How to Lower Your Electric Bill in Texas

High electric bills are a common concern. This article offers strategies to help consumers decrease electricity expenses and improve financial well-being.

Understanding and Choosing Your Electricity Plan

Texas’s deregulated electricity market allows consumers to select their Retail Electric Provider (REP) from various companies. This competitive structure aims to foster innovation and drive down prices.

The official state comparison website, Power to Choose, managed by the Public Utility Commission of Texas (PUCT), helps consumers compare electricity plans. Review all plan details beyond advertised rates.

Electricity plans in Texas come in several forms:
Fixed-rate plans maintain a consistent price per kilowatt-hour (kWh) for the contract duration.
Variable-rate plans have rates that can change monthly based on market conditions.
Indexed plans tie their rates to a publicly available index.
Time-of-use plans charge different rates depending on the time of day or week electricity is consumed.
Prepaid plans require upfront payments for service.

An electric bill consists of several components. The energy charge comes from your REP, reflecting the cost of electricity. Transmission and Distribution Utility (TDU) charges are fees for delivering electricity and maintaining the grid. Other potential fees include base charges, minimum usage fees, and early termination fees.

The Electricity Facts Label (EFL) is a standardized document mandated by the PUCT for every electricity plan offered in Texas. It outlines details such as the average price per kWh at different usage levels (e.g., 500 kWh, 1000 kWh, 2000 kWh), contract length, renewable energy content, and early termination fees. Understanding the EFL is important to avoid unexpected costs and to compare plans accurately.

Before selecting a plan, understand your historical electricity usage patterns. Data from your current provider or Smart Meter Texas helps determine which plan’s pricing structure aligns with your consumption habits. A plan with attractive rates at a specific usage tier might not be cost-effective if your typical usage falls outside that range.

Implementing Home Energy Efficiency Measures

Improving home energy efficiency involves physical enhancements to reduce overall electricity consumption. Proper insulation plays a role in maintaining indoor temperatures, decreasing the workload on heating and cooling systems. For attics, recommended R-values, which measure resistance to heat flow, range from R-30 to R-60 in warmer climates. Wall and floor insulation also contribute to a home’s thermal envelope.

Air sealing complements insulation by preventing conditioned air from escaping and outside air from infiltrating. Common air leaks occur around windows, doors, electrical outlets, plumbing penetrations, and attic hatches. Address these with caulk, weatherstripping, or expanding foam. Sealing leaks can significantly reduce heating and cooling costs.

Windows and doors are common points of energy loss. Energy-efficient windows, such as double-pane units with low-emissivity (low-e) coatings, help minimize heat transfer. For those not ready for full window replacement, cost-effective alternatives like applying window film, installing heavy curtains, or using blinds can help reduce heat gain in summer and heat loss in winter. Properly sealed doors with good weatherstripping and door sweeps are also important for preventing drafts.

Optimizing your HVAC system is another area for energy savings. Regular maintenance, including changing air filters monthly and scheduling professional tune-ups annually, ensures the system operates efficiently. Ensuring your unit is properly sized for your home prevents it from working too hard or cycling unnecessarily. When considering upgrades, look for models with higher Seasonal Energy Efficiency Ratio (SEER) ratings, as these indicate greater efficiency. Smart thermostats can further optimize HVAC performance by allowing for programmable schedules and remote control.

ENERGY STAR® certified appliances offer long-term energy savings. Beyond purchasing efficient models, use existing appliances wisely. Maintain your refrigerator at recommended temperatures (35-38°F for fridge, 0-5°F for freezer) and clean condenser coils. Ensure door seals are airtight to prevent cold air escape.

Adopting Smart Energy Consumption Habits

Manage thermostat settings to influence electricity usage. In warmer months, set to 78°F when home; raise to 80-82°F when away to reduce cooling costs. In cooler seasons, 68°F is recommended when home, lowered to 60-67°F overnight or when empty. Programmable or smart thermostats automate adjustments for efficiency.

Lighting efficiency contributes to lower bills. Switch from incandescent to LED lighting to reduce energy consumption and bulb replacement. Turn off lights when leaving a room. Maximize natural light during the day to reduce artificial illumination needs, saving energy and brightening your space.

Address “phantom load” or “vampire energy.” This is electricity consumed by electronics when off but still plugged in, like televisions, computers, and phone chargers. Use power strips or unplug devices when not in use to eliminate this continuous drain.

Efficient appliance use extends to daily habits. For laundry, run full loads and use cold water to reduce energy, as water heating is a large portion of washer use. For dishwashers, run full loads and use the air-dry setting. Use a microwave or toaster oven for small meals instead of a larger oven to reduce energy and heat.

Adjusting your water heater temperature yields savings. Lowering the thermostat to 120°F is sufficient for household needs and can reduce water heating costs by 6-10%. Insulating older water heater tanks prevents heat loss. This adjustment balances comfort, safety, and energy efficiency.

Manage electronics effectively to lower energy bills. For computers, use sleep modes or turn off monitors when not in use. Ensure televisions and gaming consoles are fully powered down, not in standby mode, to reduce continuous energy draw.