Time-of-Use Electricity Plans
in Texas
Time-of-use plans charge different rates depending on the time of day, with higher peak and lower off-peak pricing. They reward households that can shift usage away from peak hours. Learn how the pricing works.
Editorial Leadership
20+ years industry experience
Led by a Texas electricity executive with deep expertise across the retail electricity market.
- Independent editorial research
- Transparent evaluation methodology
- Consumer-first recommendations
- No pay-for-placement or purchased awards
The Short Version
A time-of-use plan sets different energy rates for different times of day, typically a higher peak rate and a lower off-peak rate.
The plan pays off when you can shift meaningful usage into off-peak windows. If most of your usage happens during peak hours, a simpler fixed-rate plan may cost less.
What Is a Time-of-Use Electricity Plan?
Time-of-use pricing ties your rate to the clock. Knowing your peak and off-peak windows is essential to understanding your bill.
- Rates change based on the time of day you use electricity.
- Peak hours cost more; off-peak hours cost less.
- The exact windows are defined on the Electricity Facts Label.
- Savings depend on how much usage you can move off-peak.
Potential Benefits
- Lower rates during off-peak hours for shiftable usage.
- Rewards households with flexible daily routines.
- Can pair well with battery storage or smart appliances.
Things to Watch
- Peak-hour usage can be significantly more expensive.
- Requires attention to when you use electricity.
- Poor fit for homes with heavy, inflexible daytime usage.
Frequently Asked Questions
Related Electricity Plan Types
This is one of several ways a Texas plan can be structured. Explore the other plan types below or on the Texas Electricity Plans hub.
Fixed-Rate Plans
A locked energy charge for the full contract term. The most predictable plan structure.
View plan typeBill Credit Plans
Plans that apply a credit once your monthly usage reaches a set threshold.
View plan typeFree Nights Plans
Time-of-use plans with free or discounted electricity during overnight hours.
View plan typeEV Plans
Plans built for homes that charge an electric vehicle.
View plan typePrepaid Electricity
Pay-as-you-go plans that skip traditional monthly billing.
View plan typeNo Deposit Electricity
Options to start service without a traditional upfront deposit.
View plan type