Shop Texas Electricity by Your Actual kWh Usage: Save More

Texas electricity plans are designed to look cheapest at 1,000 kWh—the standard comparison point on Power to Choose.

But reality doesn't match:

The plan ranked cheapest at 1,000 kWh might cost significantly more at 2,000 kWh due to:
- Tiered pricing
- Disappearing credits
- High per-kWh rates above thresholds

A household using 800 kWh needs different plan features than one using 2,500 kWh.

Shopping without usage data means trusting marketing over math.

Start with your last 12 months of electricity bills to capture seasonal variation.

Note:
- Monthly kWh usage for each month
- Your highest usage month
- Your lowest usage month

For detailed data: Register at SmartMeterTexas.com for 15-minute interval readings.

If you've lived in your home less than a year, estimate using square footage:

Summer months may double these averages. New construction uses less due to modern efficiency standards.

Texas electricity shoppers fall into usage categories that determine optimal plan structure:

Low Usage (under 800 kWh monthly)
- Apartments, condos, efficient homes
- Benefit from plans without high base charges
- Can't spread fixed costs over many kWh

Average Usage (800-1,500 kWh)
- Most flexibility in plan options
- Often find great deals near 1,000 kWh sweet spot
- Largest selection of competitive plans

High Usage (over 1,500 kWh)
- Large homes, heavy AC users
- Scrutinize pricing at 2,000 kWh and above
- Many plans become less competitive at high usage

Variable Usage (large seasonal swings)
- Prioritize consistent pricing across all levels
- Avoid plans optimized for specific thresholds

Step 1: Download the EFL for each plan

Step 2: Find the average price at YOUR usage level (500, 1,000, or 2,000 kWh)

Step 3: For usage between these points, calculate manually:
- Multiply usage × average price
- Add any base charges

Step 4: Compare total monthly costs, not per-kWh rates

Why base charges matter:

The same base charge has 4x the impact on low-usage households.

Free nights and weekends plans can dramatically reduce bills—or increase them—depending on when you use electricity.

Use Smart Meter Texas hourly data to calculate:
What percentage of your usage falls in off-peak hours?

Decision framework:

Be honest: Running the dishwasher at 9pm is manageable. Skipping AC during a 100-degree afternoon is not.

Texas usage swings dramatically between seasons:

Plans with usage credits (like 1,000 kWh thresholds) penalize months where you fall short or exceed the target.

Simple fixed-rate plans without usage tricks provide consistent value across all usage levels.

If your summer usage regularly exceeds 2,000 kWh:
- Verify plan pricing at that level
- Some plans increase rates sharply above 2,000 kWh

Pro tip: Sign contracts in spring when rates typically dip and moderate usage won't trigger unfavorable terms.

Scenario: Household averaging 1,400 kWh monthly, with 2,300 kWh in August

At 1,000 kWh: Plan A wins ($115 vs $121)

At 1,400 kWh average: Nearly tied ($170 vs $169)

In August at 2,300 kWh: Plan B saves $39 ($278 vs $317)

Annual result: Plan B saves money despite appearing more expensive on Power to Choose.

This demonstrates why usage-specific comparison matters more than advertised rates.

Once enrolled, continue monitoring your usage through Smart Meter Texas.

Track monthly:
- Actual costs vs. projections
- Any unexpected increases
- Changes in usage patterns

Reassess your plan if:
- You have a new baby
- You start working from home
- You add an electric vehicle
- Your usage pattern changes significantly

Switching options:
- Most contracts allow switching with advance notice
- Early termination fees may apply (typically $150-200)
- Some households switch annually to optimize
- Others prefer simplicity of long-term fixed rates

Either approach works better when informed by actual usage data rather than guesswork.