Half of the "cheapest" Texas electricity plans aren't cheap over a year (November 3, 2026)
Power to Choose and most comparison sites sort plans by the price at exactly 1,000 kWh a month. We wanted to know how those "cheapest-looking" plans do over a whole year. On November 3, 2026, in each of the six utility areas we took the 10 plans with the lowest 1,000 kWh price from our default ranking (fixed-rate plans of 6 months or more that are not prepaid or time-of-use) and compared them with their place in our ranking by estimated 12-month cost. The estimate is for a home that averages 1,000 kWh a month on a seasonal Texas profile (more in summer, less in spring and fall), with delivery charges and bill credits applied month by month, before taxes. It is an estimate from published prices, not an offer.
What we found
| Utility area | Plans ranked | Avg 1,000 kWh price of the 10 | Their avg 500 kWh price | Outside our top 50 | In our top 10 | Their avg year | Real top 10 avg year |
|---|---|---|---|---|---|---|---|
| AEP Texas Central | 130 | 8.6¢ | 17.3¢ | 7 of 10 | 0 | $1,759 | $1,341 |
| AEP Texas North | 132 | 9.0¢ | 14.1¢ | 4 of 10 | 0 | $1,580 | $1,358 |
| CenterPoint (Houston) | 138 | 9.2¢ | 18.2¢ | 7 of 10 | 0 | $1,841 | $1,435 |
| Lubbock Power & Light | 86 | 10.8¢ | 15.9¢ | 4 of 10 | 2 | $1,770 | $1,455 |
| Oncor (Dallas–Fort Worth) | 136 | 9.6¢ | 14.7¢ | 4 of 10 | 0 | $1,645 | $1,453 |
| TNMP | 130 | 11.1¢ | 20.4¢ | 7 of 10 | 2 | $2,030 | $1,601 |
Across the six areas, 33 of the 60 cheapest-looking plans ranked outside the top 50, and only 4 were in the real top 10. On average the 10 cheapest-looking plans cost $192 to $429 a year more than the 10 plans that are actually cheapest over a year, depending on the area. The gap was largest in TNMP ($429) and CenterPoint ($406) and smallest in Oncor ($192).
Why: the bill credit
Every one of the 33 plans that fell outside the top 50 has a bill credit — a fixed amount taken off the bill only in months when usage reaches a threshold, usually 1,000 kWh. At exactly 1,000 kWh the credit is counted in full, so the advertised price looks low. In a month at 999 kWh the credit is gone, and the price per kWh can double: the same 10 plans averaged 8.6–11.1¢ at 1,000 kWh but 14.1–20.4¢ at 500 kWh. A Texas home that averages 1,000 kWh a month is under 1,000 kWh in most months outside summer. We explain the mechanics in how bill credits work.
What to do
- Read all three prices on the plan's Electricity Facts Label (500, 1,000 and 2,000 kWh), not just the 1,000 kWh one. See how to read an EFL.
- Estimate the year on your own usage. Our utility pages rank every plan by 12-month cost; enter your monthly average or 12 months of usage. How we rank plans.
- A bill-credit plan can still be the right choice if you are above the threshold almost every month — large homes, pools, electric heat or an EV.
Method: Power to Choose export imported November 3, 2026, 6:15 a.m. Central. "Cheapest-looking" = the 10 plans with the lowest listed 1,000 kWh price in each area within our default ranking (ties broken by plan ID). "Real" rank = our rank by estimated 12-month cost at an average of 1,000 kWh a month. Lubbock has fewer plans (86), so a rank outside 50 there is closer to the bottom of the list.
Questions
Are the plans with the lowest price per kWh on Power to Choose the cheapest?
On November 3, 2026, we took the 10 plans with the lowest 1,000 kWh price in each utility area (60 plans in all). Over a year at an average of 1,000 kWh a month, 33 of them ranked outside the top 50 in our ranking, and only 4 made the real top 10.
Why does a plan with a low 1,000 kWh price cost more over a year?
All 33 of the "cheapest-looking" plans that fell outside the top 50 have a bill credit. A credit counts in full at exactly 1,000 kWh, but it disappears in months when you use less, and a Texas home uses less than 1,000 kWh in most spring, fall and winter months.
How do I avoid this when I shop?
Look at the 500 kWh and 2,000 kWh prices on the plan's Electricity Facts Label as well as the 1,000 kWh price, and estimate the year on your own usage. Our utility pages rank every plan that way.
Sources
- Power to Choose plan export (imported November 3, 2026) — Public Utility Commission of Texas
- Electricity Facts Label rules (16 TAC §25.475) — Public Utility Commission of Texas
General information as of Nov 4, 2026, not legal or financial advice. PUCT rules (16 TAC Chapter 25), your contract and the provider's Electricity Facts Label control; check the current rule text and your own documents.
