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What is the Average Cost of Electricity in Dallas, TX?

Updated: 05/23/2023

Creating a budget is a big part of being a responsible adult. It’s important to budget for not-so-fun things like groceries, insurance, and utilities, along with fun things like eating out, social events, and parties. However, it can be challenging to budget for utilities such as gas and electricity if you don’t know what kind of costs to expect. Making things even more difficult is the fact that everyone’s electricity uses, and needs are different in Dallas.

If you’re trying to figure out how much you will spend on electricity every month, you’ve come to the right place. This article will look at the average cost of electricity in Dallas, TX, things that affect electricity rates, and much more. We’ll also discuss how to choose the best electricity plan in Dallas so that you can keep your cost as low as possible.

Average Cost of Electricity in Dallas, TX

The amount of money people spend on electricity each month varies wildly in Dallas, TX. Some renters and homeowners will pay upwards of $500 per month, while others will pay less than $50. While several obvious factors affect what you’ll pay for electricity, such as the size of your home and the number of people in your household, there are also less obvious ones.

For instance, Dallas is one of many major cities in Texas that has deregulated electricity. This means that you have the power to choose which electricity provider and plan you prefer. Depending on who you choose, your electricity bill could double or triple compared to that of your next-door neighbor.

Average Electricity Bill

Currently, the average electricity bill in Dallas, TX, is around $170 per month, totaling $2,040 per year. Once again, this number will vary significantly from person to person, but $170 is the general average.

Average Electricity Rates

In the same way, electricity bills can vary widely, and so can electricity rates. Thanks to a highly competitive electricity market where rates are fluid rather than solid, it’s tough to list a consistent average for Dallas electricity rates. In general, however, Dallas electricity rates tend to hover around 14 cents/kWh, but they can be as high as 20 cents depending on the time of year and the economy.

What About Commercial Electricity?

Dallas commercial electricity rates, while just as volatile and unpredictable as residential rates, tend to be slightly lower. Commercial rates are lower than residential rates because of the sheer amount of electricity that businesses use. A company can use between two and twenty times as much power as a house, resulting in average commercial electricity rates of around 3 to 5 cents/kWh cheaper than residential rates.

Things That Affect What You’ll Pay for Electricity

Now that you have a good idea about the average cost of electricity in Dallas, TX, let’s look at things that will affect your rate and monthly bill.

Your Electricity Plan

In Dallas, there are many different types of electricity plans. You can choose a prepaid, variable-rate, flat-rate, or fixed-rate plan. Generally, fixed-rate electricity plans are the most affordable option and come at the lowest price.

The Time of Year

Electricity rates and bills fluctuate a ton depending on what part of the year it is. People tend to use more electricity in the summer and winter months which often leads to higher electricity bills.

Size and Type of Home

As we said before, the size of your home and household will play a massive role in your average cost of electricity in Dallas, TX. The larger your home is and the more people in your family, the more electricity you use and the higher your bill will be.

The Weather

In the same way that the time of year affects electricity rates, so does the weather. Electricity will cost more during extreme temperatures, such as the summer and winter. Additionally, electricity rates tend to skyrocket during natural disasters and periods of severe weather like it did during Winter Storm Uri which hit Texas back in February 2021.

Supply and Demand

Supply and demand play a massive role because the electricity market is deregulated and capitalistic. When electricity is readily available, and there’s no shortage, it doesn’t cost nearly as much. However, when power companies are scrambling to create and deliver new electricity, it tends to cost way more.

How You Choose Your Plan

Finally, the method you use to choose your electricity plan could affect what you end up paying. For instance, doing your own research and choosing a plan usually results in overspending. There are too many REPs in Dallas for you to do your due diligence on every single one. Instead, using an electricity comparison tool, such as, would be best to help you choose your electricity plan.

Why is My Neighbor Paying Less Than Me for Electricity?

If you’re talking about money and utilities with your neighbor and find out they’re paying less for electricity than you are, there’s a good chance they have a different provider. You should get on your computer to avoid overpaying and find a new electricity provider. To do that, enter your ZIP Code into the free rate comparison tool at the top of the page, and will take care of the rest. You can reduce your electricity bill by up to 5 cents/kWh, saving hundreds of dollars annually.

How to Lower My Average Cost of Electricity in Dallas, TX

As mentioned above, switching electricity providers is the best way to lower your electricity bill. Here’s how it works when you enlist the free services of

  • Enter your ZIP Code into the free rate comparison tool at the top of the page.
  • Browse the list of provider options on the following page.
  • You can filter your search according to the type or length of plan you want. You can even get a rough bill estimate according to the square footage of your home.
  • Once you find the right plan, select it and proceed with the signup process.

We make signing up for a new electricity plan as quick and easy as possible. We also pride ourselves on displaying all the information you need to make the right decision in a way that’s easy to read and understand. is a completely free electricity comparison tool, and our only goal is to save you as much money as possible.