How to choose the right electricity plan when moving to Texas
Moving to Texas with your family and need help choosing an electricity plan? This guide explains how Texas electricity plans work, the differences between fixed and variable plans, including time‑of‑use options, and how to use the Electricity Facts Label (EFL) to compare plans based on real household usage.
How to choose the right electricity plan when moving to Texas
Moving to Texas with your family and need help choosing an electricity plan? This guide explains how Texas electricity plans work, the differences between fixed and variable plans, including time‑of‑use options, and how to use the Electricity Facts Label (EFL) to compare plans based on real household usage.
When you’re getting ready to move, choosing an electricity plan may not be the first thing on your mind, but it soon becomes an important part of your moving checklist. As you think about how your family uses energy in a new home, from cooling and cooking to everyday devices, it helps to understand what makes the Texas electricity market different and what to expect as you start comparing plans. With over 100 retail electricity providers and electricity plans available across Texas, you may feel a bit overwhelmed at first. But with some basic knowledge and research, you can find an affordable plan that truly fits your family.1
Whether you're relocating to Dallas, Houston, Lubbock or any of the surrounding areas, understanding Texas electricity plans before you arrive means one less thing competing for your attention during move-in week. This guide breaks down Texas electricity plans for households with multiple family members, helping you find a plan that fits your budget and usage patterns.
Compare plan types, then review each plan's Electricity Facts Label (EFL), which shows pricing, fees and usage details in one place, so you can choose an option that fits your household’s energy use.
In Texas, you might notice that you have more of a say in how you power your home, because in most areas throughout the state, the electricity market is deregulated. This means you’re not tied to a single utility. You can choose or switch electricity providers and plans based on what works best for your home, your budget and your family’s routines. However, your home is still served by a local utility, known as a Transmission and Distribution Service Provider (TDSP), which delivers electricity and maintains power lines in your area.
Behind the scenes, the system is simpler than it sounds. Power is generated at plants, moved across power lines and then delivered to your home by your local utility or your Transmission and Distribution Service Provider (TDSP). Your TDSP (sometimes called a TDU or Transmission and Distribution Utility) maintains the power lines, poles and transmission infrastructure, while your Retail Electric Provider (REP) is the company you choose for your electricity plan in Texas.
There are four common terms you should familiarize yourself with as you shop around for an energy provider:
Explore the complete electricity glossary for customers to quickly understand the terms you'll see while comparing plans. Once you know how your household uses electricity, it’s easier to see which plan makes the most sense.
Plan type |
Rate structure |
Family moving plan |
|---|---|---|
| Fixed-rate plans | Fixed energy charge | To own or rent long-term in Texas with predictable monthly bills |
| Variable-rate plans | Depends on market rates and other factors | To move into a short‑term or temporary home in Texas with plan flexibility and no long‑term contract |
| Time-of-use plans | A type of fixed-rate plan where the energy charge may differ depending on the time of day energy is used | To move into a home in Texas where families can shift the most of their electricity use to nights or weekends |
The next step in choosing an electricity plan is deciding whether a fixed or variable rate option best fits your family’s daily energy habits, and whether a time‑of‑use option within a fixed‑rate plan aligns with your routines. When comparing plans, it helps to know that advertised electricity rates typically refer to the energy charge per kilowatt‑hour (kWh), and your total bill may also include delivery charges, base charges and other applicable fees. Retail electricity providers across Texas offer a range of options, each with different benefits depending on your home size and budget.
Planning and predictability are everything for busy households. A fixed-rate plan keeps your energy charge steady for the length of your contract, often 12, 24 or 36 months, which makes billing more predictable and helps you manage monthly costs. Some fixed-rate plans also include time-of-use pricing, where energy charges are set amounts during specific hours of the day or days of the week. These plans can be especially helpful in summer when AC usage climbs. For families looking for stability, a fixed-rate electricity plan in Texas makes it easier to anticipate monthly energy costs.
Variable‑rate plans do not typically require a contract and pricing can change month to month, which can work for families in short‑term situations like house‑hunting trips or corporate relocations. However, variable rates can spike during extreme heat, which is common in Texas summers. Due to price volatility, a family may be better off choosing a more predictable option for their home, such as a fixed-rate plan.
If you’re able to adjust your routines to the plan’s schedule, time‑of‑use fixed‑rate plans can help some families lower costs. These plans apply fixed energy charges during specific times of the day or days of the week. That means if you do most of your laundry, dishes or electric vehicle (EV) charging at night, or concentrate energy use on weekends, a Truly Free Nights or Truly Free Weekends plan may work better for your household.
Understanding these differences makes it easier to compare Texas electricity rates and choose a plan that supports your household’s energy habits.
When you have more than one family member living with you, it can be difficult to estimate how much energy you use daily. Before you use a bill estimator, it helps to know what to look at to make your energy plan work for you.
Can your household habits affect your energy use? You may be able to improve energy efficiency if you or the people you live with:
The average Texas family home is about 2,000 sq. ft.2 Homes 1,500-2,500 sq. ft. in size use about 1,177 kWh per month, although this will vary based on individual usage.3 When estimating your home’s monthly usage, it can help to think of each additional family member as adding roughly 390-400 kWh per month to your overall energy use. If you’re looking at older homes to live in, you might also want to account for less efficient insulation and HVAC systems.
These insights help you determine which Texas electricity plan will be most cost‑effective based on your home’s real usage.
Summers in Texas can come as a surprise if you aren’t used to triple-digit temperatures and high humidity. You’ll likely see your energy use increase whenever you turn your AC on, as temperatures start to rise in Texas between May and August.
Depending on your kids’ school schedules, you may also notice your energy usage drop when they are in school compared to when they are on seasonal breaks and holidays. And if you work from home, it helps to factor in daytime cooling costs before choosing an electricity plan.
One way to find out how much energy your home uses is by asking your current provider for your 12-month usage history before you move. Collecting this information can give you a general baseline to refer to when getting into the details of different electricity plans in Texas.
Once you understand how deregulated electricity works in Texas, the next step is comparing plans based on how your family actually uses electricity.
In deregulated parts of Texas, every residential plan includes an Electricity Facts Label (EFL), which works like a nutrition label for your electricity plan. It outlines the price per kWh, contract length, fees and any special conditions so you can compare options easily. Most EFLs list average prices at 500, 1,000 and 2,000 kWh. Since many Texas families use between 1,200 and 2,000 kWh monthly, the 1,000 and 2,000 kWh rows often give the most realistic picture. The 500 kWh rate may look low, but it typically reflects usage closer to a small apartment or highly efficient home, not a typical family household.
Below is a simplified example to show how two plans that look similar at a glance can cost very different amounts once you factor in usage and fees. Know that these numbers are for illustration only and do not represent an actual Reliant plan.
| Category | Plan A | Plan B |
|---|---|---|
| Energy charge | 10.0¢ per kWh | 8.5¢ per kWh |
| Base charge | $0 per month | $15 per month |
| TDSP energy charge | 4.0¢ per kWh | 4.0¢ per kWh |
| Fixed TDSP charge | $5 per month | $5 per month |
| Estimated total at 1,000 kWh |
$145 | $145 |
| Energy | $100 | $85 |
| TDSP energy | $40 | $40 |
| TDSP fixed | $5 | $5 |
| Base charge | $0 | $15 |
| Estimated total at 2,000 kWh |
$285 | $270 |
| Energy | $200 | $170 |
| TDSP energy | $80 | $80 |
| TDSP fixed | $5 | $5 |
| Base charge | $0 | $15 |
For higher-usage households, the slightly lower per kWh rate offsets the monthly base charge. This is why checking the EFL at the usage level that matches your home is so important.
When you open an EFL, focus on these key areas first:
Taking a minute to walk through these sections can help you compare plans with confidence.
Choosing an electricity plan in Texas becomes simpler when you know what to look for. With the flexibility to switch providers, stable fixed‑rate options and clear EFL pricing at real family usage levels, you can confidently manage energy costs and focus on settling into your new Texas home.
Select a category from the dropdown menu.
Compare plans by reviewing the Electricity Facts Label, focusing on costs at 1,000-2,000 kWh since that reflects typical family usage. Look at contract length, fees and how your household actually uses electricity to decide which structure fits your routines and budget best.
In deregulated areas, you can switch providers anytime, although depending on your plan terms, an early termination fee may apply. Review your contract terms, choose a new plan that fits your usage and schedule the switch to align with changing household needs or life transitions.
It depends on your usage patterns, but many high‑usage households find fixed‑rate plans helpful because of its steady pricing structure. Reviewing EFL pricing at 1,000-2,000 kWh helps you compare plans at realistic usage levels, so you can choose an option designed for larger or more active homes.
A typical Texas family of four uses about 1,568 kWh per month. Homes between 1,500-2,500 sq. ft. average around 1,177 kWh monthly, and each additional family member increases usage by roughly 390-400 kWh depending on habits, home age and cooling needs.
1 Public Utility Commission of Texas: Alphabetical Directory of Retail Electric Providers
2 Trading Economics: Housing Inventory: Median Home Size in Square Feet in Texas
3 ChooseTexasPower.org: Average Electricity Usage According to Home Square Footage
