Waco TX Electricity Plans: Real Cost at 500 and 2000 kWh

If you live in Waco and you're comparing electricity plans, the single most important number on any offer is probably not the headline rate printed in big type. It's the average price per kilowatt-hour (kWh) at the usage level that looks like your home — and in Texas, regulators require that number to be shown at exactly three benchmarks: 500, 1,000, and 2,000 kWh per month.

Those three benchmarks exist for a reason. A plan that looks cheap at 2,000 kWh can be punishing at 500 kWh, and vice versa. For Waco households — from compact apartments near Baylor to older bungalows and larger suburban homes — that gap can mean the difference between a $65 bill and a $135 bill on the same provider's "deal."

This guide walks through how Waco-area electricity shopping works, what 500 and 2,000 kWh actually represent, and how to read real plan costs using official tools and standardized labels — without getting fooled by bill credits, minimum-usage fees, or teaser rates.

Waco sits in Texas's competitive retail market

Most Waco residents buy electricity the Texas deregulated way: you choose a Retail Electric Provider (REP) for the energy itself, while a separate Transmission and Distribution Utility (TDU) — the "local wires company" — delivers power, reads your meter, and maintains poles and lines (¹). The Public Utility Commission of Texas (PUCT) regulates both customer protections and TDU rates (²).

Texas opened most of the state to retail competition in 1999 (³). If your address is in a competitive area, you shop on the state's official comparison site, ⁴, which lists offers from certified REPs. Enter a Waco ZIP code (76701, 76706, 76708, and others) and you'll see plans available for your TDU territory.

When you enter a Waco ZIP on Power to Choose, available plans are tied to your local TDU. For most Waco addresses, that TDU is Oncor Electric Delivery — the wires company for much of North and Central Texas. Oncor does not sell energy; it directs residents to Power to Choose to pick a REP (⁵). Your REP sends the bill, but Oncor still handles outages and physical delivery.

Electricity for the Waco area flows through the Electric Reliability Council of Texas (ERCOT) grid, which covers most of the state (⁶). That matters because wholesale conditions, summer heat, and grid events can ripple into retail pricing — even on fixed-rate plans, TDU pass-through charges can change with regulatory approval (¹).

What you actually pay for

Every bill has two big pieces:

1. Energy charges from your REP (the competitive part you select).
2. TDU delivery charges — regulated fees for wires, meters, and distribution, passed through on your bill (¹).

The Electricity Facts Label (EFL) on each plan rolls both into an average price per kWh at 500, 1,000, and 2,000 kWh. That's the apples-to-apples number Texas regulators want you to use (¹).

What 500 kWh and 2,000 kWh mean for real homes

Electricity is measured in kilowatt-hours (kWh) — the energy used by a 1 kW load running for one hour (⁷). Your meter totals monthly kWh; your bill lists "kWh used" (¹).

Context from national data: The average U.S. home used about 899 kWh per month in 2022 (roughly 10,791 kWh per year) (⁸). Texas's statewide average retail price was 9.79¢/kWh in 2024 (⁹), while the U.S. residential average was 17.30¢/kWh in 2025 (¹⁰). Your Waco bill won't match a state average — TDU fees, plan type, and usage shape the total — but those figures anchor expectations.

500 kWh/month typically signals a very efficient small home or apartment, a vacant or lightly used property, or winter months with little air conditioning. At this level, per-kWh averages run high because monthly base fees are spread across fewer kWh.

2,000 kWh/month signals a larger home, heavy summer AC in Central Texas heat, pool pumps, electric heat strips, or multiple occupants. Here, bill-credit plans often shine — but only if you actually cross the credit threshold (commonly 1,000 kWh).

Heating and cooling dominate residential use nationally (¹¹). In Waco's climate, summer bills push many households toward 1,500–2,500 kWh in July and August, while mild spring or fall months may land under 800 kWh. That's why comparing plans at both 500 and 2,000 kWh protects you from seasonal surprises.

How to read the EFL — the label that shows real cost

Texas law requires every residential plan to publish an Electricity Facts Label (EFL) with standardized pricing, fees, contract term, and renewable content (¹). Power to Choose displays the same average-price rows for online comparison (³).

On the EFL, look for:

• Average price per kWh at 500 / 1,000 / 2,000 kWh — your best quick filter.
• Energy charge (¢/kWh) and any base charge (flat monthly fee) (¹).
• TDU fees passed through (these show up in the average-price math).
• Bill credits or usage credits tied to crossing kWh thresholds (³).
• Minimum usage fees if you fall below a stated kWh level — "typical usage cut-off points that might incur a fee are less than 500 or 1,000 kWh" (³).
• Early termination fees and contract length (¹).

Do the bill math yourself. Multiply the average price at your usage tier by your expected kWh. Example: 14.80¢/kWh at 500 kWh → about $74 in all-in average cost before taxes; at 2,000 kWh and 13.90¢ → about $278. Those are illustrative; your plan's EFL is the binding document.

Real Oncor-zone plan costs at 500 vs 2,000 kWh (Waco-area TDU)

The following figures come from Power to Choose's statewide offer export for Oncor Electric Delivery Company plans — the TDU serving Waco — as listed on the official comparison site (⁴). Rates change frequently; always confirm on the live site before enrolling. Figures below reflect English-language residential offers in that export and show average ¢/kWh and estimated monthly cost (average price × usage, not including taxes).

Market range at a glance

Among 156 unique English-language Oncor plans in the export:

The spread is enormous — more than double between the cheapest and priciest 500 kWh averages. That is not a rounding error; it's plan design.

Stable-rate plans (similar cost at 500 and 2,000 kWh)

"Boring" fixed plans keep 500 and 2,000 kWh averages within about 2¢ of each other. Examples from the export:

• Infuse Energy — Essential Infusion Flex: 13.0¢ at 500 kWh (~$65) · 12.1¢ at 2,000 kWh (~$242)
• Budget Power — No Gimmicks 12: 13.1¢ at 500 kWh (~$65.50) · 12.5¢ at 2,000 kWh (~$250)
• Octopus Energy — Octo Simple 12: 13.2¢ at 500 kWh (~$66) · 12.6¢ at 2,000 kWh (~$252)
• Base Power — Base Energy 36: 14.9¢ at 500 kWh (~$74.50) · 14.3¢ at 2,000 kWh (~$286)

If you fluctuate between 600 kWh in April and 1,800 kWh in August, these profiles are easier to budget.

Bill-credit plans (win at 1,000+, hurt at 500)

Several popular Oncor plans advertise low 1,000 kWh averages but punish 500 kWh usage:

These plans typically apply a $125 monthly bill credit when usage reaches 1,000 kWh (per offer descriptions in the export). Below that threshold, the credit vanishes — and the 500 kWh average price jumps above 20¢.

Who should avoid these: Small apartments, snowbirds, efficiency obsessives, or anyone routinely under 800 kWh.

Who should consider them: Families consistently above 1,200 kWh, especially summer peaks above 1,500 kWh.

Cheapest and priciest extremes (read the fine print)

• Lowest 500 kWh average in export: Infuse Energy Essential Infusion Flex at 13.0¢ (~$65) — variable rate type; price can change month to month (¹).
• Highest 500 kWh average: Texans Choice Power — Texas Instant 12 at 27.0¢ (~$135).
• Lowest 2,000 kWh average: Chariot Energy Bright Nights 12 at 11.8¢ (~$236) — but recall the weak 500 kWh profile.
• Highest 2,000 kWh average: TXU Energy Value Edge 12 at 19.4¢ (~$388).

Prepaid plans also appear in the market (¹); they can show flat averages across usage tiers but carry different deposit and disconnect rules.

Plan features that move your real cost

Base charges and minimum usage fees

A base charge is a flat monthly fee "regardless of the amount of kWh used" (¹). A $9.95 base fee adds roughly 2¢/kWh at 500 kWh but only 0.5¢/kWh at 2,000 kWh. Low-usage homes feel base fees more.

Minimum usage fees trigger when you consume below a plan's threshold (³). If you regularly land near 500 kWh, filter for plans without minimum-usage charges on Power to Choose.

Fixed vs variable vs indexed

• Fixed-rate: Price per kWh locked for the contract term, except TDU/administrative pass-through changes (¹).
• Variable: Rate can change monthly at the REP's discretion (¹).
• Indexed: Tied to a public index; can swing sharply (¹).

Time-of-use plans

Time-of-use offers discount off-peak hours but EFL averages assume estimated usage splits (¹). If you won't shift laundry and charging to discounted windows, your real cost may exceed the label.

Renewable content

EFL also states renewable percentage (¹). Green plans aren't always pricier — several 100% renewable Oncor offers in the export sit in the mid-13¢ range at 500 kWh.

A practical decision framework for Waco shoppers

Step 1 — Estimate your usage band honestly. Pull 12 months of usage from your REP's online portal or past bills (Oncor points customers to usage tools via its residential site). Note highest and lowest months. If your range spans 550–2,100 kWh, optimize for both endpoints.

Step 2 — Shop on Power to Choose. Enter your Waco ZIP, confirm Oncor as TDU if prompted (⁴). Sort by average price at your nearest benchmark — use 500 kWh if you often fall below 700 kWh; use 2,000 kWh if you regularly exceed 1,500 kWh.

Step 3 — Open the EFL, not just the teaser. Compare average prices at 500, 1,000, and 2,000 kWh side by side for your top three plans (³).

Step 4 — Model dollars, not just cents. Multiply each average by your expected kWh. A 0.8¢/kWh difference is only $4 at 500 kWh but $16 at 2,000 kWh.

Step 5 — Check fees and exit costs. Note early termination fees (¹) and whether bill credits require 1,000+ kWh.

Step 6 — Know your rights. You get an EFL, Terms of Service, and "Your Rights as a Customer" disclosure (³). Slamming and cramming are illegal; report issues to the PUCT at 1-888-782-8477 (³).

Step 7 — Switch cleanly. After enrolling, ERCOT confirms the switch within about seven business days with a three-day cancellation window (³). No meter tech visit required for a standard switch.

Small businesses and landlords

Commercial customers with peak demand under 50 kW are classified as small commercial (¹). Usage patterns differ from homes — a 1,200 sq ft retail shop might land between 1,000 and 3,000 kWh depending on HVAC and refrigeration. The same EFL benchmarks apply; use the business filters on Power to Choose (¹²).

Landlords between tenants often hit sub-500 kWh months. Avoid bill-credit plans designed for 1,000+ kWh and favor low base charges or stable-rate products.

The bottom line

For Waco-area homes on Oncor, real monthly cost hinges on which side of 1,000 kWh you land, not the flashy energy rate in ads. At 500 kWh, median Oncor-zone plans in the Power to Choose export cluster near 14.8¢/kWh (~$74) — but bill-credit designs can push you above 20¢ (~$100+). At 2,000 kWh, medians near 13.9¢ (~$278) with bill-credit winners down near 11.8¢ (~$236) for heavy users who qualify.

There is no universal "cheapest plan." There is only the cheapest plan for your usage shape. Read the EFL at 500 and 2,000 kWh, do the multiplication, and pick the offer that stays affordable in both your mild months and your July electric bill — that's how Waco shoppers avoid surprises.