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
Centerpoint Plans (CNP or Reliant)
AEP North Plans (AEPN)
AEP Central/West Plans (AWPC)
Texas New Mexico Plans (TNMP)
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

Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.
Early termination fee of $125.00




100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing
$400 early termination fee




Early Termination Fee: $99
44 Times May 18th, 2022



Prepare for those brutal Texas summers with a fixed price from Pulse!
Early Termination Fee: $20.00 per month remaining in contract




Guarantee your rate for 2 years with our longest term length
Early termination fee: $275




Special Offer: Simple billing based on usage tier
Get a great rate for 12 months.
Special Offer: See EFL for pricing details
Early Termination Fee: $50




Coverage for up to 2 Air Conditioners, Heaters, and Water Heaters + Electric Line Protection, an Annual A/C Tune-up and HVAC Monitoring
Early Termination Fee: $99




Locked-in rate for 18 months, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service
Early termination charges: $10 per month remaining on the contract




Support local wind. Feel good about your energy choice.
Early termination charges: $10 per month remaining on the contract




It’s the wise way to save. Get an automatic $30 bill credit each month when you use 1,200 kWh or more.
Early Cancellation Fee: $150.00
Centerpoint Plans (CNP or Reliant)




Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.
Early termination fee of $125.00




100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing
$400 early termination fee




Special Offer: Simple billing based on usage tier
Get a great rate for 12 months.
Special Offer: See EFL for pricing details
Early Termination Fee: $50




Early Termination Fee: $99
45 Times Jun 6th, 2022



Prepare for those brutal Texas summers with a fixed price from Pulse!
Early Termination Fee: $20.00 per month remaining in contract




Guarantee your rate for 2 years with our longest term length
Early termination fee: $275




Coverage for up to 2 Air Conditioners, Heaters, and Water Heaters + Electric Line Protection, an Annual A/C Tune-up and HVAC Monitoring
Early Termination Fee: $99




The key difference with Payless Power is that service is paid for in advance.
No Credit Check Required
Early Termination Fee: $99




The key difference with Payless Power is that service is paid for in advance.
No Credit Check Required
Early Termination Fee: $0




It’s the wise way to save. Get an automatic $30 bill credit each month when you use 1,200 kWh or more.
Early Cancellation Fee: $150.00
AEP North Plans (AEPN)




Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.
Early termination fee of $125.00




100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing
$400 early termination fee




Early Termination Fee: $99
27 Times May 18th, 2022



Guarantee your rate for 2 years with our longest term length
Early termination fee: $275




It’s the wise way to save. Get an automatic $30 bill credit each month when you use 1,200 kWh or more.
Early Cancellation Fee: $150.00




Prepare for those brutal Texas summers with a fixed price from Pulse!
Early Termination Fee: $20.00 per month remaining in contract




Locked-in rate for 18 months, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service
Early termination charges: $10 per month remaining on the contract




Automatic bill credit when you use a little more. Great for large homes.
Early Termination Fee: $20.00 per month remaining in contract




Support local wind. Feel good about your energy choice.
Early termination charges: $10 per month remaining on the contract




Lock in a low rate and support solar farms in Texas. You\'ll enjoy: A plan with 25% solar energy & A $30 bill credit when you use 1200 kWh or more.
Early Cancellation Fee: $150
AEP Central/West Plans (AWPC)




Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.
Early termination fee of $125.00




Early Termination Fee: $99
95 Times May 18th, 2022



Prepare for those brutal Texas summers with a fixed price from Pulse!
Early Termination Fee: $20.00 per month remaining in contract




100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing
$400 early termination fee




Locked-in rate for 18 months, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service
Early termination charges: $10 per month remaining on the contract




Guarantee your rate for 2 years with our longest term length
Early termination fee: $275




It’s the wise way to save. Get an automatic $30 bill credit each month when you use 1,200 kWh or more.
Early Cancellation Fee: $150.00




Automatic bill credit when you use a little more. Great for large homes.
Early Termination Fee: $20.00 per month remaining in contract




Support local wind. Feel good about your energy choice.
Early termination charges: $10 per month remaining on the contract




Confusing electricity plans are a thing of the past with One Rate 12. No gimmicks. One base charge at $4.95 per month.
Early Termination Fee: $20.00 per month remaining in contract
Texas New Mexico Plans (TNMP)




Good for Large Homes.
Use your electricity anytime you want at one low price on your bill for any cycle under 2,000 kWh.
Early termination fee of $125.00




100% renewable energy from Texas sources
Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing
$400 early termination fee




Prepare for those brutal Texas summers with a fixed price from Pulse!
Early Termination Fee: $20.00 per month remaining in contract




Guarantee your rate for 2 years with our longest term length
Early termination fee: $275




It’s the wise way to save. Get an automatic $30 bill credit each month when you use 1,200 kWh or more.
Early Cancellation Fee: $150.00




Automatic bill credit when you use a little more. Great for large homes.
Early Termination Fee: $20.00 per month remaining in contract




Locked-in rate for 18 months, 100% renewable with long-term security.
No Hidden Fees
7-Days-a-week customer service
Early termination charges: $10 per month remaining on the contract




Lock in a low rate and support solar farms in Texas. You\'ll enjoy: A plan with 25% solar energy &
A $30 bill credit when you use 1200 kWh or more.
Early Cancellation Fee: $150




Support local wind. Feel good about your energy choice.
Early termination charges: $10 per month remaining on the contract




Get a whole year of price certainty and help out your community! 30-Day Satisfaction Guarantee.
$90 Bill Credit after 1000 kWh
A termination fee of $20 multiplied by the number of months remaining.
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.
I find the analysis of this topic interesting, I think it gives a lot to think about choosing a correct electricity supplier.
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.