How to Use Your Power to Choose Wisely
Choosing Your Electricity Provider Is a Real Advantage
However, this power only works in your favor if you know how to use it. The electricity market in Texas offers many options, and the right one for you depends on more than just a low advertised rate. In this guide, we’ll walk through what to look for, how to compare plans, and how to avoid common missteps when making your selection.
Step 1: Know Your Electricity Usage
Before comparing plans, it’s helpful to understand how your household uses electricity throughout the year. Your monthly bill or usage history is the best place to start.
Look for:
Your average kilowatt-hour (kWh) usage each month
Seasonal patterns (for example, higher usage during hot summers or cold snaps)
Times of day when your usage peaks, especially if you're considering a time-of-use plan
Plans are often priced in tiers based on usage levels. Knowing where your household typically falls helps you find a plan that fits, without surprises.
Step 2: Focus on the Right Details
Many electricity plans promote a rate that only applies under certain conditions. Instead of relying on the headline number, take time to understand the full pricing structure.
Here’s what to check:
Electricity Facts Label (EFL)
This required document shows the plan’s actual costs, including:
Price per kWh at different usage levels (usually 500, 1000, and 2000 kWh)
Any recurring charges, such as base or minimum usage fees
Contract length and early cancellation fees
Renewable energy content
The EFL is your best tool for comparing plans side by side.
Rate Type
Texas plans typically fall into three categories:
Fixed-rate: You pay the same rate for each kWh used during your contract term. These plans offer predictability.
Variable-rate: Your rate can change monthly. These plans may offer short-term savings but carry more risk.
Time-of-use: Prices vary depending on when you use electricity. These plans reward shifting usage to off-peak times, which works well for certain households.
Each has pros and cons. The key is matching your usage habits to the plan type.
Fees and Additional Charges
Look for:
Monthly base charges
Minimum usage requirements
Bill credits that only apply at certain usage thresholds
Extra fees for printed bills or payment methods
These extras can affect your actual cost per kWh more than you expect.
Step 3: Read the Fine Print
Electricity contracts in Texas often include:
Contract length: Common terms are 6, 12, or 24 months. Think about how long you’ll stay in your current home and how much rate stability you want.
Termination fees: Leaving a contract early can lead to charges. Some providers waive these if you're moving, but not always.
Auto-renewals: When your contract ends, you may be switched to a month-to-month plan at a higher rate unless you choose a new one.
Mark your contract end date on your calendar so you have time to review your options before renewal.
Step 4: Check Provider Reputation
Beyond rates and fees, it helps to look at the provider’s track record. A low rate doesn’t mean much if the billing process is confusing or customer service is hard to reach.
Consider:
Verified customer reviews
Complaint records with the Public Utility Commission of Texas
Tools offered to help track usage and billing
Whether billing is clear and consistent
If you have specific preferences—such as paperless billing or bilingual support—make sure those features are available.
Don't overpay for electricity.
Step 5: Choose Based on Fit, Not Just Price
Saving money matters, but choosing a provider is also about peace of mind. Think about:
How your usage fits the pricing model
Whether you prefer a fixed or flexible contract
If you want your energy to come from renewable sources
Whether the provider communicates clearly and makes things easy
A good fit means fewer surprises and more confidence in your choice.
Next Step
Once you understand what to look for, you're better equipped to avoid plans that seem cheap at first but cost more over time.
