The average Texan overpays by about 15% for electricity…
Don’t be average!

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  • The 1,000-kWh Trap

    The plans with the lowest advertised prices are not always the best overall deals.

  • Remember the Rollercoaster

    Why accounting for seasonal usage fluctuations is critical to finding your best price.

  • Don't Be Average

    We may not be able to reduce what you use, but we can reduce what you pay.

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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.

Remember the Rollercoaster

Seasonal Usage Curve

Average Monthly Usage per Residential Customer in Texas Source: EIA Electric Power Monthly (Updated 09/25/2021)

Accounting for seasonal usage fluctuations is critical to finding your best price.

The most important, and often overlooked, factor in determining an electric plan’s “True Cost” is the correct use of a Seasonally Adjusted Usage Curve. According to the EIA’s Electric Power Monthly reports, a typical residential consumer in Texas has used, on average, 1126 kilowatt hours per month over the past 12 months. But choosing a plan based on just that one number, whether it be the state average above or your own personal average, won’t get you your best price.

To truly find your best deal you need to use the EIA Seasonally Adjusted Usage Curve, or better yet, your actual historical usage (click here to see how easy it is for us to get that for you) to estimate your monthly usage going forward. Then using the price schedule from each plan’s Electricity Facts Label (EFL), calculate that plan’s charges for each of the next 12-months to determine the plan’s “True Cost”. Then repeat that for all 100+ plans that are available.

Whoa, that’s a lot of math. Fortunately for you WE LOVE MATH!

Don't Be Average

The average Texan overpays for electricity by about 15% because they are led to believe that the advertised price they see elsewhere is the true cost of that plan.

It’s not. In reality, those 500-1000-2000 kilowatt prices advertised on the EFL are really quite useless when it comes to finding your best deal.

The only way to truly find your best deal is to do the math and convert ALL available plan options to a common value, a “True Cost” that accurately represents what each plan will cost over the next 12 months using a Seasonally Adjusted Usage Curve.

The sliding usage bar on the chart abovethe chart to the right is a visual representation of the math it takes to find your True Cost. As you move the sliding usage bar back and forth, the True Price and True Cost change to show you what your average costs will be over a 12-month period.

This shows you that within some usage windows this particular plan is a good deal, well below the 12¢ average in Texas, but at other usages you’ll pay significantly more than the 7.0¢ advertised price, as much as 17¢, or about 243% more than advertised!

We do these calculations on all plans at all usage levels because all plans are like this, good for some consumers, not so good for others.

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