Texas Electricity Plans Compared: Fixed, Variable, Prepaid

For plans with renewable content, see the green energy guide. Small businesses can read the business electricity guide.

You may also see plans with bill credits, free nights or weekends, or usage tiers. These are features of a fixed or variable plan, not separate types, and they change what a month costs. Read the label closely when a plan advertises one.

Source: 16 Tex. Admin. Code § 25.475, information disclosures to residential and small commercial customers. Rule text checked October 9, 2026. Rules can change, so confirm on the Public Utility Commission of Texas site before you rely on a detail.

The label is the one document you can use to compare plans from different companies. State rules say it must show:

• The type of plan, fixed rate or variable price.
• The average price in cents per kWh at 500, 1,000 and 2,000 kWh a month, rounded to a tenth of a cent. For a fixed rate plan it includes all recurring charges, and it leaves out sales tax and the state gross receipts tax reimbursement.
• Fees, with a note on whether each is already counted in the average price.
• The term and any early termination fee.
• Renewable content, for the plan and for the statewide generation mix.
• The provider's contact details, including a toll-free number.

The three prices matter because one flat rate hides how a plan behaves. A plan with a monthly base charge costs more per kWh at 500 kWh than at 2,000 kWh. A plan with a bill credit can look cheap at one usage level and expensive at the next.

Source: 16 Tex. Admin. Code § 25.475, information disclosures to residential and small commercial customers. Rule text checked October 9, 2026. Rules can change, so confirm on the Public Utility Commission of Texas site before you rely on a detail.

Your bill has two parts: what the provider charges for the energy, and what the delivery company charges to move it to your home. The delivery company is a different business from your provider, and its charge is passed through on your bill. In most competitive areas it does not change when you switch providers.

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), delivery-only residential service. These are 2025 averages, not tariff rates.

The averages above are all-in delivery prices for the year. The label price already includes the delivery charges, so you do not add them again when you compare labels. They are useful to see how much of a bill the delivery company takes, which is the part a provider cannot compete on.

Before you are enrolled, a provider must give you three documents: the Electricity Facts Label, the Terms of Service and a document called Your Rights as a Customer. The Terms of Service is the binding part of the contract, so read how the plan can end and what it costs to leave.

When you switch to a new provider, the rules give you at least three federal business days after you receive the Terms of Service to cancel the switch without a fee or penalty. The terms must state this right in a clear box or paragraph with instructions for how to use it.

Source: 16 Tex. Admin. Code § 25.475, information disclosures to residential and small commercial customers. Rule text checked October 9, 2026. Rules can change, so confirm on the Public Utility Commission of Texas site before you rely on a detail.

• A bill credit that only works in a narrow range. A credit that applies between, say, 1,000 and 1,200 kWh helps a household that lands there and hurts everyone else. Check your usage in every season.
• The headline price at the wrong usage. A plan advertised at 2,000 kWh may not be the cheapest at 800 kWh.
• A short term with a big renewal jump. When a fixed term ends, you move to a month-to-month plan by default unless you choose a new one.
• Ignoring the fee list. Base charges, minimum usage fees and payment fees all change the true price.

• 16 Tex. Admin. Code § 25.475, Information disclosures to residential and small commercial customers
• Power to Choose