Compare Texas Electricity Rates & Plans
Summer heat means higher bills, but it doesn’t have to break the bank.
Electricity rates in Texas range from 11¢ to 25¢ per kilowatt-hour, with most households paying between 12¢ and 16¢.
Currently, the cheapest energy plan starts at 10.60¢/kWh—still 25% lower than the Texas average of 15.30 ¢/kWh.
With air conditioners working overtime, your energy use can spike from 900 kWh in spring to over 2,500 kWh in peak summer. The right plan makes all the difference.
June 2025 Key Takeaways
- Texas electricity rates average 15.30 ¢/kWh, with summer demand pushing some rates higher
- The lowest electricity rate in Texas is 10.60¢/kWh
- Fixed-rate plans protect against summer price volatility
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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 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—Lock in your rate for the entire contract, protecting you from summer price spikes. When demand peaks and rates climb, your rate stays steady. Fixed-rate plans are your best defense against summer bill shock.
Variable-Rate Plans—Rates fluctuate month-to-month based on market conditions. While you might catch occasional low rates, summer typically brings the year’s highest prices. A variable-rate plan can be risky during the peak air conditioning season.
Time-of-Use Plans—Get free or discounted electricity during off-peak hours. 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 (at least 70%) to nights and weekends.
Prepaid Plans—Pay-as-you-go electricity, making it a popular choice for users wanting control over spending or those with fluctuating usage. Prepaid energy plans from providers like Payless Power and similar providers let you monitor usage daily, helping you catch summer spikes before they become budget busters.
Flat Rate Electricity Plans—Consistent pricing across different usage levels means no surprises when summer usage doubles. These plans offer predictability when your air conditioner is working at full capacity.
Business Electricity Plans—Texas businesses face massive summer cooling costs. Get a custom electricity quote designed for commercial summer loads.
Is Now a Good Time to Buy?
Summer is here—and so are higher bills. Here’s your game plan:
Beat Summer Rate Hikes—Energy demand peaks during Texas summers, driving up wholesale costs. Locking in a fixed rate now protects against July and August price spikes.
Usage Spike Protection—Summer usage can double or triple. Plans that work fine at 1,000 kWh may become expensive at 2,500 kWh. Choose plans that perform well at high usage levels.
Air Conditioning Reality—Your AC will likely run 10+ hours daily during peak summer. Factor this into your plan choice—what looks cheap at low usage might cost more when cooling demands soar.
Contract Timing Strategy—Avoid contracts ending in late summer (August/September) when renewal rates hit yearly highs. Look for terms ending in “fall” or early winter.
Market Heat—Summer 2025 forecasts suggest above-average temperatures and higher grid demand. This typically translates to higher rates for variable and month-to-month customers.
Pro Tip: Summer contracts signed now often offer better rates than those available during peak heat waves. Don’t wait for your first $400+ bill to take action.
Texas Electricity Rates Chart
This chart illustrates how Texas electricity rates fluctuate with seasonal changes and demand.
Notice the summer spikes in residential rates—these happen when air conditioners across Texas strain the grid simultaneously.
Commercial rates stay more stable, but residential customers face the biggest swings during 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 spike.
What are 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 between $250-400 for typical homes with central air conditioning running regularly.
Factors affecting your summer bill: home size, insulation quality, AC efficiency, thermostat settings, and your rate plan’s performance 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 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 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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Stay Informed with Our Latest Articles
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