ways ComparePower is working to make the Texas electricity market a little bit easier to navigate.
Confident Energy Decisions
For 15 years, we’ve helped Texans find and choose the best electricity plan for their home.
We’ve heard many success stories of people who have saved hundreds or even thousands of dollars a year by switching to a better plan.
Take Rachel from Dallas, for example. She was paying too much for electricity and didn’t even realize it.
But when she used ComparePower to compare plans, she found one that saved her over $100 a month.
The best part? She didn’t have to sacrifice quality or customer service—she just got a fair deal.
Rachel is not alone in her feedback. There are 69,078 5-star ratings.
Power to Compare
You deserve the power of an apples-to-apples comparison and a confident choice tailored to your needs without the burdens of confusing jargon, hidden fees, or feeling lost in a sea of spreadsheets filled with electric company plan details.
That’s precisely what the future of electricity choice in Texas looks like with ComparePower.
Don’t be at the mercy of electric companies—control of your energy future.
Support You Can Count On
Do you have more questions or need help finding the right plan for your household? Our local experts are here to help.
Contact us today, and let us guide you through finding an electricity plan that meets your needs and budget.
With our personalized recommendations and transparent pricing, you can shop with confidence and take control of your energy costs.