TXU Free Nights and Weekends vs Ambit Free and Clear Nights: The Break-Even Math on Both Plans

If most of your electricity runs after 9 p.m., a free hours plan can shave hundreds off your bill. If most of it runs before dinner, the same plan can add hundreds. TXU Free Nights and Weekends and Ambit Free and Clear Nights sit on opposite sides of that math: TXU throws in the whole weekend, while Ambit keeps its free window strictly overnight but stretches it to seven nights a week. Which one wins depends on one number pulled from your own smart meter, and the sections below walk that number all the way to a dollar answer using an original Free Hours Break-Even Framework.

Key takeaways

• TXU Free Nights and Weekends offers free electricity roughly 9 p.m. to 4:59 a.m. every night plus all day Saturday and Sunday, per the current TXU Energy plans page and its August 6, 2026 Oncor EFL.
• Ambit Free and Clear Nights offers free electricity 9 p.m. to 5:59 a.m. seven nights a week, per Ambit's own Free and Clear Nights launch announcement.
• A 2026 field analysis of two Dallas Fort Worth homes on Oncor by Watt Owl found real nighttime usage of only 15 to 22 percent, well below the 47 percent breakeven that specific plan required, and both homes paid $165 to $1,024 more per year than they would have on a competitive fixed rate.
• Energy portfolio analyst Greg Steagall concluded in a 2024 review that customers on a TXU Live Your Free variant generally pay more unless at least 70 percent of their kWh runs during the free window.
• You still pay TDU delivery charges of roughly 4.98 to 6.47 cents per kWh even during the free hours, per ElectricityPlans' 2026 residential TDU delivery table, so nothing on a free hours plan is actually free.
• The Free Hours Break-Even Framework in this article turns those five variables into one dollar answer per year, using only free data from Smart Meter Texas and the Power to Choose EFL for your ZIP.

What is TXU Free Nights and Weekends?

TXU Free Nights and Weekends is a time of use residential electricity plan from TXU Energy that zeroes out the energy charge portion of your bill for a set overnight window each day and for all day Saturday and Sunday. The plan is served across TXU's Oncor, CenterPoint, AEP Texas, and TNMP service areas, and the specific free-hour window and daytime rate can vary by EFL and territory, per the current TXU plans page.

The 2026 Oncor EFL for a TXU free-nights variant lists a $9.95 monthly base charge, a 12-month term, and a $150 early termination fee, per a review by ChooseTexasPower citing the August 6, 2026 EFL. Daytime energy charges on TXU free-hours products historically run in the 18 to 22 cents per kWh range, with an example as high as 26.7 cents per kWh flagged by author Enri Zhulati in the ElectricRates.org 2025 category review (published December 31, 2025, updated April 13, 2026). The exact daytime rate on your EFL is what makes or breaks the math.

The tradeoff is baked into the design. TXU gives you more hours of free electricity than any other Texas plan by adding both weekend days. In exchange, TXU sets the daytime rate high enough that a homeowner who uses most of their electricity during the workday, on a laptop, air conditioning, cooking, laundry, will pay a premium versus a straight fixed rate plan.

What is Ambit Free and Clear Nights?

Ambit Free and Clear Nights is a residential time of use plan from Ambit Energy that provides free electricity from 9 p.m. to 5:59 a.m., seven nights a week. Ambit's launch announcement states the free window is nightly and that the plan is available across Ambit Texas markets with smart meters installed.

Secondary plan summaries put the daytime energy charge on the current Free and Clear Nights 12 at 21.9 cents per kWh, a $9.95 monthly base charge, a 12-month term, and a $199 early termination fee. That daytime rate sits at the higher end of the ElectricRates.org 2025 range for free-nights plans, which is the same tradeoff every plan in this category makes: cheaper nights come from more expensive days.

The Ambit design is narrower than TXU's on hours. There is no free weekend. In exchange, Ambit's overnight window is an hour longer than the TXU 9 to 4:59 a.m. window, running until 5:59 a.m., which matters more to a shift worker or an EV charger than to a typical weekday household.

TXU Free Nights and Weekends vs Ambit Free and Clear Nights: side by side

Every figure in the table above is drawn from the current EFL or from published plan summaries. Always pull your own EFL from Power to Choose or the retailer's site and confirm the numbers for your specific ZIP code and enrollment date. Plan details, EFL availability, and credit approval apply. Rates as of August 2026.

The Free Hours Break-Even Framework: the three numbers that decide

Most head-to-head reviews stop at feature grids. This article walks the math one step further with the Free Hours Break-Even Framework, an original three-variable framework you can run on your own smart meter data before you enroll. The whole comparison collapses into a single question: what percent of your kWh runs during the free window? That number has to clear a threshold, and the threshold is not the same on both plans because the free windows are not the same size.

The framework distills the comparison to three numbers.

1. Free share, the percent of your kWh that runs during the plan's free window. You can pull this from your smart meter data at Smart Meter Texas.
2. Daytime premium, the difference between the plan's daytime kWh rate and the flat rate you would otherwise pay. If the free-nights daytime rate is 21.9 cents and a 12-month fixed plan in your ZIP is 14 cents, the premium is 7.9 cents per kWh.
3. TDU delivery still-owed, 4.98 to 6.47 cents per kWh depending on your utility per ElectricityPlans, which you owe on every kWh, free-window or not.

The breakeven is the free share that makes the daytime premium equal to the free-window savings. On a plan with a 7.9 cent daytime premium and a 14 cent baseline, that free share sits in the mid-30 to low-40 percent range for the plan itself, and closer to 47 percent once you fold in TDU delivery on your daytime hours, matching Watt Owl's field-derived 47 percent breakeven. On a plan with a wider premium (Zhulati's 26.7 cent example), the required free share climbs into the 60 to 70 percent range. Greg Steagall, a Fortune 50 energy portfolio manager writing at Energy Choice Experts, concluded in his 2024 review of a TXU Live Your Free variant that customers generally pay more unless at least 70 percent of their electricity runs during the free periods. That number is a useful worst-case guardrail for the framework.

TXU Free Nights and Weekends usually has a lower breakeven than Ambit Free and Clear Nights on the same daytime rate, because the weekend hours pull more of an average household's usage into the free window without any behavior change. That is the structural advantage TXU is selling.

How much do TDU delivery charges add during the "free" hours?

Nothing on a free-nights plan is actually free, because the TDU wires charge is separate from the energy charge and it does not go away. According to ElectricityPlans in 2026, the residential delivery charge is roughly 4.98 cents per kWh in CenterPoint territory, 6.03 cents per kWh in Oncor, 5.83 cents per kWh in AEP Texas Central, 5.67 cents per kWh in AEP Texas North, and 6.47 cents per kWh in TNMP. Competitor coverage of this plan class routinely omits that per-utility breakdown; the Framework treats it as its third variable.

A 2026 field analysis at Watt Owl put it plainly: even the "free" hours on a Dallas-area free-nights plan cost about 6 cents per kWh in TDU delivery. On 400 kWh of overnight usage in a month, that is $24 you were told was zero. Whether the plan still wins depends on how much the daytime savings on the rest of your usage outrun that delivery bill.

Why TXU Free Nights and Weekends usually wins on the clock

TXU has roughly 41 more free hours per week than Ambit does, and that structural advantage does most of the work. A typical Texas household that spends Saturday running the AC, the dishwasher, and the laundry gets to move all of that consumption into a free window without changing a single habit. The plan is friendly to weekend-heavy homes, families with kids home from school on the weekend, and remote workers whose electric load is roughly the same seven days a week.

TXU's design also handles the summer AC problem better than an overnight-only plan. Air conditioning cycles hardest in the mid-afternoon on hot Texas weekend days, and putting those hours in the free window is a real bill mover. Per the US Energy Information Administration, air conditioning is the single largest end use of residential electricity in the US and the largest single load in Texas homes during summer months, which is why the weekend savings matter more here than they would in a cooler market.

Why Ambit Free and Clear Nights can still win for pure night owls

The Ambit plan targets a specific customer: the household whose overnight window is long and predictable, and whose weekend usage is not much heavier than a weekday. An EV owner who charges every night, a shift worker on a 10 p.m. to 6 a.m. rotation, a family that runs dishwashers and pool pumps only after bedtime, all sit inside the Ambit free window.

Ambit also runs an hour longer overnight than TXU's typical 9 to 4:59 a.m. window. That extra hour, 5 a.m. to 5:59 a.m., is when many households run their coffee makers, heat their water for showers, and start dryers before the workday begins. Small change, but it is real. Over a year of 365 nights, that single extra hour adds roughly 23 free hours per month that TXU does not offer, which is the Ambit design's whole reason to exist.

The trap is easy to see. If a household picks Ambit because "free nights" sounds good, then runs its dishwashers, laundry, and pool pumps on Saturday morning like everyone else does, the 21.9 cent daytime rate quietly outruns the overnight savings.

What real Texas homes have found: the two most cited datasets

Real household data is more useful here than a marketing brochure. A 2026 field analysis of two Dallas-Fort Worth homes on Oncor by Watt Owl, published March 1, 2026, found only 15 to 22 percent of the households' actual kWh fell inside the free-nights window. On the specific free-nights plan the study compared to a competitive fixed rate, the breakeven was 47 percent nighttime use. Neither home cleared the bar.

Watt Owl's conclusion: the two homes paid $165 to $1,024 more per year on the free-nights plan than they would have paid on a competitive fixed rate. The higher figure came from the home with the lowest nighttime share and the heaviest afternoon AC load.

A parallel review by ComparePower author Graham Griffin, TXU Free Nights and Weekends: Avoid a $720 Mistake, edited by Enri Zhulati, walked a specific TXU EFL scenario and found the plan cost a modeled household $720 more per year than a fixed-rate alternative on the same annual usage. Two different independent reviews, using different homes, both landed in the $165 to $1,024 range of annual damage for the wrong household.

Academic research reaches a similar cautious view. In a Knowledge at Wharton discussion of dynamic electricity pricing, Wharton finance professor Arthur van Benthem describes a two-sided outcome: efficient time-varying prices can shift demand away from peak periods, but complicated tariff structures can backfire when customers do not fully understand them. A 2020 MIT Center for Energy and Environmental Policy Research working paper on retail rate design in a decarbonizing economy reaches parallel conclusions on time of use and critical peak pricing designs.

That is a fair summary of the free nights choice. The plans work for the households that fit them and cost the ones that do not.

What independent experts and researchers say

Five independent voices frame the tradeoff, and their views cluster in the same place: free hours plans work when the free share is well above the breakeven, and lose real money when it is not.

• Greg Steagall, Fortune 50 energy portfolio manager, Energy Choice Experts, 2024: on a TXU Live Your Free variant, customers generally pay more unless 70 percent or more of consumption runs in the free window.
• Enri Zhulati, ElectricRates.org, 2025 to 2026 update: daytime rates on free-nights products run 18 to 22 cents per kWh with examples as high as 26.7 cents per kWh, which raises the required free share the household must clear.
• Graham Griffin, ComparePower: a specific modeled TXU Free Nights household paid $720 per year more than a fixed rate on the same annual kWh.
• Watt Owl, March 2026 real-data analysis: two DFW homes on Oncor saw 15 to 22 percent night share and paid $165 to $1,024 more per year than a competitive fixed rate.
• Arthur van Benthem, Wharton, in Knowledge at Wharton: dynamic pricing can improve efficiency but complicated tariffs backfire when customers do not fully model them.

None of these five sources appears in the top-ranking competitor coverage of these plans. That is the ground the Free Hours Break-Even Framework is trying to stand on.

Which shift patterns fit which plan

• Weekend-heavy household with school-age kids: TXU Free Nights and Weekends usually wins on the weekend hours alone.
• Retired couple home most days: either plan can lose. A straight fixed rate usually wins.
• Shift worker on nights: Ambit Free and Clear Nights fits, thanks to the longer overnight window.
• EV owner charging 10 p.m. to 6 a.m. every night: Ambit Free and Clear Nights usually wins for the extra hour, but check whether the daytime rate outruns you on the rest of your usage.
• Remote worker heavy on 9 to 5 laptop and AC: neither plan tends to win. Look at a straight fixed rate instead.
• Solar owner: neither free-nights plan is designed for solar. Look at a solar buyback plan instead.

Early termination fees and other fine print

Both plans lock you in for 12 months with real teeth. TXU's early termination fee on the current Free Nights variant is $150 per the August 6, 2026 EFL. Ambit's Free and Clear Nights ETF is $199 per plan summaries. Neither is unusual for a Texas 12-month product, but neither is trivial if your free-share number ends up below breakeven and you want to switch mid-contract.

Two other fine-print items to check on each EFL:

• Base charge treatment when usage is very low. On a low-use month, a $9.95 base charge can push the effective per-kWh cost above the daytime rate you were quoted.
• Minimum usage fees. Some free-hours products carry a minimum monthly usage requirement or an escalating late payment fee. Read the "Other Key Terms" section of the EFL, and confirm the standard-service backstop with the Public Utility Commission of Texas consumer help hub.

How to run your own Free Hours Break-Even Framework

You do not have to guess at the free-share number. Every Texas home with a smart meter can pull their own hourly consumption data from Smart Meter Texas. Once you have 12 months of hourly kWh, you can slice usage into the plan's free window and the rest of the clock, and compute your real free share directly. This is the framework in five steps.

1. Register at Smart Meter Texas with your ESI ID from your current bill.
2. Download 12 months of hourly usage data as a CSV.
3. Sum kWh inside the TXU free window (Mon to Fri 9 p.m. to 4:59 a.m., plus all of Saturday and Sunday) and separately inside the Ambit free window (every night 9 p.m. to 5:59 a.m.).
4. Divide each by your annual total. Those two percentages are your free-share numbers for each plan.
5. Compare each free share against the breakeven implied by the plan's daytime rate versus a fixed-rate alternative in your ZIP, using Power to Choose for the EFL and the daytime rate. Watt Owl's real-data cases suggest a floor near 47 percent on many current free-nights EFLs, and Greg Steagall's guardrail is closer to 70 percent for plans with the widest daytime premium.

If your calculated free share sits comfortably above the plan's breakeven, the plan can save you money. If it sits below, a straight fixed rate almost always wins.

For a deeper walkthrough of how to read a free-nights EFL line by line, see The Real Cost of Free Nights Plans, and for a shortcut calculator by ZIP code see Best Free Nights Plans in Texas by ZIP Code. If you want to check whether the plans available at your address include a free-nights option worth running through this test, our Free Nights Plan Calculator is the fastest way in. And if you are new to how Texas retail electricity even works, How Texas Deregulated Electricity Works is the primer.

Frequently asked questions

What time do the free hours start on TXU Free Nights and Weekends?

The current 2026 TXU free-nights EFL for Oncor territory lists free electricity from 9 p.m. through 4:59 a.m. daily, plus all day Saturday and Sunday. The exact window can vary by EFL edition and TDU service area, so always confirm on the EFL for your ZIP code at Power to Choose before enrolling.

What time do the free hours start on Ambit Free and Clear Nights?

Ambit's launch materials state free electricity from 9 p.m. to 5:59 a.m., every night of the week. That is one hour longer than the typical TXU overnight window and applies seven nights a week, but there is no free weekend on this Ambit plan.

Is TXU Free Nights and Weekends worth it?

It depends on your free share. TXU's plan usually needs your household to run at least 40 to 50 percent of its electricity during the free window to beat a competitive fixed rate, and closer to 70 percent when the daytime premium is at the high end of the range. Weekend-heavy households often clear that bar without changing habits. Weekday-heavy households usually do not, per the modeled $720 annual delta in ComparePower's review.

Is Ambit Free and Clear Nights worth it?

It works for households whose usage is heavily overnight and whose weekends are not much busier than weekdays. Shift workers, overnight EV chargers, and households on strict overnight run schedules are the ones who tend to save. A typical family with heavy Saturday and Sunday usage often does better on a plan that includes the weekend.

Do you still pay TDU delivery charges during the "free" hours?

Yes. The TDU wires charge, 4.98 to 6.47 cents per kWh depending on which utility delivers your power per ElectricityPlans, applies on every kWh you use. The plan zeroes out the retailer's energy charge for that window but not the TDU's delivery charge, per the 2026 Watt Owl field analysis.

Which plan has the lower early termination fee?

TXU's Free Nights variant lists a $150 ETF on its August 6, 2026 EFL for Oncor. Ambit Free and Clear Nights lists a $199 ETF in plan summaries. Both are 12-month contracts. Neither is a soft exit if you decide mid-contract the plan does not fit.

Ambit Energy is a home-based business opportunity and a licensed retail electricity provider in Texas. Earnings vary. Individual results and household savings vary. All plans are subject to credit approval and to the terms of the current Electricity Facts Label for your service area.

If your goal is a predictable bill through the winter, August 2026 is a reasonable time to lock a fixed-rate plan in Texas. The forward price curve for winter 2026-2027 is not screaming an emergency, but it is pricing in real risk from data-center load growth and Gulf Coast LNG demand, and the cheapest teaser rates on Power to Choose right now are exposed to that curve. A short-to-mid term fixed plan protects the winter side of your bill without over-committing.

Key takeaways

• ERCOT's summer 2026 peak demand forecast is 92,211 MW, about 8% above the August 2023 record of 85,464 MW, per ERCOT.
• Henry Hub natural gas futures are forecast at $4.31 per MMBtu in 2026 and $4.38 in 2027, up from $3.52 in 2025, per EIA.
• Under EIA's high-demand ERCOT scenario, 2027 North-hub wholesale power prices rise from $47.39 per MWh to about $84.80, a 78.9% jump, per Utility Dive.
• August 2026 residential Texas fixed rates run from about 6.0 to 11.8 cents per kWh on 12-month plans, and up to about 18.3 cents on prepaid, per Power to Choose listings.
• Locking a fixed rate is a bill-certainty decision, not a bet that today's rate is the absolute cheapest point in the market.

What the ERCOT forward price curve actually tells you

The forward price curve is the market's live estimate of what wholesale power will cost in each future delivery month. Retailers use it as the raw ingredient in every fixed-rate plan they write, then add TDU delivery charges, ancillary costs, and a margin. When the curve for December 2026 through February 2027 sits meaningfully above the summer curve, that is the market pricing in winter risk, and fixed rates reflect it before the weather does.

Three signals matter right now. Load growth is real: ERCOT's April 2026 preliminary long-term forecast projects about 367,790 MW of demand in the ERCOT region by 2032, largely driven by data centers and industrial expansion. Gas fundamentals have softened slightly: EIA's August 11, 2026 Short-Term Energy Outlook trimmed the Henry Hub price outlook by 2% for 2026 and 4% for 2027 compared to earlier forecasts. And near-term wholesale prices have not been as violent as headlines suggest, with Doug Lewin, a Texas energy analyst whose public profile lists energy strategy work in Texas at Google, noting that during the July 2026 heat event wholesale prices stayed "well below the cap (95% below at times)."

Two of those signals argue for patience. One argues for prudence. That is why the forward curve for winter 2026-2027 is up but not extreme, and why the August lock question is a judgment call rather than an obvious yes or no. If you want to see how these plan structures interact with your actual bill, our guide on how to read your Texas electricity bill walks through every line item.

Where fixed and variable rates sit on Power to Choose this August

As of August 2026, Texas residential retail listings show a wide spread across term lengths and plan types.

• 12-month fixed plans start at about 6.0 cents per kWh at the low end and reach roughly 10.4 to 11.8 cents per kWh at the higher end, depending on ZIP code and provider.
• 24-month fixed plans sit in the 6.8 to 7.6 cents per kWh range in most sampled markets.
• 36-month fixed plans run 13.1 to 14.0 cents per kWh in several ZIP codes, reflecting the premium providers charge for longer-dated risk.
• Prepaid plans reach as high as about 18.3 cents per kWh, showing the cost of skipping the credit check.

Two things jump out from those numbers. The spread between the lowest teaser rate and the highest plan on the same market page is often 10 cents per kWh or more. And 36-month plans are priced above 24-month plans, which is the forward curve talking: the market expects the second half of the decade to cost more, not less. Actual rates vary by ZIP code, TDU, plan, and usage level. Energy facts label available on every Ambit plan, showing the all-in cents-per-kWh at 500, 1,000, and 2,000 kWh so you can compare apples to apples. Our guide to picking the right rate plan in 2026 walks you through the EFL and the five plan tricks to spot before you sign.

Variable-rate plans, by contrast, are a monthly bet on the wholesale market. They can undercut fixed pricing during mild months, and they can spike hard in a cold snap. There is no regulatory cap on how much a variable rate can move month to month in Texas, and there is no reset button on the bill once the move happens.

Four forces pulling on the 2026-2027 Texas forward curve

Natural gas fundamentals and LNG exports

Gas sets the marginal price of power in ERCOT most hours of the year, so gas is where the curve starts. According to Naser Ameen, a principal contributor at the U.S. Energy Information Administration, "We expect prices to rise from $3.52 per million British thermal units (MMBtu) in 2025 to $4.31/MMBtu in 2026 and to $4.38/MMBtu in 2027." Rising Haynesville production is being pulled toward Gulf Coast LNG terminals, which keeps upward pressure on the domestic gas market even as U.S. production hits record highs.

ERCOT reserve margin and data-center load

ERCOT's minimum reserve-margin target is 13.75% of peak demand, and that target gets harder to hit as load growth accelerates. ERCOT President and CEO Pablo Vegas confirmed in April 2026 that "the current forecast projects approximately 367,790 MW of demand in the ERCOT Region by 2032," a step-change driven largely by data centers. For more on how the ERCOT grid and the retail market fit together, see our explainer on how Texas deregulated electricity works.

Not everyone thinks the load will arrive on that timeline. Joshua D. Rhodes, a research scientist at the University of Texas at Austin, told the Texas Tribune that "I just don't believe that that much new load can come online that fast, so I don't think things are as bad as the report would indicate." That skepticism matters because the price curve moves with expected load, and if the market reprices the timeline, the curve will follow.

New solar and battery storage coming online

Supply growth is the counterweight. S&P Global's July 2026 grid outlook identified nearly 28 GW of planned ERCOT additions, including 13.3 GW of solar. More solar tends to compress midday prices, and more storage helps flatten evening peaks. Neither eliminates winter or extreme-weather volatility, but both should moderate the daytime average through 2027.

TDU delivery charges you cannot lock away

Here is the part homeowners often miss. The energy portion of your bill is what a fixed-rate plan locks. The TDU delivery charges from Oncor, CenterPoint, AEP Texas, or TNMP are separate, and they change on their own regulatory schedule. Locking a fixed energy rate protects the biggest, most volatile line on the bill, but it does not freeze every line. Our breakdown of TDU delivery charges shows how the wires side of your bill is set separately from the energy side.

The August 2026 lock-in decision framework

Walk your household through these five filters before you sign anything.

1. Bill certainty first. If you would rather know your rate for the next 12 to 24 months than try to time a market bottom, a fixed rate is the correct choice regardless of where the curve is.
2. Usage size. Larger homes with winter heating loads have more to lose from a February variable-rate spike, and the bigger your usage the more insurance a fixed rate buys you.
3. Contract-term appetite. A 12 or 24-month fixed plan captures winter risk without committing you to a 36-month curve that is already priced higher, so longer is not automatically better.
4. Winter risk tolerance. If a single-month bill three times your normal would be a real problem for your household budget, a variable plan is not the right instrument for you right now.
5. EFL fit. Compare the Electricity Facts Label at the usage level you actually consume, because a low-headline plan is often designed around 1,000 kWh and your true cost at 500 or 2,000 kWh can be very different.

If four of five filters point to lock, lock. If two or fewer point to lock, stay put and revisit in October, before the first cold front.

What happens if you wait?

Waiting is a defensible strategy for households that use less power, have flexible budgets, and can move quickly if the market shifts. The August 2026 STEO trend of slightly lower gas prices means the downside case for waiting is real, not fantasy. But two things narrow that upside. Retailers reprice fixed plans continuously, so a small drop in the wholesale curve rarely translates into a huge drop in the retail rate you actually see. And waiting exposes you to the winter shoulder, which is where most Texas rate regret lives.

There is also a version of waiting that is really procrastination. Month-to-month customers on a holdover product typically pay the highest rate on the page. Nearly $480 a year in overpayments shows up when Texas households let a fixed term roll off without shopping the market. If your current plan already expired, waiting is not neutral. It is expensive.

Frequently asked questions

Should I lock in a fixed-rate electricity plan in August 2026?

Yes, if your priority is bill certainty and you are comfortable with a 12 to 24-month term. The forward curve for winter 2026-2027 is not extreme, but it is up, and locking removes the biggest variable on your bill.

Is a variable-rate plan actually cheaper right now?

Sometimes, for a month or two during mild weather. A variable rate has no cap and no notice period, so a mild fall can flip to a cold-front spike with no cushion for your household.

How much do fixed rates in Texas cost this August?

Fixed rates run roughly 6.0 to 11.8 cents per kWh on 12-month plans, 6.8 to 7.6 cents on 24-month plans, and 13.1 to 14.0 cents on 36-month plans, per Power to Choose listings as of August 2026. Your ZIP code and usage level make a real difference to the number you actually pay.

What does the ERCOT forward price curve say about winter 2026-2027?

The winter curve is priced above the summer curve right now, reflecting expected load growth, LNG-driven gas demand, and the reserve-margin picture ERCOT laid out in its April 2026 long-term forecast.

Will winter 2026-2027 be more expensive than summer 2026?

The forward market is priced that way today, though a mild winter can pull the realized price back. Under EIA's high-demand scenario, 2027 ERCOT wholesale prices could rise about 78.9% versus a $47.39 per MWh baseline.

How much can a variable-rate plan change from month to month in Texas?

There is no regulatory cap on how much a variable rate can move between billing cycles in the deregulated Texas market. During a cold snap, wholesale prices can multiply several times over, and a variable retail plan passes that entire move through to your bill with no cushion.

Should I choose a shorter fixed term now, or lock in a longer one?

For most Texas households, a 12 or 24-month fixed term is the sweet spot. Longer 36-month terms tend to carry a premium because they push you further out the forward curve, which is priced higher for later years.

Ready to compare Ambit plans?

Ambit Energy has served Texas households since 2006 and lists every plan's cents-per-kWh at 500, 1,000, and 2,000 kWh on its Electricity Facts Label. Enter your ZIP code, review the plan detail and the EFL, and choose the term length that matches your risk tolerance and household usage.

Plan details and rates subject to change. Energy facts label available on every plan. Subject to credit approval. Rates and offers referenced here are as of August 2026. Ambit also offers a home-based business opportunity through independent Consultants. Earnings vary by Consultant and are not guaranteed. Statement of Independent Contractor and full income disclosure available at ambitenergy.com.

Commercial electricity rates in Texas average 5.98 to 8.35 cents per kWh in August 2026, with promotional plans starting near 4.88 cents/kWh. But the number on the ad is rarely the number on the bill. TDU delivery charges reset on June 1, 2026, wholesale prices are still adjusting to summer demand, and small businesses that renew this month usually save more by locking a 12 to 24 month fixed plan now than by drifting into fall on a holdover rate.

This guide is written for Texas small business owners on the Ambit Energy Brand side, not for Ambit VIP consultants. Rates and market conditions cited are as of August 2026. Plan details vary and are subject to EFL and credit approval. Visit ambitenergy.com for current commercial plan availability by zip code.

Key takeaways

• Statewide commercial averages sit between 5.98 and 8.35 cents per kWh, depending on which market snapshot you read.
• TDU delivery charges reset on June 1, 2026: Oncor up about 8.92%, TNMP up about 12.48%, and CenterPoint down about 16.7%.
• Mid-length fixed terms (12 to 24 months) are pricing lower than 3 to 6 month plans this summer.
• Auto-renewal holdover rates can run 2 to 3 times the plan rate, so a lapsed contract quietly repricts the whole business bill.
• The best small business renewal window is 30 to 60 days before your current contract ends.
• Use the Renewal Window Framework below (5 steps) to lock a plan that fits your load, not the ad.

What are commercial electricity rates in Texas in August 2026?

Commercial electricity rates in Texas average 5.98 to 8.35 cents per kWh in August 2026, depending on the source and how "commercial" is scoped. According to Electric Choice (2026), Texas commercial rates from competitive retail providers average 5.98 cents/kWh, with the lowest advertised plans starting at 4.88 cents/kWh. According to Choose Energy (2026), the average business electricity rate in Texas is 8.3 cents/kWh, and small business rates run about 38% lower than the national business average of roughly 13.3 cents/kWh.

Those numbers do not disagree so much as they measure different pieces of the bill. Electric Choice reports the energy charge advertised by retail electric providers (REPs). Choose Energy is closer to an all-in EIA average that folds in the TDU delivery side. A Texas small business paying 5.28 cents/kWh in energy charges will still see a total per-kWh cost closer to 10 to 13 cents once TDU delivery, base fees, and taxes are on the bill.

Two more data points anchor the range. According to EnergyBot (2026), the average commercial rate in Texas is 6.71 cents/kWh and the cheapest commercial rate is 5.28 cents/kWh. According to Texas Commercial Plans (2026), the median commercial rate across 756 active competitive plans is about 6.8 cents/kWh on mid-length contracts and 11.9 cents/kWh on short-term contracts. Short-term plans are more expensive right now, not cheaper, and that pattern matters at renewal.

Why are commercial electricity rates repricing right now?

Three things are moving at once in August 2026, and each one nudges what a Texas small business will pay on renewal.

First, TDU delivery charges reset on June 1, 2026. According to Elite Energy Consultants (2026), Oncor's new delivery rates took effect June 1, 2026 and moved up roughly 7 to 8%, with some accounts seeing a retroactive catch-up charge. According to Energy Texas (2026), CenterPoint's delivery charge dropped about 16.7% in the same window, TNMP's rose about 12.48%, and Oncor's climbed about 0.63% on a separate tariff line. That is a real bill event: on a 5,000 kWh per month load, a 1 cent/kWh delivery shift changes the annual bill by roughly $600.

Second, wholesale prices are behaving like a normal Texas summer. The ERCOT grid held above 91 gigawatts of demand during the July 2026 heat wave (Energy News Beat, 2026), and analysts continue to expect summer scarcity pricing to fade in the shoulder months. According to Yes Energy (2026), GridSite's Winter 2026 long-term forecast projects lower ERCOT prices and reduced interzonal volatility into 2027. In practical terms, a business signing today is buying a curve that includes today's summer premium and next spring's softer prices.

Third, load and generation are still growing. According to Energy Ogre's Q1 2026 Texas market update, ERCOT is planning around continued demand growth (data centers, oil and gas electrification, general population) and a heavier battery buildout that changes how peak hours get priced. That does not mean a small business should wait it out. It means the shape of contract offers is shifting, and mid-length terms are now often priced under the 3 to 6 month teaser.

How do commercial electricity rates compare by TDU (Oncor, CenterPoint, AEP, TNMP)?

The same commercial plan can post a very different total on the bill depending on which TDU delivers power to the building. Delivery charges are set by tariff (approved by the PUCT) and do not change based on the retail provider you pick, so they are effectively fixed for the term of your plan.

Here is the current delivery picture for small commercial service, August 2026:

Sources: BKV Energy (2026), EnergyBot (2026), Energy Ogre (2026).

Two things to notice. TNMP is currently the highest-cost delivery territory for a Texas small business, both because of the higher fixed monthly charge and the higher per-kWh delivery rate. CenterPoint's tariff fell in the 2026 update, which means Houston-area small businesses can actually see a lower all-in rate this month than they did last summer, even at a slightly higher energy charge. For a line-by-line walkthrough of every TDU charge on the bill, see the TDU Delivery Charges Explained breakdown.

How is a small business bill different from a residential bill?

A residential Texas bill has three main pieces: an energy charge (cents/kWh), a TDU delivery charge, and a small base fee. A small commercial bill has the same three, plus a demand charge on many rate schedules. Demand charges are a monthly fee based on the single highest kilowatt (kW) demand reading during the billing cycle, and they can be a bigger driver of the total than the energy charge itself for medium-usage accounts.

Demand charges are why load factor matters. According to ComparePower (2026), Texas business electricity costs vary widely by zip code, and a 500 kW operation in Houston and the same operation in Dallas can see very different total costs because demand tariffs differ. A restaurant with two heavy lunch spikes has a lower load factor than a warehouse that runs steady all afternoon, and the restaurant pays more per kWh even if the energy charge is identical.

For most true small businesses (under about 50 kW peak demand and under 100,000 kWh per year), the bill will look residential-adjacent: no separate demand charge, a single energy rate, and delivery. That is why commercial electricity rates advertised around 5 to 6 cents/kWh mostly apply to small commercial accounts. Larger accounts almost always price on a custom quote with demand charges baked in.

What is a "good" commercial electricity rate for a Texas small business in August 2026?

There is no single right answer, but there are useful bands. Based on the August 2026 market:

• Excellent (top 10% of offers): 4.9 to 5.5 cents/kWh energy charge on a 24 to 36 month fixed term, from a REP with a clean EFL and no bill-credit cliff.
• Typical (middle of the market): 5.9 to 6.8 cents/kWh energy charge on a 12 to 24 month term. This is where most Oncor, CenterPoint, and AEP small business renewals land.
• High (worth challenging): 8.0 cents/kWh or higher on a short 3 to 6 month term, or any offer priced above 10 cents/kWh (usually a holdover or a plan with heavy bill-credit gaming).

The all-in number that hits the bank account is closer to 10 to 12 cents/kWh once delivery, base fees, and taxes are added in. Anything above 14 cents/kWh on a small business bill is a sign the account either lapsed onto a holdover or is on a variable plan that has caught the summer price spike.

When should a small business renew a commercial electricity contract in Texas?

The single most expensive small business mistake I see is running out the current contract and letting the plan roll to a holdover rate. According to Enri Zhulati, a consumer advocate and author at ComparePower (2026), holdover rates commonly run 2 to 3 times the plan rate. A Texas business that misses the renewal window by even 30 days can watch the effective per-kWh cost jump from 6 cents to 15 cents overnight.

The other mistake is renewing too early. Sign a 36 month deal in April, and the June TDU reset can leave money on the table. Sign in the middle of a July heat wave, and the summer risk premium is baked into the offer.

That is why I use a simple Renewal Window Framework for Ambit small business accounts. Five steps:

1. Shop Early. Start pulling quotes 60 days before the current contract's end date, not 60 days after.
2. Stress-Test Your Usage. Pull the last 12 months of kWh usage from your utility or provider. Ask each quote to price against your load shape, not a generic 1,500 kWh per month template.
3. Match Term to Outlook. In August 2026, 12 to 24 month fixed is the sweet spot: long enough to escape summer scarcity, short enough to reprice into 2027's softer curve.
4. Price the All-In Rate. Do not sign on the energy charge alone. Ask each provider for the full effective rate at your monthly usage, including TDU delivery, base fees, and any bill credit or tier trigger.
5. Lock Before the Holdover. Sign and confirm the switch date at least 14 days before the current contract expires. Missing this window is the most common way small businesses accidentally overpay by 30 to 50% for a month.

Fixed vs variable vs index commercial plans, which fits a small business in August 2026?

For most Texas small businesses in August 2026, fixed rate is the answer. The wholesale market is doing normal summer things, and index exposure is not worth the operational overhead for a business under 100,000 kWh per year. According to David Kinchen, COO of Energy Ogre and author of the firm's Q1 2026 market update, expected wholesale price softening into 2027 makes a 12 to 24 month fixed lock the cleanest place to sit through the coming shoulder season.

How do I read a commercial electricity facts label (EFL)?

Every REP in Texas has to publish an Electricity Facts Label for each commercial plan. Six numbers on that label decide what the plan actually costs:

1. Average price at your usage. Look for the row that matches your monthly kWh most closely. If you use 2,500 kWh per month, do not benchmark on the 500 kWh row.
2. Energy charge. The cents/kWh you pay for the electricity itself.
3. TDU delivery charge. The cents/kWh plus the fixed monthly the utility charges to move power. Fixed for the term.
4. Base charge or monthly service fee. A flat dollar amount, sometimes waived above a usage threshold.
5. Term length and early termination fee (ETF). Both matter. A $150 ETF on a 12 month plan is normal; a $500 ETF should be justified.
6. Renewal or holdover rate. What the plan converts to if you do not renew or cancel. This is the number that quietly repricts the bill in month 13.

For a deeper walkthrough with a residential lens, see How to Read Your Texas Electricity Facts Label. The same six numbers apply on commercial plans, in the same order.

How to shop and switch a commercial electricity plan in Texas

Texas's deregulated retail electricity market lets a small business shop any REP that serves its zip code. Find your TDU first (Oncor, CenterPoint, AEP, TNMP), because every quote you receive will use that TDU's tariff on the delivery side.

1. Pull 12 months of usage from your current provider or the TDU's usage portal (Oncor, CenterPoint, AEP, TNMP all publish it).
2. Get 3 to 5 quotes from different REPs. Ask each one for the EFL and for the average price at your monthly kWh.
3. Ask for a Letter of Authorization (LOA) walk-through if a broker is quoting you. An LOA lets a broker pull usage on your behalf; it should not commit you to a contract.
4. Compare the all-in average price at your usage across the offers. Ignore the marketing headline rate.
5. Sign 14 to 30 days before your current contract's end date. The switch will process on your next meter read after that.

Red flags to watch: a "3 month teaser" rate that resets to a higher variable rate, bill credits that only trigger inside narrow usage bands (for example 999 to 1,001 kWh), and any offer without a printed EFL. According to Tommy Richardson, a certified Energy Management Professional at EnergyBot (2026), the most common overpayment pattern in small commercial is a business that never reviews the EFL and never negotiates renewal terms, leaving 10 to 25% on the table every year. For a residential-side view of the same shopping mechanics, see Cheapest Electricity Rates in Texas Right Now.

How Ambit Energy and VIP Energy Service help small business owners renew

Ambit Energy has served Texas households and small businesses since 2006. VIP Energy Service is the local Ambit consultant organization that walks small business owners through the renewal decision the way I have walked through it above: pulling real usage, benchmarking against current market rates, matching the term to the ERCOT outlook, and locking BEFORE the holdover hits.

If you want a plain-English quote against your own usage, request a small business quote and share your service address and last 12 months of usage. I will price the all-in rate at your load, not a generic template. Plan details vary and are subject to EFL and credit approval; energy facts label available for every plan.

Frequently asked questions

Who has the cheapest commercial electricity rates in Texas right now?

The cheapest advertised commercial rates in August 2026 start near 4.88 cents/kWh (Electric Choice, 2026). But cheapest advertised is rarely cheapest at your usage: a 5.29 cents/kWh plan with a $50 monthly base charge will beat a 4.88 cents/kWh plan with a $10 base charge only above about 3,500 kWh per month. Always compare the average price at your monthly usage.

What is a good price per kWh in Texas for a small business?

An energy charge between 5.9 and 6.8 cents/kWh on a 12 to 24 month fixed term is the middle of the market for a Texas small business in August 2026. All-in, with TDU delivery, base fees, and taxes, 10 to 12 cents/kWh is a fair total.

Are commercial electricity rates more expensive than residential?

The energy charge on commercial plans is usually lower than residential per kWh, because commercial buyers use more electricity and providers compete for the load. The all-in cost is closer, once demand charges (on larger accounts) and base fees are added.

Will Texas electricity rates go down in 2026?

Wholesale prices are expected to soften into 2027 (Yes Energy, 2026), but TDU delivery charges reset every June and generally trend up as the grid expands. The practical read for a small business: fixed rates in August 2026 are unlikely to be dramatically cheaper by October or November, and holding a lapsed contract on a holdover rate is more expensive than either.

How long does it take to switch commercial electricity providers in Texas?

The switch itself is usually processed on the next meter read after the request, so most switches complete within 15 to 30 days. There is no power interruption; the same wires deliver electricity under the new plan. For a deeper look at how the state grid keeps supplying power through summer peaks, see the Utility Dive coverage of ERCOT and the ERCOT market summary.

Sources and further reading

• U.S. Energy Information Administration, Texas State Energy Profile
• ERCOT, Market Information
• Public Utility Commission of Texas, Commercial Consumer Rights
• Utility Dive, ERCOT Coverage
• ComparePower, Business Electricity Contract Guide
• BKV Energy, Historical TDU Delivery Charges

If your Texas household or small business electric bill spiked after the July 2026 heat wave, four assistance programs will actually pay part of it: CEAP (Texas's state energy-assistance program), Texas Utility Help, 2-1-1 Texas referrals, and Salvation Army utility grants. Households at or below 150% of the federal poverty guideline qualify for most of them, and CEAP alone can cover a large share of a summer bill.

This post is written for Ambit Brand customers, which is Texas households and small businesses shopping for retail electricity plans on the deregulated ERCOT market. It is not intended for the Ambit VIP consultant channel. Content covers the four Texas assistance programs that actually pay part of an electric bill, who qualifies in 2026, and what to do first when a heat-wave bill is bigger than the paycheck.

Key Takeaways

• CEAP is the state's flagship program and typically pays between roughly $300 and $1,500 toward a Texas electricity bill, with a hard maximum of $12,600 per year for heating and cooling combined, according to the LIHEAP Clearinghouse Texas profile (2026).
• 150% of the federal poverty guideline is the income line for CEAP and LIHEAP in Texas, which the NuWatt Energy Texas program guide (2026) lists as roughly $45,600 for a family of four.
• The Public Utility Commission of Texas prohibits electric disconnections for nonpayment during declared extreme-heat emergencies, per the PUCT 2026 summer consumer bulletin.
• Texas received about $187 million for CEAP in 2025, and Governor Abbott announced an additional $166 million in energy-assistance funding on June 8, 2026, per Spectrum Local News (2025) and the TDHCA news release (2026).

Why Are Texas Electric Bills So High This Summer?

Summer bills in Texas rise for a simple reason: cooling a Texas home in July and August takes far more electricity than in mild months. The average Texas household uses roughly twice as many kilowatt-hours in summer as in spring, and the July 2026 heat wave pushed ERCOT into repeated peak-demand events and conservation notices. Higher usage on the same rate produces a bigger bill. Higher usage on a variable rate produces a much bigger one.

The good news is that Texas has a real safety net for households whose bill has outrun their paycheck. The four programs below are the ones that actually pay money toward the electric bill, not just referrals or tip sheets.

What Are the 4 Assistance Programs That Actually Help Texans?

Here is the side-by-side view, in one place, so you can pick the right door to knock on first.

Program 1: CEAP (Texas's State Energy-Assistance Program)

CEAP is Texas's LIHEAP-funded bill-payment program, administered by the Texas Department of Housing and Community Affairs (TDHCA) and delivered through local community action agencies. According to the TDHCA CEAP program page (2026), the program is designed to help low-income Texans with their immediate energy needs and their energy costs over the year.

The numbers are the reason to start here. According to the LIHEAP Clearinghouse Texas profile (2026), Texas's LIHEAP funding for fiscal year 2026 is $181,183,241, the maximum household benefit is $12,600 for heating and cooling, and the maximum crisis benefit is $1,800. According to the NuWatt Energy Texas income-eligible programs guide (2026), a typical CEAP bill-assistance award falls between $300 and $1,500 depending on household size, income, and how severe the crisis is.

Eligibility is straightforward. CEAP is open to households at or below 150% of the federal poverty guideline, which the NuWatt guide (2026) lists as roughly $45,600 in annual income for a family of four in 2026. Renters qualify if they are responsible for the electric account.

To apply, call 877-541-7905 or find your local CEAP provider through the TDHCA website. Most agencies ask for a photo ID, proof of income for every adult in the household, a recent electric bill with the account number, and proof of residency. Processing typically takes a few business days to about two weeks, per the Texas utility-help resource summarized in the Powerwizard 2026 guide.

Program 2: Texas Utility Help

Texas Utility Help is a separate TDHCA-run portal built specifically for past-due utility bills. Where CEAP focuses on the household's yearly energy costs, Texas Utility Help is aimed squarely at the shut-off risk that follows a big summer bill.

Applications go through TexasUtilityHelp.com or the call center at 855-566-2057, and the program can cover past-due electric, gas, and water. If your bill just arrived and it is much higher than usual, this is often the fastest state-level path to real relief.

Program 3: 2-1-1 Texas

2-1-1 Texas is the state's free, 24/7 referral line. It is not a bill-payment program by itself, but it is the fastest way to find the local nonprofit, church, or partner agency near you that does write checks. According to the PUCT consumer-help page (2026), 2-1-1 is the number PUCT itself directs Texans to call when they cannot pay their electric bill. Dial 2-1-1 from any phone, or visit 211texas.org.

Use 2-1-1 when CEAP and Texas Utility Help are backed up, or when you need something the state programs will not cover, like a partial-month deposit to keep service on.

Program 4: Salvation Army and Community Action Agencies

The Salvation Army offers emergency utility grants through its local Texas offices, and it partners with community action agencies across the state. According to the Salvation Army 2025 annual report, the organization provided financial assistance to 1,575,098 households nationwide that year.

Funds are limited and awarded case by case, but Salvation Army help is often the last-mile grant that closes the gap between your CEAP award and your actual balance. The fastest path is to dial 2-1-1 and ask for the nearest Salvation Army utility program.

What Should I Do First If I Already Have a Disconnection Notice?

Call your electric provider today, before you do anything else. Every Texas retail electric provider is required to offer some form of deferred payment plan on request, and most will grant a short payment extension over the phone.

There is also a legal safety net during heat waves. According to the PUCT 2026 summer consumer bulletin, electric disconnections for nonpayment are prohibited during declared extreme-weather emergencies, including extreme heat. That is a floor, not a permission slip. Interest and balance still accrue, and disconnection risk returns once the emergency lifts. Get on a deferred plan and apply for CEAP or Texas Utility Help while the extreme-heat protection is in effect.

Ambit Energy customers who are worried about a summer bill spike can also call the Ambit customer care line printed on the bill to ask about payment arrangements and confirm the account is in good standing before applying to a program.

The $166 Million 2026 Boost: What Is Changing and When

On June 8, 2026, Governor Greg Abbott announced $166 million in new energy-assistance funding for low-income Texans, administered by TDHCA and available for utility bills and efficient heating, cooling, and refrigeration equipment. According to the TDHCA news release (2026), the funds are scheduled to begin January 1, 2027.

That timing matters. The $166 million will not reach households in time for August or September 2026 bills. For this summer, CEAP, Texas Utility Help, 2-1-1, and Salvation Army are still the four doors to knock on. When the new money opens in January 2027, expect wait times to drop and per-household awards to rise for a period.

The 24-Hour Bill Relief Playbook

Here is the sequence I would run through, in order, if a heat-wave bill just arrived and you cannot pay all of it.

1. Call your electric provider today. Ask for a payment extension, a deferred payment plan, or both. Get the confirmation number in writing.
2. Dial 2-1-1 Texas. Ask for CEAP intake and for the nearest Salvation Army or community action agency that helps with utility bills.
3. Apply to CEAP at 877-541-7905 AND to Texas Utility Help at 855-566-2057 or TexasUtilityHelp.com. These are separate programs, and applying to both maximizes what actually gets paid.
4. Reset the plan for next summer. Look at your kWh usage from July, then choose a plan built for high-usage Texas summers so this does not repeat.

Do all four in a day. That is the difference between a disconnection notice and a manageable payment plan.

Frequently Asked Questions

Am I eligible for CEAP, and what income counts?

CEAP eligibility is set at or below 150% of the federal poverty guideline, per the TDHCA CEAP program guidance (2026). Household income includes wages, self-employment income, Social Security, unemployment, and most other cash income for every adult member. The NuWatt Energy guide (2026) lists 150% FPL at roughly $45,600 for a family of four in 2026.

How long does CEAP processing take?

Processing time varies by local agency, but the Powerwizard Texas bill-help guide reports a typical range of a few business days to about two weeks. Applications marked as a crisis (imminent disconnection or broken cooling equipment) are usually expedited.

Do renters qualify?

Yes. Renters qualify if they are responsible for the electric account and meet the income and residency requirements. This is confirmed by the Texas Law Help utility-assistance article (2026).

What documents do I need to apply?

Most agencies ask for a government-issued photo ID, proof of income for every adult in the household (recent pay stubs, benefits letters, or tax returns), a recent electric bill with the account number and balance, and proof of residency. Some agencies also request medical documentation if a household member has a life-support need.

Can my power be shut off during a Texas heat wave?

Not during a declared extreme-weather emergency. According to the PUCT 2026 summer consumer bulletin, electric disconnections for nonpayment are prohibited during declared extreme-heat events. The protection is temporary, so use the window to apply for CEAP or Texas Utility Help and lock in a deferred plan.

What if my income is normally above the limit but this bill is crushing me?

Talk to your provider about a deferred payment plan, then call 2-1-1. Community action agencies and Salvation Army partners often have discretionary emergency funds that are not tied to the 150% FPL line and can bridge a one-time hardship.

Related Reading on VIP Energy Service

• Texas Just Approved $166 Million in Energy Bill Assistance. Here's Who Qualifies and How to Save Before It Starts.
• Texas Utility Shutoffs Are Rising: What Homeowners Should Know
• Texas Summer Electricity Bills: How to Stay Cool and Save Money
• How Many kWh Does a Texas Home Use Per Day in Summer
• How to Read Your Texas Electricity Bill: Every Line Item Explained

External Resources

• Texas Department of Housing and Community Affairs: CEAP program page
• Public Utility Commission of Texas: Help Paying Your Electric Bill
• USA.gov: Get help with energy bills
• Texas Law Help: Help with Utilities
• 211 Texas
• TDHCA: Governor Abbott Announces $166 Million in Energy Assistance Funds

Ambit Energy plan details and rates subject to change. Energy facts label available on request. Subject to credit approval. Independent Consultant earnings vary. Rates, program funding, and eligibility rules current as of August 13, 2026. Program eligibility and benefit amounts are set by the administering agencies and can change. Always confirm current terms at the source before applying.

An Electricity Facts Label (EFL) is the one-page disclosure every Texas retail electric provider must hand you before you enroll in a plan. It carries six numbers that decide your monthly bill: the average price per kWh at three usage levels, the base charge, the energy charge, the TDU delivery charge, any bill or usage credit, and the early termination fee. Miss any of them and your real cost can land twice as high as the rate printed at the top of the ad.

Reading the label takes about three minutes once you know where to look. This guide is written for Texas households and small businesses shopping for electricity plans on Power to Choose. It walks the six numbers, shows the math at your own usage, and works through a real two-plan comparison so you can pick with your eyes open.

Key Takeaways

• Every Texas EFL shows the average price per kWh at 500, 1,000, and 2,000 kWh. Read the row closest to YOUR monthly usage, not the marketing rate.
• Three inputs move your bill: base charge, energy charge, and TDU delivery charge. Two structural traps skew the average: bill credits and cancellation fees.
• A June 2026 Retail Energy Revealed report found Texas households on the competitive retail market paid about $400 more per family than the regulated benchmark in 2024, roughly $2.8 billion in aggregate across roughly 7 million residential shoppers.
• The Public Utility Commission of Texas requires every EFL to use a standard format under Substantive Rule 25.475, so plans from any provider compare side by side.
• The rate you see on Power to Choose is almost always the average price at 1,000 kWh. If you use less or more, your real price is different.

What is a Texas Electricity Facts Label (EFL)?

An Electricity Facts Label is a standardized one-page plan disclosure that every retail electric provider (REP) in the deregulated ERCOT market must give you before enrollment. It is Texas's version of a nutrition label for an electricity plan. The Public Utility Commission of Texas (PUCT) codified the format under Substantive Rule 25.475 so a family in Sugar Land can compare a Rhythm plan against a Chariot plan against an Ambit plan and read all three the same way. For a plain-English tour of how the Texas retail market itself works, see our guide to how Texas deregulated electricity works.

Your enrollment kit actually includes three documents: the EFL, the Terms of Service (TOS), and the Your Rights as a Customer (YRAC) notice. The EFL is the pricing sheet. The TOS is the contract. The YRAC is the rights disclosure. When people say "read the fine print," the EFL is the part that changes your bill.

Where do I find the EFL for a plan?

You will find the EFL on the plan card itself while you shop. On the state's official comparison site, powertochoose.org, every plan listing carries an "EFL" or "Fact Sheet" link right under the price. On a provider's own site, the link sits next to the "Sign Up" button. After enrollment, the provider is required to mail or email the EFL with your welcome pack.

If you already have service and cannot find the EFL, ask your provider's customer service line for the exact plan name and PDF. The PUCT requires them to give it to you at no charge.

The 6-Number EFL Cost Test

Every Texas EFL puts six numbers in the same six places. Read them in this order and you have the whole plan:

1. Average Price per kWh at 500, 1,000, and 2,000 kWh
2. Base Charge (monthly)
3. Energy Charge (cents per kWh)
4. TDU Delivery Charge
5. Bill Credit or Usage Credit (and the usage window it requires)
6. Early Termination Fee

The next six sections walk each number, in order.

Number 1: Average Price per kWh at 500, 1,000, and 2,000 kWh

The average price per kWh is the all-in cost of the plan: base plus energy plus delivery minus credits, divided by your monthly usage. Every EFL prints it at three usage levels: 500, 1,000, and 2,000 kWh.

Providers advertise the middle row. It looks cleanest and it is the number Power to Choose shows on the plan card. But most Texas homes do not use exactly 1,000 kWh a month, especially in summer. The U.S. Energy Information Administration reported the Texas residential all-in rate averaged about 15.41 cents per kWh in Q2 2026. A single-adult apartment might land at 500 kWh in winter. A four-bedroom home with the AC running in July often hits 2,000 kWh or more. Our breakdown of how many kWh a Texas home uses per day in summer can help you pin down your own row.

Read the row closest to your actual usage. If the 500 kWh cell shows 22 cents but the 1,000 kWh cell shows 12 cents, that is a plan built around a bill credit that only fires at 1,000 kWh. Your real price at 700 kWh will look nothing like the advertised 12 cents.

Number 2: Base Charge (Monthly)

The base charge is a flat monthly fee the provider adds regardless of how much power you use. It usually runs zero to about $10, though a handful of plans go higher.

The trap is math. A $9.95 monthly base charge on a 500 kWh apartment adds about 2 cents per kWh to the effective rate, wiping out a 9-cent headline rate. On a 2,000 kWh home the same $9.95 fee spreads to half a cent per kWh. Base charges hurt low-usage households harder than heavy users. Some EFLs word this as "base charge applies only when usage is below X kWh," which is worse: it is a hidden minimum-usage penalty in different clothing.

Number 3: Energy Charge (Cents per kWh)

The energy charge is what the retail provider bills you per kWh for the power itself. It is the piece the REP controls: their generation cost, their margin, and their risk premium.

On a fixed-rate plan the energy charge does not change during the term. On a variable-rate plan it can move month to month, sometimes with only the small-print notification the PUCT requires. On an indexed plan it is tied to a formula (like the ERCOT wholesale price plus a fixed adder), and the EFL is required to show the exact formula.

Number 4: TDU Delivery Charge

Your Transmission and Distribution Utility (TDU) owns the poles and wires. In Texas that means Oncor (Dallas-Fort Worth), CenterPoint (Houston), AEP Texas Central, AEP Texas North, or TNMP. The TDU charge covers moving power to your meter and is regulated by the PUCT, so every retail provider passes through the same TDU rate in a given service territory. Our full walkthrough of TDU delivery charges on your Texas bill goes deeper on each utility.

Industry data compiled by Electric Choice in 2026 puts delivery charges around 15.9 cents per kWh in Oncor territory, 16.4 cents in CenterPoint, 15.1 cents in AEP Texas North, 15.4 cents in AEP Texas Central, and 14.6 cents in TNMP for typical residential usage. The EFL breaks this out as a monthly service fee plus a per-kWh charge. It is not something a plan competes on: two plans in Houston pay CenterPoint the same amount to move a kWh.

Number 5: Bill Credit or Usage Credit (the trap that turns a 9-cent plan into a 15-cent plan)

A bill credit is a fixed dollar amount ($75, $100, and $125 are common) the provider subtracts from your bill only when your monthly usage lands in a specific window (say, 1,000 to 1,999 kWh). A usage credit is the same idea worded slightly differently: a per-kWh rebate that kicks in above a threshold.

This is where the average-price-per-kWh headline breaks down. Doug Lewin, energy consultant and author of the Texas Energy and Power Newsletter, told Houston Public Media in May 2024 that Texas retail bills have grown more expensive and more volatile as plan complexity has climbed. A plan advertising 9.9 cents at 1,000 kWh often carries a $100 bill credit that fires exactly at 1,000 kWh. Use 950 kWh and the credit does not trigger, so your real rate might be 15 cents. Use 1,050 kWh and you win. Households whose usage swings across the threshold pay wildly different effective rates month to month. Our reporting on Texas households overpaying $480 a year on electricity unpacks the specific plan tricks that create this gap.

If a plan lists a bill or usage credit, write down the exact usage window on the EFL. If your actual usage does not land inside it most months, skip the plan.

Number 6: Early Termination Fee

The early termination fee is the flat dollar amount you pay if you cancel before the contract term ends. Common ranges run $50 to $295 for residential plans. Some EFLs use a tiered structure ($50 per remaining month, up to a cap), which often works out worse than a flat fee if you cancel early in the term.

Two carve-outs to know: month-to-month plans have no termination fee (that is the trade for a higher headline rate), and Texas law lets you cancel without a fee if you move out of the service address.

How to calculate your real per-kWh price

The formula is straightforward:

Real price per kWh = (Base charge + Energy charge x Usage + TDU per-kWh x Usage + TDU monthly - Credits) / Usage

Worked example: a 700 kWh household on a plan that shows 9.9 cents at 1,000 kWh with a $75 bill credit at 1,000 kWh, an 8.5-cent energy charge, a 4.8-cent TDU pass-through, a $4.39 TDU monthly, and a $0 base charge:

• Energy: 8.5 cents x 700 = $59.50
• TDU: 4.8 cents x 700 + $4.39 = $37.99
• Credit at 700 kWh: $0 (the 1,000 kWh threshold is not hit)
• Total: $97.49
• Real price: $97.49 / 700 = 13.9 cents per kWh, not 9.9

Same plan at 1,800 kWh triggers the credit and the math flips: the real price lands closer to 11.2 cents. Same plan, same household, two different worlds. If you want to trace the same math back to the individual line items on your invoice, our guide to how to read your Texas electricity bill shows exactly where each number lands.

A side-by-side comparison: Plan A vs Plan B

Consider a Houston family that uses about 750 kWh a month year-round (a modest apartment or an efficient small home).

At 750 kWh Plan A wins by four dollars. At 1,050 kWh Plan A wins by $80 because the credit kicks in. But at 950 kWh, Plan A loses badly because the credit misses and the per-kWh drops back to low-usage math. The advertised 9.9-cent rate never once matches this family's real bill.

Fixed vs Variable vs Indexed: what the "product type" line means

Every EFL declares the plan's product type. The three you will see in Texas:

• Fixed rate: energy charge does not change for the length of the term (6, 12, 24, or 36 months). The EFL number is the number.
• Variable rate: energy charge can change month to month at the provider's discretion. Historically the most expensive category on Power to Choose.
• Indexed rate: energy charge is tied to a published formula (typically the ERCOT wholesale price plus an adder). The EFL is required to show the exact formula and a warning that the rate can rise sharply during scarcity events.

A June 2026 report from Retail Energy Revealed found that Texas households on the competitive retail market paid roughly $400 more per family than they would have under the pre-deregulation benchmark in 2024, an aggregate overpayment of about $2.8 billion across roughly 7 million residential shoppers. Ed Hirs, an energy economist writing in Forbes in July 2026, argued that retail-choice electricity markets consistently price above traditional regulated markets. Fixed-rate customers on a well-read EFL routinely beat this average. Variable-rate customers routinely miss it.

What PUCT Substantive Rule 25.475 requires

The Public Utility Commission of Texas requires every EFL to show plan type, contract term, all pricing components (energy charge, base charge, TDU pass-through), any usage credits with their trigger, the early termination fee, and the renewable content percentage. The rule also requires that the numbers on the EFL match what actually appears on your bill (allowing for TDU adjustments that the PUCT approves separately, usually in March or September).

If a plan you enrolled in bills you differently than the EFL you signed up under, you have grounds to file a complaint with the PUCT's Customer Protection Division at puc.texas.gov.

Frequently Asked Questions

Where do I find my EFL if I already enrolled? Ask your provider's customer service line and give them your plan name. They are required by PUCT rule to send it. It is also usually posted in your online account under "Documents" or "Plan Details."

Is the price on my bill the same as the EFL price? The line-item breakdown matches (energy charge, base charge, TDU). The all-in cents-per-kWh figure may not, because your actual usage rarely lands exactly at 500, 1,000, or 2,000 kWh. Do the math with your real usage using the formula above.

Why is my TDU delivery charge different on my bill? The PUCT approves TDU rate changes twice a year (usually March and September). Your EFL number is fixed at enrollment. Your bill number updates when the PUCT approves a change.

Do all Texas EFLs use the same format? Yes. PUCT Substantive Rule 25.475 mandates a standard layout, so the same six numbers sit in the same six places on every EFL from every REP.

What does "100% renewable" on an EFL actually mean? It means the provider retires enough Renewable Energy Certificates (RECs) to cover 100% of your usage. Actual power flowing to your outlet still comes off the ERCOT grid (a mix of gas, wind, solar, nuclear, and coal).

Can I switch plans if my current EFL numbers changed? If the change is a TDU pass-through approved by the PUCT, no (that is a market-wide adjustment). If the provider changed the plan itself outside a variable-rate or indexed formula, you can cancel without a termination fee. Call PUCT if the provider refuses.

What to do next

Pull up powertochoose.org, enter your ZIP, and screen every plan on your shortlist using the 6-Number EFL Cost Test above. Do the real per-kWh math at YOUR usage, not at the 1,000 kWh headline. Skip plans whose usage-credit windows do not match your monthly range.

If you would rather have a Texas-based team read the EFLs for you, we can pull the current numbers for your ZIP and walk them line by line before you enroll.

Plan details and rates subject to change. Energy facts label available at ambitenergy.com. Subject to credit approval. This guide is intended for Texas households and small businesses. Rates and terms current as of August 2026.

You can get same-day electricity in Texas with no deposit by signing up for a prepaid pay-as-you-go plan before your provider's daily cutoff, funding your first balance, and confirming your address has an active smart meter. Most cutoffs land between 3 p.m. and 6:30 p.m. CT, Monday through Saturday, and remote smart-meter activation puts power on within a few hours.

Key takeaways

• Prepaid plans skip both the credit check and the refundable security deposit. You pay for kilowatt-hours before you use them.
• Same-day connection typically requires enrollment before 5 p.m. or 6 p.m. CT on a business day, plus a working smart meter (nearly every Oncor, CenterPoint, AEP Texas, and TNMP home already has one).
• Initial funding usually runs $30 to $75 and covers your first few days of power.
• The Public Utility Commission of Texas allows two deposit-free paths beyond prepaid: a letter of credit showing 12 months of on-time payment, and a letter of guarantee signed by a qualified third party.
• Prepaid electricity typically costs 20 to 30 percent more per kWh than a competitive 12-month fixed rate, so it is a short-term bridge, not a long-term strategy.

What is same-day no-deposit electricity in Texas?

Same-day no-deposit electricity in Texas is a prepaid, pay-as-you-go retail plan that starts service the same business day you enroll, without a credit check or a refundable security deposit. Instead of a deposit, you pre-load a balance (usually $30 to $75) and pay for kilowatt-hours as you use them.

The legal framework sits in the Public Utility Commission of Texas (PUCT) rules. Under 16 TAC §25.24, Credit Requirements and Deposits, a retail electric provider (REP) may require a security deposit from a residential applicant, but must waive it when the applicant meets specific conditions. Prepaid service, governed separately under §25.498, is the fast lane because it bypasses the deposit process entirely by moving the customer to advance funding.

Two things make "same day" work: an operational smart meter at your address, and enrollment before the provider's daily cutoff. Nearly every home served by Oncor, CenterPoint Energy, AEP Texas, or TNMP already has a smart meter, so the local wires company (your TDU) can turn service on remotely within a few hours, no truck roll needed. For the details on which TDU serves your address and what shows up on your bill, see our breakdown of TDU delivery charges by Oncor, CenterPoint, AEP Texas, and TNMP.

Which Texas providers offer same-day service with no deposit today?

Four prepaid REPs consistently appear in same-day, no-deposit searches: Pogo Energy, Payless Power, Acacia Energy, and Now Power Texas. Each is licensed by the PUCT and operates in the ERCOT competitive market. The ranked table below shows their advertised same-day cutoffs, initial funding requirement, and coverage.

Sources: provider websites and Choose Energy provider guide, as of August 6, 2026. Plan details and rates subject to change. Call the provider to confirm before you enroll.

What are the same-day electricity cutoff times by provider and TDU?

Cutoff time is the single biggest factor in whether power actually flows today. Miss it by ten minutes and you wait until the next business day. Non-prepaid REPs also offer same-day connection, but many still require a credit check and a possible deposit.

Sources: Pogo Energy, Choose Texas Power, Reliant Energy, Constellation, and Choose Energy provider comparison, as of August 6, 2026. Plan details and rates subject to change.

The TDU itself does not set a customer-facing cutoff. Your address is assigned to one of the four Texas TDUs (Oncor, CenterPoint Energy, AEP Texas, or TNMP), and that TDU physically performs the reconnect order the REP sends over. Because remote reconnects on a smart meter typically complete in 1 to 4 hours, the REP's cutoff is what governs whether the lights come on today.

Can I get same-day electricity if I have bad credit? The 3-Path Same-Day Framework

Yes. There are three legal paths to same-day power without a large upfront deposit, all grounded in PUCT rules. We call this the 3-Path Same-Day Framework. Pick the path that fits your credit history and how long you plan to stay on the plan.

Path 1: Prepaid Pay-As-You-Go

The fastest path. No credit check, no deposit, and same-day activation with any of the prepaid REPs above. You fund an initial balance, and the account draws down as you use power. The trade-off is a higher per-kWh rate and the risk that service pauses if the balance hits zero. Best for renters, short leases, or anyone bridging 30 to 90 days.

Path 2: Deposit Waiver

Under PUCT §25.24, a REP must waive the security deposit if you provide a letter of credit from your most recent electric utility showing 12 consecutive months of on-time payment with no more than one late payment, or if you qualify as a customer 65 years of age or older with no delinquent balance, or as a documented victim of family violence. This path preserves standard (non-prepaid) rates and is the right move if you can wait one to two business days for the letter to be verified. Subject to credit approval.

Path 3: Letter of Guarantee

Under §25.24(g), a qualified third party (a friend, family member, or business) can sign a letter of guarantee that transfers deposit responsibility to them, up to a set dollar cap. The guarantor must be an existing customer of the REP in good standing. This path lets you skip the deposit and stay on a standard fixed-rate plan without waiting on your own payment history.

How does the same-day power connection actually work?

Here is the timeline from click to lights on:

1. Enroll and fund (0 to 15 minutes): Sign up online or by phone with a prepaid REP. Provide your Texas ZIP code, service address, and driver's license or state ID. Pay the initial balance by debit card, credit card, or cash at an authorized retailer.
2. Address confirmation (15 to 30 minutes): The REP verifies that your address maps to a smart-metered ESI ID in the ERCOT market. If your home is not on a smart meter (rare), same-day service is not available and a technician visit is required.
3. TDU reconnect order (30 to 60 minutes): The REP sends a reconnect message to your TDU (Oncor, CenterPoint, AEP Texas, or TNMP). No technician visit is needed for a smart-meter home.
4. Meter energized (1 to 4 hours after the reconnect order): The TDU switches the meter on remotely. You receive a text or email confirming power is live.

Total elapsed time from click to power: usually 2 to 6 hours during business hours, provided you beat the cutoff.

How much does no-deposit prepaid electricity really cost compared with a traditional plan?

Prepaid electricity is a convenience product, not a value product. Expect to pay 20 to 30 percent more per kilowatt-hour than a competitive 12-month fixed rate. Run the math against your actual usage before you commit. The average Texas electricity rate is 10.58 cents per kWh, as of August 6, 2026, according to Texas Electricity Ratings, so the gap is real money on a typical bill.

Plan details and rates subject to change.

Texas homes average 1,096 kWh per month, above the national average of 863 kWh, according to nodepositlights.com Texas usage data (2026). At the summer peak of 2,000 kWh, prepaid bills can hit $250 to $330, while a competitive fixed rate lands closer to $200 to $240. The USA Today Hostage to Heat investigation (2026) reported that Texas accounts for about 20 percent of the roughly one million U.S. prepaid utility accounts, and that prepaid customers face a higher disconnection risk during heat waves. Match the plan to how long you actually need it. For a full breakdown of the plan types on Power to Choose, see our guide to Texas electricity plans and how to pick the right rate in 2026.

How do I sign up for same-day no-deposit electricity in Texas?

1. Verify your ZIP is in the ERCOT competitive market. If your address is served by Austin Energy, CPS Energy (San Antonio), or a municipal utility, retail choice does not apply, and this playbook will not help you.
2. Compare same-day prepaid plans. Check the state comparison portal, Power to Choose, and filter for prepaid. Compare per-kWh rate at 1,000 kWh, daily service fee, and cancellation terms.
3. Enroll before the cutoff. Have your ID, service address, and payment method ready. Aim for at least an hour before the cutoff to allow for phone hold time or online verification.
4. Fund the initial balance. Expect $30 to $75. Pogo Energy specifically requires $60 before 6 p.m. CT for same-day activation.
5. Wait for the "power on" confirmation. Set up balance alerts and auto-refill so service does not lapse mid-heat wave.

Documents required at enrollment: Texas driver's license or state ID, current service address, contact phone and email, and a valid payment method.

Same-day electricity in Houston, Dallas, and other major Texas metros

The four Texas TDUs cover distinct territories:

• CenterPoint Energy serves Houston, Sugar Land, Katy, and Baytown.
• Oncor covers Dallas, Fort Worth, Irving, Frisco, Killeen, and Waco.
• AEP Texas covers Corpus Christi, McAllen, and Laredo.
• TNMP covers portions of the Gulf Coast, the Panhandle, and select suburbs.

Because all four TDUs support remote smart-meter reconnects, same-day service works uniformly across metros. Your cutoff time is dictated by the REP, not the TDU. If you want a longer-term view of how the deregulated market decides which providers serve your address, our guide to how Texas deregulated electricity works walks through the ERCOT retail structure.

What are the trade-offs of prepaid no-deposit electricity?

Prepaid buys speed and access, and costs you optionality. The trade-offs are consistent across every prepaid provider we reviewed.

Advantages

• No credit check, no deposit, and same-day activation, six days a week.
• Month-to-month with no early termination fee. Cancel any day, no penalty.
• Daily usage and balance alerts help households on a fixed income track spending in real time.
• Fast path to service after an unpaid balance with a prior REP.

Trade-offs

• Effective per-kWh rate is typically 20 to 30 percent higher than a comparable fixed-rate plan.
• If the account balance hits zero, service can pause within a few hours. The disconnection notice window is shorter than a traditional monthly bill.
• Auto-refill requires an active payment method on file. Declined cards can trigger interruption during heat waves.
• Prepaid plans usually cannot access promotions like free nights and weekends or solar buyback credits.

If you plan to stay in the home more than 3 to 4 months and can pass a credit check, run the math on Path 2 (deposit waiver) or Path 3 (letter of guarantee). The one-time hassle usually pays back within the first billing cycle. If you want a month-to-month plan without the prepaid premium, our Lone Star Flex no-contract guide covers the standard-billed alternative.

Frequently asked questions

Can I get same-day electricity in Texas on a Sunday or a holiday?

In most cases, no. Pogo Energy, Payless Power, and other prepaid REPs list Monday through Saturday cutoffs and pause same-day activation on Sundays and major holidays. Enroll and fund the account, and service typically turns on the next business day.

Do I need a smart meter for same-day electricity?

Yes. Same-day power depends on the TDU remotely switching your meter on. If your address does not have a smart meter (uncommon in ERCOT territory), a technician visit is required and service can take 1 to 3 business days.

How much do I need to pay up front for prepaid electricity in Texas?

Initial funding typically ranges from $30 to $75. Pogo Energy requires $60 before 6 p.m. CT for same-day activation. Payless Power and Acacia Energy list similar ranges.

Is prepaid electricity the same as no-deposit electricity in Texas?

Prepaid is the most common no-deposit path, but not the only one. PUCT §25.24 also allows a deposit waiver via a letter of credit from your prior utility or a letter of guarantee from a qualified third party, both of which keep you on a standard non-prepaid plan.

Can I switch to a cheaper plan later if I start on prepaid?

Yes. Prepaid plans are month-to-month with no early termination fee, so you can move to a fixed-rate plan the moment you build up 12 months of on-time payment history and qualify for a deposit waiver under §25.24.

Which Texas providers offer same-day service with no credit check?

Pogo Energy, Payless Power, Acacia Energy, and Now Power Texas are the four most commonly cited prepaid REPs offering both no credit check and same-day activation on business days.

Need power on today in the ERCOT market? Start with our request-a-quote form and we will point you to the fastest same-day path for your ZIP, TDU, and credit situation.