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Texas Electricity Prices

Explore the EIA's latest energy outlook to forecast potential electricity rate changes.

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  • Texas Electricity Market Outlook

Texas Electricity Price Forecast 2025

Texas electricity prices in 2025 are expected to decline slightly due to increased solar energy production and lower wholesale costs.

However, rising natural gas prices and growing demand from data centers may impact retail rates.

The best way to manage your energy costs is to compare rates regularly and lock in a fixed-rate plan when prices are low.

Key Takeaways for 2025

  • Retail Electricity Prices May Fluctuate: Lower wholesale rates don’t always mean lower bills. Infrastructure costs and rising demand could keep residential prices unpredictable. (Source: EIA)
  • Projected Wholesale Price Decline: ERCOT market rates are projected to average $27 per MWh, a 22% decrease from 2024, thanks to growing renewable capacity. (Source: EIA)
  • Natural Gas Prices Expected to Rise: The cost of natural gas, a major electricity driver, is forecasted to rise 24%, reaching $3.37/MMBtu, which could offset wholesale price drops. (Source: Reuters)
  • Texas’ Solar Boom: With 26 GW of new solar capacity, Texas is reinforcing its position as a renewable energy leader, reducing reliance on fossil fuels. (Source: EIA)
  • Data Centers Driving Demand: Expanding data centers, particularly in the Dallas-Fort Worth region, are adding pressure to the grid, which could affect pricing stability. (Source: Reuters)
Table of Contents
  • Texas Electricity Price Forecast 2025
  • Will Texas Electricity Rates Rise or Fall in 2025?
  • What's Driving Texas Electricity Prices in 2025?
  • Compare Texas Electricity Prices
  • Take Control of Your Energy Costs
  • Texas Electricity Prices FAQs

Will Texas Electricity Rates Rise or Fall in 2025?

While wholesale electricity prices are expected to decline due to the expansion of renewable energy sources, factors like rising natural gas prices and increased demand from large-scale commercial operations may counterbalance those decreases.

Consumers can expect modest retail price stability, with potential increases during peak demand periods.

Annual average U.S. wholesale electricity prices at select price hubs 2024 2025
The January Short-Term Energy Outlook (STEO) predicts slightly higher U.S. wholesale power prices in 2025 compared to 2024, except in Texas and the Northwest. Wholesale prices are expected to average $40/MWh (up 7% from 2024) nationwide. Residential electricity prices are forecasted to rise 2% in 2025 but remain relatively stable after adjusting for inflation.

Key Influencing Factors

  1. Lower Wholesale Prices: A direct result of the growing renewable energy sector, primarily solar power expansion.
  2. Fluctuating Natural Gas Costs: Although renewable energy is increasing, natural gas still accounts for much of Texas’ power generation.
  3. Grid Stability Risks: Extreme weather events could affect supply, potentially causing temporary rate spikes.
US vs Texas Residential Commercial Retail Price of Electricity

What’s Driving Texas Electricity Prices in 2025?

Recent extreme weather caused Texas power prices to swing from negative to triple the average. Understanding this volatility can help you choose the right time to lock in rates.

1. Natural Gas Price Fluctuations

Natural gas remains a major component of Texas’ energy mix, and its price trajectory will influence electricity costs. With the projected increase to $3.37/MMBtu, Texans may see slightly higher costs for power generated from natural gas plants. (Source: Reuters)

Monthly Henry Hub Natural Gas Price Jan 2021 Dec 2026
The January Short-Term Energy Outlook (STEO) forecasts rising Henry Hub natural gas prices in 2025 and 2026 due to demand outpacing supply, driven by increased U.S. LNG export demand. The spot price is projected to average $3.10/MMBtu in 2025 and $4.00/MMBtu in 2026, up from the record low in 2024.

2. Renewable Energy Growth

Texas leads the nation in renewable energy production. The addition of 26 GW of new solar capacity in 2025 is expected to stabilize electricity prices in the long term, offering relief to consumers through lower-cost energy sources. (Source: EIA)

U.S. monthly electric power sector generating capacity Jan 2021 Dec 2026
The latest Short-Term Energy Outlook (STEO) predicts continued U.S. renewable power generation growth, led by solar capacity additions. In 2025, 26 GW of solar capacity is expected to be added, followed by 22 GW in 2026. This follows a record 37 GW of solar capacity added in 2024. Wind capacity additions are also forecasted to grow, with 8 GW projected in 2025 and 9 GW in 2026, up from 7 GW in 2024.

3. Increased Energy Demand from Data Centers

The state’s expanding data center sector is placing significant demand on the grid. This increased demand could lead to localized rate spikes, especially in urban centers like Dallas and Austin. (Source: Reuters)

4. Extreme Weather Events

The impact of severe weather, such as winter storms or extreme summer heat, continues to be a wildcard. Consumers should prepare for potential short-term rate increases during extreme weather periods.

Residential Electricity Price Forecast

The EIA estimates a 2% increase in average U.S. residential electricity prices in 2025.

However, Texas’ deregulated market allows consumers to find competitive rates by comparing providers and securing fixed-rate plans when prices are low. (Source: EIA)

US vs Texas Residential Electricity Prices

Compare Texas Electricity Prices

Find the most affordable electricity rates today for different residential energy usage patterns.

City500 kWh1000 kWh2000 kWh
Houston16.80¢11.60¢13.80¢
Dallas14.00¢12.30¢12.10¢
Arlington14.00¢12.30¢12.10¢
Corpus Christi15.50¢10.80¢12.90¢
Plano14.00¢12.30¢12.10¢
Laredo15.50¢10.80¢12.90¢
Garland14.00¢12.30¢12.10¢
Irving14.00¢12.30¢12.10¢
Katy16.80¢11.60¢13.80¢
Grand Prairie14.00¢12.30¢12.10¢

Compare Rates Near You

How Texans Can Save on Electricity in 2025

  1. Lock in Competitive Fixed Rates – Take advantage of lower wholesale prices by securing a fixed-rate plan when market rates dip.
  2. Compare Electricity Plans – Use comparison tools to find the best deal tailored to your home’s energy consumption patterns.
  3. Optimize Energy Usage – Implement energy-efficient appliances and strategies to reduce overall consumption.
  4. Consider Renewable Options – Look for green energy plans that include solar or wind energy for potential long-term savings.

Plan Name Plan Length Rate
Amigo Energy - Simply Days Free - 1212 months17.5¢ / kWh
Amigo Energy - Simply Days Free - 2424 months16.8¢ / kWh
Amigo Energy - Nights Free Plan - 1212 months17.9¢ / kWh
Amigo Energy - 12th Month Free - 1212 months17.6¢ / kWh
Amigo Energy - Secure Energy - 2424 months16.7¢ / kWh
Amigo Energy - Nights Free Plan - 2424 months17.4¢ / kWh
Constellation - 12 Month (No Min Usage Fee)12 months16.8¢ / kWh
Constellation - 12 Month GREEN (No Min Usage Fee)12 months17.9¢ / kWh
Constellation - 12 Month GREEN Usage Bill Credit12 months15.7¢ / kWh
Constellation - 12 Month Usage Bill Credit12 months14.9¢ / kWh
Constellation - 12Mo Usage Bill Credit + A/C Protection for 1 Unit and HVAC Monitoring12 months15.3¢ / kWh
Constellation - 12Mo Usage Bill Credit + A/C Protection for 2 Units and HVAC Monitoring12 months15.3¢ / kWh
Constellation - 24 Month Usage Bill Credit24 months15.2¢ / kWh
Tara Energy - Value Wise - 1212 months14.3¢ / kWh
Tara Energy - Value Wise - 2424 months14.2¢ / kWh
Tara Energy - Weekends Free Plan - 2424 months16.7¢ / kWh
Just Energy - Mega Saver - 2424 months20.2¢ / kWh
Just Energy - Power Plus - 1212 months12.9¢ / kWh
Just Energy - Simple Choice - 1212 months17.5¢ / kWh
Just Energy - Basics - 1212 months17.3¢ / kWh
Just Energy - Power Plus - 1414 months12.8¢ / kWh
Just Energy - Basics - 2424 months16.6¢ / kWh
Just Energy - Power Plus - 2424 months12.6¢ / kWh
Just Energy - Simple Choice - 2424 months16.7¢ / kWh
4Change Energy - Cash Money 1212 months15.9¢ / kWh
4Change Energy - One Rate 1212 months16.7¢ / kWh
4Change Energy - Power Maxx Saver 1212 months19.1¢ / kWh
4Change Energy - Maxx Saver Select 2424 months11.0¢ / kWh
4Change Energy - One Rate 2424 months16.7¢ / kWh
4Change Energy - Power Maxx Saver 2424 months19.1¢ / kWh
4Change Energy - Power Savvy Saver 1212 months18.0¢ / kWh
Frontier Utilities - Frontier Saver Deluxe 1212 months20.6¢ / kWh
Frontier Utilities - Frontier Saver Plus 1212 months10.7¢ / kWh
Frontier Utilities - Frontier Saver Premier 1212 months20.3¢ / kWh
Frontier Utilities - Frontier Saver Value 1212 months20.5¢ / kWh
Frontier Utilities - Frontier Saver Value Plus 1212 months16.1¢ / kWh
Frontier Utilities - Frontier Straight Power $17512 months17.5¢ / kWh
Frontier Utilities - Light Saver 1212 months17.1¢ / kWh
Gexa Energy - Gexa Eco Saver Advantage 1212 months20.6¢ / kWh
Gexa Energy - Gexa Eco Saver Lite 1212 months20.5¢ / kWh
Gexa Energy - Gexa Eco Saver Plus 1212 months10.8¢ / kWh
Gexa Energy - Gexa Eco Saver Premier 1212 months20.3¢ / kWh
Gexa Energy - Gexa Eco Saver Value 1212 months16.1¢ / kWh
Gexa Energy - Gexa Light Saver 1212 months17.2¢ / kWh
Discount Power - Bill Credit Bundle 1212 months11.4¢ / kWh
Discount Power - Bill Credit Bundle 2424 months11.4¢ / kWh
Discount Power - Wise Buy Basic 24 Online24 months16.2¢ / kWh
Discount Power - Bill Credit Bundle 2000 kWh 1212 months20.7¢ / kWh
Discount Power - Bill Credit Bundle 2000 kWh 2424 months20.5¢ / kWh
Reliant - Reliant Basic Power 12 plan12 months17.8¢ / kWh
Reliant - Reliant Power Savings 12 plan12 months15.5¢ / kWh
Reliant - Reliant Basic Power 24 plan24 months17.2¢ / kWh
Reliant - Reliant Power Savings 24 plan24 months13.9¢ / kWh
Reliant - Reliant Conservation 12 plan12 months17.9¢ / kWh
Reliant - Reliant Power Savings 2,000 kWh 12 plan12 months22.3¢ / kWh
Reliant - Reliant Pure Power 12 plan12 months18.4¢ / kWh
Reliant - Reliant Conservation 24 plan24 months17.5¢ / kWh
Reliant - Reliant Power Savings 2,000 kWh 24 plan24 months20.7¢ / kWh
Reliant - Reliant Pure Power 24 plan24 months18.0¢ / kWh
Reliant - Reliant Truly Free Nights 100% Solar 12 plan12 months19.8¢ / kWh
Reliant - Reliant Truly Free Weekends 100% Solar 12 plan12 months19.8¢ / kWh
Cirro Energy - Simple Bill Credit 1212 months11.4¢ / kWh
Cirro Energy - Smart Simple 12 Online12 months18.4¢ / kWh
Cirro Energy - Simple Bill Credit 2424 months11.4¢ / kWh
Cirro Energy - Smart Value 2424 months15.9¢ / kWh
Cirro Energy - Smart Value 1212 months16.5¢ / kWh
Cirro Energy - Smart Simple 24 Online24 months16.4¢ / kWh
Cirro Energy - Simple Bill Credit Bundle 2000 kWh 1212 months20.7¢ / kWh
Cirro Energy - Simple Bill Credit Bundle 2000 kWh 2424 months20.5¢ / kWh
Direct Energy - Live Brighter 1212 months22.0¢ / kWh
Direct Energy - Live Brighter Lite 1212 months16.5¢ / kWh
Direct Energy - Live Brighter 1K+ 2424 months17.8¢ / kWh
Direct Energy - Live Brighter Lite 2424 months15.9¢ / kWh
Direct Energy - Twelve Hour Power 1212 months22.6¢ / kWh
Payless Power - 6 Month - Prepaid6 months19.3¢ / kWh
Payless Power - 12 Month - Prepaid12 months19.3¢ / kWh
TXU Energy - Flex Forward1 months19.0¢ / kWh
TXU Energy - Live Your Free 1212 months20.2¢ / kWh
TXU Energy - Ultimate Season Pass 1212 months20.2¢ / kWh
TXU Energy - Free Nights & Solar Days 12 (8 pm)12 months20.5¢ / kWh
APGE - True Simple 66 months16.5¢ / kWh
APGE - SimpleSaver 1212 months10.7¢ / kWh
APGE - True Simple 1212 months15.9¢ / kWh
APGE - SimpleSaver 1313 months10.6¢ / kWh
APGE - True Simple 1313 months15.8¢ / kWh
APGE - True Simple 1414 months15.7¢ / kWh
APGE - SimpleSaver 2424 months10.9¢ / kWh
APGE - True Simple 2424 months16.1¢ / kWh
APGE - SimpleSaver 3636 months11.0¢ / kWh
APGE - True Simple 3636 months16.3¢ / kWh

These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on May 23, 2025 at 2:16 pm CST. Pricing shown is based on an exact usage of 1000 kWh.

Take Control of Your Energy Costs

With Texas electricity prices projected to decline in 2025, now is the time to act.

Compare rates, lock in a favorable plan, and implement energy-saving strategies to maximize your savings.

Compare Plans & Rates

Texas Electricity Prices FAQs

Here are the most common questions we are asked about Texas Electricity Prices.

What is the average residential electricity price in Texas?

The average residential electricity price in Texas is 15.60 ¢/kWh, or 8% less than the United States average.

Updated February 2025
Source: U.S. Energy Information Administration (EIA)

Will Texas electricity prices go down in 2025?

Wholesale prices are expected to decrease, but retail rates may fluctuate due to demand and market factors.

What affects Texas electricity prices the most?

Natural gas prices, renewable energy growth, demand from large-scale users, and extreme weather.
Seasonal fluctuations, such as high demand during hot summer months, can cause electricity prices to rise.

What is the average business / commercial electricity price in Texas?

The average commercial electricity price in Texas is 8.73 ¢/kWh, 29% lower than the United States average.

What electricity company has the best prices in Texas?

In the state of Texas, there are over 60 retail electric companies, each with dozens of energy plans available to consumers. However, the best electricity price for your home depends on your kWh usage, not the company.

Using Compare Power, you can explore energy plans that align with your home’s usage history to quickly find the one that best fits your kWh usage profile, regardless of the provider.

How do utilities and energy providers differ?

Utility companies are responsible for maintaining and operating the energy grid.

In a power outage, you can depend on them to restore and maintain the power lines and other equipment that delivers energy to your home or business.

Utility companies serving Texas include Oncor Electric Delivery, Centerpoint Energy, AEP Texas, and Texas-New Mexico Power.

What is ERCOT in Texas?

ERCOT manages most of Texas’ grid, providing power to over 26 million Texans, and is a nonprofit organization. The Texas Legislature and the Public Utility Commission have regulatory oversight over ERCOT’s operations.

Why is my electricity bill so high all of a sudden?

Texas heavily relies on natural gas to generate electricity, with over half of the state’s power being sourced from natural gas.

Unfortunately, economic uncertainty has caused natural gas prices to soar to all-time highs, leading to a steady increase in electricity prices throughout the year.

Retail electricity providers (REPs) purchase electricity in advance based on their demand predictions. As electricity becomes more expensive, REPs raise prices to ensure that they can maintain their profit margins.

If your electricity contract has expired, you may be paying a holdover rate that varies each month and is significantly more expensive than a fixed-rate contract.

Take control of your electricity costs by using Compare Power. Shop with your zip code to discover the best plans for your home and avoid high energy bills.

What is considered a good electricity rate in Texas?

A good electricity rate in Texas typically ranges from 10¢ to 13¢ per kWh for residential customers. However, rates vary based on location, usage patterns, and market conditions.

The best way to determine a good rate for your situation is to compare offers from multiple providers using a tool like Compare Power.

Why do electricity rates vary in Texas?

Electricity rates in Texas vary due to fuel costs, seasonal changes in demand, transmission and distribution charges, and the provider’s operational costs.

Additionally, Texas has a deregulated energy market, meaning consumers can choose from numerous providers and plans, leading to a wide range of rates.

Are electricity rates going up or down in Texas?

Electricity rates in Texas can fluctuate based on market conditions, fuel costs, and other factors.

However, per the U.S. Energy Information Administration’s forecast for 2025, wholesale power prices are expected to decrease due to lower natural gas costs and increased renewable energy generation.

Can I choose my electricity provider in Texas?

Yes, Texas has a deregulated energy market, meaning consumers can choose their electricity provider from several options.

You can compare different providers and plans to find the best one for your needs.

When is the best time to lock in a rate?

During periods of low demand, such as spring or fall, when prices tend to be lower.

How do Texas electricity prices compare to other states?

Texas electricity prices are generally lower than the national average.

As of March 2025, the average residential rate in Texas was 15.60 ¢/kWh, or 8% less than the United States average.

This is mainly due to Texas’ deregulated electricity market, which promotes competition among providers, and the state’s diverse energy mix, including significant wind power generation.

How can I find the best electricity plan in Texas?

Compare providers regularly and monitor the market for price drops.

Compare Power Author Graham Griffin
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