A guide to lowering your electricity costs

Electricity can be pricey – but it shouldn’t be breaking the bank. If you find yourself constantly surprised by a higher bill than you expected, it may be time to look at how to lower that price. There are a few main ways to do this, and which you choose will depend on why your energy bill is too high in the first place. In this guide we’ll explain the three top solutions for reducing your bill:

• Switching plans or providers
• Making upgrades to your home
• Changing your habits

Choose Texas Power was built to help Texans get the most out of their energy choice – from finding plans and providers that fit their needs to managing energy costs no matter the challenge. If you are struggling with your electricity costs, this is the place to begin. Let’s get started.

Understanding your electricity bill

The first step to spending less on energy is understanding where your costs are coming from. Sometimes, you may be consuming more electricity than you realize. But other times, you may be paying a high rate even if you keep your usage low.

When you look at your bill, you’ll see the rate listed per kilowatt-hour (kWh) of energy. You’ll also see your usage, also listed in kWh. For reference, the average U.S. household uses about 914 kWh per month. Your usage will depend on your home size as well as your habits, so it may be helpful to compare your usage over a few months to see if there is a spike. A historical usage section is usually listed on your bill.

If your usage has gone up, lowering your bill may be a matter of upgrading your home or changing how you use energy. If your usage has remained steady but your rate or bill has gone up, that may mean it is time for a new plan or provider. For a full explanation of your bill and everything it tells you, see our guide here.

A note on delivery charges

In your bill breakdown, you may see a section called “delivery charges”, “UDC charges,” or “TDU/TDSP charges.” This is the fee you pay to your electric utility company, which delivers energy to your home. This price is determined by the state and cannot be changed. Everyone pays the same amount, regardless of their provider or plan.

The section called “supply charges” or “energy charges” is where you want to focus your attention. This
is calculated by the kWh you use multiplied by your electric rate. This is the part of your bill that you can
control.

Switch energy plans or providers to lower your rate

If your electricity rate is the culprit for your high bill, the next step is to think about switching plans or providers. If you like your provider but just have a plan that does not fit your needs, some REPs offer the option to switch to another one of their plans without early termination fees.

Otherwise, you’ll want to start comparing plans and prices to find a better fit for you. A few things to
consider include:

• Type of plan
• Type of rate
• Payment option

When you look at plan options, make sure to check if they are fixed or variable. If you currently have a variable plan, consider a fixed plan so your rate does not change every month. For rate options, prioritize rates that fluctuate less, and make sure your usage lines up with any usage buckets the plan sets. For more information on the options and how to decide, see our plan guide here.

If you struggle to afford your energy bill, you may consider switching to a prepaid plan option. Prepaid plans give consumers the ultimate control over their bill, since you only pay for as much electricity as you use. Because you pay in advance, there aren’t any pricey surprises at the end of the month. Find
more information on these types of plans here. See plans available in your area by entering your ZIP code above.

Home upgrades to cut energy costs

If your usage is the reason your electricity bill is too high, one solution may be to invest in some energy-efficient upgrades. These can have large upfront costs but pay off greatly in the long run. If you have the ability to do so, consider these changes to your home:

• Invest in new appliances. Appliances with ENERGY STAR label meet the Environmental Protection Agency’s standards for energy efficiency. This applies to dishwashers, washing machines, refrigerators, and many other common household appliances.
• Redo your roof. One of the bigger investments on the list, refitting your roof with reflective technology, also know as “cool roofing,” can help your home absorb less heat. This can be especially useful in Texas’ hot climate.
• Get a smart thermostat. This is one expense that can drastically change your usage by not heating or cooling your home when you don’t need it.
• Go tankless. Tankless water heaters only heat water when you need it instead of keeping a reserve all the time. Since water heating makes up a big chunk of electric bills, this could be a worthy solution to high bills.
• Use the power of the sun. Go green and save money by investing in solar energy. Many energy companies offer buyback programs so residents can sell the excess energy their solar panels produce back to grid, earning them credits towards their next bills.

Small habit changes make a big difference

Another – and less expensive – way to cut back on your energy usage is to simply make a few changes to how you use energy. This includes the age-old “turn the lights off when you leave the room” and “don’t stand in front of the open refrigerator door.” Additional adjustments include:

• Scheduling regular maintenance. Make sure to take care of your HVAC unit, replace air filters, and weather-strip as needed. Drafty and clogged houses make for less efficient energy use.
• Hitting the off switch. Many electronics automatically enter standby mode when not in use, which still uses energy. Buy power strips so you can turn all your devices fully off, or just unplug them when you’re done.
• Washing with cold water. TA big portion of your bill comes from water heating, so save the hot water for when you actually need it and wash your clothes on the cool cycle.
• Utilizing ceiling fans. Ceiling fans use less energy than one lightbulb and do wonders to cool off without AC. Just remember that they cool people, not rooms, so turn them off when you leave the room.

Whether you’re looking for quick solutions or can invest in bigger upgrades, lowering your energy bill starts with paying attention to how you use electricity. If it’s your usage that’s raising the price, try adjusting your habits or making changes to your home. If your rate is the problem, consider switching to an electricity plans that better fits your needs. Find more energy resources here or enter your ZIP code above to compare plans in your area.