To choose a power plan in Texas, start with your address and your last 12 months of usage, then compare the all-in monthly cost of each plan at your own low, average, and high usage months. Include delivery charges, base fees, bill credit thresholds, minimum usage fees, contract length, and the cancellation fee, and confirm every number on the plan's Electricity Facts Label before you enroll.
The best Texas electricity plan depends on a home's usage pattern, contract length, plan structure, delivery charges, and cancellation fee, not simply the lowest advertised cents-per-kWh figure. Compare all-in costs at your actual monthly usage, read the EFL, and consider time-of-use plans only when interval data shows that the household can benefit from their pricing windows.
There are more than 1,500 plans across all six Texas TDU territories in the GridWise plan database. Competition can help, but it also makes it easy to compare apples to oranges. Most people either pick the first plan they see or spend hours on PowerToChoose trying to decode rates, credits, and fees.
Here is how to cut through the noise.
The Problem With the "Cheapest Rate"
Sort by price on a comparison site and you may see plans advertising rates as low as 5 or 6 cents per kWh. Looks amazing, right?
Look closer:
- Short contract - a 3-month rate can be a teaser that resets much higher at renewal.
- Bill credit at 1,000 kWh - use 800 kWh and you may miss the credit entirely.
- Base fee - a monthly charge can be buried in the Electricity Facts Label.
- Delivery charges - your local utility's TDU fees change the total you actually pay.
While browsing plans on GridWise, you can star any plan from the provider, head-to-head, area, or homepage to save it to your favorites. Visit the GridWise homepage and use the Favorites filter to review and compare your saved plans side by side.
Calculate the All-In Cost, Not Just the Energy Rate
Use this formula for every plan:
Total monthly cost = (usage kWh x energy rate) + (usage kWh x TDU per-kWh delivery charge) + TDU monthly fixed fee + any base or service fee - any bill credits
Then divide the total by your usage to find the effective rate. TDU charges are territory-specific, so the exact numbers on your EFL will vary. See how TDU fees work before comparing plans across areas.
Here is a realistic example. Assume a plan has:
- Energy rate: 10.5 cents per kWh
- TDU delivery charge: 4.0 cents per kWh
- TDU monthly fixed fee: $4.23
- Provider base fee: $5.00 per month
- Bill credit: $50 when monthly usage is at least 1,000 kWh
| Monthly usage | Calculation | Total monthly cost | Effective rate |
|---|---|---|---|
| 500 kWh | (500 x $0.105) + (500 x $0.040) + $4.23 + $5.00 | $81.73 | 16.35 cents per kWh |
| 1,000 kWh | (1,000 x $0.105) + (1,000 x $0.040) + $4.23 + $5.00 - $50 credit | $104.23 | 10.42 cents per kWh |
| 2,000 kWh | (2,000 x $0.105) + (2,000 x $0.040) + $4.23 + $5.00 - $50 credit | $249.23 | 12.46 cents per kWh |
Your Address Determines Your TDU Territory
Texas has six TDU territories. Your address determines the delivery utility and its fixed and per-kWh fees, so a rate advertised in one part of Texas may not be available or priced the same in another.
The six territories are Oncor (Dallas-Fort Worth), CenterPoint (Houston), AEP Central (Corpus Christi and South Texas), AEP North (Abilene and West Texas), TNMP (scattered North, West, and Gulf Coast areas), and LP&L (Lubbock). Confirm the territory for your address and use the delivery charges on that plan's EFL. Our guide to understanding TDU fees explains why those charges matter.
What Actually Matters
1. Your Usage Pattern
A plan that is great for someone using 2,000 kWh per month might be terrible for someone using 700 kWh. Many plans have tiered pricing or bill credits that only apply at certain usage levels.
This is why your actual usage data matters more than any advertised rate. Look at a full year when you can, because Texas summer usage can be very different from a mild spring month.
2. Contract Length
| Term | Pros | Cons |
|---|---|---|
| 3 months | Low teaser rates | Rate spikes at renewal, churn hassle |
| 6 months | Moderate rates | Still relatively short |
| 12 months | Good balance | May not be the lowest introductory rate |
| 24 months | Rate lock through summer | Slightly higher rate |
| 36 months | Maximum stability | Higher rate, long commitment |
3. Plan Type
Flat rate plans generally charge the same energy rate regardless of when you use electricity. They are simple, predictable, and right for most people.
Time-of-use (TOU) plans, including Free Nights, Free Weekends, and flex plans, charge different rates depending on when you use power. They can save money if your usage naturally shifts to off-peak hours, but they can cost more if it does not.
The only way to know which type is better for you is to look at your actual day-versus-night usage split.
4. Early Termination Fees
Most fixed-rate plans charge an early termination fee, often $100 to $200, if you cancel before the term ends. Some are a flat fee; others are calculated per remaining month. This matters if you are considering switching mid-contract.
Do the math: If switching saves you $15 per month but the termination fee is $150, you break even in 10 months. If your current contract ends in six months, waiting may make more sense.
5. Solar Buyback Terms
If you have solar, do not compare only the price you pay to buy electricity. Compare the plan's buyback or export rate, any monthly export cap, rollover rules, and whether it pays a wholesale, avoided-cost, or fixed rate for excess generation. A low buy rate can be outweighed by a weak export offer. Start with our solar buyback plans explained guide.
Plan Comparison Checklist
Before enrolling, open the EFL and check every line below. Do not rely on the headline rate alone.
| What to check | Why it matters |
|---|---|
| Energy rate, cents per kWh | This is the provider's usage charge, not necessarily your all-in price. |
| TDU delivery charges | They are territory-specific and include both per-kWh and monthly fixed charges. See TDU charges explained. |
| Monthly base or service fee | A small fixed fee has a bigger effect at lower usage. |
| Minimum usage fee | Some plans add a monthly fee when usage falls below a set level, such as 400 kWh. It is different from a bill credit, which lowers the bill when usage is high enough. |
| Bill credit threshold | Confirm the usage level required and whether your normal usage reliably qualifies. |
| Contract term, months | Compare the rate lock with your expected move date and renewal timing. |
| Early termination fee | Check whether it is flat or charged per remaining month. |
| Time-of-use windows | For TOU plans, verify the exact free, peak, and off-peak hours. |
| Renewable content, percentage | The EFL states how much of the plan's power content is renewable. |
| Solar buyback or export rate | Solar customers should check rate, caps, rollover, and eligibility. See solar buyback plans explained. |
How to Choose a Power Plan in Texas, Step by Step
- Know your monthly usage - Check your last 12 months of bills or download your Smart Meter Texas data.
- Identify your TDU area - Your address determines the delivery charges and plans available. Start with the TDU fees guide.
- Compare at YOUR usage level - Use your typical low, average, and high months, not an advertised rate at exactly 1,000 kWh.
- Check the fees and thresholds - Look for base fees, bill credit thresholds, and minimum usage fees, and make sure your normal usage lands on the right side of each one.
- Factor in contract length - A slightly higher 12-month rate often beats a low 3-month teaser once you include the renewal risk and hassle.
- Read the EFL - Every plan's Electricity Facts Label lists estimated average prices at 500, 1,000, and 2,000 kWh, along with delivery charges and fees.
- Consider time-of-use only if the data supports it - Do not guess whether Free Nights will save you money. Check your actual nighttime usage percentage.
- Compare independent sources - The GridWise plan database, PowerToChoose, and a broker can all be useful, but know how an electricity broker compares with PowerToChoose before sharing your information or enrolling.
- Time the switch - If you are under contract, compare the cancellation fee with your expected savings. If your contract is ending soon, see what happens when a Texas electricity contract expires.
What We Built WattTrim to Do
We got tired of doing this manually. WattTrim takes your actual usage data and runs available plans against it, including flat-rate and time-of-use options, delivery charges, fixed fees, and qualifying bill credits. The goal is to find plans that genuinely save you money over a full year, not plans that only look good at one benchmark.
No guessing, no generic averages, no advertised rates that do not fit your usage. Just math.
- WattTrim - Take a photo of your bill with WattTrim photo capture or upload a bill photo or PDF for month-by-month accuracy across every available plan.
- Lowest Rates Today - See the best plan at every contract length, updated daily.
- Just Moving In? - If you do not have billing history at your new address yet, get a quick estimate based on your expected usage.
Why Smart Meter Data Changes Everything
Texas Smart Meters record usage in 15-minute intervals, or 96 readings per day per household. That granularity reveals day-versus-night patterns, seasonal shifts, and peak demand windows that a single monthly average hides.
A plan that looks cheapest at 1,000 kWh per month can cost more once your real usage is factored in, especially if your consumption lands in a time-of-use plan's expensive evening window or misses a bill-credit threshold. WattTrim uses your actual Smart Meter data to test plans against your real hour-by-hour consumption pattern rather than a flat monthly estimate. For a closer look at the process, see how WattTrim's audit works.
One More Thing
Be wary of services that offer a free plan comparison and then sell your information to providers. If the comparison is free and you did not pay for it, you may be the product.
WattTrim does not sell or share your data with installers, providers, or third parties.
The best plan is not the cheapest advertised rate. It is the one that costs you the least based on how you actually use electricity.
Put This Knowledge to Work
Compare your current plan against 1,500+ options across all 6 Texas TDU service areas, including exclusive broker-negotiated rates not found on PowerToChoose.org. Always free.
Trim My BillGridWise Audit shows the plans. WattTrim audits your bill to find your savings.
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Frequently Asked Questions
What is the best electricity plan in Texas?
There is no single best plan for every Texas home. The best plan is the one with the lowest all-in cost at your actual usage level, in your TDU territory, with a contract length and fee structure that fit your needs. Compare plans using the all-in cost formula rather than the advertised rate, and factor in TDU delivery charges, bill credits, and cancellation fees. WattTrim analyzes your actual Smart Meter data to find the lowest-cost plans for your home.
What is a good all-in electricity rate in Texas?
A good all-in rate changes with your location, usage, season, contract term, and the current market. Instead of using a single target, compare the total monthly cost of several plans at your own low, average, and high usage months. For a market reference point, review Texas electricity rates today.
Should I choose a fixed or variable rate plan?
Most households are better served by a fixed-rate plan because the energy charge is more predictable for the contract term. Variable-rate plans can change month to month and may rise sharply. Read more about fixed versus variable rate plans before choosing.
Are free nights plans worth it?
They can be, but only if a large enough share of your electricity use actually happens in the free window. Free-nights plans often charge higher prices at other times. Check your Smart Meter interval data and see our guide to whether Free Nights plans are worth it.
How do I compare plans at my actual usage level?
Get your past 12 months of usage from bills or Smart Meter Texas. For each plan, apply the all-in formula to several of your actual monthly kWh totals, including energy charges, TDU fees, base fees, and credits. Or run a WattTrim audit to have your usage analyzed automatically. If you are just moving in and do not have billing history yet, a Quick Estimate can give you a starting point.
How do I compare electricity plans in Texas?
Compare plans by total monthly cost, not by the advertised rate. For each plan, add the energy charge, your TDU's delivery charges, and any base or minimum usage fee, then subtract any bill credit you would actually qualify for. Do this at several of your real monthly usage levels, and check the contract term and cancellation fee. The GridWise plan database shows plans across all six Texas TDU areas in one place.
What is the right to choose electricity in Texas?
In the deregulated parts of Texas, homes and businesses can choose their own retail electricity provider (REP). Your local TDU still owns the poles, wires, and meter and charges the same regulated delivery fees no matter which provider you pick. Some areas, including many cities with their own municipal utility and many electric cooperatives, do not offer retail choice. See how Texas electricity deregulation works for the full picture.
How do I start electricity service when moving in Texas?
Choose a plan for your new address and enroll with that provider as a move-in. The provider sends a move-in request to your local TDU, which turns on service at the meter. Enroll a few days early when you can, since faster scheduling may not be available everywhere or may carry an extra TDU charge. If you do not have billing history at the new home yet, a Quick Estimate can help you compare plans before you move.
What is a minimum usage fee on a Texas electricity plan?
A minimum usage fee is a monthly charge some plans add when your usage falls below a set level, such as 400 kWh. It matters most for smaller homes, apartments, and solar homes that import little power from the grid. The Electricity Facts Label lists the fee and the usage level where it applies.