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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

AP Gas & Electric Logo
True Classic 36

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

245 Times Feb 4th, 2023
Fixed Rate
11.7¢ per kWh
AP Gas & Electric Logo
True Classic 24

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

80 Times Feb 4th, 2023
Fixed Rate
11.8¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

$50 Energy Texas E-Gift Card!.
100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

419 Times Feb 2nd, 2023
Fixed Rate
11.9¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

171 Times Feb 2nd, 2023
Fixed Rate
12¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

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

47 Times Feb 4th, 2023
Fixed Rate
12.1¢ per kWh
AP Gas & Electric Logo
True Classic 12

12 Month Fixed Rate
Guaranteed rate for 1 year
Straight-Forward bills

76 Times Feb 5th, 2023
Fixed Rate
12.1¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

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

32 Times Feb 4th, 2023
Fixed Rate
12.2¢ per kWh
Energy Texas Logo
Come & Take It 12 Plan

12 months of 100% renewable energy

133 Times Feb 2nd, 2023
Fixed Rate
12.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 12

12 Month Fixed Green Rate
Guaranteed Green rate for 1 year
Straight-Forward bills

30 Times Feb 5th, 2023
Fixed Rate
12.5¢ per kWh
Rhythm Logo
Simply Bright 6

Mother Nature’s clean energy powers your plan.
No Hidden Fees
7-Days-a-week customer service
Earn Rhythm Rewards Points

70 Times Jan 19th, 2023
Fixed Rate
12.8¢ per kWh

 

Centerpoint Plans (CNP or Reliant)

AP Gas & Electric Logo
True Classic 36

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

197 Times Feb 4th, 2023
Fixed Rate
13¢ per kWh
AP Gas & Electric Logo
True Classic 24

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

49 Times Feb 4th, 2023
Fixed Rate
13.2¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

$50 Energy Texas E-Gift Card!.
100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

370 Times Feb 2nd, 2023
Fixed Rate
13.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

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

31 Times Feb 4th, 2023
Fixed Rate
13.4¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

145 Times Feb 2nd, 2023
Fixed Rate
13.5¢ per kWh
AP Gas & Electric Logo
True Classic 12

12 Month Fixed Rate
Guaranteed rate for 1 year
Straight-Forward bills

61 Times Feb 5th, 2023
Fixed Rate
13.5¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

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

39 Times Feb 5th, 2023
Fixed Rate
13.6¢ per kWh
Rhythm Logo
Simply Bright 6

Mother Nature’s clean energy powers your plan.
No Hidden Fees
7-Days-a-week customer service
Earn Rhythm Rewards Points

70 Times Jan 19th, 2023
Fixed Rate
13.7¢ per kWh
Energy Texas Logo
Come & Take It 12 Plan

12 months of 100% renewable energy

269 Times Feb 2nd, 2023
Fixed Rate
13.8¢ per kWh
TriEagle Energy Logo
Savvy Value 36

Automatic bill credit when you use a little more. Great for large homes.

156 Times Jan 5th, 2023
Fixed Rate
13.9¢ per kWh

 

AEP North Plans (AEPN)

AP Gas & Electric Logo
True Classic 36

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

29 Times Feb 4th, 2023
Fixed Rate
11.9¢ per kWh
AP Gas & Electric Logo
True Classic 24

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

16 Times Feb 4th, 2023
Fixed Rate
12¢ per kWh
Rhythm Logo
Simply Bright 6

Mother Nature’s clean energy powers your plan.
No Hidden Fees
7-Days-a-week customer service
Earn Rhythm Rewards Points

21 Times Nov 30th, 2022
Fixed Rate
12.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

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

13 Times Feb 4th, 2023
Fixed Rate
12.3¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

$50 Energy Texas E-Gift Card!.
100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

77 Times Feb 2nd, 2023
Fixed Rate
12.4¢ per kWh
AP Gas & Electric Logo
True Classic 12

12 Month Fixed Rate
Guaranteed rate for 1 year
Straight-Forward bills

10 Times Feb 4th, 2023
Fixed Rate
12.4¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

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

11 Times Feb 4th, 2023
Fixed Rate
12.4¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

41 Times Feb 2nd, 2023
Fixed Rate
12.6¢ 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

36 Times Nov 16th, 2022
Fixed Rate
12.7¢ per kWh
AP Gas & Electric Logo
True Classic Green 12

12 Month Green Fixed Rate
Guaranteed Green rate for 1 year
Straight-Forward bills

7 Times Feb 5th, 2023
Fixed Rate
12.8¢ per kWh

 

AEP Central/West Plans (AWPC)

AP Gas & Electric Logo
True Classic 36

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

150 Times Feb 4th, 2023
Fixed Rate
11.9¢ per kWh
AP Gas & Electric Logo
True Classic 24

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

40 Times Feb 4th, 2023
Fixed Rate
12¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

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

22 Times Feb 4th, 2023
Fixed Rate
12.3¢ per kWh
AP Gas & Electric Logo
True Classic 12

12 Month Fixed Rate
Guaranteed rate for 1 year
Straight-Forward bills

21 Times Feb 5th, 2023
Fixed Rate
12.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

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

16 Times Feb 4th, 2023
Fixed Rate
12.4¢ per kWh
AP Gas & Electric Logo
True Classic Green 12

12 Month Fixed Green Rate
Guaranteed Green rate for 1 year
Straight-Forward bills

9 Times Feb 5th, 2023
Fixed Rate
12.7¢ per kWh
Rhythm Logo
Simply Bright 6

Mother Nature’s clean energy powers your plan.
No Hidden Fees
7-Days-a-week customer service
Earn Rhythm Rewards Points

30 Times Nov 30th, 2022
Fixed Rate
13.1¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

$50 Energy Texas E-Gift Card!.
100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

102 Times Feb 2nd, 2023
Fixed Rate
13.2¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

56 Times Feb 2nd, 2023
Fixed Rate
13.2¢ 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

86 Times Nov 16th, 2022
Fixed Rate
13.3¢ per kWh

 

Texas New Mexico Plans (TNMP)

AP Gas & Electric Logo
True Classic 36

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

28 Times Feb 4th, 2023
Fixed Rate
13.8¢ per kWh
AP Gas & Electric Logo
True Classic 24

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

19 Times Feb 4th, 2023
Fixed Rate
14¢ per kWh
Energy Texas Logo
36 Inflation Fix Plan

$50 Energy Texas E-Gift Card!.
100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing

96 Times Feb 2nd, 2023
Fixed Rate
14.1¢ per kWh
Energy Texas Logo
Bigger Than Texas 24

Guarantee your rate for 2 years with our longest term length

31 Times Feb 2nd, 2023
Fixed Rate
14.2¢ per kWh
AP Gas & Electric Logo
True Classic 12

12 Month Fixed Rate
Guaranteed rate for 1 year
Straight-Forward bills

8 Times Feb 5th, 2023
Fixed Rate
14.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 36

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

12 Times Feb 5th, 2023
Fixed Rate
14.3¢ per kWh
AP Gas & Electric Logo
True Classic Green 24

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

9 Times Feb 4th, 2023
Fixed Rate
14.4¢ per kWh
Rhythm Logo
Simply Bright 6

Mother Nature’s clean energy powers your plan.
No Hidden Fees
7-Days-a-week customer service
Earn Rhythm Rewards Points

16 Times Nov 30th, 2022
Fixed Rate
14.5¢ per kWh
TriEagle Energy Logo
Savvy Value 36

Automatic bill credit when you use a little more. Great for large homes.

58 Times Jan 5th, 2023
Fixed Rate
14.5¢ per kWh
Energy Texas Logo
Come & Take It 12 Plan

12 months of 100% renewable energy

31 Times Feb 2nd, 2023
Fixed Rate
14.6¢ 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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