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Electricity Rates in Texas
Get the latest electricity rates for November 2023. Whether you’re relocating or considering a switch, this guide is your key to unlocking today’s best rates.
Easily compare up-to-date prices so you can find the cheapest energy plan in Texas from reputable electricity providers.
What is a good rate per kWh in Texas?
Today’s lowest fixed-rate electricity plan starts at 12.30¢/kWh, much lower than the average Texas electricity rate of 14.01 ¢/kWh.
Key Takeaways
The current average electricity rate in Texas is 14.01 ¢/kWh (as of November 2023).
Rates range from 12.30¢ to 21.00¢ per kWh depending on location, usage, contract term, and other factors.
Fixed-rate plans offer consistent pricing while variable rates fluctuate monthly.
Comparison shopping with your usage history is key to finding the cheapest electricity rate for your home.
Compare Texas Electricity Rates
Compare today’s lowest electric rates for different energy use in popular Texas cities.
Using ComparePower to find the right energy company was wonderfully easy. I was able to compare prices, review contract terms, as well as use the billing calculator to see what my bill would be based on my current kwh usage (I compared my recent bill with the website’s calculator). This made it so simple to make a decision on what would work for my house.
Look past advertised rates per kWh when comparing electricity plans. ComparePower lets you quickly find and sign up for competitive rates that fit your home.
Find Your Best Rate in 3 Steps:
Enter your zip code to view local rates.
Estimate or use past usage to find cost-effective plans
Enroll online in minutes
See how to shop with your kWh usage to find your best rate ⤵️
Very helpful, ComparePower makes switching providers stress-free. I plugged in my kwh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!
— Ashley, Texas
Texas Electric Utility Rates
Shop electricity rates in Texas from different utility service areas.
These live rates were updated on . Pricing shown is based on an exact usage of 1000 kWh.
Texas Electric Rates Trends
Texas energy providers constantly update offerings based on market trends and demand. The best plan today may not be tomorrow.
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 14.01 ¢/kWh, per the US Energy Information Administration, a 1.52% increase from last month’s 13.80 ¢/kWh.
Texas Electricity Rates Chart
Monthly average retail electricity rates in Texas from 2002-2023.
Current Average Retail Rate: 14.01 ¢/kWh (November 2023).
Price Range: 11.00 to 21.00 cents per kilowatt-hour.
Average Monthly Bill: Around $160.
Typical Energy Usage: 1,100 kilowatt-hours per household monthly.
Note: All information is up-to-date as of November 2023.
Why Rates Fluctuate in Texas
You’ve probably noticed that electricity rates can be a bit like Texas weather—unpredictable.
But did you know that wholesale electricity prices are largely influenced by supply and demand?
When everyone cranks up their AC in the summer, demand soars. To meet this demand, more expensive generators are brought online, driving up prices. It’s a built-in incentive to keep the electricity flowing smoothly.
Texas has a deregulated electricity market where electricity prices are influenced by both market factors and your plan details.
Market Factors
Seasonal fluctuations – Rates rise in high-demand summer and winter months.
Fuel costs – Prices of natural gas, coal, and renewables impact rates.
Supply and demand – More demand raises rates when supply tightens.
Fees – Watch for monthly fees that raise the effective rate.
Bill credits – Loyalty and auto-pay credits can lower bills.
Time of use – Optimize off-peak usage for lower rates.
With many factors affecting electricity rates in Texas, it pays to thoroughly research plans. Comparing all aspects ensures you find the most cost-effective option for your home.
Your Power to Choose and Save
This is where ComparePower shines. We simplify the complex world of electricity rates for you.
Check Your Usage: Look at past bills to find your kWh usage.
Know What You Need: Short-term or long-term plan? Renewable energy?
Use Our Comparison Tools: Just enter your zip code and usage to see plans that fit your needs.
Who Foots the Bill for Price Spikes?
You might be eyeing those headlines about electricity price spikes and thinking, “Is this going to hit my wallet?” Good news: not directly.
The Role of Your Retail Provider
Your retail provider is the one doing the buying from power plants. They’ve got options on how to make that purchase: fixed-price contracts, the “day-ahead market,” or the “real-time market.”
That last one, the “real-time market,” is more of a last-minute option. It’s what your provider turns to when they’ve underestimated how much electricity their customers will use.
Remember the 2021 winter storm? After that, Texas made sure plans that exposed customers to real-time market prices were off the table.
So, unless your provider seriously drops the ball in their power estimates, those sky-high wholesale prices won’t make it to your bill.
Texas Energy Plans
Electricity rates are important, but your ideal energy plan depends on more than just the price per kWh. Your best Texas power plan matches your home’s unique needs and priorities.
Types of Texas Energy Plans
Texas has a deregulated energy market with many plan options. Here are some key types:
Fixed-rate – Lock in a set rate for your contract term, usually 12-36 months. Offers consistency.
Variable rate – Your rate fluctuates monthly based on market conditions. Can be risky.
Prepaid – Pay for electricity upfront without a long-term contract.
Green/Renewable – Choose clean energy from sources like wind and solar.
Tips for Choosing Your Plan
Compare fixed vs. variable rate plans.
Watch out for teaser rates that spike later.
Consider contract length – short-term or long-term.
Buying a new house and remembered at the last minute I didn’t have an electric company. Enrolled and was able to get power the next day which was my closing date! Fantastic!
Discover how to compare Texas electricity rates effortlessly. Whether you’re moving to a new home or looking to switch providers, ComparePower is your go-to resource for all things electricity in Texas.
Ready to compare rates? Enter your zip to see available options.
Compare Texas Electric Rates
Texas Electric Rates FAQs
Answers to common questions about electric rates in Texas.
The cheapest electricity rates in Texas depend on your location, usage, and plan type.
Fixed-rate plans often offer the best value with steady prices.
To find the ideal plan, compare rates using your usage history on ComparePower.
Find the perfect energy plan by comparing rates and plans using your home’s usage profile.
ComparePower’s tool lets you quickly compare up-to-date options from Texas providers.
Make an informed decision and save on your bill.
The Electric Reliability Council of Texas (ERCOT) oversees Texas electricity markets to ensure consumer access to competitive rates.
They facilitate transactions between power buyers and sellers, manage market finances, and operate Day-Ahead and Real-Time markets.
This enables buyers to negotiate prices directly with sellers and secure enough energy.
Texas retail electricity providers set prices based on wholesale energy costs from ERCOT markets plus delivery expenses.
ERCOT facilitates transactions and payments between generators and consumers. Retailers buy energy at location-specific nodal prices.
They factor in wholesale costs, fees, discounts, and surcharges when structuring final rates offered to consumers, resulting in price variations between providers.
When you’re choosing an electricity plan, there are several important factors to keep in mind.
First and foremost, you’ll want to consider the price of the plan since that will determine how much you pay on your monthly energy bills.
But the price isn’t the only consideration: you’ll also want to consider the contract’s length and any fees or penalties associated with breaking it early.
In addition, look at the plan’s renewable energy content, customer service ratings, and any other unique features or benefits the provider offers.
All these things can impact your experience with the plan, so choosing one that fits your needs and budget is important.
Don’t rush into a decision; take the time to compare different plans and providers to make an informed choice.
When comparing electricity rates in Texas, it’s important to consider your home’s historical kWh usage.
This will help ensure you accurately compare rates based on your energy consumption.
On ComparePower, you can easily shop and compare rates using your home’s historical kWh usage to find the best plan for your needs and budget.
Electricity prices depend largely on natural gas costs, which fuels much power generation.
Gas prices have risen sharply, increasing bills.
Switch to a fixed-rate plan to avoid unexpected spikes and protect against rising prices.
Texas energy rates are generally competitive compared to other states in the US.
Texas’s average residential electricity rate is 13.70% lower than the US national average.
Reviews from Texans Like You
Read genuine reviews from Texans on finding the right electricity plan here. Get real experiences from people once in your shoes, looking for the best deal.
