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How It Works

Finding the best electricity rate in Texas is easier than you think.

Last updated: January 2, 2026

Compare Plans in 4 Simple Steps

1

Enter Your ZIP Code

Start by entering your 5-digit ZIP code. Electricity rates vary significantly by location in Texas, so knowing your ZIP code helps us show you the plans actually available in your area.

Why ZIP code matters: Texas has different utility zones (TDSPs) that serve different areas. The same plan might have different rates depending on which TDSP serves your ZIP code.

2

Choose Your Average Usage

Select your typical monthly electricity usage. Don't know your usage? Here's a quick guide:

  • 500 kWh: Small apartment or 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)

Pro tip: Check your current electricity bill to find your actual usage. It's usually listed as "kWh used" or "Usage" for the billing period.

3

Filter and Compare Plans

Browse through plans sorted by price. Use our filters to narrow down your options:

Rate Type

Fixed (locked rate) vs Variable (fluctuates monthly)

Contract Length

Choose from month-to-month up to 36 months

Renewable Energy

Filter for 100% green/renewable plans

Prepaid Plans

Pay as you go with no deposit or credit check

Each plan shows you the real cost per kWh at your selected usage level, plus important details like contract length, cancellation fees, and renewable percentage.

4

Sign Up with Your Chosen Provider

Found a plan you like? Click "Check Availability" to go directly to the provider's website and enroll. The signup process typically takes 5-10 minutes and requires:

  • Your name and contact information
  • Service address
  • Move-in date or switch date
  • Payment information (credit card or bank account)

Good to know: There's no service interruption when switching providers. Your lights stay on the entire time—the transition happens behind the scenes!

Understanding Texas Electricity Pricing

What's Included in Your Rate?

The "price per kWh" you see includes several components:

1.
Energy Charge: What you pay the retail electric provider (REP) for the electricity itself.
2.
TDSP Delivery Charges: Fees charged by the local utility (like Oncor or CenterPoint) to deliver electricity to your home via power lines.
3.
Base Charges: Monthly fees that cover metering and customer service.

Watch Out for "Teaser Rates"

Some providers advertise very low rates at specific usage levels (like exactly 1000 kWh). If you use more or less than that amount, your actual rate can be much higher. Our comparison tool shows you the real cost at 500, 1000, and 2000 kWh so you can see the full picture.

Fixed vs. Variable Rate Plans

Fixed-Rate Plans

Your rate stays the same for the entire contract period (typically 6-36 months).

Predictable monthly bills
Protection from market price spikes
Great for budgeting
Cancellation fees if you break contract

Best for: Most homeowners who want stable, predictable rates

Variable-Rate Plans

Your rate changes monthly based on market conditions.

No long-term contract
No cancellation fees
Can benefit from market dips
Bills can vary significantly month to month

Best for: Temporary residents or those who want flexibility

Common Questions

How long does it take to switch providers?

The switch typically takes 1-2 billing cycles. You'll continue with your current provider until the new service starts—there's no gap in service.

Will my power be shut off when I switch?

No! The switch happens electronically. Your power stays on the entire time. You'll just receive a bill from your new provider instead of your old one.

Can I switch if I'm currently under contract?

Yes, but you'll likely pay an early termination fee (usually $100-$200). Check your current contract or call your provider to find out the fee amount. Sometimes switching to a lower rate still saves you money even after paying the fee.

Do I need a credit check?

Most providers run a credit check. If you have poor credit or no credit history, you may need to pay a deposit or choose a prepaid plan (which requires no credit check).

Ready to Find Your Best Rate?

Compare plans from 40+ providers and start saving today.

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