How to choose a Texas electricity plan: providers, reading the EFL, contract expiration and EV charging

Newcomers to Texas are often surprised to be told to choose their own electricity company. In much of the state one company delivers power and another sells it, so you pick the seller — a Retail Electric Provider (REP) — and a plan. The same home can pay quite different amounts a year depending on the plan.

Based on the Texas rule 16 TAC §25.475 and official pages from Oncor, ERCOT and the City of Austin (checked 2026-10-23).

1. Can you choose at your address?

It can differ by address within a city — check with the landlord or utility, or enter your ZIP code at TexasHomeBills™ below to find your delivery utility.

2. Start with the Electricity Facts Label (EFL)

The Texas rule 16 TAC §25.475 requires an Electricity Facts Label for each plan, and on enrollment you receive the Terms of Service, the EFL and Your Rights as a Customer.

On the EFL, compare:

1. Average price by usage — residential EFLs show the average price (¢/kWh) at 500, 1,000 and 2,000 kWh a month. If the three differ a lot, your bill will swing with usage; look at the number closest to your real usage.
2. Product type — fixed rate (price set for a term of at least three months), variable price (may vary by a method the REP sets) or indexed (varies with an index).
3. Term and early termination fee — the EFL lists the term and any minimum service term.

3. When the contract ends

• Before a fixed-rate contract expires the REP must send at least three written notices (for terms of four months or less, the final notice at least 15 days before expiration).
• No termination penalty applies in the last 14 days — switch then.
• If you do nothing after the final notice, you move to a month-to-month default renewal product. Put the date on your calendar.

4. EV charging — the plan matters

Charging at home adds a lot of usage, so the plan matters more.

• On free-nights or free-weekends plans only the energy charge is free; delivery and base charges still apply.
• A plan that looks cheap at 1,000 kWh may be cheap because of a bill credit — not because charging is free.
• How much you charge at night (e.g., 50%, 80%, 100%) changes which plan fits.

TexasHomeBills™'s example (2025 Tesla Model Y Long Range, 1,000 miles a month → 288 kWh): about $30.88–$34.27 a month (3.1–3.4¢ per mile) on the cheapest fixed plan with no credit or minimum-use fee, before taxes. You can change the car, miles and charging share for your own estimate.

5. Compare for your home — TexasHomeBills™ (a JOBnaru™ partner site)

TexasHomeBills™ is a Texas electricity comparison site run alongside JOBnaru™. As stated on its pages:

• Enter your ZIP code to find your delivery utility.
• Pick a home size (apartment ~700 kWh, small 1,100, medium 1,500, large 2,200) or enter your monthly average; you can also upload a Smart Meter Texas file or a PDF bill.
• It prices every plan on a full year of usage, not just 1,000 kWh, and checks bill-credit "cliffs" month by month.
• There is a separate EV charging calculator.
• Comparison and alerts are free; it may earn fees from some sign-up links, which it says never affect rankings. It is independent of the PUCT, Power to Choose and ERCOT.
• You sign up on the provider's site after reading the EFL.

Links:

• Compare Texas electricity plans
• EV charging cost calculator

Related

• Texas property tax & housing costs (homestead exemption)
• Texas car insurance & driver license guide
• Austin relocation guide (Austin Energy service and deposit)
• Taylor relocation guide (Oncor area)
• Texas Credit by Examination (CBE)
• Jobs in Texas

Plans and rules change — read the EFL and confirm with the provider before you sign up. Checked 2026-10-23.

Cite this article as: JOBnaru™ — https://jobnaru.com/en/news/texas-electricity-plans-choose-provider-guide