Texas Electricity Rates: Why 500 vs 1,000 vs 1,500 kWh Changes Everything

Most Texans compare plans at 1,000 kWh, but your real cost can change dramatically at 500 or 1,500+ kWh. Here’s how to compare correctly.

The biggest pricing mistake in Texas electricity shopping is comparing only one usage point. Most ads highlight an effective rate at 1,000 kWh, but your home may average far below or above that.

At 500 kWh, fixed monthly charges can dominate your bill. A plan with a low headline energy rate can still cost more when the base fee is high.

At 1,000 kWh, bill-credit structures often kick in. Some plans look great only in this narrow band and become expensive outside it.

At 1,500+ kWh, energy charge per kWh matters more. Plans with lower variable energy cost can outperform plans that looked cheaper at 1,000 kWh.

Practical rule: compare at three tiers — 500, 1,000, and 1,500 kWh — then sanity-check with your own 12-month usage trend if possible.

That is exactly why betterplan.ai ranks plans by your real bill profile instead of a single marketing number.