Fixed-Rate Electricity Plans in Texas

A fixed-rate electricity plan gives you a set energy rate for the length of your contract, helping make your electricity costs easier to understand and plan around.

When you choose a fixed-rate plan, your price per kilowatt-hour (kWh) is locked in for the length of your plan term. However, your total monthly bill can still change based on how much electricity you use, applicable delivery charges, taxes and fees.

Read on to learn how fixed-rate electricity works, what stays the same, what can change and how to shop for the right plan for your home.

What Is a Fixed-Rate Plan for Electricity?

A fixed-rate electricity plan gives you an energy rate per kilowatt-hour (kWh) that stays the same for the duration of your contract.

That means the rate itself does not rise or fall from month to month. You’re protected from the price swings that can impact the wholesale energy market. This can be especially helpful in Texas, where many factors like seasonal weather and high energy demand can affect electricity pricing.

A fixed-rate plan doesn’t mean your final bill will be exactly the same every single month. Your monthly bill can still vary due to:

• How much electricity your home actually uses
• Transmission and delivery utility charges from your local provider
• Taxes, fees and other standard charges listed in your plan documents
• Seasonal usage changes (especially during hot Texas summers or unusual winter freezes)

Think of it this way: a fixed rate helps stabilize the rate you pay for energy, while your total out-of-pocket cost still depends on your daily habits and usage.

Fixed-Rate vs. Variable-Rate Plans: Understanding the Difference

When you shop for electricity in a deregulated market, you'll typically see two main types of pricing: fixed-rate plans and variable-rate plans. Understanding the difference is the key to choosing the right fit for your lifestyle and budget.

Unlike fixed-rate plans, variable-rate electricity plans do not have a locked-in energy rate and typically operate on a month-to-month basis without a long-term contract or early cancellation fees. While this offers total flexibility, the rate you pay per kilowatt-hour can fluctuate from month to month.

Fixed Rate Does Not Mean Fixed Bill

One of the most important things to know when shopping for electricity is that a fixed-rate plan does not create the exact same bill amount every month.

Your energy rate stays the same, but your bill will naturally change as your electricity usage changes. For example, if you run your air conditioning constantly during a hot July, your bill will increase because you used more kWh than you did during a mild April. The rate you were charged per kWh did not change, but the volume of energy you consumed went up.

To help you manage this, TXU Energy customers can use our top-rated app, online tools and account features to track electricity usage. By monitoring your daily and weekly habits, you can better understand your monthly energy costs and find simple ways to save.

How Fixed-Rate Electricity Plans Work

When you enroll in a fixed-rate electricity plan, you agree to a specific energy rate and a set contract length. The exact details of that plan are outlined in your Electricity Facts Label (EFL) and other official plan documents.

To help you feel confident in your choice, here is a breakdown of what you should review before choosing a plan:

The Energy Rate

This is the core energy price shown for the plan. It is usually listed in cents per kilowatt-hour. In a fixed-rate plan, this specific number is locked in and will not change for the duration of your contract term.

The Average Price

Electricity plans in Texas always show average prices calculated at different usage levels (500 kWh, 1000 kWh and 2000 kWh). Review the usage level that best matches your home’s historical usage to get the closest idea of your expected costs.

The Contract Term

Fixed-rate plans are available for different term lengths. A longer term (like 24 or 36 months) offers extended price certainty and protects you from changes for a longer period. A shorter term (like 12 months) offers more flexibility if you anticipate a move or a change in your living situation.

Early Cancellation Fees

Most fixed-rate plans include an early cancellation fee (sometimes called an early termination fee) if you decide to end your contract before the term is complete. You should always review your plan documents before enrolling so you know exactly what to expect if your plans change. However, if you move to a new home, you can usually take your plan with you or cancel without a penalty by providing proof of your move.

Delivery Charges

Your local transmission and distribution utility (TDU) charges fees to maintain the power lines, read the meters and deliver electricity to your home. These are standard charges passed through to all Texans regardless of their retail electricity provider. These charges are based on your usage and can affect your total bill even when your energy rate is strictly fixed.

Why Choose Fixed Rate Electricity?

Fixed-rate electricity plans are a popular choice for customers who want more predictable energy pricing and straightforward terms. Instead of wondering whether your energy rate will unexpectedly change from one month to the next, you can sign up for a plan with a rate that is set for the length of the agreement.

Why Choose TXU Energy for Fixed Rate Electricity?

As the #1 choice for electricity in Texas, more homes and businesses trust TXU Energy for straightforward, affordable electricity plans than any other provider. We've been proud to power millions of Texans since 2001.

TXU Energy offers electricity plans designed thoughtfully around how Texans actually live, use energy and manage their busy homes. Whether you're moving to a new city, renewing your current contract or shopping for a better fit, TXU Energy can help you compare available plans.

Enter your ZIP code today to see the TXU Energy plans available near you and discover why we are the most trusted electricity provider in Texas.