Why does my rate jump below 1,000 kWh?
Many Texas plans give a bill credit (rebate) only in months you use at least 1,000 kWh. Use 999 and you lose the whole credit — so your price per kWh can more than double.
A real example
One plan listed on our site has a $125 credit at 1,000 kWh (checked October 14, 2026):
- At 1,000 kWh: about $70 a month — 7.0¢ per kWh all-in.
- At 999 kWh: about $195 a month — 19.5¢ per kWh all-in.
One kWh less, about $125 more. The electricity didn't get pricier. The credit disappeared.
Why the advertised price looks so low
Advertised prices are usually figured at exactly 1,000 kWh — the point where the credit kicks in. A plan's Electricity Facts Label (EFL) shows prices at 500, 1,000 and 2,000 kWh. Those are just examples. What happens in between depends on the plan's rules.
Your usage changes month to month
Hot months can push a home past 1,000 kWh. Cooler months often don't. A yearly average above 1,000 doesn't mean every month gets the credit. Check one high month and one low month from your past bills.
Other things that raise low-usage months
- Monthly base charges and the utility's delivery fee get spread over fewer kWh.
- Some plans add a minimum-usage fee.
Not every jump is a credit — check the EFL.
Common questions
Q: Does using less electricity always lower my bill?
A: No. Losing a credit or hitting a minimum-usage fee can cost more than you saved. Compare the total bill, not just the price per kWh.
Q: If I'm close to 1,000 kWh, do I get part of the credit?
A: Usually not. Most of these credits are all or nothing. The EFL tells you the exact rule.
Q: Should I use extra electricity to reach 1,000 kWh?
A: No. Billing cycles are hard to predict. Pick a plan that works for the electricity you normally use — including your low months.
Q: Does "fixed rate" mean my price never changes?
A: No. A fixed-rate plan can still have monthly fees and a usage-based credit, so your price per kWh can change with usage.
See plans at your usage, with or without a rebate.