Texas Electricity Rate Gotchas: How to Avoid the Pitfalls and Save Big with Your Solar Buyback Plan
Navigating the Texas electricity market can feel like driving on a long stretch of Texas highway—straightforward until you hit the unexpected twists and turns. Here at Texas Best Solar Buy Back Plans, we’ve seen all the tricks electricity retailers play to keep squeezing out higher margins from customers. Let’s help you dodge those bumps in the road by laying out the most common electricity plan “gotchas” and how to avoid them.
Watch Out for Energy-Only Rates
Some retailers like to advertise lower rates by listing only the energy cost—conveniently leaving out delivery charges from your Transmission and Distribution Utility (TDU). But you don’t just pay for the power—you also pay for its delivery! If the plan doesn’t clearly mention the delivery charges, it’s time to hit the road and find a more transparent offer.
Usage-Dependent Rates
Retailers often lure you in with rates based on specific usage levels like 500, 1000, or 2000 kWh per month. However, your energy use fluctuates throughout the year, and a plan that seems cheap at one usage level might cost a whole lot more in the long run. For example, a plan may charge $80 for the first 1000 kWh but tack on 15¢ for each kWh beyond that. The result? While it may seem like you’re getting a good deal, if you use 1500 kWh, the real rate jumps to around 10.3¢/kWh—not as sweet as it seemed.
“Non-Cumulative” Rates – Sneaky Pricing
Another trick is non-cumulative rates, where using just one extra kilowatt-hour can trigger a huge jump in your bill. Take, for instance, a plan offering $80 for up to 1000 kWh, but once you cross that threshold, you’re charged 15¢/kWh for all your usage. Go one kWh over, and suddenly your bill leaps from $80 to $150.15!
Partial Billing Cycles – Timing Matters
Starting a plan mid-billing cycle can cost you. If you sign up at the wrong time of the month, you might miss out on usage credits or end up with an unexpected partial billing cycle. For example, if your plan gives you a $95 credit for using at least 1000 kWh in a billing cycle, but your first cycle is only a half-month, you might not hit that 1000 kWh mark, and you’ll lose out on the credit.
The “Free” Gimmick
“Free nights” or “weekends” plans sound tempting, but the catch is that daytime rates are often sky-high to offset those free hours. Before signing up, compare the rates for both peak and off-peak hours. The same goes for plans offering “free” thermostats, gift cards, or other bonuses—they’re usually built into the rate.
100% Renewable Plans
Going green is great, but many Texas retailers push “100% renewable” plans that don’t necessarily make a big difference in actual energy production. These plans are often based on Renewable Energy Certificates (RECs), which might not translate to a greener grid. Make sure that the price is competitive before choosing one of these plans.
Wholesale Rate Plans
Wholesale rate plans might look good if you’re strategic about your energy use, but be prepared for spikes in cost, especially during hot Texas summers. These plans are ideal for folks who can shift their usage to off-peak hours, but if you’re not monitoring closely, summer price surges can negate any potential savings.
The Bait-and-Switch
Some retailers post seemingly great rates on shopping sites like PowerToChoose.org, but when you visit their site, they hit you with upsell attempts that are actually more expensive, especially if the plans are usage-dependent. Stick to your original plan choice and avoid being swayed by shiny alternatives.
The “Tease and Squeeze”
Even if you’ve dodged all the other gotchas and secured a good rate, keep an eye on your renewal date. Retailers count on customers forgetting about their contracts, quietly switching them to a higher month-to-month rate when the contract expires. That’s when your $80 plan suddenly becomes $180—so mark your calendar, use our expiration date reminder and be proactive!
Tips for Finding the Best Plan
- Always include TDU charges when comparing rates.
- Steer clear of gimmicky plans with “free” offers.
- Look for a plan that fits your actual usage, not just 1000 kWh.
- Set a reminder for your contract’s expiration date by using our expiration date reminder to avoid month-to-month charges.
| Top Electricity Plan Gotchas | Explanation |
|---|---|
| Energy-only rates | Plans that leave out delivery charges to seem cheaper. |
| Usage-dependent rates | Rates that look good at specific usage levels but cost more overall. |
| “Non-cumulative” rates | Using just a bit more power can double your monthly bill. |
| Free nights/weekends | Daytime rates are often inflated to make up for free hours. |
Take Action
Tired of playing hide-and-seek with your electricity bills? Call us today, or use our Buy Back Plan Tool to avoid the gotchas and save money on your next plan. We’re Texans, helping Texans save big!
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