Texas Electricity Plan Comparison Methodology

Document revised: September 17, 2026

GetElectricity estimates plan costs from available retail-provider plan terms and delivery-charge inputs at standardized usage levels. Estimates are not a bill quote; review the plan’s Electricity Facts Label (EFL) and enrollment disclosures before enrolling.

Plan terms can vary by usage level, charges, credits, and contract conditions. Compare the current Electricity Facts Label (EFL) and enrollment disclosures for the specific offer before enrolling.

This document explains the calculation inputs and standard usage levels used for plan comparisons when those inputs are available.


1. Data Provenance & Ingestion

GetElectricity uses available plan terms and delivery-charge inputs to calculate comparison estimates:

  1. Standardized Electricity Facts Labels (EFLs): Every residential plan offered in Texas is legally required by the Public Utility Commission of Texas (PUCT) under 16 TAC §25.475 to publish an official EFL detailing energy charges, base charges, contract terms, and early termination fees.
  2. Available catalog inputs: Plan availability, pricing, and enrollment terms are presented when they are available in the catalog.
  3. Freshness: Time-sensitive results should identify the applicable data freshness; unavailable or stale inputs are not presented as current.
  4. Delivery-charge inputs: TDU delivery charges are regulated and may change through applicable tariff processes.

An estimate reflects the inputs available for that result. The EFL and enrollment disclosures govern plan terms and charges.


2. The All-Inclusive Effective Rate Formula

An effective-rate estimate accounts for the applicable plan and delivery-charge inputs rather than relying on an advertised energy charge alone.

GetElectricity calculates an Estimated Effective Rate using this mathematical formula:

$$\text{Effective Rate (¢/kWh)} = \frac{\text{Total Estimated Monthly Bill ($)} \times 100}{\text{Monthly Consumption (kWh)}}$$

Where Total Estimated Monthly Bill is defined as:

$$\text{Estimated Total ($)} = \text{Energy Charge} + \text{Base Charge} + \text{TDU Fixed Charge} + \text{TDU Volume Charge} - \text{Applicable Bill Credits}$$

Formula Components Defined

ComponentDescriptionWho Sets It?
Energy ChargeThe per-kWh cost of raw electricity supplied by the Retail Electric Provider. Can be fixed for the contract term or variable month-to-month.Retail Electric Provider (REP)
Base ChargeA recurring monthly service fee that may apply under an offer's EFL.Retail Electric Provider (REP)
TDU Fixed Monthly ChargeA delivery-charge input that may apply to the serving utility and offer.Transmission & Distribution Utility (PUCT approved)
TDU Volume Delivery ChargeA per-kWh delivery-charge input that may apply to the serving utility and offer.Transmission & Distribution Utility (PUCT approved)
Bill CreditsConditional discounts that may apply only within a defined usage window.Retail Electric Provider (REP)

3. TDU Delivery Charge Accounting

Transmission and Distribution Utilities (TDUs)—also known as Transmission and Distribution Service Providers (TDSPs)—are regulated electric monopolies responsible for the poles, wires, meters, and physical restoration of electricity across Texas.

The comparison uses the canonical delivery-charge registry shared with the Texas utility directory when a current, qualifying input is available. We do not reproduce static tariff figures here because a utility tariff and its effective date must be verified for the specific service address and offer. The EFL and enrollment disclosures govern the charges that apply to an offer.


4. Standard Usage Benchmarks (500, 1000, 2000 kWh)

Under PUCT Substantive Rule 16 TAC §25.475, all retail electric providers must disclose their average price per kilowatt-hour at three statutory monthly usage levels:

  1. 500 kWh: A standardized EFL comparison level.
  2. 1,000 kWh: A standardized EFL comparison level.
  3. 2,000 kWh: A standardized EFL comparison level.

Why Usage Benchmarks Matter

Fixed charges can have a different per-kWh effect at different usage levels. The comparison uses these benchmark consumption levels when the necessary plan inputs are available.


5. Unmasking Gimmick Plans & Fee Traps

Plan terms can include structures that affect an estimate at different usage levels:

The "Bill Credit" Cliff

Some plans apply a credit only within specified usage conditions. Comparison consideration: Review conditional credits against the usage levels shown in the plan’s EFL.

Minimum-Usage Fee Penalties

Some plans assess a fee when consumption falls below a specified minimum.

Comparison consideration: Review minimum-usage charges at the usage levels shown in the plan’s EFL.

Tiered Pricing Structures

Tiered plans can apply different rates across usage brackets.

Comparison consideration: Tiered charges can change an estimate as usage changes.


6. Plan Ranking & Sorting Logic

Plan-result pages identify their available sorting and filtering controls:

  1. Sorting: Review the ordering disclosed with the current result set.
  2. User-Controlled Filtering: Consumers can filter and sort by:
    • Contract Term Length (e.g., 12, 24, 36 months, or month-to-month).
    • Renewable Energy Content (e.g., 100% Texas wind & solar).
    • Plan Type (Fixed Rate vs. Variable vs. Prepaid).
    • Provider Cancellation Fee Limits.
  3. Sponsorship: Review sponsorship disclosures displayed with the result set.

7. Enrollment and Result Disclosures

Review plan and enrollment disclosures before enrolling:

  • Plan terms: The EFL and enrollment disclosures govern charges, eligibility, and contract terms.
  • Result ordering: The sorting and sponsorship disclosures displayed with the result set govern how results are presented.

8. Catalog Freshness & Stale Data Purging

Electricity rates in Texas fluctuate based on natural gas prices, wholesale power market dynamics, weather forecasts, and grid conditions. Maintaining current pricing is a core technical priority:

  • Freshness indicator: Time-sensitive results should identify the applicable source or catalog freshness.
  • Unavailable data: A result that lacks qualifying inputs is not presented as a current plan comparison.

9. Market Limitations & Coverage

GetElectricity evaluates Texas retail-electricity offers where the service address, serving utility, and current catalog provide qualifying inputs.

Coverage Scope

  • Availability: Comparison and enrollment options are shown only when the service address and current catalog provide qualifying inputs.

10. Audit & Review Process

If you have questions, corrections, or feedback regarding our calculation methodology, contact support@getelectricity.com or call (972) 200-9027.