Texas has a deregulated electricity market, which means every resident has the right to choose their own electricity provider. One of the most popular ways to find available plans is PowerToChoose.org, a website created by the Public Utility Commission of Texas (PUCT), the agency that regulates the state's electric and telecommunication utilities. When you visit PowerToChoose.org and type your ZIP code, you’ll see a list of plans, usually sorted by price. Now, let’s take a look at the first 20 “cheapest” plans and what’s really happening behind the scenes.
Almost every plan in the first 20 results is a short-term plan. They look cheap—usually 3 to 6-month terms—but that low price is a lure. Energy companies use these short-term “engagement” plans to get you in the door. After three months, you’re expected to switch to a longer-term rate that’s almost always more expensive. Many people simply forget the plan expires and roll over into a variable rate, which can be even worse.
Even though some of the top 20 appear as “Fixed Rate” plans, at least four of them in our test were Night Free Hourly plans. This is misleading because the “free hours” only apply at specific times, and customers often don’t read the details in the Electricity Facts Label (EFL). Some plans also require additional equipment, like a smart thermostat that allows the company to control your A/C during peak hours. All this information is buried inside the EFL or Terms of Service — and most Texans don’t have time to read every small detail.
The top three “cheapest” plans in our test charged a $50 enrollment fee. If you divide that cost over a 3-month plan, the true effective rate is much higher than advertised. That’s why relying on the displayed price per kWh can be misleading.
At Clear Energy Facts, we analyze the top 15 plans for every term length in each TDU area and properly categorize them for you. We show only transparent, clearly labeled information — whether a plan is “True Fixed”, “Free Nights”, “Free Weekends”, or “Usage Credit”.
Usually, the plans listed on Power to Choose also lead our rankings for each term length. It’s important to note that Clear Energy Facts has no affiliation with Power to Choose. Our goal is to bring more transparency to the electricity shopping process and help Texans find the best rate possible.
Power to Choose is an excellent tool, and we’re grateful to the Public Utility Commission of Texas (PUCT) for taking the initiative to create it. We believe that when used correctly, Power to Choose empowers Texans to make informed decisions about their electricity plans.
The challenge isn’t the platform itself; it’s the lack of context and transparency surrounding many of the listed plans. That’s where Clear Energy Facts (CEF) comes in: our goal is to make electricity shopping simpler, clearer, and truly transparent.
Ready to compare transparent plans? See the best True Fixed plans in your area →