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Houston Electricity Rates

Updated: 05/13/2021

Compare Houston Electricity Rates

Over 2 million residents have the power to choose their electricity provider thanks to the deregulated electricity market in Houston, TX. While this has allowed many to save big on their electricity bills, the massive variety of options have confused those who are trying to find the cheapest and best Houston electricity rates.

That’s where ElectricityRates.com comes in. With the simple and secure Rate Comparison Tool, you can compare multiple top-rated electricity providers and plans near you in seconds. Type in your ZIP Code above to get started.

Shop Houston Electricity Rates

As a Houston resident, CenterPoint Energy is your local utility company. Check out some of the best rates for CenterPoint below.

Texas
Best Electricity Rates
ProviderPlan NameLengthRate Per kWh
At 1000kWh avg. usage
Sign Up
Frontier Utilities
PUCT #10169
Best Value 12
12 Mo.5.7¢Select
New Power Texas
PUCT#10259
Power of Credit
12 Mo.7.2¢Select
New Power Texas
PUCT#10259
Power of Credit
24 Mo.7.3¢Select
Spark Energy
PUCT #10046
Spark Green Secure 24
24 Mo.9.7¢Select
Constellation
PUCT #10014
12 Month Usage Bill Credit + PowerPlug
12 Mo.9.8¢Select
PlanRate Per kWh
At 1000kWh avg. usage
Frontier Utilities
Best Value 12

12 Months
5.7¢
Select
New Power Texas
Power of Credit

12 Months
7.2¢
Select
New Power Texas
Power of Credit

24 Months
7.3¢
Select
Spark Energy
Spark Green Secure 24

24 Months
9.7¢
Select
Constellation
12 Month Usage Bill Credit + PowerPlug

12 Months
9.8¢
Select
  • 100% Renewable Sources
  • Smart Home System Included
See All Plans

How to Compare Houston Electricity Rates

ElectricityRates.com’s Rate Comparison Tool takes the complicated process of finding the best Houston electricity rates and condenses it down into three simple steps:

How to switch electricity providers in Houston TX
  1. Enter your ZIP Code – This will return the most up-to-date rates and energy suppliers in Houston.
  2. Compare electricity providers – Review each of the electricity plans you’re presented with. Pay careful attention to each plan’s length and rate-structure.
  3. Switch Electricity Providers – After you find the right plan with the best price, select that plan, fill out the info, and enroll.

That’s it! Your newly selected electric provider will take care of the rest. You don’t have to worry about interruptions in your service, as CenterPoint will keep delivering your electricity no matter who your electricity provider is.

Get Cheapest Houston Electricity Rates

In Houston, there are a few factors you should consider to find the right plan for your home.

Your Electricity Usage

Houston plans vary based on your monthly electricity usage. To find the best plan that meets your needs, look over the trends in your electricity bills to determine how much electricity you use on average and which months are higher/lower than usual.

The Electricity Rate

The plan details section every plan on ElectricityRates.com lists your rate at three different usage levels (500 kWh, 1,000 kWh and 2,000 kWh). Your electricity rate is what you pay per kilowatt-hour for electricity.

Plan Type

ElectricityRates.com offers fixed-rate electricity plans so you can lock in a low rate and save. Among those fixed-rate plans, you can get plans with usage credits, plans with 100% renewable energy and plans bundled with other incentives like smart home systems.

Plan Length

For fixed-rate plans, it’s the length that determines how long your rate is locked in. Plan lengths vary widely. Some can be as short as 3 months, while others are as long as 5 years. It’s important to note that many fixed-rate plans have cancellation fees if you cancel before the plan ends. However, longer electricity plans can lock in a low rate for years and help you save big on your monthly bills.

Houston Fixed-Rate Plans

If you’re a Houston resident, you should seriously consider switching to a fixed-rate electricity plan, which locks in your electricity rate for the length of your contract.

The other most popular plan type is a variable rate plan, and these generally end up costing you more in the long run. Variable rates can change each month depending on market conditions, which means you can see an unexpected spike in your electricity bill. This is what happened to many customers during February 2021’s winter storm.

Unlike variable-rate plans, with a fixed-rate plan, your supplier charges you an unchanging rate for a specified period of time. In the long run, this saves you money and keeps your bill predictable.

To ensure you get the best plan possible, ElectricityRates.com primarily features fixed-rate plans.

Moving to Houston and Setting up Electricity

As a new Houston resident, you probably don’t know your electricity usage. However, there are a couple of ways to find it so you can pick the best electricity rate for you.

One way would be to ask the original owners, your new landlord, or your neighbors. They may be able to give you an idea of how much electricity you’re likely to use each month. If you can’t do this, try a short fixed-rate electricity plan. After the plan ends, you can reevaluate and find an electricity plan based on your usage.

Generally, apartments and small homes use around 500 kWh a month, medium-sized homes use around 1,000 kWh and larger homes can use 2,000 kWh a month.

For those of you who are new to the deregulated electricity market in Texas, take a look at the Texas electricity guide. This will give you an overview of Texas’s electricity market so you can understand it and pick the right electricity plan for you.

The Power To Choose

In Texas, power to choose can refer to two things. First, it may refer to the deregulated Texas electricity market, since it gives residents the “power to choose” their own electricity provider.

It can also refer to powertochoose.org, the state’s electricity comparison platform. There are thousands of options available on powertochoose.org. However, for many, this can get confusing.

In fact, that’s the reason why many choose ElectricityRates.com over powertochoose.org. With ElectricityRates.com’s simple and straightforward platform, finding a great electricity rate from a reputable provider is effortless.

Finding A Houston Electric Company Near Me

There are many electricity providers and plans to choose from. In fact, there are so many, finding the right electricity company can quickly become overwhelming. To make it easy, ElectricityRates.com only works with the best electricity providers that serve the Houston area. Here are just a few that you’ll see featured in The Marketplace:

By working with the best Texas electricity providers, plans featured on ElectricityRates.com have great rates and can even come with special incentives. For example, you can find plans with A/C protection, smart-home bundles and more!

There’s no guesswork. All you have to do is enter your ZIP Code, find the right plan for you and enroll.

Who Is My Electric Utility Provider?

CenterPoint Energy is the utility provider that delivers electricity and natural gas to residents in the Greater Houston area. All of CenterPoint Energy’s 2.5 million electric customers have the power to choose their electricity provider.

CenterPoint Energy’s only job is to deliver electricity to your home. You get the electricity you use from one of the 100+ electricity providers in Texas.

CenterPoint Energy Delivery (TDU) Charges

Because CenterPoint still needs to be paid to maintain the infrastructure that brings electricity to your home, there are standard delivery charges on your electricity bill. These are approved by the Public Utility Commission of Texas (PUCT) and are the same no matter your electricity provider. These rates typically change twice a year, on the first of March and September.

Renewable Energy Plans in Houston

Many people still equate Houston with oil. However, this is not the case anymore. Houston, along with the rest of Texas, is looking to lead the clean energy transition.

According to the EPA, as of July 27th, 2020, 90% of the city of Houston’s electricity consumption came from renewable energy.  On top of that, Houston just committed to using 100% renewable energy in 2020 through a renewable plan with NRG. This means that all of the city’s municipal operations will be powered by clean energy.

If you want to be a part of Houston’s transition to renewable energy, you can get a renewable electricity plan. All you have to do is look for the 100% Renewable Sources sticker on any plan.

Houston Business Electricity Rates

If you own a business in Houston, ElectricityRates.com can help you save big on your electricity bill. After filling out the business electricity rates quote request form, an energy advisor will negotiate with providers to get a plan designed specifically for your business. The best part is that there’s no obligation to you.

CenterPoint Incentive Programs

ElectricityRates.com wants to ensure that you take advantage of every benefit Houston electricity has to offer you, even when it comes to things outside of switching electricity providers.

To do that, ElectricityRates.com created a post outlining CenterPoint’s CoolSaver program and more. There, you’ll find rebates, discounts and incentives to help improve the energy efficiency of your home and save you money. Here are just a few:

  • Free A/C tune-up through CenterPoint CoolSaver
  • $50 discount on smart thermostats
  • HVAC rebates ranging from $150-$3,000

CenterPoint’s incentive programs provide multiple ways to lower your Houston energy bill, so be sure to check them out.

Other Texas Utilities That Offer Energy Choice

CenterPoint Energy is not the only utility company in Texas that has Energy Choice. If one of the following companies is your local Texas utility, you have the power to choose your electricity provider as well.

Learn more about electricity rates across the Lone Star State:

Still have questions? Check out the Texas electricity rates guide.

Houston Electricity FAQs

What Is the Average Electricity Rate in Houston?

As of January 2021, the average Texas electricity rate is 11.39¢ per kWh. Various factors influence rates in Texas, including how much electricity you use each month.

How Do I Compare Electricity Rates in Houston?

You can compare electricity rates through a comparison shopping platform like ElectricityRates.com, which lets you compare multiple providers and rates in your area.

How Can I Find the Cheapest Electricity Rates in Houston?

To find the cheapest electric plan in Houston, use your usage to calculate how much each plan will cost you. Our rate assistant, Tiler, can do these calculations for you and provide a transparent recommendation of what plan will be cheapest for you.

Who Has the Best Electricity Rates in Houston?

Who has the best electricity rates for you depends on how much electricity you use each month. You can find the cheapest plan at your usage by entering your ZIP Code and using Tiler, ElectricityRates.com’s rate assistant.

Who Provides Electricity in Houston?

There are dozens of electricity providers in Houston, and Houston residents can choose which one they want to supply their electricity. However, the company that delivers electricity to all Houston residents is CenterPoint Energy, no matter who their electricity provider is.