Consumer Advocate · 7+ years in energy markets
Energy market veteran focused on making electricity shopping simple and transparent.
The Short Answer
High-usage homes need flat-rate plans or plans with credits at 2,000+ kWh levels. Avoid plans that advertise low rates with credits at 1,000 kWh—those credits don't scale up. Look for energy rates under 10¢/kWh at your actual usage level. At 2,500 kWh/month, a 1¢/kWh difference means $300/year in savings.
Where Do You Fall?
If you're in the High or Very High category, this guide is for you. The plan strategies for high-usage homes are fundamentally different from average usage.
Find Plans Optimized for Your Usage
We'll show you rates at YOUR actual usage level—not misleading 1,000 kWh averages.
Best Plans for High Usage
Lowest rates calculated at 2,000 kWh • Updated daily
Why High-Usage Customers Need a Different Strategy
Most Texas electricity plans advertise their rates at 500, 1,000, and 2,000 kWh usage levels. Here's the problem: the rate at 1,000 kWh is often not the rate at 2,500 kWh.
The Bill Credit Trap (Real Example)
Advertised rate at 1,000 kWh: 8.9¢/kWh (looks great!)
How they get there: Base rate of 12.9¢/kWh minus $40 bill credit at 1,000 kWh = 8.9¢
Your rate at 2,500 kWh: Still only the same $40 credit, so (2,500 × 12.9¢ - $40) ÷ 2,500 = 11.3¢/kWh
You're actually paying 27% more than advertised!
What High-Usage Customers Should Look For
- ✓ Flat-rate plans with no usage tiers or gimmicks
- ✓ Plans with 2,000 kWh credits if tiered—the credit should match your usage
- ✓ Low energy charges (the per-kWh rate matters most for you)
- ✓ Longer contract terms for better rates—your usage amplifies savings
- ✓ No demand charges—these hurt high-peak-usage customers
The Math: Why Every Cent Matters More for You
When you use a lot of electricity, small rate differences become big money:
| Monthly Usage | Value of 1¢ Savings | Annual Savings |
|---|---|---|
| 1,000 kWh | $10/month | $120/year |
| 1,500 kWh | $15/month | $180/year |
| 2,000 kWh | $20/month | $240/year |
| 2,500 kWh | $25/month | $300/year |
| 3,000 kWh | $30/month | $360/year |
Real Impact Example
If you use 2,500 kWh/month and find a plan that's 2¢/kWh cheaper than your current plan, that's $600/year in your pocket. For high-usage homes, spending 30 minutes comparing plans is worth more than it is for anyone else.
What Causes High Electricity Usage?
Before optimizing your plan, understand what's driving your usage. These are the common culprits:
Large Home (2,500+ sq ft)
More space = more to cool and heat. Older homes are especially energy-hungry.
Older HVAC System
Units 10+ years old can use 20-40% more energy than modern systems.
Pool + Equipment
Pool pumps run 8-12 hours daily. Pool heaters add significant draw.
Electric Vehicle Charging
An EV adds 300-500+ kWh/month depending on driving habits.
Home Office Equipment
Computers, monitors, networking equipment running all day add up.
Large Family
More people = more laundry, showers, devices, and A/C preferences.
Pro tip: You don't have to reduce your usage to save money. Finding a better rate at your current usage is often easier and more impactful than changing habits.
Best Plan Types for High-Usage Homes
Flat-Rate Fixed Plans (Best Choice)
One rate at all usage levels. No gimmicks, no surprise tiers. What you see is what you pay. Most transparent for high users.
Look for: Energy charge under 10¢/kWh, minimal or no base fee, 12-24 month terms
Plans with 2,000 kWh Credits
If credits exist, make sure they apply at your usage level. Some plans have $50-100 credits at 2,000 kWh that make them competitive for high users.
Look for: Credits specifically at 2,000 kWh threshold, verify credit structure in EFL
Free Nights/Weekends (Maybe)
Can work if you can shift usage—EV charging overnight, pool pump timing, etc. Higher daytime rates mean these only work if you genuinely use more at night.
Look for: Free hours that match your actual usage pattern, especially EV owners
Avoid: Tiered Plans with 1,000 kWh Credits
These are designed to look cheap at average usage but cost more at high usage. The credit doesn't scale—you're subsidizing low-usage customers.
Warning sign: Huge difference between 1,000 kWh and 2,000 kWh advertised rates
See Real Rates at Your Usage Level
We calculate your actual cost at high usage—not the misleading 1,000 kWh rate.
Tips for High-Usage Customers
- 1
Always calculate at your actual usage
Don't trust the 1,000 kWh rate. Calculate (base rate × your kWh) + fees - credits at your usage level.
- 2
Lock in longer terms when rates are good
Your high usage amplifies both savings and losses. When you find a good rate, lock it in for 24-36 months.
- 3
Consider time-of-use if you can shift usage
If you can charge your EV at night or run pool pumps during off-peak hours, TOU plans might save more.
- 4
Set a calendar reminder before expiration
High-usage customers on expired contracts lose more money per day. Shop 30-45 days before your term ends.
- 5
Read the EFL carefully
The Electricity Facts Label shows the true rate structure. Look at the 2,000 kWh column, not just 1,000 kWh.
Frequently Asked Questions
What is considered high electricity usage in Texas?
Why do high-usage customers pay different rates?
What causes high electricity usage in Texas?
Are tiered pricing plans bad for high-usage homes?
Should high-usage customers choose fixed or variable rates?
Do bill credits work for high-usage customers?
How do I estimate my electricity usage?
Is solar worth it for high-usage homes in Texas?
What's the best contract length for high-usage customers?
Do any Texas electricity plans have no base charges?
Related Texas Electricity Guides
How We Ensure Accuracy
Since 2009, the team at ElectricRates.org has helped over 5 million energy consumers find better electricity rates. Supplier information comes from state regulators, company filings, and documented customer feedback. Read the editorial standards & see our methodology.