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Best Electricity Plans for Smaller Homes

Shopping for low electricity rates can be confusing. This is especially true in Texas where the Electricity Facts Label is required to disclose average electricity prices at three monthly consumption levels: 500, 1000, and 2000 kWh. Consumers in smaller homes or those who live alone often find this perplexing.  Their usage may vary significantly between the cooling and heating seasons.  Which electric rate plan works best for their particular needs?  ElectricityMatch.com frequently receives inquiries on this topic and is glad to provide guidance on choosing an electricity plan for smaller homes.

Oncor Plans

Plan
Term
Rate

Centerpoint Plans (CNP or Reliant)

Plan
Term
Rate

AEP North Plans (AEPN)

Plan
Term
Rate

AEP Central/West Plans (AWPC)

Plan
Term
Rate

Texas New Mexico Plans (TNMP)

Plan
Term
Rate

Types of Electricity Rate Plans

While every electricity provider has their own unique approach, most plans fall into one of three broad categories. The first, straight-line pricing, is the simplest.  With straight-line pricing, the plan includes a recurring monthly charge plus a fixed rate for all electricity consumed.  One variation of this rate involves waiving the monthly charge if you exceed a minimum usage amount for any given billing period.

The second general category is slot pricing. With slot pricing, you receive a financial incentive if your monthly usage falls within a specified range.  The financial incentive acts as a credit to reduce your electricity bill and, therefore, lower your average price.  While there is nothing particularly bad about this approach, it has been the subject of abuse by some electricity providers.  Knowing your electricity usage history is essential for evaluating these types of offers.

The third broad category of fixed rate electricity rates is tiered pricing.   With tiered pricing, your electricity rate varies for different usage bandwidths.  For example, you might pay one rate for usage up to 1000 kWh, another rate for usage from 1000 to 2000 kWh, and yet another rate for any usage in excess of 2000 kWh. For many of us, tiered rate plans can be the most challenging to compare.

Choosing the Best Electric Plan

Which type of electric rate plan works best for you? In the case of choosing a home electric plan, the biggest factor to consider is your monthly electricity usage and how it varies throughout the year.

For smaller homes and households with fewer people, it can be a challenge to cut through the marketing hype and complexity to find what works best. After analyzing the various rate categories described above, straight-line pricing plans are usually the best choice for smaller homes.  For the consumers we assisted, their monthly usage averaged about 700 kWh.  They typically only exceeded 1000 kWh two or three months per year.  Fall and spring usage was closer to 400 kWh.

We found that these customers did not benefit significantly from slot pricing because their usage rarely fell within the range where they received a financial incentive. Additionally, tiered pricing plans typically benefit larger users.  Smaller homes do not use enough electricity on a consistent basis to reap the benefits of most tiered pricing pans.

When it comes to smaller homes, simple rate plans tend to be a better choice. Examples of these plans include the Direct Energy “Live Brighter” and the First Choice Power “You Got This!” 12-month plans.  These plans have a low recurring monthly charge coupled with a low electricity rate.  The “Truly Fixed Price” 12-month plan from Amigo Energy waives the recurring monthly charge if your usage exceeds 1000 kWh.  This might work well for smaller homes with electric heat where consumers exceed the usage threshold more often.

Your energy usage history is the most important tool you have when it comes to finding the best electricity plan for your home. If your usage is typically less than 1000 kWh, consider a simple straight-line pricing plan to keep your monthly bills low.

Oncor Plans

New Power Texas Logo
Power of One

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.

377 Times Jun 29th, 2022
Fixed Rate
13.5¢ per kWh
AP Gas & Electric Logo
True Classic 36

36 Month Fixed Rate
Guaranteed rate for 3 year
Straight-Forward bills

100 Times Sep 24th, 2022
Fixed Rate
13.6¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

36 Month Fixed Green Rate
Guaranteed Green rate for 3 years
Straight-Forward bills

11 Times Sep 24th, 2022
Fixed Rate
14¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

222 Times Sep 8th, 2022
Fixed Rate
14.4¢ per kWh
AP Gas & Electric Logo
True Classic 24

24 Month Fixed Rate
Guaranteed rate for 2 years
Straight-Forward bills

7 Times Sep 23rd, 2022
Fixed Rate
14.5¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

24 Month Fixed Green Rate
Guaranteed Green rate for 2 years
Straight-Forward bills

21 Times Sep 24th, 2022
Fixed Rate
14.7¢ per kWh
Rhythm Logo
Simply Bright 36

make a long-term impact with our best-priced plan, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service

62 Times Sep 21st, 2022
Fixed Rate
14.8¢ per kWh
Energy Texas Logo
The Seguin 15

Lock in this low rate for 15 months by Energy Texas, the Texas born and bred Electricity Provider.

  • Term: 15 months
  • Monthly Recurring Charge: $4.95
  • Early Termination Fee: $275
  • Renewable Percent: 100%

3 Times Sep 22nd, 2022
Fixed Rate
15¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

115 Times Jul 7th, 2022
Fixed Rate
15.2¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

132 Times Sep 8th, 2022
Fixed Rate
15.5¢ per kWh

Centerpoint Plans (CNP or Reliant)

New Power Texas Logo
Power of One

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.

388 Times Jun 29th, 2022
Fixed Rate
13.8¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

186 Times Sep 14th, 2022
Fixed Rate
14.7¢ per kWh
AP Gas & Electric Logo
True Classic 36

36 Month Fixed Rate
Guaranteed rate for 3 years
Straight-Forward bills

98 Times Sep 24th, 2022
Fixed Rate
15.2¢ per kWh
Energy Texas Logo
The Seguin 15

Lock in this low rate for 15 months by Energy Texas, the Texas born and bred Electricity Provider.

  • Term: 15 months
  • Monthly Recurring Charge: $4.95
  • Early Termination Fee: $275
  • Renewable Percent: 100%

4 Times Sep 22nd, 2022
Fixed Rate
15.5¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

36 Month Fixed Green Rate
Guaranteed Green rate for 3 years
Straight-Forward bills

9 Times Sep 24th, 2022
Fixed Rate
15.7¢ per kWh
AP Gas & Electric Logo
True Classic 24

24 Month Fixed Rate
Guaranteed rate for 2 years
Straight-Forward bills

5 Times Sep 23rd, 2022
Fixed Rate
16.2¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

121 Times Jul 7th, 2022
Fixed Rate
16.3¢ per kWh
Constellation Logo
12 Month Flat Tier Product

Special Offer: Simple billing based on usage tier
Get a great rate for 12 months.
Special Offer: See EFL for pricing details

163 Times Jun 6th, 2022
Fixed Rate
16.5¢ per kWh
Constellation Logo
36 Month Usage Bill Credit

69 Times Jun 6th, 2022
Fixed Rate
16.6¢ per kWh
Rhythm Logo
Simply Bright 36

make a long-term impact with our best-priced plan, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service

66 Times Sep 21st, 2022
Fixed Rate
16.6¢ per kWh

AEP North Plans (AEPN)

Energy Texas Logo
36 Inflation Fix Plan

100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

48 Times Sep 14th, 2022
Fixed Rate
13.5¢ per kWh
New Power Texas Logo
Power of One

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.

56 Times Jun 29th, 2022
Fixed Rate
13.8¢ per kWh
AP Gas & Electric Logo
True Classic 36

36 Month Fixed Rate
Guaranteed rate for 3 years
Straight-Forward bills

10 Times Sep 21st, 2022
Fixed Rate
14.4¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

36 Month Fixed Rate
Guaranteed rate for 3 years
Straight-Forward bills

4 Times Sep 23rd, 2022
Fixed Rate
14.5¢ per kWh
AP Gas & Electric Logo
True Classic 24

24 Month Fixed Rate
Guaranteed rate for 2 years
Straight-Forward bills

1 Times Sep 24th, 2022
Fixed Rate
14.5¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

12 Month Fixed Green Rate
Guaranteed Green rate for 2 years
Straight-Forward bills

4 Times Sep 24th, 2022
Fixed Rate
14.9¢ per kWh
Constellation Logo
36 Month Usage Bill Credit

39 Times May 18th, 2022
Fixed Rate
15.2¢ per kWh
Rhythm Logo
Simply Bright 36

Make a long-term impact with our best-priced plan, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service

19 Times Sep 21st, 2022
Fixed Rate
15.2¢ per kWh
Rhythm Logo
Simply Bright 24

Go green without spending too much green.

24 Times Sep 21st, 2022
Fixed Rate
15.6¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

28 Times Jul 7th, 2022
Fixed Rate
15.7¢ per kWh

AEP Central/West Plans (AWPC)

New Power Texas Logo
Power of One

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.

130 Times Jun 29th, 2022
Fixed Rate
13.5¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

51 Times Sep 22nd, 2022
Fixed Rate
13.8¢ per kWh
AP Gas & Electric Logo
True Classic 36

36 Month Fixed Rate
Guaranteed rate for 3 years
Straight-Forward bills

51 Times Sep 24th, 2022
Fixed Rate
14¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

36 Month Fixed Green Rate
Guaranteed Green rate for 3 years
Straight-Forward bills

1 Times Sep 24th, 2022
Fixed Rate
14.4¢ per kWh
AP Gas & Electric Logo
True Classic 24

24 Month Fixed Rate
Guaranteed rate for 2 years
Straight-Forward bills

2 Times Sep 24th, 2022
Fixed Rate
14.7¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

24 Month Fixed Green Rate
Guaranteed rate for 2 years
Straight-Forward bills

6 Times Sep 24th, 2022
Fixed Rate
15.1¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

71 Times Jul 7th, 2022
Fixed Rate
15.3¢ per kWh
Rhythm Logo
Simply Bright 36

Make a long-term impact with our best-priced plan, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service

55 Times Sep 21st, 2022
Fixed Rate
15.6¢ per kWh
Constellation Logo
36 Month Usage Bill Credit

119 Times May 18th, 2022
Fixed Rate
15.9¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

71 Times Jul 7th, 2022
Fixed Rate
16¢ per kWh

Texas New Mexico Plans (TNMP)

New Power Texas Logo
Power of One

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.

88 Times Jun 29th, 2022
Fixed Rate
14.5¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

55 Times Sep 22nd, 2022
Fixed Rate
15.1¢ per kWh
AP Gas & Electric Logo
True Classic 36

36 Month Fixed Rate
Guaranteed rate for 3 years
Straight-Forward bills

6 Times Sep 23rd, 2022
Fixed Rate
16.3¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

48 Times Jul 7th, 2022
Fixed Rate
16.9¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

36 Month Fixed Green Rate
Guaranteed Green rate for 3 years
Straight-Forward bills

1 Times Sep 21st, 2022
Fixed Rate
17¢ per kWh
AP Gas & Electric Logo
True Classic 24

25 Month Fixed Rate
Guaranteed rate for 2 years
Straight-Forward bills

1 Times Sep 23rd, 2022
Fixed Rate
17¢ per kWh
Rhythm Logo
Simply Bright 36

Make a long-term impact with our best-priced plan, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service

13 Times Sep 21st, 2022
Fixed Rate
17.2¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

24 Month Fixed Green Rate
Guaranteed Green rate for 2 years
Straight-Forward bills

2 Times Sep 24th, 2022
Fixed Rate
17.2¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

20 Times Sep 22nd, 2022
Fixed Rate
17.4¢ per kWh
Pulse Power Logo
36 Texas Fixed

Prepare for those brutal Texas summers with a fixed price from Pulse!

48 Times Jul 7th, 2022
Fixed Rate
17.6¢ per kWh

3 Comments on “Best Electricity Plans for Smaller Homes”

  1. Thanks for pointing out that generally straight-line pricing plans are best for smaller homes. I’m going to be getting married pretty soon and we’re going to move into a new home. It’s good to know some good tips to use in choosing an electricity supplier.

  2. I find the analysis of this topic interesting, I think it gives a lot to think about choosing a correct electricity supplier.

  3. My husband and I are moving to a smaller home, and we are in need of deciding what we would like our electricity rate to be. It’s good to know that one option is slot pricing, which will help us receive a financial incentive. It will be nice for us to have some credit to help maybe even reduce the electricity bill.

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