Power to Choose Is Legit, but Misleading Electricity Plans Are Becoming a Problem
By
Rafael Morales
|
Texas electricity market
Power to Choose is one of the best places to shop for electricity in Texas, especially if you are looking for some of the cheapest plans in the market. It gives customers a public place to compare electricity plans, review Electricity Facts Labels, and see standardized pricing at 500, 1,000, and 2,000 kWh.
In many ways, Power to Choose has been one of the best tools for Texas electricity shoppers. However, some companies are using plan structures that make their offers look cheaper than they really are. These plans may appear attractive in the search results, but once you read the EFL carefully, you may find one-time fees, special usage assumptions, time-of-use pricing, or bill credits that can increase your real monthly bill.
What Power to Choose Does Well
- Power to Choose is still one of the best places to find truly fixed-rate electricity plans. Many of the cheapest and most competitive fixed-rate offers in Texas can be found there. This is one of the reasons the website has been a valuable resource for Texas customers for many years.
- Another important benefit is that Power to Choose does a good job filtering many bill-credit plans, which are among the most common gimmick plans in the Texas electricity market. Bill-credit plans can look cheap at 1,000 kWh, but they often become expensive when a customer uses less than the required amount to receive the credit.
Where Power to Choose Can Still Be Confusing
The main problem is that some plans listed near the top of the results are not always simple fixed-rate plans. Some companies use pricing structures that can make the 500, 1,000, or 2,000 kWh rates look better than they may be in real life.
Some common issues include:
- One-time fees that may not be clearly reflected in the advertised rate.
- Fees that apply when usage falls below a certain level.
- Time-of-use plans that depend on customer behavior.
- Plans that require a smart thermostat or special participation to receive the advertised savings.
The filter options can also be limited. After entering a ZIP code, customers often see the cheapest plans first. However, some of the cheapest plans are very short-term offers. These plans may be designed to attract customers with a low initial rate, and then keep them after the contract expires. If the customer forgets to renew, they may end up on a much higher variable rate.
Misleading Electricity Plan Tactics to Watch Out For
1. One-Time Fee Plans
Examples: Amigo Energy, Tara Energy, Just Energy
One common issue is the use of one-time fees. This appears in some plans from companies connected to the Fulcrum retail energy family, including Amigo Energy, Tara Energy, and Just Energy.
The concern is especially important for short-term plans, such as 3-month plans. Some plans may include a one-time fee, such as a $50 fee, but the way that fee is reflected in the average price can make the plan look cheaper than it may actually be during the contract term.
For example, if a plan is only 3 months long, a $50 fee should have a much larger impact on the customer’s monthly cost than it would on a 12-month plan. If the fee is spread in a way that makes the average rate look lower, the plan may rank better than other plans even though the real cost to the customer could be higher.
Common plan names to review carefully include:
- Amigo Energy: Sustainable Lifestyle, Sustainable Simply Days
- Just Energy: Sustainable Living Bundle, Sustainable Days Bundle
- Tara Energy: Sustainable Home Bundle, Balanced Days Bundle
Customers should read the EFL carefully and check how any one-time fee is applied before enrolling.
2. Time-of-Use Plans
Examples: Chariot Energy, Amigo Energy, Tara Energy, Just Energy
Another issue is time-of-use pricing. Some plans that appear near the top of the search results are not traditional fixed-rate plans. Instead, they include free nights, free days, or other time-based pricing structures.
The only way many customers will notice this is by opening the EFL and reading the details.
The problem with these plans is that the advertised average rate is usually based on an assumption about how much electricity the customer will use during the free or discounted period. But not every household uses electricity that way.
If the plan assumes that a customer will use a large percentage of electricity during the free window, but the customer’s real usage does not match that assumption, the actual bill can be much higher than expected.
Common plan names to review carefully include:
- Tara Energy: Balanced Days Bundle
- Amigo Energy: Sustainable Simply Days
- Just Energy: Sustainable Days Bundle
- Chariot Energy: Bright Nights
Time-of-use plans are not always bad. For some customers, they can work very well. But they should not be compared the same way as a simple fixed-rate plan unless the customer understands the usage assumptions behind the advertised rate.
3. Plans Tied to Equipment or Thermostat Participation
Example: Think Energy
Some plans include credits that depend on customer participation or specific equipment.
For example, the Think Smart program may provide a $10 monthly bill credit, up to $120 per year, for customers who connect a compatible smart thermostat. However, if the customer does not have a compatible thermostat, or does not meet the program requirements, the effective rate can increase.
In exchange for the credit, customers may also allow the provider to adjust the thermostat during peak grid demand periods. If the customer overrides these adjustments more than allowed, they may lose that month’s credit.
4. Risk of Your Plan Being Transferred to Another Company
Some of the cheapest electricity plans in Texas come from smaller retail electricity providers. These companies can offer very competitive rates, often because they operate with lower overhead.
However, customers should know that smaller providers can sometimes sell or transfer their customer contracts to another company. This does not usually mean your rate will change, since the new provider should honor the existing contract terms. But it can still create inconvenience.
You may need to set up a new account, update payment information, or watch for new billing instructions. The biggest risk is missing an important notice during the transfer, which could lead to billing confusion or service problems.
Summary
Power to Choose is still one of the best marketplaces for finding cheap electricity rates in Texas. In fact, many of the best true fixed-rate plans in the market can be found there.
At Clear Energy Facts, we collect these plans, review them, and categorize them more clearly so customers can better understand what they are comparing. In many cases, the best plans — or at least many of the top plans for each contract term — are still listed on Power to Choose.
We also provide free tools, such as the EFL Inspector and the Free Nights Calculator, that customers can use to analyze Power to Choose plans before enrolling. The EFL Inspector helps identify the real structure of a plan, including whether it is truly fixed, usage-credit based, time-of-use, or tied to special conditions. The Free Nights Calculator helps customers test whether a free-night plan can actually beat a competitive fixed-rate plan based on their real usage data.
Power to Choose is legit. The problem is that misleading electricity plan structures are becoming more common, and Texas customers need better tools to understand the difference between a true fixed-rate plan and a plan that only looks cheap on paper.
