Texas Electricity Rates

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 spike.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.