Get the best plan for your home
How to choose the best electricity plan
Energy charges
This is the main part of your bill that electricity providers control. It’s calculated by multiplying how much energy you use (in kilowatt-hours, or kWh) by the provider’s rate per kWh. Different providers charge different rates, so this part can vary a lot.
Transmission and Distribution Utility (TDU) fees
These are charges from the companies that maintain the power lines and poles that bring electricity to your home. TDUs like Oncor (in North Austin and Dallas Fort-Worth) or CenterPoint (primarily in the greater Houston area) charge a standard delivery fee, which stays the same regardless of your electricity provider.
“Base charges and fees”
Some providers add a fixed monthly fee called a base charge or customer charge. This fee covers the cost of being connected to the grid and other fixed expenses. Not all providers charge this, but it can add significantly to your monthly bill. It’s called a “base charge,” but don’t worry, it’s not from Base Power (we promise).
01
Avoid unpredictable variable rate plans
These plans sound cheap until the power market spikes—and then your rates can skyrocket. Lock in a fixed rate to protect your budget from unpredictable price swings.
01
Beware of gimmicks like usage thresholds and free nights
Some plans offer low rates only if you stay under certain usage limits or use power at specific times. These conditions can be tricky and often lead to higher bills if you don’t fit the fine print.
01
Look for clear, simple pricing with no hidden fees
The best plans keep it straightforward: a consistent rate per kWh and transparent delivery fees. Hidden charges or complicated billing make it harder to understand your true costs.
