Whether you’re new to Texas or have been a lifelong resident, we have some exciting news. For over two decades, the electricity market in Texas has been deregulated, which has led to fierce competition between various electricity companies. The fact that these companies are constantly in search of a competitive edge over one another has led them to try various gimmicks, ploys, and promotions.

As a result, several power companies have started offering an electricity plan with unlimited electricity. While this may sound great, you’re probably wondering how on earth this type of plan works. Won’t the companies go broke if you use too much electricity but don’t get charged for it? If you think this type of plan is too good to be true, you should contact us at EnerGenie. We’ll be able to find out the fine details of the plan and will even sign you up for one if it makes sense.

If you’re wondering what an unlimited electricity plan is and if it’s right for you, you’ve come to the right place.

An unlimited electricity plan is precisely what it sounds like. When you sign up for one of these plans, you’ll pay the same amount on your monthly bill regardless of how much electricity you use. Whether you use 10 kWh or 3,000 kWh, your bill will always be the same. This makes for a very predictable expense if you’re concerned about having a budget that doesn’t change from month to month.

Power companies cater unlimited electricity plans to your individual usage. Here’s what it will typically involve.

1. You submit usage data from the last year or two of the amount of electricity that you use per month.
2. The power company will take all of these numbers into account and develop an unlimited plan based on your usage.
3. Power companies will figure their rates relatively high to compensate for any unexpected usage.
4. Always remember that power companies aren’t going to lose money to you on your unlimited electricity plan.

The short answer to this question is that unlimited electricity plans definitely aren’t worth it for everyone. Yes, they’re a great way to know exactly how much you’ll spend each month on your power bill, but they don’t necessarily save you money. For example, someone who has used an average of 1,000 kWh per month for the last two years will likely have an unlimited electricity plan based on using 1,200 or 1,300 kWh.

Someone who uses an average of 500 to 700 kWh per month will have their plan figured for 1,000 kWh. Unless you end up using an incredible surplus of electricity, you’re not going to save money with an unlimited electricity plan. Here’s a table showing you what I mean if your unlimited electricity plan charges a flat fee of $160 per month.

As you can see from this table, you’ll only save money if you use well over 1,000 kWh each month. However, according to your monthly energy usage over the last year, you only use an average of 900 to 1,000 kWh. Essentially, you’re getting charged somewhere between 16 and 18 cents / kWh, roughly 5 cents more than the state average.