Brad Gregory
Texas electricity rates are on the rise
Summer in Texas means baseball season, BBQ season, and air conditioner season.
When the weather gets hot, the demand for electricity on the grid goes up, which means higher energy prices for those without fixed-rate plans.
Save money this summer by locking in a fixed-rate electricity plan.
Those savings can add up to hundreds of dollars per year.
Don’t hand your hard-earned money over to the electric company.
Shopping for your business? Get a quote from 31+ Texas energy providers 👉🏽
Texas electricity rates at a glance:
- The average retail price of electricity is 12.8 cents/kWh
- The average energy usage in Texas is 1,132 kWh/month
- The average electricity bill in Texas is $144.90
Source: eia.gov
“Easy, Simple, best rates, just a click away.”
~ Stephen H. (TX, United States)
Last updated: June 2022
How to find your best rate
How do I find the best electricity rates in Texas?
Picking the wrong energy plan without knowing your home’s energy usage can cost you hundreds or thousands of dollars.
Compare energy plans and electricity rates with your home’s electricity usage profile to find your best rate in Texas.
Shop with your usage on ComparePower and save both time and money.
A few minutes can save you hundreds on your electricity bill 💸
The #1 most important thing to know is your home's energy usage. This quick 2-minute video explains why shopping with your usage is so important.
Thank you for calculating the best price for me based on my usage that I entered for the last 12 months. That saved me a lot of time. We don’t use 1,000 KHW every month, so relying on that figure alone doesn’t give us the best rate. Your calculating the best price for me (I actually chose the 2nd lowest because I wanted 100% green!) was a real time saver. And thank you for publishing the percentage of green energy. I really like your site, and the whole process was easy and seamless.
Kristen H. (TX, United States)
Usage-based pricing is the best way to shop for electricity in Texas.
Knowing your expected usage and comparing the rates for each plan based on that usage is the key to avoiding overpaying.
Gasoline, for example, is priced per gallon regardless of how many gallons you pump.
If you pump 10 gallons at a price of $3 per gallon, you will pay $30. Easy.
In Texas, buying electricity is not like buying gasoline.
The “price per kWh” shown in advertising is based on a specific usage amount (usually 2000 kWh).
Moreover, each plan’s monthly bill is calculated differently.
You can only calculate your effective “price per kWh” by dividing your monthly bill by your usage.
The advertised “price per kWh” is misleading since it’s based on specific usages, like 2000 kWh. It’s best to shop based on the total bill for your home’s expected usage.
It is difficult to do that when the math is complex, and each plan is unique.
ComparePower already did all this complicated math for you.
Firstly, we calculate your expected monthly kWh usage. Next, we show you the plans and their total monthly cost.
With ComparePower, you know you’re getting a great energy plan at an affordable price.
The lowest-cost electricity plans can be found right here on this page.
New to Texas, New Home and NO CLUE how to choose a power company. I’ve now used Compare Power 2x’s and had an amazing experience both times. It’s informative,, quick, and easy peasy! Thank you.
Rose G. (TX, United States)
Best Texas electricity rates
These live rates for Oncor Electric Delivery service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an independent marketplace offering free electricity pricing comparisons for consumers.
Best Texas energy plans
Whether you’re moving to a new home or apartment, looking to save on nights and weekends, earn rewards, or lower your electricity bill, Texas energy companies offer an array of options to meet your household’s energy needs.
Fixed-term plans
Get the price protection of a fixed contract term. This is not the same as a fixed rate. Your rate could vary with your usage in accordance with the Electricity Facts Label. The terms of the EFL are fixed for the length of the contract.
Learn about fixed vs. variable rate electricity and find out which is best for your home.
Same-day service
Did you wait until the last minute and need power today? Get electricity now.
Variable-rate plans and month-to-month plans
Month-to-month electricity plans with no long-term contracts or cancellation fees.
Prepaid plan
Use only as much energy as you need and only pay for what you use with prepaid electricity in Texas.
Free nights and weekends
Popular Texas energy plans, such as the TXU Free Nights and Weekends or Direct Energy offer free electricity for a predetermined block of time during peak hours.
Renewable (green) plans
Get energy generated from 100% renewable sources. Learn more about green renewable energy in Texas.
Solar plans
Homes with solar panels can earn and sell back bill credits for any excess electricity returned to the grid.
Average billing
Avoid seasonal bill spikes and make managing your monthly budget easier with average billing. Learn about average billing and see if it’s right for you.
Texas electricity price trends
Unlike other states, Texas has a deregulated energy market. In 2002, the state deregulated its energy market in order to decrease electricity prices for residential and commercial consumers.
Last updated: June 2022
The average Texas residential electricity rate is 12.8 cents/kWh, 11.5% less than the U.S. average.
The average Texas business, commercial electricity rate is 8.51 cents/kWh, 27% less than the U.S. average.
Got me the cheapest electric. Nice.
Emily (TX, United States)
Power to Choose Texas
The PUC encourages all Texas energy consumers to shop around and compare plans from various providers to find the best rate and save money on their energy bills.
To facilitate a better shopping experience the PUC launched powertochoose.org, the official website that compares electricity rates from various retail electricity providers in Texas.
This online marketplace, which is run by the Texas Public Utility Commission, offers a range of competing rate and plan options in Texas sorted by price.
Any of the hundreds of retail electricity providers in the state can post their plans and rates on the power to choose website. While in theory, this should make shopping for an energy plan easy, it does the opposite by causing more frustration for energy shoppers looking for their best rate in Texas.
So why is the power to choose a website so confusing? For starters, the lack of a guide coupled with the sheer number of energy companies on the site makes comparing apples to apples time-consuming and difficult.
A lack of oversight allows providers to advertise energy plans with hidden and gimmicky pricing tiers and usage-based rates where, unless you consume the exact amount of energy advertised, you end up paying much more.
Lastly, there are no phone numbers to call if you have questions or shopping tools to help you narrow down the hundreds of plan options according to your home’s unique usage profile.
With all these shortcomings, it is clear that powertochoose.org may end up wasting more of your time than actually helping you choose the best plan.
What is the best alternative to Power to Choose Texas?
Use your Power to Choose with ComparePower, created to cut through the confusion and provide a true apples-to-apples comparison of the best energy plans from trusted and reliable electricity providers. Get started with just your zip code.
⚡️ Discover why ComparePower is the best alternative to power to choose in Texas.
Better than Power to choose
Linden W (TX, United States)
Start service for your home
Important: If this is your first time setting up electricity service in Texas, it is helpful to have the electrical usage of your property from the previous year.
Your property’s previous owner should be able to find usage statistics on their billing statements.
This research may take a little time, but the effort could save you money down the road.
ComparePower crunches the numbers instantly to help you meet your home’s usage pattern.
If you can’t obtain usage statistics, utilize the ComparePower “Help Me Choose” tool to evaluate your usage.
The site also provides reminders for your upcoming switch from an old contract to a new contract.
If you do not have any usage history, estimate it here.
Learn how to start electricity service for your new home in Texas.
Switch providers and save
Your current electric provider may take the end of your current energy contract as a chance to increase your rates.
This means that you should search for affordable electricity rates each year. You may save hundreds of dollars each year by switching providers.
Is your energy contract ending or expired? Letting your contract lapse can be costly. Learn how electricity contract renewals work in Texas.
Switching is easy because your new electricity company handles everything, including cancellation.
As you switch, you don’t need to worry about representatives coming to your home or any disruption in your power.
The switch only takes minutes and you could realize savings in the first month.
There is no loss of power when you switch. Electricity in Texas is all delivered by your local Transmission and Distribution Utility.
The wires and poles that deliver electricity to your home remain the same no matter your provider.
Learn how to switch energy companies in Texas.
Here are some considerations when switching energy plans:
- Texas law allows early contract cancellation within 14 days of the contract’s end without penalty.
- Some plans allow you to arrange your next contract within 60 days of your current contract’s conclusion.
- You may find a new energy provider with a rate that makes early cancellation worthwhile even if you pay a penalty.
Best green energy plans
In 2006, Texas surpassed California in wind-power production to become the top wind-producing state in the US. The state set renewable energy goals in 1999 and again in 2005, which it has since far surpassed.
Today Texas generates more renewable wind power than most countries.
The prices of energy derived from wind are less volatile than gas and oil prices thereby offering some stability when compared to the more traditional fossil fuels.
Many cities in Texas benefit from renewable energy sources. In fact, the city of Georgetown, Texas, with a population of 50,000, powers itself entirely with renewable energy.
If you are looking for a renewable energy plan, ComparePower has great plans from leading companies such as Green Mountain Energy.
Find the best green energy companies, plans, and rates in Texas.
Love Compare Power’s customer friendly tools. I was able to put in my highest power usage, select the best prices, then go back to those same companies and change to my lowest usage and compare the same companies. It makes it easy to confirm that a company will not overcharge you for under or over usage and chose the right company and plan for you. I highly recommend over power to choose. It was fast to apply for service too.
Rena B (TX, United States)
Best Texas electricity companies
Are you trying to find the best electricity company in Texas?
You can sign up for services with great electricity providers such as TXU Energy, Reliant, Direct Energy Gexa Energy, and more.
To sign up, learn more, or view current rates, click on the company of your choosing.
| Energy Companies | Phone Number |
|---|---|
| 4Change Energy | 855-550-6663 |
| Amigo Energy | 866-526-7192 |
| Direct Energy | 855-307-6915 |
| Green Mountain | 844-854-2257 |
| Discount Power | 855-236-1309 |
| Reliant | 855-887-2194 |
| Tara Energy | 866-217-5179 |
| Frontier Utilities | 866-763-5084 |
| Cirro Energy | 844-417-7179 |
| Constellation | 855-798-2889 |
| Gexa Energy | 855-639-8210 |
| TXU Energy | 844-359-7999 |
| Payless Power | 855-854-8482 |
| Pulse Power | 888-853-4522 |
| New Power | 866-448-2720 |
| Just Energy | 866-586-3564 |
Get no-deposit lights
Need to find an energy plan in Texas that doesn’t require a deposit?
If you are charged a deposit on your first plan selection, ComparePower will automatically show you other plans available without a deposit.
That saves you a lot of time and hassle. No more surfing the internet and calling energy companies to find out if a deposit is needed.
Learn how to get no deposit lights in Texas.
Texas utility service areas
Your electricity company is responsible for customer service and billing. In the event of a power outage, you need to call your local utility. Click below to access your utility’s website and report a power outage.
Deregulation of electricity in Texas
Throughout most of the 20th century, energy in Texas was regulated as a public utility. In this monopoly, Texans were served by a single local provider, which owned the power plant and the power lines and handled customer service and billing.
By law, electricity rates are linked to the cost of coal or natural gas.
All of this changed in 2002 when Texas lawmakers passed Senate Bill 7, a law that deregulated the state’s electricity market with the promise that an open marketplace would bring about competition and lower prices.
If customers had a choice, rival electricity providers would be incentivized to reduce operating expenses in order to offer lower energy rates.
The old utilities, which were monopolies, were unbundled into three separate entities.
These three entities are power plants that focus on energy generation, transmission, or the power poles and power lines, and retail, which handles customer service and billing.
A new market has emerged in Texas with private power generators and multiple retail electricity providers marketing their power to Texas residents throughout the state.
Only the energy transmitters (the utility companies) remained regulated as it didn’t make sense to have multiple private companies putting up power lines throughout the state.
In this free market, competing electricity retailers buy electricity wholesale from private power generators to sell at retail to around 85% of Texas residents.
The partnership between generators and retailers is governed by the Electric Reliability Council of Texas, or ERCOT, which attempts to balance the power grid’s electricity supply and demand by purchasing small amounts of electricity at 15-minute intervals throughout the day.
In this balancing process, power generators offer a selling price for a certain amount of electricity. Once ERCOT accepts a bid it sets the price for all power producers in the state.
ERCOT is a membership-based nonprofit, governed by a board of directors, and overseen by the Public Utility Commission of Texas (PUC) and the Texas Legislature. Since 1975, the PUC has provided statewide regulation of rates and services of electric utilities.
The PUC’s mission is to protect customers, foster competition, and promote high-quality infrastructure. In addition to regulating the state’s electric utilities and implementing legislation, the PUC offers Texas residents assistance in resolving consumer complaints.
If you have a complaint with your electricity company, you can go to the official PUC website and file an informal complaint.
Learn about electricity deregulation in Texas.
Best electricity rates near you
Find a low electricity rate in your city or search with your zip code.
Electricity rates by Texas zip code
Find cheap electricity rates by zip code. Click on your zip code below to find competitive rates in your area.
Popular ZIP codes:
75001 75002 75006 75007 75009 75010 75011 75013 75015 75019 75020 75021 75022 75023 75024 75025 75028 75032 75033 75034
Texas electricity rates FAQs
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 12.8 cents/kWh, 11.5% less than the US average whereas the average commercial electricity rate in Texas is 8.51 cents/kWh, 27% less than the US average.
Why pay the average rate when you can save? Those savings can amount to hundreds of dollars per year in your pocket.
Don’t hand over your hard-earned money to the electric company.
Why have Texas electricity rates increased?
Natural gas prices often act as a significant driver of electricity prices as it is usually the most expensive fuel for generating units that are dispatched to provide electricity to the grid.
A challenging economy has led to a rise in natural gas prices and a rise in electricity prices.
Protect yourself from rising electricity prices by locking in a fixed-rate plan. When Texas power demands spike, you won’t be hit with a high electricity bill.
Lower Your High Electricity Bill
Switch Electricity Providers and Save
How Electricity Contract Renewals Work in Texas
Start Electricity Service
Get Power ON Today
Apartment Electricity
Fixed-Rate vs. Variable-Rate Electricity
Power Wizard Review: Everything you need to know
Electricity Contracts: Know the Facts Before You Sign
Energy Ogre Review: Everything you need to know
