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Texas Electricity Prices

Lock in a fixed-rate contract before energy demand and prices skyrocket in 2022.

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  • Texas Electricity Prices for 2023
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Texas electricity prices

Throughout the last decade, Texas electricity prices have been volatile. With endless options and multiple prices for each plan, it can feel impossible to find the right one for your home.  

Our fellow Texans needed a solution, and ComparePower was born to help you sift through the hundreds of electricity plans available throughout the state. 

While we built our name with powerful tools to help you find the best plan for your home and checkout with confidence in your choice, we are proud to offer you plans that beat average Texas prices daily. 

cpaveragerates

Source: U.S. Energy Information Administration

Love it what more can I say! Easy to navigate and see realistic pricing from every possible angle!

Amy L. (TX, United States)
Table of Contents
  • Texas electricity prices
  • Why Prices are Rising
  • Texas Electricity Plans
  • Texas electricity providers
  • Texas electricity prices FAQs

Why Prices are Rising

According to energy experts in Texas, multiple factors lead to a challenging year ahead for consumers, generators, and retailers.

Understanding the factors influencing the energy market and how to best adjust to a season that brings high temperatures, high demand, and high costs is crucial.

ERCOT has predicted peak demand for years, and this year is no exception.

ERCOT cites several factors that will test the grid. In addition to record-breaking demand, the closure of power plants and delays in power supply projects could reduce electricity supply.

Texas electricity prices for January 2023

The average Texas residential electricity price is 14.82 cents/kWh, 6% less than the U.S. average.

The average Texas commercial business electricity price is 9.15 cents/kWh, 27% lower than the U.S. average.

average retail price of electricity in Texas

Updated January 2023

Rising prices

Natural gas prices in the United States rose substantially over the past year and a half after many years of relatively low prices that led to a steady rise in the use of natural gas for electricity generation.

Generation from coal fell as coal-fired power plants were retired.

It’s also no secret that Texas is booming. Each year, the population of Texas has grown by 1-2%, which might not seem like much, but that equates to population growth of at least 300,000 people.

Due to this growth, peak electricity demand this summer will exceed 78,000 megawatts (MW), 4,000 MW higher than in 2019.

As a point of reference, one megawatt of electricity powers about 200 homes on a hot Texas day.

With electricity problems becoming an increasingly hot topic, it’s a no-brainer that additional resources are needed to strengthen the system.

Increasing demand combined with decreased supply

A decline in supply and an increase in demand will increase prices for any good or service traded on open markets.

Residential customers will be shielded from the high prices in the short run because of fixed-price contracts, but electric providers will eventually recoup their increased costs. 

Power-generating companies rely heavily on natural gas to power their plants, and the rising price of natural gas means these companies are stuck with lower profit margins. 

So, instead of paying for new plants and storage facilities, they hold on to their earnings and delay any expansion projects for future dates. 

Due to these delays, ERCOT estimates power reserves for the state will be 5% lower than predicted.

With power reserves at such low levels, any failures in the grid will likely have devastating consequences.

Emergency conservation measures and rolling blackouts could be alongside triple-digit temperatures.

Inflation Reduction Act of 2022

Thankfully, energy news isn’t all doom and gloom.

Federal production and investment tax credits, state renewable standards, and declining construction costs for wind and solar power have led to increased generation from renewable energy sources.

President Biden signed the Inflation Reduction Act of 2022, boosting renewable initiatives further, including several sections dedicated to energy infrastructure and spending changes.

Changes in tax credits for renewable energy production are expected to ramp up the supply of renewable energy for the Texas electricity grid.

Hopefully, within the next several years, you’ll see a noticeable increase in renewable energy plans available for your home at affordable prices to make going green with your electricity even easier.

Additionally, the overall electricity supply on the Texas grid should increase, which means a stable supply of electricity and better protection against extreme temperature changes and outages.

These changes are expected to lower electricity bills by $500-1,000 annually across the nation.

Texas Electricity Plans

Plan Name Plan Length Rate
First Choice Power - You Got This"! 2424 months$0.129 / kWh
First Choice Power - You Got This"! After Hours 1212 months$0.156 / kWh
Cirro Energy - Smart Value 12 Online12 months$0.236 / kWh
Green Mountain - Go Local Solar 12 Preferred12 months$0.251 / kWh
Discount Power - Value Plus 1212 months$0.227 / kWh
Discount Power - Value Plus 2424 months$0.217 / kWh
Direct Energy - Live Brighter 1818 months$0.230 / kWh
Direct Energy - Live Brighter 1K+ 2424 months$0.217 / kWh
Direct Energy - Live Brighter Lite 1212 months$0.212 / kWh
Direct Energy - Live Brighter Lite 2424 months$0.202 / kWh
New Power - Power of Credit 1212 months$0.176 / kWh
New Power - Power of Credit 2424 months$0.157 / kWh
New Power - Power of Credit 3636 months$0.153 / kWh
New Power - Power of One 1212 months$0.270 / kWh
New Power - Power of One 2424 months$0.238 / kWh
New Power - Power of One 3636 months$0.240 / kWh
TXU Energy - Clear Deal 1212 months$0.145 / kWh
TXU Energy - Clear Deal 2424 months$0.155 / kWh
TXU Energy - Flex Forward1 months$0.191 / kWh
TXU Energy - Free Nights & Solar Days 12 12 months$0.195 / kWh
TXU Energy - Saver's Discount 1212 months$0.193 / kWh
TXU Energy - Saver's Discount 2424 months$0.206 / kWh
TXU Energy - Season Pass 1212 months$0.189 / kWh
TXU Energy - Simple Rate 1212 months$0.185 / kWh
TXU Energy - Solar Saver 1212 months$0.211 / kWh
TXU Energy - Solar Value 1212 months$0.155 / kWh
Payless Power - Simple 6 - No Deposit & No Credit Check6 months$0.199 / kWh
Payless Power - Premier 12 - No Deposit & No Credit Check12 months$0.200 / kWh
Constellation - 12 Month (No Min Usage Fee)12 months$0.175 / kWh
Constellation - 12 Month Usage Bill Credit12 months$0.169 / kWh
Constellation - 36 Month Usage Bill Credit36 months$0.159 / kWh
4Change Energy - Smart Thermostat 2424 months$0.152 / kWh
4Change Energy - Maxx Saver Select 1212 months$0.108 / kWh
4Change Energy - Maxx Saver Select 2424 months$0.107 / kWh
4Change Energy - Cash Money 1212 months$0.157 / kWh
4Change Energy - One Rate 2424 months$0.158 / kWh
4Change Energy - One Rate 1212 months$0.179 / kWh
Amigo Energy - Amigo Web Plan 1212 months$0.159 / kWh
Amigo Energy - Amigo Web Plan 2424 months$0.149 / kWh
Amigo Energy - Nights Free Plan 1212 months$0.165 / kWh
Just Energy - Energy Wise 1212 months$0.159 / kWh
Just Energy - Energy Wise 2424 months$0.149 / kWh
Just Energy - Energy Wise 3636 months$0.149 / kWh
Just Energy - Simple Choice 1212 months$0.165 / kWh
Just Energy - Simple Choice 2424 months$0.155 / kWh
Just Energy - Simple Choice 3636 months$0.155 / kWh
Just Energy - Just Assured 1212 months$0.165 / kWh
Just Energy - Just Assured 2424 months$0.155 / kWh
Just Energy - Just Assured 3636 months$0.155 / kWh
Just Energy - 100% Green Nights Free Plan 1212 months$0.165 / kWh
Just Energy - Nights Free Plan 1212 months$0.165 / kWh
Just Energy - Power Plus 3636 months$0.105 / kWh
Tara Energy - Tara Web 1212 months$0.159 / kWh
Tara Energy - Tara Web 2424 months$0.149 / kWh
Tara Energy - Nights Free Plan 1212 months$0.165 / kWh
Gexa Energy - Gexa Eco Saver Plus 1212 months$0.107 / kWh
Gexa Energy - Gexa Eco Saver Advantage 1212 months$0.207 / kWh
Gexa Energy - Gexa Eco Saver Lite 1212 months$0.179 / kWh
Gexa Energy - Gexa Eco Saver Premium 1212 months$0.208 / kWh
Frontier Utilities - Frontier Saver Max 1212 months$0.208 / kWh
Frontier Utilities - Frontier Saver Value 1212 months$0.179 / kWh
Frontier Utilities - Frontier Saver Plus 1212 months$0.107 / kWh
Frontier Utilities - Frontier NHF 12+12 months$0.155 / kWh
Pulse Power - Free Energy Nights 1212 months$0.163 / kWh
Pulse Power - Free Energy Nights 2424 months$0.163 / kWh
Pulse Power - Free Energy Nights 3636 months$0.162 / kWh
Pulse Power - Free Energy Weekends 1212 months$0.146 / kWh
Pulse Power - Free Energy Weekends 2424 months$0.146 / kWh
Pulse Power - Free Energy Weekends 3636 months$0.146 / kWh
Pulse Power - Texas Fixed 1212 months$0.139 / kWh
Pulse Power - Texas Fixed 2424 months$0.139 / kWh
Pulse Power - Texas Fixed 3636 months$0.138 / kWh
Pulse Power - Texas Green 1212 months$0.143 / kWh
Pulse Power - Texas Green 2424 months$0.143 / kWh
Pulse Power - Texas Green 3636 months$0.143 / kWh
Reliant - Basic Power 12 plan12 months$0.171 / kWh
Reliant - Basic Power 24 plan24 months$0.161 / kWh
Reliant - Conservation 12 plan12 months$0.175 / kWh
Reliant - Conservation 24 plan24 months$0.165 / kWh
Reliant - Truly Free Nights 100% Solar 12 plan12 months$0.171 / kWh
Reliant - Truly Free Weekends 100% Solar 12 plan12 months$0.171 / kWh

These live rates for Oncor Electric Delivery service area were updated on January 31, 2023 at 8:40 pm CST. Pricing shown is based on an exact usage of 1000 kWh.

Texas electricity providers

Retail Electric Providers in Texas buy their power from generators. Customers then purchase that power from them.

Your retail electricity provider also bills you for the electricity you consume each month. 

Shop trusted and well-known brands such as TXU Energy, Reliant, Green Mountain Energy, Gexa Energy, and more. 

Energy CompaniesPhone Number
4Change Energy855-550-6663
Reliant855-887-2194
Frontier Utilities866-763-5084
Constellation855-798-2889
Gexa Energy855-639-8210
TXU Energy866-370-2440
Payless Power855-854-8482
Pulse Power888-853-4522

Compare energy plans and find the right company for you.

Texas electricity prices FAQs

What is the average residential electricity price in Texas?

The average residential electricity rate in Texas is 14.82 cents/kWh, or 6% less than the United States average.

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

The average commercial electricity rate in Texas is 9.15 cents/kWh, 27% lower than the United States average.

What electricity company has the best prices in Texas?

Texas has over 60 retail electric companies, with dozens of energy plans you can choose from. Your home’s usage profile determines your best electricity price.

Shop with your home’s usage history on ComparePower and find the energy plan that is best suited for you, regardless of the energy 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 TNMP.

What is ERCOT in Texas?

ERCOT is a nonprofit organization that manages 90% of Texas’ grid, providing power to 26 million people throughout the state. ERCOT is overseen by the Texas Legislature and the Public Utility Commission in Texas.

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

Texas heavily relies on natural gas to produce electricity, and 51% of the state’s electricity was generated with natural gas in 2021.

Natural gas has hit all-time highs due to economic turmoil, and electricity prices have continued to climb throughout the year.

Retail electricity providers (REPs) purchase electricity ahead of time based on predicted demand. As it becomes more expensive for REPs to purchase electricity, they raise prices to ensure they remain profitable.

If your contract has expired, you are likely paying a holdover rate that can vary each month and is significantly more expensive than a fixed-rate contract.

Enter your zip code on ComparePower to find the best plan for your home and make sure you don’t get hit with any more high bills.

How much does electricity cost in Texas?

The average residential electricity rate in Texas is 14.82 cents/kWh, 6% less than the U.S. average.

Commercial/business electricity rates in Texas are 9.15 cents/kWh, 27% lower than the U.S. average.

Updated January 2023
Source: U.S. Energy Information Administration (EIA)

What are the best electricity prices in Texas?

You can end up paying hundreds or thousands of dollars in energy costs if you choose the wrong energy plan without understanding your home’s energy needs.

Getting the best rate on your Texas electricity plan requires comparing prices with your home’s electricity usage profile.

Your home usage history saves time and money when you shop on ComparePower.
 
In just a few minutes, you can save hundreds of dollars on your electricity bill and checkout confident in your electricity choice.

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