Free Nights vs Fixed Rate Texas Electricity: Real Cost Comparison
"Free electricity from 9 PM to 6 AM" is one of the most compelling marketing pitches in Texas electricity. But how does a free nights plan actually compare to a straightforward fixed-rate plan dollar for dollar? I ran the numbers for a typical Texas family to find out.
The Comparison Framework
To make this comparison fair, I am using a real-world profile: a 2,200 sq ft home in the DFW area (Oncor territory) with a family of four — think The Colony (75056) or Irving (75061). Their 12-month usage totals about 14,400 kWh, averaging 1,200 kWh/month. Summer months peak around 2,200 kWh; winter dips to about 750 kWh.
The two plans being compared:
| Fixed Rate Plan | Free Nights Plan | |
|---|---|---|
| Daytime energy rate | 11.2¢/kWh (all hours) | 16.8¢/kWh (6 AM – 9 PM) |
| Nighttime energy rate | 11.2¢/kWh (same) | 0¢/kWh (9 PM – 6 AM) |
| TDU delivery charges | ~5.5¢/kWh | ~5.5¢/kWh (applies 24/7) |
| Base charge | $4.95/month | $9.95/month |
| Contract term | 12 months | 12 months |
Note: TDU delivery charges apply 24/7 on both plans. Even during "free" nighttime hours, you still pay about 5.5¢/kWh in delivery. This is the single most important thing to understand about free nights plans.
The Day/Night Usage Split
How much electricity you use at night is the make-or-break factor. Most families do not know their day/night split, so here are some benchmarks:
| Household Type | Typical Night Usage | Why |
|---|---|---|
| Family, both parents work, kids in school | 25–30% | AC runs during the day; cooking, laundry, TV in the evening before 9 PM |
| Remote worker household | 20–25% | Computers, monitors, and AC all day |
| Night-shift worker | 40–50% | Active at night, sleeping during the day with less AC |
| EV owner (charging overnight) | 35–45% | 300–400 kWh/month in overnight charging adds to night usage |
| Pool pump + EV (both scheduled overnight) | 45–55% | Two large loads shifted entirely to nighttime |
The Side-by-Side Cost Breakdown
Using our family's 1,200 kWh average month, here is how costs compare at different night usage percentages:
Scenario 1: 25% Night Usage (Typical Family)
| Fixed Rate | Free Nights | |
|---|---|---|
| Day energy (900 kWh) | 900 × 11.2¢ = $100.80 | 900 × 16.8¢ = $151.20 |
| Night energy (300 kWh) | 300 × 11.2¢ = $33.60 | 300 × 0¢ = $0 |
| TDU (1,200 kWh) | $66.00 | $66.00 |
| Base charge | $4.95 | $9.95 |
| Monthly total | $205.35 | $227.15 |
| Annual difference | Free nights costs $261.60 MORE per year | |
Scenario 2: 40% Night Usage (Usage-Shifting Household)
| Fixed Rate | Free Nights | |
|---|---|---|
| Day energy (720 kWh) | 720 × 11.2¢ = $80.64 | 720 × 16.8¢ = $120.96 |
| Night energy (480 kWh) | 480 × 11.2¢ = $53.76 | 480 × 0¢ = $0 |
| TDU (1,200 kWh) | $66.00 | $66.00 |
| Base charge | $4.95 | $9.95 |
| Monthly total | $205.35 | $196.91 |
| Annual difference | Free nights saves $101.28 per year | |
Scenario 3: 50% Night Usage (EV + Pool Pump Overnight)
| Fixed Rate | Free Nights | |
|---|---|---|
| Day energy (600 kWh) | 600 × 11.2¢ = $67.20 | 600 × 16.8¢ = $100.80 |
| Night energy (600 kWh) | 600 × 11.2¢ = $67.20 | 600 × 0¢ = $0 |
| TDU (1,200 kWh) | $66.00 | $66.00 |
| Base charge | $4.95 | $9.95 |
| Monthly total | $205.35 | $176.75 |
| Annual difference | Free nights saves $343.20 per year | |
The Break-Even Point
With the rates used in this comparison, the break-even night usage percentage is around 35%. Below 35% night usage, the fixed-rate plan wins. Above 35%, free nights starts saving money, and the savings grow as you shift more usage to nighttime hours.
That 35% number is specific to these particular plans. With different rate spreads, the break-even shifts. A free nights plan with a smaller daytime premium (say, 14¢ instead of 16.8¢) would break even at a lower night usage percentage.
The rate spread you actually face depends on which utility serves you, because that determines the plan list you are choosing from. The current fixed-rate spread on Oncor is on pages like Fort Worth (76104); CenterPoint's is on Cypress (77433); TNMP's on Midland (79705). Pull the real numbers for your area before reusing the 35% figure from this article.
The Hidden Costs of Free Nights
Beyond the rate math, there are practical costs to consider:
- Lifestyle changes: Running the dishwasher at 10 PM, doing laundry at midnight, and scheduling pool pumps overnight is manageable but adds daily friction. After a few months, many families revert to their normal schedule.
- Higher base charges: Free nights plans typically carry a $5–$10 higher monthly base charge. That is $60–$120/year before you use a single kWh.
- Summer AC reality: In Texas, your AC is the single largest electrical load. It runs based on outdoor temperature, not your schedule. On a 100°F day, your AC runs hard from noon to 8 PM. You cannot shift AC usage to nighttime, and the further south you are — Brownsville (78521), Port Arthur (77642) — the more days of the year that is true.
- The 9 PM cutoff problem: Cooking dinner at 7 PM, running the dishwasher at 8 PM, watching TV at 8:30 PM. These all happen at peak daytime rates. The "free" window does not start until most families are winding down for the night.
When Each Plan Type Wins
Choose Fixed Rate If:
- You cannot realistically shift 35%+ of usage to nighttime hours
- You work from home (heavy daytime electricity use)
- Your household is active in the evenings before 9 PM
- You want predictable, simple billing
- Summer AC is your biggest electricity expense
Choose Free Nights If:
- You charge an EV overnight (adds 300–400 kWh of "free" usage)
- You work night shifts and sleep during the day
- You have a pool pump you can schedule for overnight operation
- You are genuinely willing to shift laundry, dishwasher, and other loads to after 9 PM, and sustain that habit long-term
See which plan type wins for your home.
Upload your usage data and compare both fixed-rate and time-of-use plans based on your actual consumption pattern.
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