7 Hidden Problems with Power to Choose Texas

What Is Power to Choose?

Power to Choose is the official comparison website run by the Public Utility Commission of Texas (PUCT). Launched in 2002 when Texas deregulated its electricity market, the site was designed to help consumers compare rates from different Retail Electric Providers (REPs) in a neutral, government-run marketplace.

In theory, it's a great idea: a free, unbiased tool where you can see all available plans for your ZIP code. In practice, the site has become a hunting ground for providers looking to game the system with "teaser" rates and complex pricing structures that look cheap but cost you more.

Let's break down the seven major problems with Power to Choose and how to avoid them.

Problem #1: Teaser Rates That Don't Apply to Real Usage

The most notorious problem with Power to Choose is teaser rates. These are artificially low rates that only apply if you use exactly 500, 1000, or 2000 kWh per month.

Here's how the trick works: A provider offers a $100 bill credit if you use exactly 1,000 kWh. At that usage level, the effective rate might be 9.5¢/kWh. But if you use 999 kWh or 1,001 kWh, you don't get the credit - and your rate jumps to 22-23¢/kWh.

The problem? Power to Choose only displays rates at 500, 1000, and 2000 kWh. If your actual usage varies (as most households' does), you have no idea what you'll actually pay.

Problem #2: Over 70% of Plans Have Minimum Usage Fees

A Houston Chronicle investigation revealed that over 70% of electricity plans in Texas penalize customers who use less energy. These "minimum usage fees" add $10-25 to your monthly bill if you fall below a usage threshold (typically 500 or 1,000 kWh).

This is particularly problematic for:

• Apartment dwellers with smaller spaces
• Energy-conscious households trying to reduce usage
• People who travel frequently or have vacation homes
• Households with solar panels that reduce grid consumption

The irony: you get punished for using less electricity. A plan that looks cheap at 1,000 kWh might be one of the most expensive options if you're efficient and only use 600 kWh.

Problem #3: No Provider Vetting or Quality Control

Unlike most marketplace platforms, Power to Choose doesn't vet the providers it lists. Any company that holds a Texas REP license can post plans - regardless of their:

• Customer service track record
• Number of PUC complaints
• BBB rating
• Financial stability
• History of billing disputes

Even the PUCT itself warns consumers to research providers before signing up. Yet the very site they run provides no tools to do this comparison.

Problem #4: Fixed Usage Display Doesn't Match Your Reality

Power to Choose only shows rates at three fixed usage levels: 500, 1000, and 2000 kWh per month. This system was designed in 2002 and hasn't adapted to how Texans actually use electricity.

The problem with this approach:

• Texas average is 1,176 kWh/month - between the displayed benchmarks
• Usage varies dramatically by season (2,000+ in summer, 800 in spring)
• Plans with bill credits can show great rates at 1,000 kWh but terrible rates at 1,100 kWh
• You can't enter your actual usage to see your real cost

If your household uses 1,350 kWh per month (common for a 3-bedroom home in Dallas), you're comparing apples to oranges on Power to Choose.

Problem #5: Hidden Fees Not Shown in Advertised Rates

While Power to Choose displays the average price per kWh, many providers add fees that aren't immediately visible:

• Base charges: $4.95 - $14.95/month regardless of usage
• Paper billing fees: $2-5/month if you don't go paperless
• Minimum usage fees: $10-25/month if you use below threshold
• Online payment fees: Some providers charge for credit card payments
• Late payment fees: Can be higher than typical credit cards

These fees can add $20-40+ per month to your bill, turning what looks like a 10¢/kWh plan into an effective 14-15¢/kWh cost.

Problem #6: Time-of-Use Plans Are Misleading

Time-of-Use (TOU) plans are increasingly popular on Power to Choose because they can advertise extremely low average rates. Plans like "Free Nights" or "Free Weekends" look amazing on paper.

The reality: These plans only work if you can shift most of your electricity usage to off-peak hours (typically 8 PM to 6 AM). For most families, that's not realistic. You can't run the AC only at night in a Texas summer.

The "average" rate shown on Power to Choose assumes 50/50 day/night usage, which almost nobody achieves.

Problem #7: No Customer Support When Things Go Wrong

Power to Choose is just a listing site - it has no dedicated customer service team. If you sign up for a plan through the site and later have problems with:

• Unexpected charges
• Contract terms that differ from what was advertised
• Early termination fee disputes
• Billing errors

...you're on your own. Power to Choose can't help. You have to deal directly with the provider or file a complaint with the PUC - a process that can take weeks or months.

One documented case involved a customer who found a plan that clearly advertised "no early termination fee" on Power to Choose, only to discover a $200 ETF buried in the welcome packet after signing up.

The Hidden Truth: Big Providers Game the System

Our analysis of the Power to Choose database revealed something interesting: big providers like TXU and Reliant list different plans on Power to Choose than on their own websites.

Why do big providers do this? Bait and switch strategy:

1. List simple, low-rate plans on Power to Choose to rank high in search results
2. Get users to click on their brand name
3. Once on their website, show "premium" plans with credits and perks that have higher base rates

Meanwhile, smaller providers (who depend on Power to Choose for customers) list all their plans - including their best deals.

How to Find the Best Rate Without Getting Tricked

Frequently Asked Questions