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Texas Electricity Rates

Updated: 11/13/2020

If you live in Texas, or are moving to the Lone Star State in the near future, you have options when it comes to your electricity. Energy Choice, also known as the power to choose in Texas, gives you the opportunity to compare electricity providers and find the best rates for you.

Keep reading to learn more about comparing electricity rates, finding the best Texas electricity companies and securing a lower rate than what your neighbors are paying.

Shop Texas Electricity Rates

Select your utility provider to compare electricity rate offers from leading Texas electricity companies.

Texas
Best Electricity Rates
ProviderPlan NameLengthRate Per kWh
At 1000kWh avg. usage
Sign Up
Tomorrow Energy
PUCT #10270
12 Month Fixed
12 Mo.4.95¢Select
Constellation
PUCT #10014
12 Month Usage Bill Credit + PowerPlug
12 Mo.7.9¢Select
Frontier Utilities
PUCT #10169
Best Value 12
12 Mo.8.36¢Select
Pulse Power
PUCT#10259
Texas Saver
18 Mo.11.28¢Select
Pulse Power
PUCT#10259
Texas Saver
36 Mo.11.88¢Select
PlanRate Per kWh
At 1000kWh avg. usage
Tomorrow Energy
12 Month Fixed

12 Months
4.95¢
Select
Constellation
12 Month Usage Bill Credit + PowerPlug

12 Months
7.9¢
Select
Frontier Utilities
Best Value 12

12 Months
8.36¢
Select
Pulse Power
Texas Saver

18 Months
11.28¢
Select
Pulse Power
Texas Saver

36 Months
11.88¢
Select
  • 100% Renewable Sources
  • Smart Home System Included
See All Plans

How to Compare Texas Electricity Rates

It’s fast, easy and free to compare Texas electricity rates in the ElectricityRates.com Marketplace. Follow the steps below and compare great low rates from leading providers near you in under a minute!

How to Compare Texas Electricity Rates Infographic

Before You Start: Understand Your Electricity Usage

The most important thing you need to do before comparing electricity rates is figuring out how much electricity you’re using or plan to use. This is because the effective rate that you pay for electricity depends on how much you’re using.

Some electricity plans in Texas will favor lower-usage levels, while others favor larger homes that use a lot of electricity. Knowing your usage is key to finding the cheapest electricity rate for your home and keeping your electricity bills as low as possible.

To find your usage, look at past electricity bills and find your average usage over the past several months. If you’re moving to a new house, you can ask the landlord or prior tenants what the average usage for that property was in the past. You can also consider signing up for a shorter-term plan that will let you reassess your options sooner rather than later.

Once you know your electricity usage:

ElectricityRates.com does the math for you and finds the best electricity rates based on your usage level. All you need to do is follow this simple three-step process:

  • Step 1 – Enter Your ZIP Code: Find the free Rate Comparison Tool and enter your ZIP Code to compare great rates in your area from leading providers instantly.
  • Step 2 – Compare Electricity Providers: Select your usage level at the top of the Marketplace to filter plans. Choose between low fixed-rate plans, plans with 100% renewable energy and plans that come with incentives like smart home systems and AC protection plans.
  • Step 3 –  Switch and Save: Once you’ve found the best electricity plan for you, fill out all of the necessary information and make the switch. This process is safe and secure on ElectricityRates.com and takes less than five minutes.

That’s it! Your new electricity provider will take over within 1-2 billing cycles if you’re switching immediately or on your desired start date in the future. There is no need to contact your local utility or your new provider.

Average Texas Electricity Costs

In June 2020, the average residential electricity rate in Texas was 11.99¢ per kWh. Texas generates the most energy in the US and has some of the best electricity rates because of it. Yet, with its hot summers, Texas electricity usage averages 1,176 kWh per month which is the 5th highest in the nation. This leads to an average electricity bill of $131.63 per month.

electric meter

11.97¢

Average Rate per/kWh

electric plug

1,176 kWh

Average Usage per month

electric bill

$131.63

Average Cost per month

HOW DOES THIS COMPARE NATIONALLY?

26th Highest

Average Rate

5th Highest

Average Usage

9th Highest

Average Cost

Last Updated on March 15th, 2020
Source: U.S. Energy Information Association (EIA)

Texas Electricity Rates Chart

Average residential electricity rate trend in Texas:

Texas Average Residential Electricity Rates Chart

Texas Electricity Plan Options

Not all Texas electricity plans are created equal. The type of rate you have, your energy sources and how much you pay upfront will vary depending on the plan you choose. To be sure you’re getting the best rate, it’s also a good practice to read the Electricity Facts Label (EFL) that comes with every Texas electricity plan. These can be found under plan details in the ElectricityRates.com Marketplace.

Fixed-Term Electricity Plans

Fixed-term plans lock in the terms of your electricity plan for the length of the contract and offer the benefit of price protection. Your effective electricity rate depends on the terms outlined in the Electricity Facts Label (EFL) and your monthly usage. However, these terms will remain fixed and not change until your contract ends.

Variable Electricity Plans

Variable-rate plans are month-to-month with no long-term contracts or cancellation fees. These are usually more expensive than fixed-term plans and only a good option if you’re only living somewhere temporarily and need more flexibility.

Prepaid Electricity Plans

Prepaid, or pay-as-you-go electricity plans let you pay upfront for the electricity that you’ll use. You won’t receive a monthly bill after the fact and you usually receive alerts letting you know how much electricity you have left.

100% Renewable Energy Plans

If you’re an advocate for green power, you can show your support by choosing a 100% renewable energy plan. To sign up for a renewable plan, look for the 100% Renewable Sources tag on plans in the ElectricityRates.com Marketplace.

No Deposit Electricity Plans

If you have poor credit, some Texas electricity providers will require a deposit to enroll in an electricity contract. Finding a no-deposit plan will help you avoid these terms and make sure the lights stay on.

Who is My Utility Company in Texas?

Your utility company in Texas is responsible for the transmission and delivery of electricity to your home. This is also who you’ll call when the power goes out or if there are any other issues with your electricity lines. Here is a map that will help you find your Texas utility.

Deregulated Texas Utilities Map

Texas Utility Companies

Compare Electricity Rates in Popular Texas Cities

Click through to learn more about comparing electricity rates in popular Texas cities.

Finding the Best Texas Electricity Company

There is no shortage of options when it comes to choosing the best Texas electricity company. Texans with the power to choose can compare hundreds of providers. These range from Texas-based electricity companies like First Choice Power, Reliant Energy, Pulse Power and TXU to larger brands like Constellation and Direct Energy.

Texas electricity companies have recently received high grades for their response to the COVID-19 pandemic. This comes as a result of diligent customer support including increased support availability, and leniency on late-payments and shutoffs. Several companies donated significant amounts to Coronavirus relief efforts.

ElectricityRates.com carefully selects providers that appear in the Marketplace so you can be confident in your choice. You’ll never have to worry about any gimmicks or hidden fees that can be found when shopping for Texas electricity rates on other sites.

Texas Energy Deregulation History

Energy Choice in Texas began in 2002 with the passing of Texas Senate Bill 7, which mandated that deregulation be phased into the state over the next several years. Except for the cities of Austin and San Antonio, the entire state of Texas is now deregulated – meaning that electricity customers can shop around for the supply side of their electricity charges.

Prior to deregulation in Texas, electricity customers were required to purchase electricity at fluctuating rates from their local utility. Deregulation was established to break down this monopoly, give customers a choice, and drive electricity prices down.

Official Power To Choose Website

Since the deregulation of Texas energy markets, the Public Utility Commission of Texas (PUCT) encourages residents to shop for electricity rates to find their best option. To facilitate this, they operate Power to Choose, the official Texas electricity comparison site.

On Power to Choose, any of the hundreds of licensed Texas electricity companies can list their rates. This may seem like a good thing in theory, but it ends up confusing customers by making it hard to decipher the best rates for them.

There is also a lot less oversight over the types of plans presented. This leads to the occasional inclusion of hidden fees and gimmicks that let providers advertise lower rates and get featured higher up on the site.

As a Power to Choose alternative, ElectricityRates.com only brings you great rates from leading providers with no hidden gimmicks or fees so you can rest assured you’re getting the best deal. We also offer phone support and will answer any and all questions you have about comparing rates.

Reading Your Texas Electricity Bill

In Texas, your electricity bill is generally broken down into two primary categories – delivery charges from your utility and supply charges from your electricity provider. Here’s a quick overview of each:

Delivery charges

  • Required to maintain electricity infrastructure including wires & poles
  • Charged by your local utility
  • Remain the same no matter what provider or plan you choose

Supply Charges

  • Charged for the amount of electricity you use (by the kilowatt-hour kWh)
  • Based on the supply rate that you agree to when signing up for electricity
  • Can be impacted by bill credits and other discounts included in your plan

Moving to Texas and Signing up for Electricity

If you’re moving to Texas and signing up for electricity, the most important thing to know is your anticipated electricity usage. There are two ways you can estimate your usage:

Get Your Electricity Usage from the Previous Owner or Landlord: Contact the current owner, tenant and/or landlord and ask them what their average electricity usage is. This will be in kilowatt-hours and range anywhere from a few hundred to 2,000+ kWh depending on the size of the home.

Estimate Your Usage Based on Home Size: If you’re unable to get the historic electricity usage for your new home, you can estimate what your usage will be. Typical usage for a small home or apartment is around 500kWh/month. Usage for a small home is around 1000 kWh/month and usage for a large home is 2000+ kWh per month.

Texas’ Renewable Energy Future

Renewable energy production is booming in Texas. As of April 2020, 29.8% of Texas’ energy was produced by renewable sources. Renewable energy production in Texas is expected to grow significantly over the next several years.

The green energy boom in Texas comes as a result of Texas’ enormous wind capacity in addition to falling costs of renewables compared to coal and other traditional sources.

If you’re interested in powering your Texas home with renewable energy, there is no need for expensive solar panels or other equipment. Switching to a 100% renewable energy supplier is simple and only takes a few minutes.

Texas Business and Commercial Electricity

Business owners in Texas can save big on their energy costs by partnering with a reputable electricity provider to secure lower rates and optimize their energy usage. Learn more about business electricity rates here and request a free, customized quote today!

Texas Electricity Rates FAQ's

What is a good rate per kWh in Texas?
The average cost of electricity in Texas is 11.20¢ per kilowatt-hour (kWh) according to the Energy Information Administration (EIA). Several leading Texas electricity providers offer lower than average rates that usually depend on how much electricity you use and how long you lock in your contract for.
Why is Texas electricity so expensive?
Electricity bills are usually higher in Texas due to the extreme heat and increased energy demands in the summer months. Despite paying similar rates to the rest of the nation, electricity bills in Texas average $131 which is the 9th highest among other states.
Who is the best electricity provider in Texas?
ElectricityRates.com features several reputable electricity providers in Texas including Constellation, Direct Energy, Pulse Power, TriEagle Energy, Frontier Utilities and Spark Energy.
How do I get the cheapest electricity rates in Texas?
To get the best electricity rates in Texas, enter your ZIP Code in ElectricityRates.com's free Rate Comparison Tool and find your specific usage level. Plans are sorted by price and you can filter to find one that matches your specific preferences.
What is power to choose?
Powertochoose.org is the official electricity shopping platform managed by the Public Utilities Commission of Texas (PUCT). Power to choose is also a common term used to refer to energy deregulation, or the ability to choose your energy supplier.