Is Your Electricity Plan Ready for a Texas Heatwave?

Texas summers have always been hot—but in recent years, they've become dangerously extreme. According to the National Weather Service, 2025 is already trending toward one of the hottest years on record across much of the southern U.S., with Texas experiencing prolonged triple-digit temperatures well before the official start of summer.

These excessive heat conditions put immense pressure on both people and the power grid. The Electric Reliability Council of Texas (ERCOT) has already issued multiple conservation alerts in June, asking Texans to reduce electricity usage during peak hours to avoid potential rolling blackouts.

So what does this mean for your home or apartment? For one, it means your electricity usage is likely to surge—even if you don’t change your daily habits. Air conditioners work harder and longer. Refrigerators stay cooler against the heat. And small lifestyle adjustments can suddenly become big billing surprises.

This is why it’s more important than ever to know exactly what kind of electricity plan you’re on—and whether it’s designed to handle the strain of a hotter-than-usual Texas summer. A poor match between your plan and your usage could lead to skyrocketing bills or nasty surprises, especially if you're on a variable-rate plan or nearing the end of your contract.

How To Review Your Current Electricity Plan

Before you can decide whether your plan can stand up to the summer heat, you need to understand what kind of plan you’re on—and how it works. Here’s how to check the most important details, even if you’ve never looked at your energy contract before.

1. Find Your Electricity Facts Label (EFL)

Think of the EFL as the “nutrition label” for your electricity plan. Every retail electricity provider (REP) in Texas is required to provide it. The EFL outlines key details such as:
- Your plan’s rate per kilowatt-hour (kWh)
- Whether your rate is fixed or variable
- Term length and early termination fees
- Average monthly bill estimates at different usage levels (500, 1000, 2000 kWh)
- Base charges and pass-through fees from your utility

If you don’t have a copy of your EFL, you can usually download it from your provider’s website, or find it through your online account portal.

2. Identify Your Rate Type: Fixed, Variable, or Indexed

Here’s what to look for:
- A fixed-rate plan keeps the price per kWh steady throughout your contract.
- A variable-rate plan changes month to month, which can be risky during high-demand seasons like summer.
- An indexed plan ties your rate to a market index (such as natural gas prices), which can also spike unpredictably.

If your rate type isn’t clearly labeled, the EFL will spell it out. In summer, a fixed-rate plan offers the most protection from surprise billing hikes.

3. Check Your Plan’s Expiration Date

Is your plan about to expire in the next 1–3 months? If so, you could automatically roll over into a much higher month-to-month rate. Make a note of the expiration date so you can start comparing new plans in advance—ideally 30–60 days before the end.

4. Watch for Sneaky Charges

Aside from the energy charge, plans may include:
- A base monthly charge (even if you use $0 in energy)
- TDU delivery charges (set by your utility)
- Usage thresholds (for example, different pricing if you go above or below 1000 kWh)

Make sure you understand how your monthly bill is structured—because in summer, every kilowatt counts.

5. Don’t Be Afraid to Switch

In Texas, you have the power to choose your provider. If your current plan doesn’t offer protection, flexibility, or good summer rates, you can shop for one that does. Many plans offer low rates for new customers, and switching is often as easy as selecting a new option and scheduling a start date.

If you're ready to explore, enter your zip code on our electricity plan comparison tool to view options available in your area.

Are You on a Fixed-Rate Plan? Here’s Why That Matters in Summer

When temperatures soar and demand for electricity spikes, fixed-rate plans act like a shield. Unlike variable or indexed-rate plans, a fixed-rate plan locks in your price per kilowatt-hour for the duration of your contract—typically 6, 12, or 24 months. That means your rate won’t rise with market conditions, even if ERCOT issues grid warnings or fuel costs surge.

This consistency is especially valuable during Texas summers, where price swings can be dramatic. During the 2022 and 2023 heatwaves, some Texans on variable plans saw their bills double or triple in a single billing cycle. In contrast, customers on fixed-rate plans paid the same predictable rate—even while running their AC around the clock.

Here are some reasons fixed-rate plans are especially important during summer:

• Budget Control: You know what to expect on your bill, making it easier to manage household expenses.
• Protection from Market Volatility: During high demand, wholesale electricity prices in Texas can soar to $5,000 per megawatt-hour (or more). Fixed-rate customers are insulated from that risk.
• Peace of Mind: No surprises, no stress—just a stable rate through the worst of the heat.

That said, fixed-rate plans do come with a few trade-offs. You’re typically locked in for the term length, and early cancellation may carry a fee (usually $100–$200). Still, many Texans consider that a fair price for predictability—especially during a record-breaking summer.

To see if you’re already on a fixed-rate plan, check your Electricity Facts Label or login to your REP’s customer portal. If you're not, it may be worth switching now before peak rates set in.

Off-Peak Electricity: A Smart Summer Strategy

Another effective way to beat high summer bills is by taking advantage of off-peak electricity plans, like Free Nights or Free Weekends. These plans incentivize customers to shift their usage outside of peak demand hours—typically from 1 PM to 7 PM on weekdays—when electricity is most expensive and the grid is under the most strain.

Here’s how they work:

You pay little or nothing for electricity used during specific off-peak hours (usually overnight or on weekends), but pay a higher rate during peak periods. While that might sound risky, these plans can lead to real savings for the right households.

You might benefit from an off-peak plan if you:
- Do laundry, run dishwashers, or charge electronics overnight
- Work evenings or night shifts
- Own an electric vehicle and charge it at night
- Use programmable smart devices to automate appliance usage

Off-peak plans can also help reduce stress on the Texas grid during the hottest hours of the day—a win for both your wallet and the state.

That said, these plans require a bit of planning. If most of your household’s energy use happens during the hottest afternoon hours, a traditional fixed-rate plan may still be more cost-effective overall. And it’s crucial to check the fine print in your EFL—some plans charge very high peak-hour rates that can offset overnight savings if not managed carefully.

Summer Electricity Usage Tips: How to Stay Cool and Save

Your electricity plan is only part of the equation—how you use your energy during a Texas summer can make a big difference in your monthly bill. Even small adjustments can help reduce costs without sacrificing comfort.

Here are proven ways to stay cool while keeping your energy usage under control:

1. Set Your Thermostat Wisely

According to the U.S. Department of Energy, setting your thermostat to 78°F when you’re home and raising it a few degrees when you’re away can reduce your cooling costs significantly. Consider investing in a smart thermostat that automatically adjusts based on your schedule.

2. Avoid Peak Hour Usage

Try to use major appliances—like washing machines, dishwashers, and ovens—early in the morning or late at night. This not only reduces strain on the grid but also helps lower your costs if you're on an off-peak or time-of-use plan.

3. Maintain Your HVAC System

Replace air filters every 1–2 months during high-usage periods. Dirty filters restrict airflow and force your system to work harder, driving up your energy use. Also, consider scheduling a professional tune-up at the start of summer.

4. Use Fans Strategically

Ceiling fans don’t lower the temperature, but they do help circulate air and make your space feel cooler. Make sure your fan is rotating counterclockwise in summer to push cool air down.

5. Block the Sun

Close blinds and curtains during the hottest parts of the day, especially on south- and west-facing windows. Reflective window films or blackout curtains can also help keep indoor temperatures down.

6. Unplug Idle Electronics

Many devices use standby power even when turned off. Plug electronics into a power strip and turn it off when not in use to reduce phantom loads.

7. Monitor Your Usage

Some providers and smart meter platforms offer real-time usage tracking. If available, use it! Watching your patterns helps you make smarter decisions and spot wasteful habits.

A well-matched electricity plan combined with smart energy habits is the best defense against Texas summer bills. It’s not just about comfort—it’s about control.

Time to Compare Plans? Here’s What To Look For

If your current plan isn't cutting it—or if you're nearing the end of your contract—it's the perfect time to compare electricity plans. Texas is a deregulated market, which means you can choose from dozens of providers and hundreds of plan options. But with so many choices, knowing what to focus on is key.

Here’s a checklist of what to consider when comparing electricity plans:

✔ Rate Type (Fixed vs. Variable)

For summer, fixed-rate plans offer the most protection against price hikes. Unless you’re intentionally choosing flexibility, steer clear of variable-rate or indexed plans during high-demand months.
✔ Contract Length

Electricity plans can range from month-to-month agreements to 36-month contracts. Short-term contracts offer flexibility, but long-term ones usually lock in a better rate. Check your timeline—especially if you're planning a move.
✔ Usage Level and Rate Breakdown

Many plans advertise low rates that only apply at certain usage levels. Always read the Electricity Facts Label (EFL) to understand how pricing works at 500, 1000, and 2000 kWh usage tiers. If your home consistently uses 1500+ kWh during the summer, you want to make sure you’re not penalized for that.
✔ Base Charges and Hidden Fees

Some plans have a flat monthly charge in addition to your energy usage. Others offer “bill credits” that only apply if you hit a usage threshold. Be sure to factor these into your monthly cost estimates.
✔ Renewable Energy Content

Looking for a greener option? Many providers now offer plans with 100% renewable energy content at no extra cost. This not only supports sustainability but also offers protection from fossil fuel price volatility.
✔ Cancellation Fees

If you're planning a move or unsure about how long you'll stay on a plan, check the early termination fee. These usually range from $100 to $200 depending on the provider and term length.
✔ Customer Reviews and Support

Reliability matters, especially in summer. Look for providers with high customer satisfaction, transparent billing practices, and easy-to-reach support. You can explore our provider reviews by browsing the Retail Electricity Providers directory.

Don’t Sweat It—Be Energy Smart This Summer

With extreme heat becoming the new normal in Texas, staying ahead of your energy usage isn’t just about comfort—it’s about protecting your household budget. Whether you’re dealing with a skyrocketing electricity bill, an outdated contract, or just want more control, now is the time to take action.

A smart electricity plan is your first line of defense. By understanding your current contract, knowing your energy habits, and comparing available plans, you can avoid common billing traps and ensure your home stays cool without costing a fortune.

Don’t wait until your next high bill catches you off guard. Enter your zip code on our plan comparison tool and explore electricity plans tailored to your home, your habits, and your budget.

You have the power to choose. Make it count—before the next heatwave hits.