Christine Anez

On paper, having dozens of plans to choose from sounds like a good thing. In practice, it creates a lot of noise.

Prepaid electricity, also known as pay-as-you-go electricity, is an electricity plan that allows you to pay for power before usage, with costs deducted from your balance as you consume energy.

You’ve probably seen the term “flat-rate electricity plan” while shopping for energy online and wondered what it actually means. It sounds simple enough—just one steady price each month—but the reality isn’t always that straightforward.

Electricity providers in Texas are getting creative with ways to help you save. Many plans now include incentives like bill credits, free nights or weekends, smart devices, smart thermostat rebates, gift cards, and more. Some incentives help you get more out of your electricity plan, while others are fun extras.

Not every appliance in your home has the same impact on your electric bill. A few major systems—your HVAC, water heater, and large household appliances, like your refrigerator, clothes dryer, washing machine, and dishwasher —use the most energy month after month.