Cheapest Electricity in Texas 2026: True Low-Cost Providers

Quick Answer

Cheap means the lowest total bill at your usage, not the lowest advertised rate. Bill-credit plans advertising 7 cents at 1,000 kWh can cost around 20 cents at 500 kWh. Find your average monthly kWh, then compare plans at that level; steady pricing across usage tiers often beats the headline cheapest plan.

Table of contents

Live Texas Rates · August 2026

13.0¢Cheapest honest flat-rate plan today

Top 3 flat-rate plans run 13.0¢–13.3¢/kWh.

⚠ Lowest advertised: 6.8¢/kWhBill-credit plans — only cheap near 1,000 kWh usage. Above or below that, you pay much more.

Save up to $29/mo — see plans

Rates shown are all-in: energy and TDU delivery charges included. Live data from ComparePower API at Oncor (Dallas), 1,000 kWh reference usage.

Shopping for power in Texas? See live rates from every supplier on our Texas electricity rates page.

What Cheap Means in Texas Electricity

Cheap means lowest total bill—not lowest advertised rate.

SimpleSaver 11 advertises 7.0 cents at 1,000 kWh. Maxx Saver Value 12 shows 7.4 cents at the same usage (Oncor area, as of August 2026). Look like the cheapest options, right?

Check other usage levels:

SimpleSaver 11 at 500 kWh: 19.9 cents
Maxx Saver Value 12 at 500 kWh: 20.3 cents
True Simple 11 at 500 kWh: 13.6 cents

True Simple 11 is over 6 cents cheaper when you use less.

Cheap depends entirely on your usage pattern—not the headline rate.

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The cheapest plan depends on your usage and location. See rates sorted by price at your actual usage level.

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Cheapest Plans for Low Usage (Under 750 kWh)

Apartments, condos, small homes, and energy-efficient households under 750 kWh need flat-rate plans.

At 500 kWh monthly usage:

Plan	Rate	Monthly Cost
True Simple 11	13.6¢	$68.00
Texas Bright 12	13.6¢	$68.00
SimpleSaver 11	19.9¢	$99.50

The flat-rate plans save about $31.50 monthly compared to the plan with the lowest advertised rate (Oncor area, as of August 2026).

Over a 12-month contract, that's $378 in savings by avoiding the "cheapest" plan.

Cheapest Plans for Average Usage (750-1,200 kWh)

Most Texas homes fall into this range. Bill-credit plans become competitive here because the credit applies effectively.

At 1,000 kWh:

Plan	Rate	Monthly Cost
SimpleSaver 11	7.0¢	$70
Maxx Saver Value 12	7.4¢	$74
True Simple 11	13.2¢	$132

Bill-credit plans genuinely save money at this exact usage level—$58-62 monthly.

The catch: If your usage varies seasonally between 600 kWh (spring/fall) and 1,400 kWh (summer), the savings evaporate in low-usage months while flat-rate stays consistent.

Cheapest Plans for High Usage (Over 1,500 kWh)

Large homes, pools, and Texas summer AC warriors using 1,500+ kWh see bill-credit benefits diminish.

At 2,000 kWh:

Plan	Rate	Monthly Cost
True Simple 11	13.0¢	$260
Maxx Saver Value 12	13.4¢	$268
SimpleSaver 11	13.0¢	$260

The 1,000 kWh bill credit stops helping at high usage because its per-kWh impact shrinks. As of August 2026, True Simple 11 matches SimpleSaver 11 at 2,000 kWh and provides year-round consistency bill-credit plans cannot match.

One exception: plans with credits aimed at 2,000 kWh usage, like Just Energy's Mega Saver - 12 (10.7¢ at 2,000 kWh but 18.4¢ at 1,000 kWh), win at exactly this level. Verify your usage never drops before choosing one.

Hidden Costs That Inflate Your Bill

Beyond energy rates, watch for these fees:

Base charges: $4.95-9.95 monthly regardless of usage
TDU delivery charges: Roughly 4-5 cents per kWh depending on your utility
Minimum usage fees: Some plans charge extra if you use below a threshold
Early termination fees: $150-350 if you break the contract
Late payment fees: $10-25
Paper billing fees: $2-3 monthly if you want mailed bills

The Electricity Facts Label shows total average bill amounts at 500, 1,000, and 2,000 kWh.

Always compare those numbers—not just the energy rate.

Seasonal Strategy for Maximum Savings

Texas electricity usage swings dramatically:

Mild months: 600-800 kWh
July-August: 1,500-2,500 kWh

Bill-credit plans punish you in mild months (high effective rate at low usage) and barely help in peak months (credit impact diminished at high usage).

Flat-rate plans provide consistent savings year-round.

Strategy:

Check your Smart Meter Texas data for your personal usage range
If your lowest month is under 700 kWh, flat-rate wins overall
If you consistently stay above 900 kWh year-round, bill-credit plans might work—but verify with actual calculations

Direct Cost Comparison Table

Monthly bill comparison (all-in cost including Oncor TDU delivery, as of August 2026):

Plan	500 kWh	1,000 kWh	2,000 kWh
True Simple 11	$68.00	$132	$260
Texas Bright 12	$68.00	$137	$274
Maxx Saver Value 12	$101.50	$74	$268
SimpleSaver 11	$99.50	$70	$260

Annual savings using True Simple 11 vs SimpleSaver 11:

At 500 kWh consistent usage: +$378/year savings
At 1,000 kWh consistent usage: -$744/year (SimpleSaver cheaper)
At mixed usage (8 months at 500 kWh, 4 summer months at 2,000 kWh): +$252/year savings

The Bottom Line on Cheap Electricity

Truly cheap electricity requires matching the plan structure to your usage pattern.

Flat-rate plans win for:

Variable usage households
Apartments and small homes
Anyone who values bill predictability

Bill-credit plans win for:

Consistent 900-1,100 kWh monthly users
Those willing to monitor and adjust usage
Households that never dip below 800 kWh

When in doubt, flat-rate is safer. You might save slightly less in optimal months but you'll never overpay in low-usage months.

The "cheapest" advertised rate is rarely cheapest for your actual situation.

See What Cheap Actually Means for You

Done with the math? Here's the shortcut.

Our Texas comparison tool connects directly to Smart Meter Texas, pulls your actual usage history, and calculates your exact cost for every plan.

Same plans. Personalized prices.

How it works:
1. Enter your ZIP code and click "See Your Personalized Rates"
2. We connect to your smart meter to pull your real usage—not estimates
3. Every plan is re-priced based on YOUR actual consumption pattern
4. See exactly what you'd pay, ranked from cheapest to most expensive

No more guessing whether a bill-credit plan costs more or less for your household. See your personalized rates →

Frequently Asked Questions

Why do bill-credit plans show such low rates?

Bill credits (typically $50-150) apply when you hit a usage threshold. At exactly that threshold, the credit creates an artificially low effective rate. REPs advertise this rate knowing most comparison sites only show one usage level. The rate is real—but only at that specific consumption.

What if I can control my usage to hit the credit threshold?

Theoretically possible, but impractical. Texas weather varies, your schedule changes, and micromanaging AC to hit exact kWh targets reduces quality of life. Plans requiring precise usage management to deliver value are fundamentally flawed—choose a plan that works across your natural usage range.

Are prepaid plans cheaper than traditional plans?

Prepaid plans (no deposit, pay as you go) typically cost 15-20 cents per kWh—more expensive than traditional fixed-rate plans at 13.0-13.3 cents. However, prepaid avoids deposits and credit checks. For short-term needs or credit challenges, the convenience premium may be worthwhile.

Do TDU charges vary between plans?

TDU (Transmission and Distribution Utility) charges are pass-through costs set by your local utility (Oncor, CenterPoint, AEP Texas, etc.) and do not vary between REPs. These charges appear separately on bills and add roughly 4-5 cents per kWh to your total cost.

How do I find my actual usage history?

Smart Meter Texas (smartmetertexas.com) provides 15-minute interval usage data for all Texas addresses with smart meters. Register with your ESI ID (found on any electricity bill) to see your actual consumption patterns. This data is essential for choosing the right plan structure.

Looking for more? Explore all our Texas Energy guides for more helpful resources.

About the author

Enri Zhulati

Consumer Advocate

Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.

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Topics covered

Texas cheap electricity low rates budget bill credits savings

Sources & References

Smart Meter Texas (Smart Meter Texas): "Smart Meter Texas usage data access"Accessed Dec 2025

Last updated: August 6, 2026