Compare Texas Electricity Rates And Plans
Texas electricity rates are changing fast. With peak summer demand across the state, locking in a fixed rate today can help you avoid sky-high bills tomorrow.
As of %currentmonth% %currentyear% residential electricity rates in Texas average 15.30 ¢/kWh, but many fixed-rate plans are available starting at 10.40¢/kWh—a 25% savings.
Whether you live in Houston, Dallas, Corpus Christi, or Laredo, the right energy plan can make a significant difference when your AC is working overtime.
Key Takeaways
- Locking in a fixed rate now can prevent summer bill spikes. With Texas electricity rates averaging 15.30 ¢/kWh and some fixed-rate plans as low as 10.40¢/kWh, securing a fixed rate today can help you avoid higher costs during peak summer demand.
- Understanding your actual usage is crucial when selecting a plan. Advertised rates often apply to specific usage levels (e.g., 500, 1,000, or 2,000 kWh). If your consumption doesn’t match these levels, you might end up paying more than expected.
- Various plan types cater to different needs. Texas offers a range of electricity plans, including fixed-rate, time-of-use, prepaid, flat-rate, and business plans. Each has its benefits, so it’s important to choose one that aligns with your lifestyle and usage patterns.
- ComparePower simplifies the process of finding the right plan. By comparing over 250 real-time electricity plans side by side and offering tools like Live Link™, Compare Power helps Texans find plans that match their actual usage, ensuring transparency and potential savings.
Texas is a fully deregulated electricity market. That means you get to choose your energy provider and plan, unlike residents in most U.S. states. But choice can be confusing. That’s why Compare Power exists.
We help Texans:
- Compare over 250 real-time electricity plans side by side
- See all-inclusive pricing (no gimmicks or hidden fees)
- Match plans to actual usage with Live Link™
- Sign up instantly online
You have the power to choose. We make it simple to choose wisely.
“Compare Power helped me find the right energy plan for my family. It was a great experience!”
Chuck Harris
“Found it easy to choose an electric provider with great rates.”
Shelby Cowger
Cheapest Electricity Rates in Texas Today
Here are the lowest available rates in popular Texas cities:
Plan Types Available in Texas
Fixed-Rate Plans — Lock in your price per kWh for 6 to 36 months. Avoid seasonal rate spikes and billing surprises.
Time-of-Use Plans — Get free nights or weekends. Ideal if you can shift your energy use to off-peak hours.
Prepaid Electricity — No deposit. No credit check. Pay-as-you-go plans with usage alerts to help you stay in control.
Flat-Rate Plans — Pay a flat monthly fee regardless of your usage band. Great for budget-conscious households.
Business Electricity Plans — Custom quotes for Texas businesses with high summer cooling loads. Optimize operating costs.
How to Choose Your Best Energy Plan
The lowest rate isn’t always the best choice. Here’s why:
Advertised Rates Can Be Misleading—Those low advertised rates you see are usually based on specific usage (500, 1,000, or 2,000 kWh). If your actual usage doesn’t match, you could pay more.
Usage-Based Credits Matter—Missing a usage threshold, such as using 999 or 1,001 kWh, can result in losing credits, leading to an unexpected spike in your bill.
Seasonal Changes Affect Usage—Your energy use can swing dramatically—think 2,513 kWh in the heat of July versus just 632 kWh in cooler March.
Matching Your Usage Pattern—Finding a plan that aligns with your usage helps you manage these fluctuations and save money.
With Live Link™, you get data-driven recommendations by pulling your real usage numbers directly from your utility. Skip the surprises and get a plan tailored to your actual energy habits.
Summer 2025 Energy Tips for Texans
Use Live Link™ to compare plans based on your real energy usage, not generic assumptions.
Avoid late-summer renewals. Rates tend to spike in August and September.
Don’t get stuck on a variable plan. Lock in a fixed rate before demand peaks.
Texas Electricity Rates Chart
This chart illustrates how Texas electricity rates fluctuate in response to seasonal changes and demand.
Notice the summer spikes in residential rates—these happen when air conditioners across Texas strain the grid simultaneously.
Commercial rates tend to remain more stable, but residential customers experience the most significant fluctuations during the summer months.
Understanding these patterns helps you time your plan selection and avoid peak-pricing periods.
Fixed-rate plans provide stability during these volatile summer months, while variable rates expose you to seasonal price swings.
Texas Electricity Rates FAQs
Confused about Texas electricity rates? Here’s what you need to know.
Should I lock in a rate now or wait?
With summer here and AC units firing up across Texas, waiting is a risky proposition.
Summer brings the year’s highest electricity demand and typically the highest rates.
Locking in a fixed rate now protects against the price spikes that often occur during heat waves.
When everyone’s air conditioner is running and the grid is under stress, rates rise.
A fixed rate provides budget certainty when your usage and potential costs fluctuate.
What are the average summer electricity bills in Texas?
Summer bills vary dramatically based on usage. The average Texas home uses around 1,000 kWh in mild months but can reach 2,500 kWh or more during peak summer months.
At current rates, expect summer bills to be between $250 and $400 for typical homes with central air conditioning running regularly.
Factors affecting your summer bill include home size, insulation quality, AC efficiency, thermostat settings, and the performance of your rate plan at high usage levels.
At current rates, expect summer bills to be between $250 and $400 for typical homes with central air conditioning running regularly.
Should I switch plans before summer peaks?
If you’re on a variable rate or out of contract, switching now could save you a significant amount of money.
Summer typically brings the year’s highest rates for month-to-month customers.
Don’t wait for your first shocking summer bill. By then, you’re locked into high seasonal rates.
Who has the cheapest electricity rates in Texas?
Gexa Energy, Frontier Utilities, and Rhythm Energy tend to offer some of the lowest rates.
For summer 2025, competitive fixed-rate plans range from 11 to 16 cents per kWh. However, the “rate” is only part of the story—your location and energy usage matter.
Compare plans in your area to find the best fit.
What is a good electricity rate in Texas?
In 2025, a solid fixed-rate plan will likely fall between 11 and 16 cents per kWh.
Remember that “good” is relative—it depends on where you live and how much energy you use.
Don’t just jump at the lowest rate—ensure it fits your energy habits.
How do I compare electric rates in Texas?
Start by reviewing your past energy bills to understand your average monthly usage.
Once you know your usage, compare the available plans in your area to find the one that offers the best rate for your needs.
Understanding your usage helps you make a more informed decision.
How do I find the best electricity rates in Texas?
Finding the best rate starts with knowing your monthly energy usage.
Look for fixed or variable-rate plans and read the fine print to understand additional fees.
The best rate fits your consumption habits while balancing cost and flexibility.
Who has the best electric rates in Texas?
Texas’s “best” electricity rates can vary based on your energy needs and location.
TXU, Reliant, and Green Mountain Energy are some of the providers offering competitive rates.
It’s essential to compare plans and read customer reviews to find the one that suits your home.
Why are Texas electric bills so high?
High electric bills in Texas often result from increased air conditioning usage during hot summers, fluctuating rates in the deregulated market, and extreme weather events.
Additional fees from providers can also contribute to higher costs.
To save money, consider energy efficiency improvements and explore more competitive plans.
Why is Texas electricity so expensive?
Electricity in Texas can be costly due to factors such as the high demand for air conditioning, changes in natural gas prices, and the state’s deregulated energy market.
While rates can vary, comparing plans and selecting one that matches your usage can help manage costs more effectively.
Will Texas electricity rates go down in 2025?
Historically, rates moderate in fall as cooling demand decreases.
However, summer 2025 may see sustained high rates due to increased costs of renewable energy and investments in grid infrastructure.
Variable-rate customers typically see relief in October and November, but fixed-rate customers locked in during the summer maintain their rates year-round.
The best strategy is to secure a low fixed rate now rather than gambling on post-summer rate drops.
What is the current price of electricity in Texas?
As of 2025, rates range from 11¢ to 25¢ per kWh. Most homes pay between 12¢ and 16¢, but summer demand can push variable rates higher.
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