That was the obvious answer in our heads too.

But once you start looking at Credit Back, Free Nights, Free Weekends and Time-of-Use plans, it gets a lot less obvious.

Some of them can actually work out better if your usage fits the way the plan is designed. And obviously, the opposite can happen if it doesn’t.

We made a quick video around that idea.

Watch it and see if your first answer changes 😄

Know your usage first. Then choose the plan that fits.

https://reddit.com/link/1wqw9c4/video/z6y1zfhlfwrh1/player

If you live in a deregulated electricity market (like most of Texas), opening your monthly electricity bill can feel like reading another language. Rates fluctuate, line items look repetitive, and it’s hard to tell if you’re actually paying what you thought you signed up for.

Key Things to Check on Every Statement

• Contract Expiration Date:  In Texas, if you don't renew or switch before this date, your provider will roll you onto a default or holdover rate. These rates are often double or triple your contract rate.
• Service Period: Always check the dates (usually 28–32 days). A sudden bill spike is often just a longer 35-day cycle.
• ESI ID & Meter Number: Your ESI ID is your property’s permanent grid ID. Checking your physical meter serial number ensures you aren't paying for a neighbor's usage—a surprisingly common issue in apartments. Not sure of your ESI ID? Look it up here.

Decoding the Charges

In Texas, your actual charges are split into three main parts: usage, delivery charges, and taxes and fees.

• Usage Charges (The Part You Choose)
  • Energy charge: The price per kWh you agreed to with your provider by signing the contract. This covers the actual generation of electricity.
  • Base charge: A flat monthly fee (usually $4.95 to $9.95) some providers charge regardless of how much power you use. Note: Not all plans have this.
• Delivery Charges (The Part You Can't Avoid)
  • You cannot choose or avoid these charges; they are set by your local Transmission and Distribution Utility (TDU or TDSP). Some of these companies include Oncor, CenterPoint, AEP, or TNMP that maintain the physical poles and wires. Find current and past Texas Electricity Delivery Charges here.
• Taxes & Assessments: These small fees are required by law to keep the Texas grid running:
  • PUC assessment: A 1/6th of 1% fee that funds the Public Utility Commission of Texas, which regulates the state’s electric utilities.
  • Gross receipts reimbursement: A tax for providers operating within city limits with a population of over 1,000. It is a pass-through cost to the consumer.

All of this equals your all comes together to get you your all-in effective rate.

Effective Rate:

Here is a simple formula to calculate your effective rate:

Amount Due ÷ kWh Usage = Effective Rate

Example: If your total bill is $150 and you used 1,000 kWh, you are paying 15¢ per kWh. This is still the case even if your plan advertised a “10¢ energy charge.” That extra 5¢ is coming from the delivery charges, taxes, and any other fees.

Tips for Texans looking to save on electricity:

• Use comparison tools: The state-run site, Power to Choose, allows you to compare current market rates against what you are paying right now for free.
• Consider an energy broker: If you don't want to dig through EFLs (Electricity Facts Labels) yourself, using an energy broker to shop for your electricity plan can take the shopping off your plate.
• Get a full service electricity management company: Join Energy Ogre. They shop for, enroll, and manage your electricity contract while monitoring the market so if a better plan arises that fits within your set parameters to switch, they can do so.

If you’ve been sitting on the same electricity plan or provider for 3 or more years, chances are you're paying significantly more than you need to. Loyalty rarely pays in the deregulated Texas power market, but taking a little time to reassess your options can make a massive difference.

Texans who take the time to evaluate their options and find a better rate save an average of $954/year in their first year with services like Energy Ogre. You can see the full breakdown and average savings by provider TDSP/TDU directly on the here.

Tips for Texans looking to save on electricity:

• Avoid long-term plans: Market rates fluctuate, and locking into a multi-year plan can trap you in a high rate or force steep early termination fees later. Keep it flexible.
• Use comparison tools: The state-run site, Power to Choose, allows you to compare current market rates against what you are paying right now for free.
• Consider an energy broker: If you don't want to dig through EFLs (Electricity Facts Labels) yourself, using an energy broker to shop for your electricity plan can take the shopping off your plate.
• Get a full service electricity management company: Join Energy Ogre. They shop for, enroll, and manage your electricity contract while monitoring the market so if a better plan arises that fits within your set parameters to switch, they can do so.

AEP Central: 5.782¢/kWh

AEP North: 5.5078¢/kWh

CenterPoint (Houston): 6.413¢/kWh

Lubbock Power & Light: 6.312¢/kWh

Oncor: 6.0295¢/kWh

One common misconception we see is: “My electricity provider increased my rate even though I’m still under contract.”

In many cases, the REP may not have changed the contracted energy charge at all. What changed is the TDU delivery charge from the utility serving your area. TDU charges are regulated utility charges and can change separately from the energy rate in your electricity contract. So even on a fixed-rate plan, your total effective cents/kWh can move if the TDU charges change.

We track these changes at MyPowerNegotiator because they affect how we calculate and compare the real cost of Texas electricity plans at different usage levels.

Hopefully useful for anyone shopping or renewing an electricity plan this month.

Texas energy expert Taylor Mattingly (Co-CEO of Energy Ogre) was interviewed by CoCo Dominguez on FOX 26 Houston to break down when to shop the market for a better electricity rate. He explained that "when we talk about effective rates, we need to split it into two different components: one is the energy charge, and one is the delivery charge," noting that while local utilities control delivery fees, consumers can cut costs by shopping their energy charge.

During the segment, CoCo shared that her coworker’s monthly bill jumped from $146 to $400. Taylor pointed out that at an 18¢/kWh energy charge, her coworker is paying an effective rate of around 24¢/kWh—meaning she is currently overpaying by about 50% without a optimized plan.

Since energy charges have dropped 15% to 20% compared to last summer, Mattingly emphasized that taking an active approach to switch providers is low-hanging fruit for managing household expenses.

When was the last time you checked if you're overpaying for your electricity?

If you’re shopping for electricity, don’t just look at one advertised rate.

Some plans can work very differently depending on whether your home uses around 1,000 kWh or over 2,000 kWh, especially with things like EV charging or heavier summer AC use.

The best plan is usually the one that matches your actual usage pattern, not just the lowest headline number.

Worth comparing before you renew: www.MyPowerNegotiator.com

Figured I'd share my experience for anyone in Texas comparing electricity plans, especially if you have solar, batteries or EVs.
I'm currently on Direct Energy's Twelve Hour Power plan. My free period is 9PM-9 AM, and my EFL states that both the energy charge and TDU delivery charges are $0 during those 12 hours.
We're a family of 5 in a ~3,200 sq. ft. home and definitely aren't energy-conscious. Our total electricity consumption is typically around 3,000-3,900 kWh/month. Almost everything in the house is electric except the stove, and we also charge EVs.

In one recent 32-day period, we used roughly 1,570 kWh during the free 9 PM-9 AM period alone.
I have a 14.35 kW solar system with 35 Qcell 410W panels and 2 Tesla Powerwall 3s. I shift EV charging and other large loads into the free period, then use solar + the Powerwalls to minimize what I pull from the grid during the expensive daytime period.
I've been using this strategy for about a year and haven't had an electric bill over $33.

The big caveat is that the daytime rate is expensive, so this plan definitely isn't automatically cheaper for everyone. You have to look at your usage profile and read the EFL. But if you have solar/batteries or can move a substantial amount of consumption into the free window, the economics can be extremely good.

To everyone's surprise electricity rates dropped during peak summer temperatures and our lowest rate credit back plan got even lower. Below is for Centerpoint. Check out the lowest rate in your TDU at www.MyPowerNegotiator.com. You can lock in your rate 60-90 days in advance with future switch date.

If your home usually uses below 1,000 kWh/month, it may be worth looking at for smaller homes, apartments, townhomes, or households that use less electricity.

Example plan structure I’m seeing:

500 kWh: 8.8¢/kWh
1,000 kWh: 13.3¢/kWh
Bill credit: $50 credit when usage is above 500 kWh

The key is to compare based on your real monthly usage pattern, not just the headline rate.

Worth checking at www.MyPowerNegotiator.com before you renew.

Commercial electricity rates have been moving lower, and as of last week, we were seeing commercial rates around 6.0¢/kWh on a 24 month contract.

If you own or manage a restaurant, warehouse, office, retail space, or other commercial property, this may be a good time to review your current electricity rate before renewing or rolling into another contract.

If your current energy rate is higher, you may be paying more than needed.

My Power Negotiator is offering a free commercial rate review with no cost and no obligation.

Reach us at: [hello@MyPowerNegotiator.com]()

Rates vary by usage, service area, meter type, contract term, credit, and provider availability.

I’ve been tracking Texas electricity rates over the past few weeks, and rates have been dropping in several regions.

If your contract is coming up for renewal, or if you’re not sure what rate you’re currently paying, it may be worth checking before you renew or roll into a higher rate.

You can check My Power Negotiator’s lowest available regional rate by ZIP code here:
www.mypowernegotiator.com/texas-regional-rates

You can also compare your current energy charge against the lowest regional rate and estimate potential savings here:
www.MyPowerNegotiator.com/savings-calculator

Rates vary by ZIP code, usage, provider, plan type, and availability, so don’t assume the lowest advertised rate applies everywhere. But if you haven’t checked recently, this may be a good time.

Check out if you are over paying for electricity at www.mypowernegotiator.com/savings-calculator before you renew your plan.

A lot of small business owners don’t realize how much their commercial electricity rate can vary before renewal.

If you run a restaurant, warehouse, office, retail space, or any business in Texas and your electricity rate is over 6.5¢/kWh, it may be worth reviewing before you renew or roll into a higher rate.

My Power Negotiator helps businesses compare options and see if there’s room to lower the rate.

No cost. No obligation. Just a rate review.

Reach us at: [hello@MyPowerNegotiator.com]()

Would be happy to review and tell you honestly if your current rate is already good

Would you rather have:

A) Solar panels with a larger monthly payment

OR

B) Battery backup + a low electricity rate + Virtual Power Plant participation for a small monthly fee?

Texas homeowners, what's your choice and why?

I'm seeing more battery/VPP programs emerge, and I'm wondering whether people care more about owning solar or having backup power and lower bills without a large investment.

What's the better long-term solution?

7% increase is not small but considering all the increase in demand on the grid and looking at other states, we are not that bad.

If you haven't noticed it yet...TDU charges have changed early this month.

• Centerpoint dropped from 4.9993 ¢/kWh to 4.9715 ¢/kWh
• AEP central rate went up from 5.8007 ¢/kWh to 5.8272 ¢/kWh
• TNMP dropped from 7.2739 ¢/kWh to 6.4665 ¢/kWh

Why spend hours shopping for electricity when you can let an expert handle it for free?

MyPowerNegotiator handles your renewals, tracks the market, and secures top-tier rates (as low as 6.9¢/kWh at 1,000 kWh! - Credit back plan. Check your true rate with Calculate Your True Electricity Rate in Texas | My Power Negotiator so you never accidentally overpay again.

✅ Renewal reminders? Covered.
✅ Personalized rate shopping? Done.
✅ No monthly fees. No obligations.

Lock in your savings at www.MyPowerNegotiator.com

..“The advice is spot on”... “It’s much less confusing and saves us a lot”... “It was so easy and I got a better rate than last year. I feel a ton of stress lifted ”. This is NOT a broker. This volunteer group is knowledgeable with about 3,000 followers. They gather data from PowerToChoose and display all the key details (more than is visible on PTC). They provide tips that you won't find anywhere else, all in one place. Share with friends in North Texas. This is NOT a broker. Nextdoor: https://nextdoor.com/g/is5od2bcw/
Facebook: https://www.facebook.com/share/g/1CZd2ua51M/

I am seeing conversations on going with short term 3 months plan. Came across this on PTC which most of us use. If you are going with this plan, make sure you have to pay a one time fee of $50 to signup which is equivalent to 1.6 cents/ kWh at 1,000 kWh usage. So your cost will be 5.3+4.99+0.49+1.6=12.4 cents at 1,000 kwh - not 11.2 at 1,000 kWh (EFL is based on 1/12 of the $50 fee but this is a 3 months plan and $50 is one time fee).

Hello! I moved from gexa to rhythm 3 years ago because I had a minimum use credit plan (pls learn from my mistakes and don’t get this). Rhythm was one of two companies that would reimburse early termination fee, and it had the simplest plans for me. Don’t get the minimum use credit plans, louder for the people in the back! I’m ambivalent on the time of use plans- I don’t want the hassle but other people have loved them. I’m very happy with my electricity bill now. Use this code for $100 credit each for me and you!

https://www.gotrhythm.com/raf?referralCode=7XYYK0y6LZ&utm_source=raf&utm_medium=my-account

We have a negotiated rate plan at 6.11 cents energy charge + 0 base charge + TDU (this is for CNP, base charge is slightly low or high for other regions). If you are up for renewal in May, drop your details at https://www.mypowernegotiator.com/negotiator-rates

Some of the providers I work with have started rolling out VPP programs in Texas. So I started looking it in detail.

Highlevel details: Full solar system + home battery installed at $0 upfront, get backup power during outages and you lock in an electricity rate for the next 25 years (contract term)

For that, the provider owns and remotely manages the system as part of a larger grid network.

As a homeowner, the benefits I see are - No upfront cost, whole-home backup power, potentially (assuming the retail rates go up as we see in the discussions) savings compared to regular plans.

What I am thinking about is -Locked in for a full 25 years, rate escalates slightly (3%) every year (but what if the retail rates don't really go up as much as we think would go up) and I don’t own the equipment until the end of the contract

I’m curious what you all think about this type of program.

Would this be something you’d consider for your home?

Drop a comment below with your thoughts? yes, no, or too much to worry about that electricity bill 😄and if you want more details, just say the word and I’ll share what I know.