Plan fees

What is a minimum-usage fee on a Texas electricity plan?

A minimum-usage fee is an extra charge in any month you use less than a set amount of power. So using a little less can make your bill go up.

Published 3 October 2026 · Updated 13 October 2026

Using less can cost more

Usually, using less power means a smaller bill. A minimum-usage fee flips that in some months.

On this example plan, 960 kWh costs about $154, with the $10 fee. At 1,000 kWh, the fee goes away and the bill drops to about $150.

These are estimates for an example plan, not a current offer. The fee is a bill credit in reverse: a credit pays above a line, and this fee charges below it.

When does the fee show up?

The fee lands in your lowest-usage months. For the average Texas home, that is 6 months under 1,000 kWh each year.

It tends to hit small apartments, homes with solar panels and homes that sit empty part of the year.

The fee hits hardest in the months you expect your lowest bills.

How is it different from a base charge?

A base charge is a set amount every month, whatever you use. A minimum-usage fee only shows up in months when you use less than the limit.

How do you spot it?

Open the plan's Electricity Facts Label, its official price sheet, and look for minimum usage fee or minimum usage charge. The limit is often 500 or 1,000 kWh.

The price table gives a hint too: this fee makes the 500 kWh price look much higher.

Is a plan with this fee a bad pick?

Not always. If your home stays above the limit every month, you will never pay it. It depends on your months, not on the fee alone.

1. Find where the fee stops

   Labels often set the line at 500 or 1,000 kWh.

2. Count your small months

   Spring and fall are where the fee lands.

3. Judge the whole year

   One cheap summer does not make a cheap year.

Articles are general information for Texas electricity shoppers. Every cost Power Rate Check shows is an estimate, and the Electricity Facts Label is the provider's official price document — read it before you sign.