The 1,000-kilowatt trap!
Want to know a secret? The plans with the lowest advertised prices are not always the best overall deals.
According to the U.S. Energy Information Administration (EIA) the overall residential electric price in Texas has averaged 11.92¢ per kilowatt hour (kWh) over the past 12-months.
So the question is this:
Why would the average Texan be paying close to 12¢ per kilowatt hour for electricity when retailers are advertising plans with prices as low as 7¢ all over the internet?
The answer is simple: Because they can’t really buy it for 7¢.
The plans that advertise those really low prices are getting there through pricing adjustments, usually in the form of a bill credit at exactly 1,000 kilowatts. That means that ‘really low price’ you saw only applies if you use exactly 1,000 kilowatts. Use 1 kilowatt less and your price will more than double.
And since no one uses exactly 1,000 kilowatts every month, everyone ends up paying more than the advertised price. That said, plans with bill credits can still be a good deal in some circumstances, but only if your usage falls within the plan’s sweet spot, that area just past, but not too far past, the credit threshold.
Avoid the 1,000-kilowatt trap and see the “True Price” of each plan by entering your information above.