Texas Electricity Rate Calculator
Enter the details from your Electricity Facts Label (EFL) to calculate your true effective rate and estimated monthly bill.
Total consumption in kilowatt-hours (kWh)
Cents per kWh (found on EFL)
Fixed monthly fee from provider ($)
Fixed monthly fee pass-through ($)
Cents per kWh pass-through
Credit applied if usage threshold met ($)
Minimum kWh usage to receive credit
Effective Price per kWh
0.0 ¢
This is your "Real" rate at this usage level.
Energy Cost:
$0.00
Base Charges:
$0.00
TDU Delivery Charges:
$0.00
Bill Credit Applied:
-$0.00
Total Estimated Bill:
$0.00
Decoding Texas Electricity Rates
In the deregulated Texas electricity market, the advertised rate is rarely what you pay. Plans are structured with complex formulas involving base charges, energy charges, TDU (Transmission and Distribution Utility) fees, and conditional bill credits. This calculator breaks down those costs to show you the "Effective Rate" based on your specific usage, not just the 1000 kWh benchmark advertised on marketing materials.
Understanding the Components
To accurately compare plans using an Electricity Facts Label (EFL), you must understand the three main cost drivers:
- Energy Charge: This is the amount the Retail Electric Provider (REP) charges for the actual electricity. It is usually measured in cents per kWh.
- TDU/TDSP Charges: These are pass-through charges from the utility company that maintains the lines (like Oncor, CenterPoint, or AEP). These charges include both a fixed monthly fee and a variable fee per kWh. Every plan in your zip code will likely have the exact same TDU charges.
- Bill Credits: Many Texas plans offer "teaser rates" by applying a large credit (e.g., $50) if you use more than 1000 kWh. If you use 999 kWh, you miss the credit, and your effective rate skyrockets.
The 500, 1000, and 2000 kWh Rule
Texas law requires providers to disclose the average price per kWh at 500, 1000, and 2000 kWh usage levels. However, if your home uses 1200 kWh or 800 kWh, your rate could be significantly different than the advertised numbers due to the fixed fees and specific credit thresholds.
How to Save on Texas Electricity
The best way to save money is to know your historical usage. Log into Smart Meter Texas to see your past 12 months of usage. If you consistently use around 800 kWh, avoid plans that only offer credits at 1000 kWh. Use this calculator to simulate your low-usage months (winter/spring) and high-usage months (summer) to ensure the plan remains affordable year-round.