How to choose the best electricity plan in Texas
An honest, bilingual guide to fixed, variable and indexed plans — and why fixed almost always wins.
The #1 mistake when picking a Texas plan
Most Texas households pick a plan for a single reason: the headline price. It's logical — but it's also the #1 reason people end up paying double in July.
Here are the 3 things that actually matter:
1. Rate type: fixed, variable, or indexed
- Fixed: the per-kWh price doesn't change during the contract. Predictable. This is what Velcor offers.
- Variable: the price changes month-to-month. Starts cheap, jumps in summer. Almost always works against you.
- Indexed: tracks a wholesale market index. Volatile. Not recommended for residential use.
2. Hidden fees in the EFL
The Electricity Facts Label (EFL) is the PUCT-mandated disclosure every REP must give you before signup. Read it. Look for:
- Monthly base charge (is there a "service fee" when your usage is low?)
- TDU charges (CenterPoint / Oncor / AEP / TNMP) — always included by law
- Early termination fee (on long-contract plans)
Tip: Velcor charges no cancellation fee. Cancel any time.
3. Realistic 1,000 kWh average
The EFL shows the "average price per kWh" at 500, 1,000 and 2,000 kWh. Look at the 1,000 kWh number — closest to typical Texas residential use. That's the figure to compare across providers.
Three questions to ask your REP
- Is the rate you're offering fixed for the entire term?
- Is there a monthly base charge that applies even with no usage?
- How much does it cost to cancel before the contract ends?
If all three answers aren't clear and in writing, find another provider.
Why Velcor?
Because we offer a single plan: fixed rate, no long-term contract, no cancellation fee, no deposit. One monthly bill including TDU + taxes. And when you have questions, a real human answers in English or Spanish at (800) 715-6516.