What type of electricity plan is best in Texas?

For most homes, a fixed-rate plan of 12 months or longer. The rate stays the same for the whole contract, there's no usage threshold to hit, and the bill moves only with your usage. Time-of-use, EV and bill-credit plans can cost less, but only for homes whose usage fits the plan's rules.

What's the difference between a fixed-rate and a variable-rate plan?

A fixed-rate plan locks your energy rate for the length of the contract. A variable-rate plan has no contract term, and the provider can change the price from month to month. Most Texans who end up on a variable rate get there by letting a fixed-rate contract expire without choosing a new plan.

Why is a bill-credit plan's advertised rate so low?

Advertised rates are shown at 1,000 kWh, and many bill credits start at exactly that usage. In any month you use less, you lose the credit and pay a much higher price. Compare bill-credit plans at your own usage in every season, not only at 1,000 kWh.

How long should my electricity contract be?

We usually recommend 12 months or longer. Short-term plans often have the lowest rates because they typically skip the expensive summer months. When any contract ends, shop and compare offers again, since most renewal rates are higher.

What happens when my electricity contract ends?

Your provider must send a renewal notice before the contract ends. If you don't choose a new plan, you move to the provider's month-to-month rate, which is usually much higher. Compare plans when the notice arrives.

Are renewable electricity plans more expensive?

Not necessarily. Many Texas plans include renewable energy, and the Electricity Facts Label shows each plan's renewable content. Compare a renewable plan's price at your usage the same way you would any other plan.

Texas electricity plan types

Texas Electricity Plans

Most Texas electricity plans fall into a few types: fixed-rate, bill credit, time-of-use, EV and no-deposit. Each one prices electricity differently, so the cheapest plan for one home can be an expensive one for another. For most homes, we recommend a fixed-rate plan of 12 months or longer.

Get started

Plan guides

Types of Electricity Plans in Texas

Each guide explains how the plan type works, what it costs at different usage levels and how to compare it.

Best for most households
Fixed-Rate Electricity Plans
Fixed energy rate for the length of the contract.
Read the guide
Usually avoid
Bill Credit Electricity Plans
Bill credit applied when usage reaches a set threshold.
Read the guide
Great if your usage fits
Time-of-Use Electricity Plans
Electricity prices that vary by time of day.
Read the guide
Compare with time-of-use
EV Electricity Plans
Designed for homes that charge an electric vehicle.
Read the guide
Best for no-deposit needs
No-Deposit Electricity Plans
Options for starting service without a traditional deposit.
Read the guide

On this page

The basics

How Texas Electricity Plans Work

When you shop for electricity in Texas, the power itself is the same no matter who you buy it from. Your utility delivers it over the same lines and charges every provider the same delivery rates. What changes is the provider you choose and the plan you sign up for: how the price is set, how long it's locked in, and what fees come with it. Those three things decide what you actually pay.

Rate type
Whether you pay the same price for every kWh, a price that changes by time of day, or a lower price only when you use enough electricity.
Contract length
How long the price is locked in. Longer terms protect you from price changes, while shorter-term plans typically offer lower upfront rates.
Fees
A monthly base charge, if any, and the early termination fee you'd pay to leave before the contract ends.

Every plan publishes an Electricity Facts Label (EFL) with its average price at 500, 1,000 and 2,000 kWh a month. That price includes the utility's delivery charges, so it's the fairest way to compare two plans, as long as you use the usage level closest to your own.

Today's prices

What Each Plan Type Costs at Your Usage

The same plan can be the cheapest at one usage level and expensive at another. Here is today's lowest plan of each type in the Houston area, priced at three usage levels.

Lowest plan of each type500 kWh1,000 kWh2,000 kWh

Fixed rate
True Power · True Value 12 · 12 months · View EFL
500 kWh12.2¢/kWh
1,000 kWh11.7¢/kWh
2,000 kWh11.5¢/kWh
Bill credit
APG&E · SimpleSaver 12 · 12 months · View EFL
500 kWh19.7¢/kWh
1,000 kWh6.7¢/kWh
2,000 kWh12.7¢/kWh
Time of use
Chariot Energy · Bright Nights 12 · 12 months · View EFL
500 kWh13.8¢/kWh
1,000 kWh12.3¢/kWh
2,000 kWh11.6¢/kWh

CenterPoint (Houston) area, ZIP 77002. Lowest-priced plan of each type at 1,000 kWh, 12-month or longer terms, average price with delivery charges included. Updated November 13, 2026.

Look closer

The lowest bill-credit plan costs 6.7¢ per kWh at 1,000 kWh but 19.7¢ at 500 kWh, because the credit disappears in lighter months. That's why we compare plans at each customer's own usage, month by month.

Compare today's rates in your utility area

Your home

Which Plan Type Fits Your Home

Start from how your home uses electricity, not from the lowest advertised rate.

You want a predictable bill
Choose a fixed-rate plan of 12 months or longer. It's our default for most homes.
Your usage swings by season
Avoid bill-credit plans. A mild spring or fall month can fall below the threshold and cost you the credit.
You can shift usage to nights
A time-of-use plan can save money if laundry, dishwashers or pool pumps can run in the cheap hours.
You charge an EV at home
Compare EV plans with regular time-of-use plans. Not every EV owner needs an EV plan; many save more with the right time-of-use plan.
You need to avoid a deposit
Look at no-deposit options, and compare the total price at your usage before you enroll.
You're moving soon
Check the contract end date and the early termination fee, or pick a term that ends after your move.

Our guide to choosing an electricity plan walks through each plan type in depth, including when a plan we usually avoid can still be the right fit.

Contract terms

Contract Length, Fees and Renewal

Most Texas plans lock in your price for a set number of months. Short-term plans often have the lowest rates because they skip the expensive summer months, but those months land in your next contract. When your contract ends, expect a higher renewal rate.

Your provider must send a renewal notice before a fixed-rate contract ends
Texas rules don't allow a termination fee on a residential fixed-rate contract in the 14 days before it ends
No fee may be charged because you move, if you give a forwarding address and any required evidence
If you don't renew, you move to a much higher month-to-month rate

Where we help

Want to set it and forget it? We'll point you to a provider with fair renewal pricing. Prefer the lowest rate? We'll find it for you and help you pick a new plan when it's time to renew.

Get a personalized recommendation

The fine print

What To Check Before You Enroll

Every plan type is easier to judge once you read its Electricity Facts Label. These are the lines we check first:

The average price at the usage level closest to yours
Any bill credit, and the usage it takes to earn it
Base charges or minimum-usage fees
The contract term and early termination fee
Whether the rate can change during the contract
For time-of-use plans, the exact hours and the price outside them

Read how to read an Electricity Facts Label

Questions