Texas Electricity Base Charge Plans Compared at 1000 kWh
Why 1000 kWh is the benchmark Texas shoppers keep circling back to
If you are shopping, switching, or renewing electricity in a competitive Texas area, you will see prices quoted at 500, 1,000, and 2,000 kWh per month before you ever sign a contract. Those three usage levels are not random. They are the standardized anchors on every Electricity Facts Label (EFL) so households with different load shapes can compare offers on the same footing (¹).
1,000 kWh sits in the middle for a reason. It is close to what many apartments and smaller homes post in a typical month, and it is the default estimated usage on the Public Utility Commission’s Power to Choose results page when you have not entered your own number (²). The site’s user guide tells you to calculate average monthly usage from past bills, remember that consumption follows seasonal patterns (including higher use in months like August), and narrow results to match how you actually live (³).
This article focuses on one fee type that can quietly reorder the rankings at that 1,000 kWh mark: the base charge—a flat monthly fee that applies no matter how many kilowatt-hours you burn (¹). Plans with big base charges can look fine at 2,000 kWh and expensive at 500 kWh. At 1,000 kWh, you are in the band where both the energy rate and fixed fees matter—so it is the right place to compare base-charge-heavy plans against energy-rate-heavy competitors.
Competitive Texas in one minute: who bills you for what
Most of Texas sits inside the Electric Reliability Council of Texas (ERCOT) interconnection, which covers most of the state (⁴). In competitive areas you choose a Retail Electric Provider (REP) for supply and billing, while a Transmission and Distribution Utility (TDU)—your local wires company—delivers power, reads the meter, and maintains lines (¹).
Power to Choose is the official and unbiased electric choice website of the Public Utility Commission of Texas, where certified providers may list offers for free (⁵). When you enter a ZIP code, the site may ask you to pick a TDU if more than one serves that ZIP (⁵). Oncor, a major TDU, states plainly that because Texas is a deregulated market, customers can choose or switch their REP based on rates, plans, and benefits, and it points shoppers to Power to Choose to compare (⁶).
Keep the split straight: switching REPs changes your supply offer; TDU delivery charges still pass through on every plan (¹). A low energy rate on a billboard is never the whole bill.
Base charge plans: what they are and how they behave at 1,000 kWh
A base charge is a flat fee applied each month regardless of the amount of kilowatt-hours used (¹). It is not the same as your energy charge (the price per kWh for generation supply) and not the same as TDU delivery dollars, though all three can land on one bill.
Why shoppers care at 1,000 kWh:
- Fixed fees dilute differently by usage. A $9.95 monthly base charge adds about 1.0¢/kWh to a modeled average at 1,000 kWh, but about 2.0¢/kWh at 500 kWh and 0.5¢/kWh at 2,000 kWh. Same dollars; different effective impact.
- Rankings can flip. A plan with a slightly higher energy rate but no base charge can beat a “cheap rate” plan with a stiff monthly fee when you model at 1,000 kWh.
- Budgeting vs. optimization. Base charges make monthly bills more predictable in low-use months—but they punish vacation homes and efficient apartments that cannot spread the fee across many kWh.
“Base charge plan” is not always a separate product category on a menu. It is any offer whose EFL discloses a recurring monthly charge independent of usage. Your job is to treat that line item as part of the all-in average at the usage you expect—not as footnote trivia.
The EFL average at 1,000 kWh is a bundle, not a single rate
Before you enroll, open the FACT SHEET (EFL). The PUCT requires an EFL for every plan so customers can make an “apples-to-apples” comparison (¹). The label’s average price per kWh at 500, 1,000, and 2,000 kWh is a modeled bundle that typically rolls together:
- The REP’s energy charge and disclosed riders
- TDU delivery pass-throughs (¹)
- Base charges and other recurring fees (¹)
- Minimum-use penalties or usage credits where applicable (¹)
Kilowatt-hour (kWh) is the billing unit: one kilowatt of power for one hour, shown on your bill as kWh used (¹).
Quick math at the 1,000 kWh row
For a sanity check on any finalist:
Estimated monthly cost ≈ (average ¢/kWh at 1,000 kWh ÷ 100) × 1,000
Example: an EFL shows 12.5¢/kWh at 1,000 kWh → modeled bundle ≈ $125 before taxes and one-off fees. If the EFL also lists a $9.95 base charge, that fee is already baked into the 12.5¢ average for that usage band—not stacked on top twice (¹).
Always reconcile against the EFL fee table. Some charges are not obvious from the headline average alone (¹).
Comparing base-charge-heavy vs. lean-fee plans at 1,000 kWh
Think in layers when you line up finalists at the 1,000 kWh row:
| Component | Effect at ~1,000 kWh |
|---|---|
| Base charge / flat monthly fees | Material—often 0.8¢–2.0¢/kWh equivalent |
| Energy rate (¢/kWh) | Usually the largest lever |
| TDU delivery pass-through | Applies on every plan; changes with TDU rules |
| Minimum-use fee or usage credit | Can dominate if you miss a threshold |
| Time-of-use assumptions | EFL average may not match your hour-by-hour life |
At 1,000 kWh, neither extreme wins by default. A plan optimized for 2,000 kWh bill credits can lose to a simpler plan at 1,000 kWh if the credit threshold is out of reach. A plan that looks cheap at 500 kWh on the label can carry a base charge that hurts you once summer pushes you toward triple digits in daily use.
A practical decision rule: sort finalists by the EFL average at 1,000 kWh, then read the 500 kWh and 2,000 kWh rows. If the ranking changes between rows, you are looking at a usage-sensitive design—exactly the kind of plan that deserves more scrutiny if your bills swing seasonally (³).
Minimum usage fees, credits, and tiers: partners in crime with base charges
Base charges are not the only fixed-shape trick in the market. Many plans require a minimum amount of electricity each month. Use less and you may owe a minimum usage charge—sometimes not listed separately on the bill, which is why the EFL matters (¹).
Power to Choose’s shopping tool explains that minimum usage fees or credits are already included in the average kWh prices posted on the site—they are not added on top of the displayed averages (²). That is good transparency, but it also means you cannot mentally “add the fee back in” when comparing to a plan without one.
The user guide encourages filters to screen plans with minimum usage fees/credits and tiered rates—pricing where the energy charge changes by usage band (³). A tooltip on the results page warns that if you choose to view plans where recurring fees or credits are not included in the average, or where the energy charge changes by usage, the posted average may vary significantly from your actual billed price per kWh (²).
At 1,000 kWh, you are often above minimum-use tripwires—but not always. A mild shoulder month after travel can still land near 600–800 kWh in the same house that hits 1,400 kWh in August. Compare the label at the usage you actually live in, not the usage you wish you had.
Fixed, variable, indexed, and time-of-use: plan type still matters at 1,000 kWh
Fixed-rate plans set a price per kWh for the contract term with limited exceptions, including changes in Transmission and Distribution fees, certain ERCOT or Texas Regional Entity administrative fees, and new governmental charges (¹). Fixed rates can help budgeting; if market prices fall, you may wait until contract end to capture lower energy charges (¹).
Variable rate plans can move monthly based on market conditions and provider discretion (¹). Indexed plans tie the rate to a published index through a disclosed formula (¹).
Time-of-use plans discount certain hours and charge more in others. The EFL averages at 500/1,000/2,000 kWh are built from the REP’s estimate of how much energy you will use during discounted versus premium hours (¹). If you cannot shift load—late-afternoon cooling, for example—the average price you pay can exceed the EFL illustration (¹).
Base charges stack on top of those dynamics. A TOU plan with a hefty base fee and optimistic hour-shift assumptions is a common way to be surprised at 1,000 kWh of real-world usage.
How to run an honest comparison on Power to Choose at 1,000 kWh
A workflow that matches how regulators designed the site:
- Pull 12 months of bills and chart kWh; note which months cluster near 1,000 kWh versus far above or below (³).
- Enter your ZIP on ⁷; select the correct TDU if prompted (⁵).
- Set estimated usage to 1,000 kWh (the site’s default on results) or your calculated average (²).
- Use filters for contract length, renewables, prepaid preferences, and—critically—minimum usage / tiered pricing (³).
- For each finalist, open the FACT SHEET (EFL) and read base charge, minimum usage, and early termination language before enrolling (³).
Third-party comparison sites can help you discover plans, but the PUCT’s own site exists so every certified provider can list offers in a regulated, standardized format (⁵). When numbers disagree between sites, trust the EFL tied to the offer you are about to sign.
Macro benchmarks: what statewide averages can and cannot tell you
Official statistics help you spot offers that deserve extra scrutiny—they are not quotes for your address.
- EIA’s Texas Electricity Profile (2024) lists an average retail price of 9.79 cents/kWh in the statewide summary table (⁸). That is a broad, all-sectors style benchmark—not your competitive REP offer.
- Nationally, EIA notes the 2025 U.S. annual average retail price was about 13.63¢/kWh, with residential customers at 17.30¢/kWh (⁹).
- EIA also explains that retail electricity prices are usually highest for residential and commercial customers because distribution costs more per unit at lower voltages, while industrial customers often pay closer to wholesale (⁹).
Competitive REP offers are built from current market conditions, TDU tariffs, and plan design—including base charges. They will not match a statewide average line item. What should match is the EFL math at your usage band.
EIA further notes that prices are usually highest in summer when demand is high because more expensive generation is called to serve load (⁹). Texas cooling load fits that pattern, which is why a plan that wins at 1,000 kWh in April may look different in August even if the base charge stays flat.
Billing products, renewables, and consumer protections
Average payment plans spread payments roughly evenly with periodic true-ups; the glossary notes all REPs are required by the PUC to offer them (¹). Prepaid service is pay-as-you-go, with usage calculated daily via a smart meter or similar device (¹). These products change cash-flow timing, not the physics of kWh.
If renewables matter, the EFL states the percentage of renewable energy on the plan (¹).
When you switch REPs, ERCOT will send you a mailer confirming your switch (¹). Slamming (switching without approval) and cramming (adding charges without approval) are unlawful; penalties are administered by the PUC (¹).
If you are outside Texas—or comparing for a small business
Not every U.S. address can shop among dozens of REPs. In regulated markets, a utility often sells bundled service. In Texas competitive areas, generation supply is priced by the REP you select, while delivery remains a regulated pass-through (⁴). Readers in other choice states will recognize the supply/delivery split even when labels differ.
For small commercial accounts, Texas commonly defines small commercial as businesses whose peak demand during any 12-month period is less than 50 kW (¹). You may still use 1,000 kWh as a monthly energy thinking tool, but demand spikes can change which products you qualify for.
Checklist: comparing base charge plans at 1,000 kWh
- Chart 12 months of kWh; confirm whether ~1,000 kWh is typical, seasonal, or rare.
- Shop on ⁷ with usage set to 1,000 kWh (²).
- Compare EFL average price at 1,000 kWh for every finalist, then check 500 and 2,000 rows for rank changes.
- Read base charge, minimum usage, and early termination on the EFL (¹).
- Reconcile against EIA Texas and U.S. residential benchmarks so you know when an offer needs extra scrutiny (⁸; ⁹).
Closing reality check
This article does not list today’s lowest ¢/kWh plans for Houston, Dallas, or any specific ZIP—and that is intentional. Competitive offers rotate constantly, and your effective price is a function of usage, TDU, fees, and plan design. What stays stable is the framework the PUCT baked into Power to Choose and the EFL: compare standardized averages at 1,000 kWh (and the neighboring rows), treat base charges as first-class inputs, and read contract artifacts before you enroll (⁵; ¹).
If you do only one thing after reading this, make it that: at 1,000 kWh, pick the plan whose labeled bundle matches how you actually use power—not the plan whose fee structure punishes you for being human about seasonality.