Tiered Rate & Bill Credit Texas Electricity Plans Explained
How Do Tiered Rates and Bill Credits Work in Texas? Wondering if bill credit and tiered rate plans in Texas can really give you low rates? Learn what you need to know to make them work for you! Comparing Texas power plans can be confusing sometimes. Some months the advertised rates and average bill estimates align, but other times – like right now – those figures don’t seem to correlate. So, why does that happen? The short answer is a tiered rate and bill credit in a Texas electricity plan can have wildly different bills with small changes in power usage. Tiered Rates for Different Customers Though similar, tiered rate plans and bill credit plans work differently. Tiered rate plans have usage windows where all power used within a range results in one rate. For example, a plan may charge one amount for usage up to 1,000 kWh. Then, you pay nothing for the next 500 kWh (up to 1,500 kWh total usage). Following that, you pay a rate for each kWh consumed. There...