TXU Energy’s “Texas Choice 24” is another expensive electricity plan with a cheap gimmick: Cash back rewards that are hopelessly outgunned by an inflated Energy rate.
This week as I was shopping for my own next provider, I received a TXU mail offer loaded with consumer bait: a $350 bonus, 3% cash back rewards, and $150 to escape my current plan. Potentially tempting, but the offer lacked any mention of pricing. Checking TXU.com, it didn’t list “Texas Choice 24” among the plan options for my area.1 So as a last resort I phoned for details as requested (…and quickly, so as not to miss out on the “limited-time offer”).
The TXU rep first congratulated me on catching the $350 bonus level (normally $250?). Then he divulged the current pricing: $9.95/month plus 9.2 ¢/kWh plus Centerpoint’s pass-through $5.47/month and 3.57 ¢/kWh. For the uninitiated, that’s a lot. But what about all the bonus rewards? Let’s check the math for the typical Texas household scaled to various average usages:
| Avg monthly usage (kWh) | |||
|---|---|---|---|
| TXU Energy Texas Choice 24 | 500 | 1000 | 2000 |
| Average rate (¢/kWh) | 15.9 | 14.3 | 13.5 |
| Two-year cost | $1,896 | $3,434 | $6,500 |
| – Cost of cheapest competitor plan | – $796 | – $1,660 | – $3,698 |
| – Best-case rebates value | – $557 | – $603 | – $695 |
| = TXU cost premium | $543 | $1,171 | $2,107 |
With it’s 57%-70% higher costs and $295 cancel fee, TPG does not recommend “Texas Choice 24” for anyone. We will, however, include it in our RateGrinder database and calculator for now as a warning and reminder to others of the importance of doing the math. The fact that you took the time to find and read this review makes you a more diligent shopper than most. Next, click below and we’ll help you find the true lowest rates for your home’s usage.
1 Note: We eventually found the plan and it’s EFL on TXU.com by substituting a promo code in the URL.
October 2020 update: The latest Texas Choice 24 offer — using promo code DMAOCT016S — charges a whopping 9.5 ¢/kWh plus ~4.5 ¢/kWh for Centerpoint delivery. With competitor offers at ~4.9 ¢/kWh plus delivery, just say “no”. See these links for the Centerpoint– and Oncor-area details, or better yet use our RateGrinder tool to find a better plan and start saving today.
man, i was about to fall for it. thank you for what you do!
thank you, i received the offer as well. now i can cross it off of my list.
Thank you!!! Googled TXU Energy Texas Choice 24 Plan as I could not find the pricing (or the PLAN!!) on their website! Tricky tricky!
Thanks For saving me from big mlstake.
Just got sams 350 offer so will stay at pennywise.
I got the same mail. Thanks so much for saving me wasted time.
Thanks. I got a $600 Bonus if I enrolled in this plan! I was checking on it’s KWH price when I stumbled on here. Thanks to you I will not be getting this plan!
Do you suggest a “best” plan for Texans?
Happy to help. There’s no one best plan for everyone, so plug a few months of your usage history into the RateGrinder tool on our homepage and it will instantly show you the best plans for you.
I am shopping for a plan and got this advertixment. For an average use of 1000kw per month it would wind up costin g about 10c per kw.
Hi Anthony. Thanks for the comment. 10¢/kWh for this plan is highly unlikely, unless you’re only looking at the energy charge without the base and delivery charges. Spot checking the TXU website just now shows the 12-month version of this plan for Centerpoint area customers to be 15.3 ¢/kWh for 1000 kWh/month, of which 9.9¢/kWh is the energy charge.
is the TXU TX Choice 60 a good plan? What is the best plan TXU has?
Hi Mary. Sorry, we’re not familiar the 60-month version of that plan. If you point us to where you found it we’d be happy to check it out, BUT… If you judge “good” as paying a competitive price, then the answer is likely “no”. Rates are relatively high right now, but should decline over the next couple years. 5 years is too long to lock in, especially when TXU’s rates tend to be higher than average. (Note that two of Vistra’s other retail brands — 4Change and Express Energy — currently do have lower cost 12-month offerings.)
Always look at Facts Label. Extremely high rate. The reason I ditched TXU ten years ago.
Thank you, so many people fall for this tactic. I have family and friends paying.15 cents per KWh and think they are doing good. Pays to research.
All these different plans to make you think you are getting a good deal so you are happy paying more 🙁 They are being intentionally confusing until you give up and choose whatever. I was in a text chat with TXU and they said “sorry you feel that way”. Like I was gullible and just followed my feelings.
Trick is:
1. Do your symbol calculation by look at your bill divide total charged by kWh usage = Price per kWh
2. Compare Price per kWh with other plans
3. Which one is cheaper pick that one (means you save money).
Txu throws the bait and waits for who eats it, my experience some time ago with Txu taught me that as long as I can avoid this company I will do it, their prices are not the most economical and if the client has ignorance on this subject to them they do not care, thank you very much for this informative segment that there are really many people who are going to benefit and the bonus of 350 is better not to accept it.
thanks for covering this. i keep getting their mailers for such offers, and it is always designed to direct the interests to salesmen, who are trained to sell to those who dont calculate standard pricing labels.
Thx for the breakdown, insanely helpful. Think im gonna stick with my Think Energy for this next year.
I took out Texas choice 24 a few days ago can I cancel this contract it does not go into Force or start for 30 more days can I cancel it now
Per the PUC Rules, you have 3 days to rescind a new contract if you switched to a new provider, though the logistics of doing so are not well defined. See your new plan’s ‘Terms of Service’ document for more details.
It sounds like a deal. But broken down its way more than others. The $250 in your pocket flyer is false. You have to be with them 1 year?????? TXU is wrong all the way around:(
I just got it today and reading on it now I want to cancel it… is it too late?
You generally have three business days to rescind a switch to a new retailer. See their ‘Terms of Service’ document for details.