Bill Credits in Texas: How They Work
Some electricity plans add a fixed bill credit when your monthly usage passes a set threshold (for example, 800 kWh or 1,000 kWh). If you hit the target, your bill drops by a flat amount that month; if you miss it, you pay the regular charges without the credit.
How bill credits work
- Your usage is measured monthly in kilowatt-hours (kWh).
- If usage ≥ threshold (e.g., 1,000 kWh), the plan applies a fixed dollar credit to that month’s bill.
- If usage < threshold, the credit doesn’t apply and the bill reflects standard charges.
Quick example
Suppose a plan gives a $100 credit at ≥1,000 kWh. If you use 1,020 kWh, you qualify and your bill is reduced by $100 for that month. If you use 980 kWh, you get no credit.
Who benefits most?
Good fit if you…
- Usually exceed the threshold (e.g., large home, summer cooling).
- Have fairly consistent month‑to‑month usage.
- Understand the plan’s minimum usage fees and base charges.
Think twice if you…
- Frequently fall below the threshold—credits may be rare.
- Prefer predictable, stable pricing regardless of usage.
- Are optimizing for the lowest average price over the whole year.
What to check on the EFL (Electricity Facts Label)
- Threshold level(s): Some plans have multiple tiers (e.g., credits at 1,000 and 2,000 kWh).
- Exact credit amount: Is it $50, $75, $100, etc.?
- Rate structure if you miss: Are per‑kWh charges higher outside the credit zone?
- Base/minimum charges: Fees that apply regardless of usage.
- Contract term & ETF: Early termination fees and contract length.
Learn more from the Public Utility Commission of Texas: Consumer Electricity FAQ and the official rule on disclosures: §25.475.
Tips to make a bill‑credit plan work for you
- Know your usage: Check smart‑meter history or past bills to see typical kWh for summer and winter.
- Pre‑cool / pre‑heat strategically: Shift some usage earlier in the day to help reach the threshold efficiently.
- Time major appliances: Laundry, dishwashers, and EV charging can nudge you over the line when needed.
- Watch shoulder months: Spring/fall usage may dip under the threshold—plan accordingly.
- Compare to a fixed‑rate plan: If your usage is variable, a simple fixed plan may be cheaper overall.
Key takeaways
- Credit can be big: $50–$100 is common when you qualify.
- Consistency wins: Plans shine when you regularly hit the threshold.
- Read the EFL: Understand fees and rates if you miss the target.