The definition

A kilowatt-hour (kWh) is the amount of electricity you use when you run a 1,000-watt appliance for one hour. Every Texas electricity bill is denominated in kWh, and every plan is priced per kWh.

Watt = instantaneous power. Kilowatt-hour = power over time. Bills measure time because that's what you actually pay for — how much you used and how long you used it.

What a kWh actually does

Running specific things for specific amounts of time uses 1 kWh:

  • A 1,500W AC unit for about 40 minutes
  • A 100W lightbulb for 10 hours
  • A modern refrigerator for about 8 hours
  • A gaming PC for about 2.5 hours
  • A clothes dryer for one load (roughly)
  • Charging an electric car for ~4 miles of range

How many kWh does a Texas home use?

Average Texas household: about 1,200 kWh a month. But the variance is huge.

  • Apartment / small home, mild month: 500-700 kWh
  • Average home, summer: 1,500-2,000 kWh
  • Large house, Texas August with AC: 3,000+ kWh

Your bill will tell you your 12-month history. If you're new to a home, ask the previous tenant or your REP — they have a "historical usage report" you can request.

Why the "rate at 2,000 kWh" trick works

Providers like to advertise rates at 2,000 kWh because bill credits kick in at that level and make the effective rate look low. The problem: a lot of Texas homes use closer to 1,000 kWh most months, only spiking above 2,000 in July and August.

If a plan's advertised rate is 10.6¢ at 2,000 kWh but 18.4¢ at 1,000 kWh, and you average 1,100 kWh across the year, you're paying the higher rate nine months out of twelve. The advertised rate told you a true thing — just not the true thing that matters for your home.

The one trick to remember

When comparing plans, use your own recent kWh from your last few bills. If you don't have that, use 1,000 as a default — not 2,000. The plans that win at 1,000 kWh are usually good plans. The plans that win at 2,000 kWh are often traps for homes under 2,000.