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TexasShopping guideUpdated Oct 4, 2026

What is Power to Choose, and how do I use it the right way?

Power to Choose is the state's free site for comparing electricity plans. But its top results can fool you. Some plans look cheapest at exactly 1,000 kWh, then cost far more in a month you use 900. Here's how to shop it the right way, plus a free tool that spots the trick in seconds.

Published 10 min readBy The Day Company Editorial Team · How we verify figures
powertochoose.orgFree · run by the state
$60 or $144?Same plan, 100 kWh apart
Short answer

Power to Choose (powertochoose.org) is the free, official electricity-shopping site run by the Public Utility Commission of Texas. If you live where you can pick your electric company, it lists the plans you can buy. It ranks plans by their price at exactly 1,000 kWh unless you change it. Some plans use bill credits to look cheapest at that one number, so always check the price at your own usage.

FreeRun by the Public Utility Commission of Texas
85%of Texans can pick their electric company
3 priceson every plan: at 500, 1,000 and 2,000 kWh
3 daysto cancel free after you switch

The 5 things to know

  • It's the state's own site. It's free, and it puts plans from many companies side by side.
  • Not everyone can use it. Homes in Austin, San Antonio and co-op areas can't shop.
  • It ranks plans at exactly 1,000 kWh unless you change the usage setting.
  • Bill credits can fool you. A plan can look cheapest at 1,000 kWh and cost more at 900.
  • Read the Facts Label before you sign. Our free trap checker spots the trick.

Built on public data from the Public Utility Commission of Texas's Power to Choose, the state's Facts Label rule, and ERCOT's retail market report.

01 · The basics

What is Power to Choose?

It's the state's official website for comparing electricity plans. The Public Utility Commission of Texas runs it at powertochoose.org. You type in your ZIP code, and it shows plans from electric companies that serve your area.

How shopping on Power to Choose works
Enter your ZIPOn powertochoose.org
See the plansRanked by price
Read the labelCheck the price at your usageMost people skip this
Sign upWith the company you pick
Your utility, like Oncor or CenterPoint, still delivers the power and fixes outages. That doesn't change when you switch.
A state law, SB 7, opens Texas electricity to competition.
Competition begins. Texans can start picking electric companies.
A state law, SB 1219, requires the state to run the Power to Choose site.
About 85% of Texans can shop for their electric company.

Electric companies also sell plans on their own websites. Power to Choose is different because it puts many companies side by side, for free, on one site the state runs. Before you shop, it helps to know what a fair Texas price looks like.

02 · Who can use it

Can I use Power to Choose where I live?

Probably. About 85% of Texans can pick their electric company, including most people in Dallas-Fort Worth, Houston and Corpus Christi. But if your power comes from a city utility, like in Austin or San Antonio, or from an electric co-op, you can't shop.

Who can shop for electricity in Texas
Can shop. Areas served by Oncor, CenterPoint, AEP Texas and TNMP.
Can't shop. City utilities like Austin Energy and CPS Energy, plus electric co-ops.

Share of Texas electricity customers, from ERCOT's 2025 retail market report.

Not sure if you can shop? Type your ZIP code on Power to Choose. If no plans show up, you can't shop there. You can also use our utility finder. In Austin or San Antonio, see Austin Energy explained or CPS Energy explained.
03 · The trap

Why the cheapest plan on Power to Choose may not be cheapest for you

Because the site ranks plans by their price at exactly 1,000 kWh unless you change it. Some companies build plans to win that one test with a bill credit. Use a bit less or a bit more, and the same plan can cost more than double.

Same two plans, three different months
Plan A: 16¢ per kWh, plus a $100 credit only from 1,000 to 1,200 kWhPlan B: a flat 13.5¢ per kWh, no credit

Illustrative example to show how bill credits work. Real plans vary, so check each plan's Facts Label.

$60Plan A at exactly 1,000 kWh. It tops the list.
$144Plan A at 900 kWh. The credit is gone.
$208Plan A at 1,300 kWh. Gone again.

Plan B never ranks first, but it costs less in two of the three months. Most homes swing a lot from month to month, so a credit window is easy to miss. That's why the 1,000 kWh price can mislead you.

Fix it in one click. On the results page, pick the usage range closest to your home. Power to Choose re-sorts the list by the 500, 1,000 or 2,000 kWh price.
04 · Free tool

Does this plan have a bill-credit trap? Check it in 10 seconds

Every plan's Facts Label lists its average price at 500, 1,000 and 2,000 kWh. Type those three numbers in. If the 1,000 kWh price dips below the 2,000 kWh price, that's the trap's fingerprint.

Looks steadyThe price drifts down as use goes up. That's normal, because fixed charges get spread out. No sign of a bill credit.
12.7¢12.2¢12.0¢500 kWh1,000 kWh2,000 kWh

About $122 a month at 1,000 kWh, before taxes.

Why this works: on a normal plan, the price per kWh slowly drops as you use more, because fixed monthly charges get spread out. A bill credit breaks that pattern. To price a whole plan at your exact usage, use our plan cost calculator.

05 · The fine print

How do I read an Electricity Facts Label?

Every plan must have one. State rules make companies publish this one-page price sheet. It shows the price at 500, 1,000 and 2,000 kWh, the contract length, the cancel fee, whether the price is fixed or variable, and how much is renewable.

A real label, decoded: Gexa Eco Choice 12, Houston area
Electricity Facts LabelGexa Energy · Eco Choice 12 · CenterPoint service area
1
Average price per kWhFind the column closest to your usage.
500 kWh12.7¢1,000 kWh12.2¢2,000 kWh12.0¢
2
Energy charge5.22¢ per kWhThe electric company's part. This is the part you shop for.
3
Delivery charges$4.90 a month + 6.5333¢ per kWhCenterPoint's part, passed through. It's the same on every Houston plan.
4
Bill creditsNoneIf a plan has one, find the kWh window it needs.
5
Contract12 monthsAlso check the cancel fee and whether the rate is fixed or variable.

From Gexa Energy's Facts Label, read October 2026. Average prices include delivery but not taxes. We show this plan because it's a clean example with no bill credit, not as a recommendation.

Where $122.43 goes in a 1,000 kWh month on this plan
  • CenterPoint delivery ($4.90 + 6.5333¢ per kWh)$70.23
  • Gexa energy charge (5.22¢ per kWh)$52.20

Before taxes. More than half of this bill is delivery, which you can't shop. See what delivery costs with CenterPoint and Oncor.

That's why two plans can only differ so much: the delivery part is the same for everyone. Our full guide shows how to read every line of a Facts Label. Not sure which rate type fits you? Read fixed vs. variable rates.

06 · Step by step

How do I compare plans on Power to Choose?

Follow these six steps. Have a recent bill handy so you know your usage.

  1. Know your usageFind the kWh on your bills. Smart Meter Texas shows your past usage for free.
  2. Enter your ZIPGo to powertochoose.org and type in your ZIP code.
  3. Pick your usage rangeChoose the range closest to your home. The list re-sorts by that price.
  4. Filter the listNarrow it by plan type, like fixed rate, and by contract length.
  5. Open 3 Facts LabelsCheck the price at your usage, bill credits, base charges and the cancel fee. Or test them in our trap checker.
  6. Check the companyLook at its complaint rating, then sign up. You get 3 business days to change your mind.

Shopping because your contract is ending? Start a few weeks early, so you don't roll onto a higher month-to-month rate. Moving? See how to set up electricity. Wondering if your bill is normal? Compare it with a typical Texas bill.

07 · Red flags

What should I watch out for on Power to Choose?

Most plans are fine. These six details are where bills jump.

Bill creditsA credit that only pays in a kWh window, like 1,000 to 1,200 kWh.
Minimum-use feesAn extra charge in months you use less than a set amount.
Tiered ratesA higher price once you pass a usage level, like 1,000 kWh.
Variable ratesThe price can change from month to month. Compare fixed and variable.
Big cancel feesSome are $150 or more. Check the label before you sign.
Free nights catchesDaytime power costs more. See how free nights plans work.

Need a plan with no deposit? Prepaid plans exist, but read their fees closely. See no-deposit and prepaid plans. To see which companies draw the fewest complaints, read our provider rankings.

08 · After you sign

What happens after I pick a plan?

Your new company handles the switch. Your power stays on, and your utility doesn't change. You also get 3 business days to cancel for free if you change your mind.

  1. You agree to the plan online or by phone. Save the Facts Label and your contract.
  2. If you switched from another company, you can cancel free within 3 federal business days.
  3. Your new company takes over on your start date or your next meter reading. Your power doesn't go off.
  4. Your company should warn you before it ends. Shop again, or you'll likely move to a month-to-month rate.

Leaving an old plan early? Its cancel fee may still apply, though many companies waive it if you move, so check your terms. Behind on a bill? See help paying your electric bill. Want to see how specific companies score? Read our TXU, Reliant and Green Mountain reviews.

09 · Quick answers

Power to Choose questions, answered

What is Power to Choose?

Power to Choose (powertochoose.org) is the free, official site for comparing electricity plans in Texas. The Public Utility Commission of Texas runs it. You enter your ZIP code, and it lists plans from electric companies that serve your area.

Is Power to Choose legit?

Yes. The state's utility regulator, the Public Utility Commission of Texas, runs it, and it's free to use. Still, a top-ranked plan isn't always the best deal for you, so read each plan's Facts Label before you sign.

Who can use Power to Choose?

About 85% of Texans can pick their electric company and use the site, including most of Dallas-Fort Worth, Houston and Corpus Christi. Homes served by city utilities, like Austin Energy and CPS Energy, or by electric co-ops can't shop there.

Why isn't the cheapest plan on Power to Choose really the cheapest?

Because the site ranks plans by their price at exactly 1,000 kWh unless you change it. Some plans use bill credits to look cheapest at that one number. If your use is lower or higher, the same plan can cost much more. Pick the usage range closest to yours, and check the price at your usage.

What is a bill credit plan?

It's a plan that takes money off your bill only if you use a certain amount, like 1,000 to 1,200 kWh. Inside that window, the plan looks cheap. Outside it, you pay the full, higher rate. In our example, the same plan costs $60 at 1,000 kWh but $144 at 900 kWh.

What is an Electricity Facts Label?

It's a one-page price sheet every Texas plan must publish under state rules (PUCT rule 25.475). It shows the average price at 500, 1,000 and 2,000 kWh, the contract length, the cancel fee, whether the rate is fixed or variable, and the renewable share.

How do I find my monthly kWh usage?

Look at the kWh on your electric bills. You can also see your past usage for free on Smart Meter Texas. Use your average month, and remember that summer months run higher.

Can I cancel a plan after signing up?

Yes. If you switched from another company, you can cancel within 3 federal business days with no fee. After that, your plan's cancel fee may apply, unless your terms waive it.

What happens when my electricity contract ends?

Your company should send you a notice before it ends. If you don't pick a new plan, you'll likely move to a month-to-month rate, which is often higher. Start shopping a few weeks early.

Does Power to Choose show company ratings?

Yes. It shows each company's complaint rating from the state on a 1-to-5 scale, where 5 means the fewest complaints. Our company reviews also score providers on public records.

Sources

Sources and updates

Sources (11)
Changelog · last updated October 4, 2026 · 1 update
  • October 4, 2026: Guide published, with a real Facts Label example (Gexa Eco Choice 12, CenterPoint area), an illustrative bill-credit example and a free bill-credit trap checker.

How to cite this page: The Day Company, "What is Power to Choose, and how do I use it the right way?", updated October 4, 2026, https://theday.company/tx/power-to-choose-explained.

Power to Choose is run by the Public Utility Commission of Texas. The Day Company is not affiliated with the PUCT, Power to Choose or any electric company, and no company pays for placement in this guide. Plan prices change often, so check each plan's current Facts Label before you sign. The Plan A and Plan B bill-credit figures are illustrative. Prices exclude taxes.