Texas Electricity Plans: The Questions People Actually Ask

By the TexasPowerCost Editorial Team — independent Texas electricity analysis · Last reviewed October 18, 2026 · how we analyze plans

Last updated: October 18, 2026  ·  12 min read  ·  Figures are as of mid-2026 — always confirm current numbers on the plan's EFL.

Reading rates & the EFL

Why is my bill higher than the rate I signed up for?

The advertised rate is almost always calculated at exactly 1,000 kWh of usage. If you use more or less than that, your real per-kWh cost is different. Many cheap-looking plans are built to look their best at exactly 1,000 kWh and cost noticeably more at 700 or 1,400 — the "1,000 kWh illusion". Your bill also includes regulated TDU delivery charges that the advertised energy rate may not show.

What is an EFL and what should I look at?

The Electricity Facts Label (EFL) is the one-page disclosure every Texas plan must publish. It lists the average price at 500, 1,000, and 2,000 kWh. Look at the column closest to your actual monthly usage — not the headline 1,000 kWh number. If those three prices are far apart, the plan's cost swings hard with your usage, which is a warning sign. (Here's exactly how we read the EFL to compute your real rate at any usage.)

What is a bill-credit plan, and why do people get burned by them?

A bill-credit plan gives you a fixed dollar credit (say $50 or $125) only when your usage crosses a threshold, usually 1,000 kWh (sometimes 500). It looks cheapest at exactly that threshold. The month your usage dips below the threshold, you lose the entire credit and your effective rate can jump to 20¢+ per kWh. These only make sense if your usage is steady and reliably above the threshold every month. For most homes whose usage swings between summer and winter, a flat rate is safer.

What is a minimum-usage fee?

Some plans charge an extra fee (often $5–$10) in any billing cycle where you use less than 500 or 1,000 kWh. These punish low-usage homes — a single person in a small apartment gets hit constantly. If you're a low user, avoid minimum-usage fees and bill-credit plans entirely and pick a plain flat rate.

How do I compare plans at my real usage?

Pull your last 12 months of kWh (from your current bill or Smart Meter Texas), note your typical month and your summer peak, then compare each plan's EFL price at those usage levels. The plan that's cheapest at 1,000 kWh is frequently not the cheapest at your actual usage — so let the bill checkup do the interpolation for you.

Plan types

Fixed vs. variable vs. month-to-month — what's the difference?

A fixed-rate plan locks your energy rate for the contract term (the safest default). A variable rate can change monthly at the provider's discretion — usually a teaser that climbs. Month-to-month / holdover is what you're rolled onto when a contract ends and you don't act; these rates are typically the most expensive of all. Never let a plan lapse into month-to-month.

What are "free nights" or "free weekends" plans — and are they worth it?

Time-of-use plans give you free or cheap power during a set window (e.g., 9pm–7am) and charge a marked-up daytime rate to pay for it. They only come out ahead if you genuinely shift a large share of your usage — roughly a third or more — into the free window. If you're home during the day (or work from home), they usually cost you more. Two things people miss:

• "Free nights" is free energy, not free delivery. The regulated TDU delivery charge still applies to every kWh, including the free-window ones.
• The number that decides these plans is the daytime rate, not how many free hours you get. Pick the one with the lowest daytime rate.

Should I pick a plan based on the company or the plan?

The plan structure matters far more than the brand. When two plans have the same rate and are both clean flat plans, the electricity is literally identical — same grid, same wires. At that point the tiebreakers are the provider's complaint record (check the PUCT complaint scorecard) and any billing conditions like a required autopay/paperless discount.

Switching & contracts

How do I actually switch providers?

You just sign up with the new provider — they handle the switchover, notifying your old provider and the delivery company. You don't cancel anything yourself. Your power never goes out during the switch (it's the same wires), and you'll get a final bill from your old provider. If you can pick a date, choose your next scheduled meter read to keep it clean and avoid an off-cycle read.

Is the rate set when I sign up or when service starts?

Your rate locks to the EFL in effect when you enroll — the day you sign up — not the day service starts. Once you enroll, later rate changes for new customers don't affect you. This is why locking in a good rate when you see it matters. Save a copy of the EFL you signed under; it's your contract. (Note: a fixed rate locks the energy charge; regulated TDU delivery charges can still change during your term.)

Will I get charged an early termination fee if I switch or move?

Two situations avoid the ETF. First, moving out of your home: Texas requires providers to waive the ETF when you move, as long as you give a forwarding address and proof. Second, you can switch penalty-free in the last 14 days of your contract — so line up the new plan before the old one ends. The ETF only really bites if you switch mid-contract for a better rate.

My contract is ending and the renewal offer is high. What do I do?

That's the renewal trap — providers bank on loyal customers auto-renewing onto a worse rate, because they save the good rates for new customers. Treat every contract like it expires the day it ends: set a reminder about two weeks out and shop fresh every time. Don't auto-renew, and don't lapse to month-to-month (that holdover rate is usually the worst of all).

I'm on month-to-month — can I switch mid-month?

Yes. Month-to-month means no contract and no early termination fee, so you can switch any time without waiting for the billing cycle to end. And you should — those variable holdover rates spike hard, especially in summer.

Choosing a provider & rate

What's a good electricity rate right now?

As of mid-2026 in the major metros, a decent all-in fixed rate (energy + delivery) runs roughly 13–16¢/kWh, and 12¢ or under is great. As a gut check: regulated TDU delivery alone is about 5.5–6.5¢/kWh in the big Oncor, CenterPoint, and AEP metros (and closer to 8¢ in TNMP areas), so an all-in rate near 12–13¢ means you're paying only ~6¢ for the energy itself, which is low. Rates change constantly — confirm against current EFLs.

Should I sign a 6, 12, 24, or 36-month plan?

Longer terms lock in a rate and protect against increases (rates are under upward pressure from grid buildout and data-center demand); shorter terms give you flexibility to re-shop in a cheaper season. Winter and shoulder months (roughly November–February) are usually the cheapest time to sign, since there's no summer AC demand. If you found a genuinely good rate and won't want to re-shop, a longer lock is reasonable. If you want to time a cheaper winter renewal, a short term can work — but only if its rate isn't higher than the long-term rate.

How do I choose between two providers with the same rate?

Since the electricity is identical, decide on: (1) the complaint/service record (PUCT complaint scorecard — complaints per 1,000 customers), (2) whether the low rate requires autopay or paperless billing (only bank on a price you can actually keep), and (3) any credit-card payment fees (bank draft is usually free). Pick the cleanest complaint record whose conditions you'll actually meet.

Does a low star rating mean I should avoid a provider?

Not by itself. Because your rate is fixed and delivery is regulated, about the only things that can go wrong are billing errors and customer service — not the rate. Many low reviews come from customers confused by bill-credit plans (which you can avoid) plus the fact that review sites attract unhappy people. The more reliable signal is the PUCT complaint record, and reading what the complaints are actually about.

I have bad credit or a recent bankruptcy — will I need a deposit?

Possibly, but there's a way around it: Texas prepaid (pay-as-you-go) electricity plans don't run a credit check or require a deposit. There are also some no-deposit plans. So a deposit doesn't have to be a barrier while you're rebuilding credit.

TDU delivery charges

What are TDU / TDSP / delivery charges, and can I shop them?

The TDU (Transmission & Distribution Utility — Oncor in DFW, CenterPoint in Houston, AEP Texas, TNMP) owns the poles and wires and delivers your power. Its charge is regulated, set by the PUCT, identical for every provider in your area, and passed through without markup. You can't shop it, and it never changes which retail plan is cheapest for you — so the energy rate is the only part worth comparing. As of mid-2026 that delivery charge runs about 5.5¢/kWh (CenterPoint, the lowest) up to about 8¢/kWh (TNMP, the highest), with Oncor and AEP in between. Delivery charges typically update around March 1 and September 1. (Full TDU charge comparison here.)

Why did my bill go up when my rate didn't change?

If your fixed energy rate is locked but the bill still rose, it's often the TDU delivery charge, which can be adjusted by the PUCT during your term and applies to everyone regardless of provider. Big grid-buildout and transmission projects (driven partly by data-center demand) have been pushing delivery charges up. (More on why your bill is high.)

Solar & batteries

With solar, is a free-nights plan or a solar buyback plan better?

It depends on your setup. Free nights rewards you for pulling power at night; it's ideal if you have a battery that covers your overnight use, or heavy night usage. Buyback pays you for excess solar you export; it's better if you have a big array, export a lot, and can't shift usage to nights. Quick rule: each cent of import rate is weighted by all the kWh you pull, while each cent of buyback rate is weighted only by the kWh you export — so for most homes the import rate matters more than the buyback rate.

I have a big solar system and a battery — do I even need free nights?

Often no. If your battery covers your overnight use, the free-nights benefit is largely wasted — free nights pays off for people who pull a lot from the grid at night, and you barely do. A plan with no fixed fees and a fair buyback can fit a self-sufficient solar-plus-battery home better.

Can I really get a "$0" electricity bill with solar?

Rarely a true zero. Even with generous free nights or buyback, regulated TDU delivery charges and any base/minimum charges still apply to power you draw from the grid. A true near-$0 bill comes from importing almost nothing, not from credits — and delivery charges hit every kWh you do import.

Moving to Texas

I'm moving to Texas — what should I know about electricity?

Most of Texas is deregulated, so you choose your own retail provider instead of being assigned one. Don't just sign up for whatever the apartment or builder recommends — take a few minutes to compare. Budget for summer to be the expensive season (a house can run several hundred dollars a month at peak). And ignore the big advertised rate: it's set at 1,000 kWh, so compare plans at the usage your home will actually hit.

I'm in a small apartment / live alone — which plan type fits?

Low usage. Avoid bill-credit plans (you won't reliably hit the threshold) and minimum-usage fees (they penalize using little). Pick a plain flat rate and, when comparing, look at the EFL price at 500 kWh, which is closer to your real usage than the advertised 1,000 kWh figure.

Educational information, not financial advice. Rates and figures change — always read the official EFL before enrolling.