Frequently Asked Questions
Get answers to common questions about Texas electricity plans.
Last updated: January 6, 2026
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Getting Started
How do I compare electricity plans in Texas?
Simply enter your ZIP code on our comparison tool, select your average monthly usage (500, 1000, or 2000 kWh), and we'll show you all available plans in your area sorted by price. You can then filter by contract length, rate type, renewable energy percentage, and more.
Try the comparison tool →How do I know what my monthly usage is?
Check your most recent electricity bill—it should list your usage in kilowatt-hours (kWh). If you don't have a bill handy, here's a general guide:
- • 500 kWh: Small apartment or very efficient home (1-2 people)
- • 1000 kWh: Average home (2-3 people, typical usage)
- • 2000 kWh: Large home or high usage (4+ people, lots of AC in summer)
Is this service free?
Yes! Our comparison tool is 100% free to use. No signup required, no hidden fees. We may earn a commission when you sign up with a provider through our links, but this never affects the price you pay or how we rank plans. Plans are sorted by price, not by commission.
Understanding Rates
What's the difference between fixed and variable rate plans?
Fixed-rate plans: Your electricity rate stays the same for the entire contract period (typically 6-36 months). Great for budget stability and protection from market price spikes. May have early termination fees.
Variable-rate plans: Your rate changes monthly based on market conditions. No long-term contract or cancellation fees, but your bill can vary significantly from month to month.
Why do prices vary by usage level?
Most electricity plans have a base monthly charge plus a per-kWh rate. The more electricity you use, the more that fixed base charge gets spread out, lowering your effective cost per kWh. Additionally, some plans offer volume discounts or have different pricing tiers.
Watch out: Some providers advertise low rates at specific usage levels (like exactly 1000 kWh). If you use more or less, your actual rate could be much higher. Always check rates at multiple usage levels.
What is the EFL (Electricity Facts Label)?
The EFL is a standardized document that all Texas electricity providers must provide. It shows the true cost per kWh at 500, 1000, and 2000 kWh usage levels, plus all fees, contract terms, and renewable energy content. Always review the EFL before signing up—it's your best source for accurate pricing information.
What are TDSP charges?
TDSP (Transmission and Distribution Service Provider) charges are fees charged by your local utility company (like Oncor, CenterPoint, or AEP) to deliver electricity to your home through power lines. These fees are the same regardless of which retail electricity provider you choose and are included in the rates shown on our comparison tool.
Switching Providers
How long does it take to switch electricity providers?
The switch typically takes 1-2 billing cycles (about 14-30 days) from the date you sign up with a new provider. The exact timing depends on your current contract end date and meter reading schedule. You can often request a specific switch date during signup.
Will my power be shut off when I switch providers?
No! There's absolutely no interruption to your electricity service. The switch happens electronically in the background. Your lights stay on the entire time—you'll just start receiving bills from your new provider instead of your old one.
Can I switch if I'm renting?
Yes! As long as your lease doesn't specifically prohibit it (very rare), you can choose your own electricity provider as a renter. The electricity account will be in your name, and you'll pay the bill directly to the provider.
Just make sure to cancel your service when you move out, or you'll continue to be billed for electricity at that address.
Do I need to notify my current provider when switching?
No. When you sign up with a new provider, they handle the entire switch process for you, including notifying your current provider. However, if you're under contract with your current provider, you should check for early termination fees before switching.
Contracts & Fees
What happens if I cancel my contract early?
If you're on a fixed-rate plan with a contract term, canceling early typically results in an early termination fee (ETF). This fee varies by provider and plan but is usually $100-$300. The exact amount should be listed in your contract and on the EFL.
Exceptions: You can usually cancel without penalty if you're moving out of Texas or out of your provider's service area. Some providers also waive ETFs if you're moving within Texas to a new address they serve.
Are there deposit requirements?
It depends on your credit history. Providers typically run a credit check during signup. If you have good credit, no deposit is usually required. With poor or no credit history, you may need to pay a deposit (typically $100-$300) or choose a prepaid plan that requires no credit check or deposit.
What are minimum usage fees?
Some plans charge an additional fee if you don't use a minimum amount of electricity each month (e.g., if you use less than 1000 kWh). These plans often advertise very low rates but can end up costing more if your usage is lower than expected. Check the EFL for any minimum usage requirements and associated fees.
What's the difference between the advertised rate and the actual rate?
Some providers advertise "teaser rates" that only apply at specific usage levels or under certain conditions. The EFL shows the true, all-inclusive rate you'll pay at 500, 1000, and 2000 kWh. Always refer to the EFL for accurate pricing—that's the rate you'll actually pay on your bill.
Green Energy
What does "100% renewable" mean?
A 100% renewable plan means your electricity usage is matched by renewable energy credits (RECs) from sources like wind and solar farms. The actual electrons coming to your home are from the general grid mix, but your provider purchases RECs equal to your usage, effectively making your consumption carbon-neutral.
Do renewable energy plans cost more?
Not necessarily! Texas has abundant wind and solar resources, so many 100% renewable plans are competitively priced with non-renewable plans. Use our comparison tool and filter by renewable percentage to see green options that fit your budget.
Compare renewable plans →How do I know if a plan is truly green?
Check the EFL—it must list the renewable energy content percentage. Texas requires providers to disclose this information. Plans can range from 0% to 100% renewable. Look for plans that are 100% renewable and backed by RECs to ensure you're truly supporting clean energy.
About Our Service
How do you make money?
We may earn a commission when you sign up with a provider through our links. However, this never affects what you pay (you get the same price going direct) and doesn't influence how we rank plans. Plans are always sorted by price and features, not by commission rates.
How often is your data updated?
We update our database regularly to ensure you're seeing current plans and rates. Electricity plans and pricing can change frequently, so we work hard to keep our information as up-to-date as possible. If you notice any outdated information, please let us know.
Do you provide electricity service?
No. We are a comparison platform that helps you find and compare plans from multiple retail electricity providers. We don't sell electricity directly. When you choose a plan, you'll sign up directly with that provider.
For questions about your existing service, billing issues, or outages, contact your electricity provider directly.
Which areas of Texas do you cover?
We cover all deregulated areas of Texas, which includes major cities like Houston, Dallas, Fort Worth, Austin, San Antonio, and surrounding areas. This represents about 85% of Texas. Some areas (like El Paso, parts of the Panhandle, and some smaller towns) are not deregulated and are served by municipal utilities.
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