Why prices are quoted at 500, 1,000 and 2,000 kWh

Every Texas electricity plan publishes an average price at three specific usage levels and nowhere in between. Understanding why is the difference between comparing plans and comparing marketing.

Where the three numbers come from

They are the points the Electricity Facts Label requires. A retailer must state what a customer using 500, 1,000 and 2,000 kilowatt-hours in a month would pay on average per kilowatt-hour, with every charge included.

Standardising the points is what makes the label work. Two retailers cannot each pick a flattering usage level, so the same three columns appear on every plan in the state and can be read straight across.

This site quotes at those three levels and nothing between them. A figure at 1,350 kWh would have to be modelled from the published points, and a modelled number is a number we could get wrong in a way nobody could check.

Which one is yours

Look at twelve months of your own bills, not one. Texas households routinely use two or three times as much in August as in April, so a single month is a poor guide.

As a rough orientation: a small apartment often sits nearer 500 to 800 kWh outside summer, a typical single-family home lands around 1,000 to 1,500, and a large all-electric house in a hot part of the state can exceed 2,000 for months at a time. Your actual bills beat any of these estimates.

If your usage sits between two benchmarks — which it usually does — compare at both. A plan that wins at 1,000 and loses at 2,000 is a plan whose structure depends on where you land, and that is worth knowing before you sign rather than after.

Why the level you pick changes the answer

A fixed monthly charge is spread over more kilowatt-hours as usage rises, so plans with a high base charge look progressively better at higher usage and progressively worse at lower usage. A minimum-usage fee does the same thing more abruptly.

This is why two people can honestly disagree about which plan is cheapest. They are both right, at their own usage. Picking the benchmark closest to your own bills is not a detail — it is most of the comparison.

Checking your own usage against the listings

One of the charges described above applies only below a stated level, and the ranking is by cost rather than by rate.

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