Why the advertised rate can mislead you
Texas Electricity Facts Labels show average prices at standard usage levels such as 500, 1,000, and 2,000 kWh. Those examples are useful, but your home does not use exactly the same amount every month. Credits, base charges, and minimum-usage rules can make the effective price change sharply between those examples.
A better way to compare plans
- Use your actual usage pattern. A full year captures hot and mild months. Interval data can also capture time-of-use behavior.
- Rebuild the price formula. Include the energy charge, base charge, CenterPoint delivery charges, bill credits, and required recurring fees.
- Calculate every month. Do not multiply a single average month by the contract length.
- Compare equal time windows. A three-month plan that avoids summer should not look automatically better than a 12-month plan that includes it.
- Separate contract lengths. A short plan may have a lower current cost, while a longer plan may reduce renewal risk.
- Read the important conditions. Autopay, paperless billing, new-customer restrictions, time-of-use windows, and credit thresholds can change the result.
Watch the plan end date
A low-priced short contract can still be a reasonable choice, but an end date during peak summer may force you to shop when available prices are higher. Consider the expected end month along with the estimated monthly cost.
Questions to ask before enrolling
- What is the estimated cost using my usage, not only 1,000 kWh?
- Does the plan depend on a bill credit or minimum usage?
- Does it require autopay, paperless billing, or another action?
- When does the contract end?
- What is the early termination fee?
- Is the rate fixed or variable?
No comparison can guarantee future savings. Usage, regulated charges, taxes, and available offers can change. The goal is to use the most complete current information and your own usage pattern.