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ComparePower beats average Texas electricity prices
Throughout the last decade, Texas electricity prices have been volatile. With seemingly endless options and multiple prices for each plan, it can feel impossible to find the right plan 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 day in and day out.
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)
Prices are changing: What you need to know
According to energy experts in Texas, multiple factors lead to difficult summers for consumers, generators, and retailers.
It is crucial to understand the factors influencing the energy market and how to best adjust to a season that brings high temperatures, high demand, and high costs.
ERCOT has predicted summer 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.
EIA.gov summer 2022 update:
- 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 a 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 on the way 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.
Boosting renewable initiatives even further, the Inflation Reduction Act of 2022 was signed by President Biden, which includes several sections dedicated to changes in energy infrastructure and spending.
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 prices
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.
Save time and money when you shop on ComparePower with your home’s usage history.
In just a few minutes, you can save hundreds of dollars on your electricity bill and checkout confident in your electricity choice.
These live rates for Oncor Electric Delivery service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.
Texas electricity price trends
The average residential electricity rate in Texas is 13.15 cents/kWh, 12.6% less than the U.S. average.
Commercial/business electricity rates in Texas are 9.38 cents/kWh, 25.7% lower than the U.S. average.
Last updated: September 2022
Source: U.S. Energy Information Administration (EIA)
Finding the best electricity rates
The #1 most important thing to know is your home's energy usage. This 2-minute video explains why shopping with your usage is so important👇
Usage-based shopping: The best way to shop and save
The price per gallon shown on a gas pump is the price you will pay no matter how many gallons you pump.
If the price is $3 per gallon, you’ll pay $30 for 10 gallons of gas. Easy.
Buying electricity in Texas is not as easy as buying gasoline. Prices are based on a specific, exact monthly usage (usually 2000 kWh).
And the calculation used to determine your monthly bill varies from plan to plan.
Your “price per kWh” is calculated by dividing your monthly bill by the amount of energy you consume.
“Per kWh” prices are misleading since they are based on specific usages, such as 2000 kWh. You must consider the total bill for your household’s usage when shopping.
It can be challenging to do that when the math is complex, and every plan is different.
With ComparePower, the complex math is already done for you.
First, determine how many kWh you plan to use each month. Then, compare plans and their total monthly cost based on your usage, not the advertised price.
Compare Texas energy plans
Several types of energy plans are available. You have likely seen plans with free nights and weekends, which tend to cost you more than a straightforward fixed-rate plan.
Variable-rate and fixed-rate plans are most common. Both have advantages and disadvantages.
When signing up for an electricity plan as a consumer, it’s crucial to know the differences.
Learn about fixed-rate vs. variable-rate electricity and which is best for you.
How to switch electricity providers
If you’re ready to change electricity providers, follow these steps to switch providers on ComparePower.
Total Time: 10 minutes
Compare Energy Plans
After entering your zip code, you will be asked a few questions about your energy habits. Using that information, we will guide you to your best energy choices.
Switch your electric provider
Enroll online without leaving ComparePower. Texas’ best energy providers are our partners. The rates you see include all fees.
We’ll handle everything else
We’ll take care of the paperwork and get you set up with your new energy plan, and notify you once everything is ready to go.
- Your First and Last Name
- Drivers License
- Social Security Number
- A desktop, laptop, tablet or mobile phone with internet access.
Materials: ComparePower.com is all you need to switch electricity providers in Texas.
Learn how to switch energy providers with your usage.
Power to Choose Texas
The Texas Public Utility Commission (PUC) manages the Power to Choose website, whose goal is to enable consumers to compare energy plans.
Learn why ComparePower is the best alternative to Power to Choose in Texas.
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.
|Energy Companies||Phone Number|
Compare energy plans and find the right company for you.
Texas electricity prices FAQ
The average residential electricity rate in Texas is 13.15 cents/kWh, or 12.6% less than the United States average.
The average commercial electricity rate in Texas is 9.38 cents/kWh, 25.7% lower than the United States average.
Texas has over 60 retail electric companies, and each company has 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.
Utility companies are responsible for maintaining and operating the energy grid.
In a power outage, you can depend on them to restore power and maintain the power lines and other equipment that delivers energy to your home or business.
ERCOT is a nonprofit organization that manages 90% of Texas’ grid, providing power to 26 million people throughout the state. In Texas, ERCOT is overseen by the Texas Legislature and the Public Utility Commission.
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 the price of electricity has 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.