Compare Texas Electricity Rates
Texas residents and businesses enjoy the power to choose their own electricity provider as a result of energy deregulation or “energy choice” laws. This page will teach you everything you need to know about comparing Texas electricity rates and making a confident choice!
Average Texas Electricity Rates
Texas Average Bill
The average electricity price in Texas is 11.2¢ per kWh which is 16th lowest in the nation. Texas generates the most energy in the US and has some of the best electricity rates because of it. Yet, with its hot summers and cold winters, Texas electricity usage averages 1,176 kWh per month which is the 5th highest in the country. This leads to an average electricity bill of $131.63 per month which is 9th highest.
Last Updated on March 15th, 2020
Source: U.S. Energy Information Association (EIA)
Shop Texas Electricity Rates
Here are the current Texas electricity rates available by utility. Start by locating your utility below and selecting the rate you would like to switch to.
Centerpoint Electricity Rates
Headquartered in Houston Texas, CenterPoint Energy serves residents throughout the Houston area.
Here are some of the best rates for CenterPoint Energy in Texas:
Oncor Electricity Rates
Oncor serves the Dallas and Fort Worth areas. It is the largest utility provider in Texas.
Here are some of the best rates for Oncor in Texas:
Texas New-Mexico Power Electricity Rates
Headquartered in Lewisville, Texas New-Mexico Power (TNMP) serves 249,000 homes and businesses throughout Texas
Here are some of the best rates for TNMP in Texas:
AEP Texas Electricity Rates
AEP Texas serves over one million electricity customers across the state. There are two divisions of AEP Texas. AEP Central and AEP North.AEP Central serves the southernmost parts of Texas, while AEP North serves the northwestern parts of the state.
Here are the best rates for AEP Central:
Here are the best rates for AEP North:
How to Get the Best Electricity Rates in Texas
ElectricityRates.com offers a free Compare and Switch Tool that helps you compare the best available electricity rates in your area and switch electricity providers through our safe and secure platform. Shopping for electricity rates on ElectricityRates.com is a simple three-step process.
- Enter your zip code – Enter your zip code to see suppliers available in your area.
- Compare electricity providers and plans – Pay attention to each plan’s terms of service, rate, and length.
- Switch electricity providers – After you find the right plan for you, select it, fill out the necessary information, and switch.
To get the best rate for you, you need to stay informed. The rest of this page walks you through all factors to consider when signing up for electricity in Texas including types of rates available, understanding your usage and more.
Types of Electricity Rates Available in Texas
Not all electricity plans are the same. The type of rate you have, your energy sources and how much you pay upfront will vary depending on the plan you pick.
Fixed-Rate Electricity Plans
Fixed-rate plans lock in your rate at the advertised price. The rate does not increase or decrease over the length of the plan which gives you peace of mind and the ability to budget electricity costs accordingly. ElectricityRates.com only offers fixed-rate plans.
Variable-Rate Electricity Plans
Variable-rate plans change rates periodically, usually on a month-to-month basis. Flexibility is the main advantage variable-rate plans have over fixed-rate plans. If you are moving soon or don’t want to commit to a fixed-rate contract just yet, a variable rate plan may work for you. With variable-rate electricity plans, you almost always end up paying more in the long run.
100% Renewable Electricity Plans
No Deposit Electricity Plans
Depending on your credit and your electricity payment history, some providers will require a security deposit. There are three steps you should take when looking for a plan that does not require a deposit.
- Try to sign up for a plan: Whether you have to pay a security deposit or not is usually determined by your credit score. However, even with less than perfect credit, many suppliers won’t require one.
- Choose a plan with a different supplier: Not all suppliers have the same credit requirements, so if one asks you to pay a deposit, try another!
- Look for prepaid plans or ask the electricity provider to have your deposit broken into multiple payments
Electricity Rates in Popular Texas Cities
Click through to learn more about comparing electricity rates in popular Texas cities. You can also Enter your zip code at the top of this page to find available rates in your area.
Texas Electricity Rate Charts
The following charts show the historical average residential electricity prices in Texas, retail sales of electricity to residential customers and the total number of residential electricity accounts.
Average Residential Electricity Price in Texas
Total Residential Electricity Customer Accounts in Texas
Texas Electricity Providers
There are a large number of electricity providers to choose from in Texas ranging greatly in reputation, types of plans offered, service levels and more. In order to reduce the guesswork and leave you confident in your choice, ElectricityRates.com works with only the best providers to bring you great rates through our Rate Comparison Tool.
Click here for a full list of electricity providers and more information on how to compare electricity providers in Texas.
Texas Energy Deregulation History
Electricity deregulation in Texas began in 2002 with the 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 default utility. Deregulation was established to break down this monopoly, give customers a choice, and drive electricity prices down.
Power to Choose in Texas
Powertochoose.org is the official electricity shopping website of the Public Utility Commission of Texas. Power to choose is also a popular way to refer to the ability to choose your own electricity provider in Texas which is also commonly known as energy choice around the country.
The official Power to Choose website features over 50 electricity providers and thousands of electricity plans to choose from which can be confusing if it’s your first time comparing electricity rates. Alternative options to the official Power to Choose website such as ElectricityRates.com strive to eliminate the guesswork by making it easier to compare electricity plans and sign up through a safe and secure platform.
The most important thing to look for when considering an alternative to Power to Choose is the trustworthiness and credibility of the website. Make sure you look for third party reviews on different websites and trust logos to ensure you’re dealing with a reputable website.
Learn more about power to choose in Texas here.
Understanding Your Texas Electricity Bill
The amount of energy you use can change your bill and the average electricity rate that you pay drastically. That is why it’s important to understand your electricity usage and all of the charges that are factored into your Texas electricity bill. A typical electricity bill will include the three following sections:
Texas Utility Charges
These will most likely show up on your bill under “TDU Delivery Charge” and are for your utility provider. Your utility provider owns and maintains the power lines and other infrastructure that is responsible for getting electricity to your home. Usually, there are two charges under the TDU Delivery Charge.
- Base charge: This is a set dollar amount that you pay every month no matter your energy usage.
- Electricity rate charge: This is a charge based on your energy usage. If a charge is by the kilowatt-hour, it’s a rate charge.
These charges are set by the Public Utilities Commission of Texas and will not change based on your energy supplier.
Texas Electricity Provider Charges
This is where you will find the bulk of the charges. Every provider charges for your energy supply by the kilowatt-hour. The rate is often called the “Energy Rate”“or “Energy Charge” This is the charge for the energy you use. However, it is not the only charge. There are many other types of electricity provider charges to look out for.
- Minimum usage fees – Some plans require that you use a minimum amount of energy. If you do not hit the minimum, this fee is added to your bill.
- Base charges – A fixed charge every month by your energy supplier.
- Early cancellation & termination fees – a fee if you cancel your electricity contract before the end of the contract.
Discounts and Incentives
Discounts and incentives are offered upon sign-up and can have a significant impact on your electricity bill and the benefit you receive signing up for a specific plan. These come in two main forms:
- Electricity Usage Bill Credits: An electricity usage bill credit is a credit that is applied to your monthly bill for every month that you use a specific amount of electricity. Plans with bill credits can be more expensive if you don’t use enough electricity to qualify for the bill credit.
- Incentives: Incentives include items like smart home systems that the provider you choose will send to you upon sign-up. Details for these incentives are usually included in the electricity plan details when you’re shopping for rates and can sometimes be combined with bill credits and/or other discounts.
Moving to Texas and Setting up Electricity
If you’re moving to Texas and setting up electricity for the first time, the most important factor while you’re comparing rates is the electricity usage for your new home. There are two ways you can find out what your average electricity usage will be which will help you shop for electricity rates.
How To Find Your New Texas Home’s Electricity 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 electricity usage with an online calculator: If you’re unable to get the historic electricity usage for your new home, you can also estimate what your usage might be using online guides and calculators. 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.
Shopping for Electricity Plans for Your New Texas Home
Once you’ve found out what your historical usage is or come up with an estimate, the next step is to shop for available rates. Our free Compare and Switch Tool found at the top of this page allows you to search for rates by zip code and filter Texas electricity rates by usage amount (500, 1000, 2000 kWh). This takes the guesswork out and quickly helps you find the lowest rate available. We also recommend reviewing all of the other information on this page to make the most informed decision.
Business and Commercial Electricity Rates in Texas
Business owners in Texas can save big on their electricity supply rate by taking advantage of energy choice. However, the process is different than it is for residential customers. Electricity usage can drastically change from business to business. Generally, the more electricity you use, the lower your electricity rates get.
Since rates vary heavily based on your business’s usage, the easiest way to switch is to get in contact with an ElectricityRates.com representative.You can do that by filling out the form on the right side of the business electricity page. After that, they’ll help you find the right plan for your business.
Frequently Asked Questions about Texas Electricity Rates
How do I change my electricity provider in Texas?
The easiest way to change electricity providers in Texas is through an online comparison site like ElectricityRates.com. Comparing and switching is a simple three-step process.
- Enter your zip code – Enter your zip code to see suppliers available in your area.
- Compare electricity suppliers – Pay attention to each plan’s terms of service, rate, and length.
- Switch electricity suppliers – After you find the right plan for you, select it, fill out the necessary information, and switch.
What is the Electricity Facts Label?
An Electricity Facts Label (EFL) is a standard document every Texas electricity plan must-have. It provides an overview of what goes into the electricity rate, whether the plan is fixed or variable, the plan length and other pertinent information.
How does Texas electricity work?
Certain areas of Texas allow their residents the opportunity to choose their electricity supplier. This is called electricity deregulation (aka “energy choice” or “the power to choose” in Texas). This forces electricity suppliers to compete on price and allows the resident to pick a plan that works best for them.
When did Texas deregulate electricity?
Texas electricity deregulation came into effect on January 1st, 2002.
How to choose a Texas electricity provider?
There are many factors to consider when choosing an electricity provider in Texas. An important document to note is the Electricity Facts Label (EFL). The EFL gives you an overview of a Texas electricity plan providing all of the most important information. You should also carefully look over the terms of service so you can fully understand the electricity contract.
Why should I know my electricity usage before switching?
The best electricity rate for you will change based on your usage. Minimum use charges, usage credits, and other factors can change your electricity rate based on your monthly usage. To learn more about how these factors affect your electricity bill, check out the section “How to Calculate Your Energy Bill in Texas.”
Ready to make the switch? Enter your zip code to see rates available in your area!