Ready to Switch? Finding the Cheapest Electricity Rates and Best 12-Month Fixed Plans in Texas
You’ve done the research, you understand the EFL, and now you’re ready to pull the trigger. But when you’re facing dozens of different Texas electricity providers, how do you lock in the absolute cheapest electricity rates for your home?
The key is focusing on plans with the highest stability and best value for your specific energy needs—and that usually means looking for a fixed-rate plan with a competitive term length.
We’ve compiled a cheat sheet to help you find the best electricity plan and enroll today, whether you’re in Houston, Dallas, or the Rio Grande Valley (RGV).
- The Best 12-Month Fixed Plan Strategy: Stability Meets Savings
When people search for “best electricity rates,” they are usually looking for stability. In the Texas energy market, a 12-month fixed-rate plan is often the perfect balance.
- Why 12 Months? It provides a full year of price protection against summer price spikes, but it’s short enough that you can easily switch to a better rate if the market dips next year without facing a massive Early Termination Fee (ETF).
- Actionable Advice: When you compare electricity providers, always filter for a 12-month fixed-rate first. Look closely at the 500, 1000, and 2000 kWh columns on the EFL to see how the price truly averages out for your expected usage.
- High-Usage Homes: The Best Electricity Plan for AC Season
If you live in a large home, have a pool, or are simply battling the relentless heat in the Rio Grande Valley, your plan must be optimized for 2000 kWh usage and above.
- The Trap: Many bill credit plans are designed to peak at 1000 kWh. If you consistently use 2,000 kWh, you might miss the credit or fall into a second, higher price tier.
- The High-Usage Solution: Look specifically for plans advertised as “High Usage Plans” or ones that offer a massive bill credit that only kicks in at 2000 kWh.
- Know Your Distributor: Why Knowing Your TDU Matters
Every Texas electricity provider serves multiple TDU areas, and rates are different for each one. Make sure to search based on your zip code or full street address to get the rates for your area because the TDU delivery charges (which are passed directly to you) vary dramatically.
| TDU (Utility) | Major Service Area Focus |
| CenterPoint Energy | Houston Metropolitan Area, Gulf Coast |
| Oncor Electric Delivery | Dallas-Fort Worth, Midland, Odessa, Waco |
| AEP Texas Central | Rio Grande Valley (McAllen, Corpus Christi, Laredo) |
| AEP Texas North | Abilene, San Angelo, Vernon (Formerly WTU) |
| Texas-New Mexico Power (TNMP) | Lewisville, Gulf Coast pockets (Angleton, Friendswood), West Texas |
- Your Final Checklist for Enrollment
Before you click “Enroll Now,” make sure your chosen plan meets these criteria:
- ✅ Rate Type: Is it a Fixed-Rate Plan? (Recommended for stability).
- ✅ Contract Length: Is it a 12-month fixed or 24-month term?
- ✅ EFL Match: Does the Average Price per kWh on the EFL match your typical usage (500, 1000, or 2000 kWh)?
- ✅ ETF (Cancellation Fee): Do you understand the cancellation fee if you move or switch early?
- ✅ No Surprise Fees: Are the TDU delivery charges transparently included in the final average price?
Don’t wait—lock in your 12-month fixed rate today before the market changes.