{"id":13327,"date":"2026-10-27T06:38:00","date_gmt":"2026-10-27T11:38:00","guid":{"rendered":"https:\/\/www.texaselectricityratings.com\/blog\/?p=13327"},"modified":"2026-10-22T17:02:35","modified_gmt":"2026-10-22T22:02:35","slug":"why-do-energy-charges-matter-on-texas-electricity-plans","status":"publish","type":"post","link":"https:\/\/www.texaselectricityratings.com\/blog\/why-do-energy-charges-matter-on-texas-electricity-plans\/","title":{"rendered":"Why Do Energy Charges Matter on Texas Electricity Plans?"},"content":{"rendered":"\n<h2 id=\"h-energy-charges-matter-in-texas\" class=\"wp-block-heading\">Energy Charges Matter in Texas<\/h2>\n\n\n\n<figure class=\"wp-block-image alignright size-medium\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/www.texaselectricityratings.com\/blog\/wp-content\/uploads\/2026\/10\/shop-energy-charges-matter-Texas-300x200.jpg\" alt=\"Learn why energy charges matter most when you shop and compare electricity plans in Texas.\" class=\"wp-image-13373\" title=\"Energy Charges Matter in Texas\"\/><figcaption class=\"wp-element-caption\"><center><em>Knowing your electric usage can matter a lot when you compare the energy charges on bill credit plans.<\/em><\/center><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.texaselectricityratings.com\/power-to-choose\/deals\" target=\"_blank\" rel=\"noreferrer noopener\">Cheap electricity rates<\/a> can look like a great deal. But what happens when your home uses less power than usual? In fact, many low-priced 12-month plans use a $125 credit tied to monthly power use. For a well-insulated Houston home, a mild month can turn that discount into a costly surprise. Some cheap-looking plans cost far more when you miss a bill credit. That is why energy charges matter when you shop for a plan. Before choosing an <a href=\"https:\/\/www.texaselectricityratings.com\/companies\" target=\"_blank\" rel=\"noreferrer noopener\">electric provider<\/a>, check how its rate changes with your usage. <\/p>\n\n\n\n<h3 id=\"h-what-does-the-energy-charge-cover\" class=\"wp-block-heading\">What Does the Energy Charge Cover?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The energy charge is what a provider bills for each kWh you use. Think of your electricity bill like an <a href=\"https:\/\/www.amazon.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon<\/a> order. The energy charge is the price you pay for the goods. The utility&#8217;s delivery charges are like the shipping fee.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At 12.3\u00a2 per kWh, 950 kWh costs $116.85 before delivery fees and other charges. However, a $125 usage credit can change the final bill far more than saving 50 kWh.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why the advertised rate at 1,000 kWh does not tell the whole story. It may already include a credit you won&#8217;t get every month.<\/p>\n\n\n\n<h3 id=\"h-three-houston-plans-compared\" class=\"wp-block-heading\">Three Houston Plans Compared<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.texaselectricityratings.com\/companies\/bkv-energy\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>BKV Energy<\/strong><\/a> offers <strong>Pepper Tree 12<\/strong>. <a href=\"https:\/\/www.texaselectricityratings.com\/companies\/companion-energy\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Companion Energy<\/strong><\/a> offers <strong>Companion Savings + Benefits 12<\/strong>. Both plans offer a $125 usage credit. For this comparison, we assume each credit starts at 1,000 kWh.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At 950 kWh, <strong>BKV<\/strong>&#8216;s estimated bill is $186.47. At 1,000 kWh, it falls to $71.03. <strong>Companion<\/strong>&#8216;s bill drops from $187.14 to $71.73 over the same range. Both examples include energy charges, delivery fees, and the credit when it applies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, <a href=\"https:\/\/www.texaselectricityratings.com\/companies\/constellation\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Constellation&#8217;s<\/strong><\/a> <strong>12 Month (No Min Usage Fee)<\/strong> works differently. Its estimated bill is $133.08 at 950 kWh and $139.83 at 1,000 kWh. There is no $125 credit to lose. As a result, using less power lowers the bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s the catch. With these bill credit plans, using 950 kWh instead of 1,000 kWh can actually cost you more than $115 extra. That&#8217;s because the $125 credit rewards higher monthly power use, even when using less electricity would normally save you money.<\/p>\n\n\n\n<h3 id=\"h-find-the-right-fit-for-your-home\" class=\"wp-block-heading\">Find the Right Fit for Your Home<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A bill credit plan may work well when you reliably use at least 1,000 kWh. But a mild spring or fall month can change the math. Even a home that usually uses more may slip below the mark.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before you sign up, check the electricity facts label for energy charges, usage credits, and fees. TER&#8217;s <a href=\"https:\/\/www.texaselectricityratings.com\/tools\/safe-rate\" target=\"_blank\" rel=\"noreferrer noopener\">Safe-Rate<\/a>&#x2122; analysis helps show how prices shift as usage changes. <a href=\"https:\/\/www.texaselectricityratings.com\/tools\/trubill\" target=\"_blank\" rel=\"noreferrer noopener\">TruBill<\/a>&#x2122; also estimates costs across a full year, rather than at just one usage level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is why energy charges matter more than a flashy rate alone. Compare Texas electricity plans at <a href=\"https:\/\/www.texaselectricityratings.com\/electric-rates\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.texaselectricityratings.com\/electric-rates<\/a> and choose one that fits your real power use.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Energy Charges Matter in Texas Cheap electricity rates can look like a great deal. But what happens when your home uses less power than usual? In fact, many low-priced 12-month plans use a $125 credit tied to monthly power use. For a well-insulated Houston home, a mild month can turn that discount into a costly <a class=\"read-more-link\" href=\"https:\/\/www.texaselectricityratings.com\/blog\/why-do-energy-charges-matter-on-texas-electricity-plans\/\">Read More<\/a><\/p>\n","protected":false},"author":11,"featured_media":13372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_mbp_gutenberg_autopost":false,"footnotes":""},"categories":[258,259],"tags":[],"class_list":["post-13327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to","category-save-money"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.4 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why Do Energy Charges Matter on Texas Electricity Plans? - Blog<\/title>\n<meta name=\"description\" content=\"Most cheap electricity rates can be a great deal until you get the bill. Learn why energy charges can matter most when you&#039;re shopping plans.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.texaselectricityratings.com\/blog\/why-do-energy-charges-matter-on-texas-electricity-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Do Energy Charges Matter on Texas Electricity Plans?\" \/>\n<meta property=\"og:description\" content=\"Most cheap electricity rates can be a great deal until you get the bill. Learn why energy charges can matter most when you&#039;re shopping plans.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.texaselectricityratings.com\/blog\/why-do-energy-charges-matter-on-texas-electricity-plans\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-27T11:38:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.texaselectricityratings.com\/blog\/wp-content\/uploads\/2026\/10\/compare-charges-matter-TX.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"736\" \/>\n\t<meta property=\"og:image:height\" content=\"475\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michael Roberts\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael Roberts\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/\"},\"author\":{\"name\":\"Michael Roberts\",\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/#\\\/schema\\\/person\\\/e3989cdfc19ff0a118c82ead87937ddc\"},\"headline\":\"Why Do Energy Charges Matter on Texas Electricity Plans?\",\"datePublished\":\"2026-10-27T11:38:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/\"},\"wordCount\":481,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/compare-charges-matter-TX.jpg\",\"articleSection\":[\"How to...\",\"Save Money\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/#respond\"]}],\"copyrightYear\":\"2026\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/\",\"url\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/\",\"name\":\"Why Do Energy Charges Matter on Texas Electricity Plans? - Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/why-do-energy-charges-matter-on-texas-electricity-plans\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/compare-charges-matter-TX.jpg\",\"datePublished\":\"2026-10-27T11:38:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.texaselectricityratings.com\\\/blog\\\/#\\\/schema\\\/person\\\/e3989cdfc19ff0a118c82ead87937ddc\"},\"description\":\"Most cheap electricity rates can be a great deal until you get the bill. 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