Cash Back from TXU?

In February of this year, TXU announced that it paid almost $46 million in loyalty rewards to hundreds of thousands of Texas residential and business customers. The pay out is the highest this year, since the start of TXU's cash back plan in 2007, which has already delivered more than $215 million back to its customers.[1]

How does TXU's cash back loyalty program work? You'll need to sign up for a cash back plan. Pay outs occur every February, covering customers who were on cash back plans the previous year. Here are some things you'll want to know about the loyalty program:[2]

  • The cash back loyalty reward is based on a percentage of the electricity purchases actually billed to and paid for by you during the prior year. Electricity purchases include energy charges and recurring charges, excluding taxes. The percentage of your reward is printed on the mailer that came with the card.
  • Customers who have remained in good standing as of the payout date, and have remained a TXU customer continuously on a cash back plan are eligible.

The loyalty reward program sounds good. But to find out if you'll actually save money, it's better to do a little bit of computation first.

The cash back loyalty program is only available for certain plans, such as the TXU Energy Texas Choice 24 Plus. This one has a contract for two years, at a locked in rate of 12.9¢ per kWh. That means that if you consume 1000 kWh per month, your bill would be $129 per month (that's still without taxes and fees) or $1548 for the year. Computing at 3%, which is the cash back rate for this plan, you'll be getting around $46 as cash back.

What if you sign up for a different provider offering a lower rate? Let's say your provider gives you 12¢ per kWh. Your monthly bill would be $120, or $1440 yearly. A .9¢ difference in the rates would save you more than $100 at the end of the year. Look for cheaper electricity rates now at!




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