Unlimited Electricity Plans in Texas: Here’s What it Actually Costs - EnergyBot

Unlimited Electricity Plans in Texas: Here’s What it Actually Costs

Searching for unlimited electricity plans in Texas? On the surface, they sound perfect: one flat bill, no matter how much power you use.

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Unlimited Electricity Plans in Texas: Here’s What it Actually Costs
Fact Checked
Jordan Watts By Jordan Watts

Searching for unlimited electricity plans in Texas? On the surface, they sound perfect: one flat bill, no matter how much power you use. 

But the truth is, most “unlimited” electricity plans in Texas come with fine print, hidden fees, or usage restrictions that can actually make them more expensive than standard fixed-rate plans. Sounds pretty limiting, right?

Unfortunately, there isn’t a truly “unlimited” electricity plan where you pay a flat fee no matter how much usage you have, like you might see for cell phone plans that offer unlimited data. You may find some marketing from providers that offer flat bills, etc, this is known as average billing

In this guide, we’ll break down how plans really work, compare top providers, highlight pros and cons, and help you decide if they’re the right fit for your home.

What Are Unlimited Electricity Plans in Texas?

Unlimited electricity plans and average billing plans are designed to give you one predictable monthly bill, regardless of how much energy you use. Instead of charging per kilowatt-hour (kWh), your provider sets a flat monthly fee based on your average usage history.

For example:

  • If your monthly usage averages around 1,000 kWh, your unlimited plan might cost $150 per month, no matter if you use 800 or 1,500 kWh.

These plans can be appealing if you run your AC nonstop, charge an EV, or own a pool. But for low-to-moderate usage homes, they often cost more than a simple fixed-rate plan.

Here is an example of what this might look in a given year:

MonthUsage (kWh)Fixed-Rate Plan ($)Unlimited Plan ($)
Jan750$98$175
Feb800$104$175
Mar900$117$175
Apr1000$130$175
May1100$143$175
Jun1500$195$175
Jul1750$228$175
Aug1800$234$175
Sep1400$182$175
Oct1100$143$175
Nov950$124$175
Dec800$104$175
Total$1,801$2,100

How “Unlimited” Electricity Plans Really Work

Despite the name or marketing, “unlimited” plans in Texas often have conditions. Here are the common types of plans that will advertise as “unlimited”:

  • Tiered Rates – Prices go up the more you use. Example: first 500 kWh = 10¢, next 500 = 14¢, 1000+ = 18¢. A small bump in usage can cause a big bill.

  • Time-of-Use PricingFree nights and weekends sound great, but daytime rates spike. If you’re home during the day, you pay more overall.

  • Bill Credit Plans – Hit the “sweet spot” (ex: 1,000 kWh) and you get a credit. Miss it, and your bill jumps dramatically.

  • Flat-Rate “Unlimited” Plans – You pay one price based on average usage, but many come with surcharges if you exceed certain thresholds.

Pros and Cons of Unlimited Electricity Plans in Texas

Plan FeaturePros ✅Cons ❌Best For
Unlimited Electricity Plans (Texas)Predictable monthly bill, budget-friendlyOften more expensive, hidden surchargesHigh-usage homes, EV owners
Fixed-Rate PlansStable per kWh rate, simple to understandBill still varies with usageMost Texans
Time-of-Use PlansFree nights/weekends can save moneyHigher daytime rates requires lifestyle changesNight owls, shift workers
Bill Credit PlansBig discounts if usage stays in rangeExpensive if you miss the thresholdHouseholds with steady usage

How to Compare Unlimited Electricity Plans in Texas

When comparing providers, EnergyBot gives you a suite of tools so that you can compare the real rate of plans side by side, allowing you to see your future bills before you switch. If you would rather make the comparison on your own, make sure you look at:

  1. Check the Electricity Facts Label (EFL) – This is the “nutrition label” of electricity plans.

  2. Look at total cost, not just the promo rate – Include delivery charges, surcharges, and credits.

  3. Consider your usage patterns – Use your past 12 months of energy data if possible.

  4. Avoid plans that sound too good to be true – They usually are.

EnergyBot’s Take

Unlimited electricity plans in Texas might sound appealing, but most end up costing more than traditional fixed-rate plans. Unless you’re a savvy user who has a solid understanding of how average billing plans work, we advise you to avoid them. 

FAQs About Unlimited Electricity Plans in Texas

Are unlimited electricity plans really unlimited in Texas?
No. Most have hidden thresholds, surcharges, or conditions. Unlimited usually means “flat-rate” based on your past usage.

Are unlimited electricity plans cheaper than fixed-rate plans?
For most households, no. Our analysis showed that plans with gimmicks like average billing were 20–30% more expensive than traditional plans.

Do unlimited electricity plans require a smart meter?
Yes, most plans track time-of-use or usage levels through a smart meter. In Texas, smart meters are standard for residential customers.