Choose the lowest complete bill for the way your home actually uses electricity.
In most of Texas, you choose the retail electricity company that sells and bills your power. A separate delivery utility owns the meter, poles, and wires. The cheapest-looking advertised rate is not always the cheapest plan for your home.
The four plan types you will see
Fixed rate
Predictable priceThe energy price stays fixed for the contract term. Check the end date and Early Termination Fee.
Best for: predictable budgetingVariable rate
Flexible, but changeableThe price can change from month to month. There is usually no long contract, but bills can move quickly.
Best for: short-term flexibilityPrepaid
Pay before you useYou add money before using electricity and must watch the balance closely to avoid an interruption.
Best for: avoiding a depositTime-of-use
Price changes by timeFree nights or days only help when enough of your real usage happens inside the exact free window.
Best for: a matching usage scheduleFind the real terms in the Electricity Facts Label
This one document reveals the plan math.
Every plan publishes an Electricity Facts Label. It shows the energy charge, base fees, delivery charges, contract length, renewable content, and cancellation terms.
- Check the prices at 500, 1,000, and 2,000 kWh.
- Find any bill credit and the exact usage needed to earn it.
- Read the Early Termination Fee before enrolling.
Your delivery utility stays with the address
Sells the plan and sends the bill.
Owns the meter and wires and responds to outages.
Usually combines the plan price and delivery charges.
Your ZIP code helps identify the delivery territory, but some ZIP codes cross utility boundaries. The service address is the final check.
We already do this comparison for you
Real plans, real Electricity Facts Label data, no gimmicks hidden in the fine print.
Check these five things before you enroll
Use the complete estimated bill for your home, not only the headline price.
Confirm the term, end date, and exact Early Termination Fee.
See what usage earns the credit and what happens when you miss it.
Make sure your actual hourly use can land inside the discounted window.
Review payment rules, deposits, customer support, and service history.
For a deeper walkthrough of exactly how each of these gimmicks works, with worked examples and a real comparison table, see our guide to Texas electricity plan traps: bill credits, fees & gimmicks.
Frequently asked questions
What are the different types of electricity plans in Texas?
There are four main structures: fixed rate (same price per kWh for the whole term), variable rate (can change month to month, no contract or termination fee), prepaid (pay before you use it, no deposit), and time-of-use (different prices at different times of day). Which one is actually cheapest depends on your usage pattern, not just the advertised headline rate.
What is an Electricity Facts Label?
It's a standardized, one-page disclosure every Texas electricity plan is required to publish, spelling out the real energy charge, base charge, delivery charge, contract term, and exact termination fee language. It's the real contract math behind the marketing headline rate.
Does my ZIP code affect my electricity price in Texas?
Yes, indirectly. Your ZIP code helps identify the delivery utility that owns the physical wires to your home, and that delivery charge is included in every plan's advertised price. You don't get to shop for the delivery utility itself, only the retail electricity company.
Is there an early termination fee on Texas electricity plans?
Usually, if it's a fixed-rate plan. But Texas customer-protection rules prohibit an early-termination fee caused by a genuine relocation when you provide a forwarding address and, if requested, reasonable evidence that you no longer occupy the contracted location. Variable-rate and prepaid plans typically don't have a termination fee. Read the relocation steps.
Source: Public Utility Commission of Texas, Ways to Save: Shop for Electric Plans. Learn more directly from the PUCT at puc.texas.gov/industry/electric/plans.