Compare Texas Electricity Rates & Plans
Electricity rates in Texas range between 11¢ and 25¢ per kilowatt-hour, with most households paying 11¢ to 14¢.
Currently, the cheapest energy plan starts at 11.40¢/kWh—25% lower than the Texas average of 15.60 ¢/kWh.
With summer’s higher demand approaching, now is a strategic time to evaluate and lock in a plan before potential price increases.
March 2025 Key Takeaways
- As of March 2025, Texas electricity rates average 15.60 ¢/kWh.
- The lowest electricity rate in Texas is 11.40¢/kWh.
- Spring is the optimal time to secure a fixed-rate plan before summer price increases.
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Cheapest Electricity Rates in Texas Today
Here are the lowest available rates in popular Texas cities:
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 low 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—like 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.
Texas Electricity Plans
Fixed-Rate Plans—These plans Lock in your rate for the contract duration, shielding you from market fluctuations. Fixed-rate plans are ideal if you want predictable bills and stability.
Variable-Rate Plans—Rates fluctuate month-to-month, which can benefit short-term users but may result in higher costs during peak seasons. Variable-rate plans are best if you prefer flexibility and don’t mind rate changes.
Time-of-Use Plans—These plans offer free or discounted electricity during off-peak hours, making them a good option for users with flexible energy usage patterns. For example, Reliant’s “Truly Free Nights” plan provides free power from 8 PM to 6 AM, allowing night owls to save. Free nights and weekend plans are ideal if you can shift a substantial portion of your energy use (70% or more) to nights and weekends.
Prepaid Plans—Pay-as-you-go electricity with no deposit or credit check requirements, making it a popular choice for users wanting control over spending or those with fluctuating usage. Prepaid energy plans from providers like Payless Power allow you to recharge when your balance is low, making them ideal for budget-conscious consumers or renters seeking a flexible, commitment-free option.
Flat Rate Electricity Plans—If you’re looking for stability and predictability, flat-rate electricity plans in Texas offer close-to-even pricing across different usage levels (500, 1000, and 2000 kWh) with minimal fluctuation.
Business Electricity Plans—Texas companies can save with low rates, competitive plans, and green energy options. Get a custom electricity quote for your business.
Is Now a Good Time to Buy?
Spring is strategically the best season to shop for electricity in Texas:
Spring Shopping Advantage — Current moderate demand creates competitive rates, but this window is closing as summer approaches.
Before Summer Rate Increases — Lock in now before prices climb with increased air conditioning use and grid demand.
Seasonal Transition Protection — Spring plans can shield you from both upcoming summer peaks and next winter’s potential price spikes.
Long-Term Security — Consider 12-24 month contracts that span multiple seasons for maximum stability.
Market Indicators — Natural gas prices and grid capacity forecasts suggest summer 2025 may see higher than average rates.
Check Regularly — The energy market fluctuates often. Comparing rates every 3-6 months helps ensure you’re not overpaying.
Pro Tip: Avoid plans with terms ending in July or August when renewal rates are typically highest. Look for contract end dates in spring or fall months when rates are more competitive.
Texas Electricity Rates Chart
This chart shows how Texas electricity rates have changed over time.
Commercial rates have remained steady, while residential rates have experienced more ups and downs.
These pricing changes often happen because of fuel costs, grid problems, or extreme weather.
Why should you care? Knowing these trends can help you save money.
Texas electricity rates fluctuate dramatically, primarily due to demand.
Variable-rate plans (and holdover rates) are more susceptible to these fluctuations.
A fixed-rate plan can provide stability, protect against sudden price hikes, and help manage your budget.
Texas Electricity Rates FAQs
Confused about Texas electricity rates? Here’s what you need to know.
Lock in a rate now, or wait?
No one likes gambling with their electric bill. Locking in a fixed rate now is like insurance against price hikes.
Summer is coming, and so are higher cooling costs. Fortunately, you won’t have to worry about unpredictable price swings during extreme heat waves.
Prices might dip slightly in the coming weeks, but summer demand typically drives them up, so waiting is risky.
A fixed-rate keeps your bill predictable—even when the temperature soars.
Analysis shows that rates secured in spring are often lower than those available during peak summer months.
What are the average electricity rates in Texas?
For residential customers, the average rate is 15.60 ¢/kWh, with the average monthly bill around $156.00 based on 1000 kWh usage.
Of course, your bill depends on where you live, how you use energy, and your plan.
Businesses pay a little less—around 8.73 ¢/kWh on average, or about $87.30 a month for 1,000 kWh.
Should I Switch Plans Now?
Switching could save you some serious cash if you haven’t switched and are out of contract.
Rates are trending up, so waiting might leave you a higher price later.
Pro tip: longer contracts (1-2 years) often pay off, shielding you from seasonal price hikes.
Who has the cheapest electricity rates in Texas?
Gexa Energy, Frontier Utilities, and Rhythm Energy tend to offer some of the best rates.
But it’s not one-size-fits-all—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 2024, a solid fixed-rate plan will likely fall between 10 and 15 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 available plans in your area to find the one offering 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 important 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 2024?
Rates could stabilize or drop in 2024 as renewable energy sources increase and the electrical grid improves.
However, external factors like weather and global energy prices can still cause fluctuations.
Staying informed and regularly reviewing your energy plan is the best way to ensure you pay a fair rate.
What is the current price of electricity in Texas?
As of 2024, electricity rates in Texas range from 11 to 25 cents per kWh, with most households paying between 11 and 14 cents per kWh.
Prices vary depending on location and energy usage, so it’s helpful to regularly check for the most accurate and up-to-date rates.
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Stay Informed with Our Latest Articles
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