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Houston Electricity Rates and Companies

Updated: 09/20/2022

Houston is one of the most popular and famous cities, not just in Texas, but in the United States. It's home to the Space Center and the Astros, but it's also the energy and electricity capital of the US. The reason that there are so many electricity companies in Houston is that the city is one of many in Texas with deregulated electricity and energy.

While deregulated electricity puts the power in the hands of the people, the fierce competition that results between Houston power companies makes it tough to know who to sign up with. Enter your ZIP Code in the free Rate Comparison Tool at the top of the page if you're struggling to find the right electricity company and plan in Houston. We can help make your decision easier and save you hundreds of dollars in the process.

To learn more about how to choose the best electricity company and plan in Houston, keep reading!

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
4Change Energy
PUCT #10041
Maxx Saver Select 24
24 Mo.13.8¢Select
Frontier Utilities
PUCT #10169
Frontier Saver Plus 12
12 Mo.13.8¢Select
Rhythm
PUCT# 10279
Simply Bright 6
6 Mo.14.0¢Select
Good Charlie
GoodGreen 36
36 Mo.14.7¢Select
Constellation
PUCT #10014
36Mo Usage Bill Credit + A/C Protection
36 Mo.16.9¢Select
PlanRate Per kWh
At 1000kWh avg. usage
4Change Energy
Maxx Saver Select 24

24 Months
13.8¢
Select
Frontier Utilities
Frontier Saver Plus 12

12 Months
13.8¢
Select
Rhythm
Simply Bright 6

6 Months
14.0¢
Select
Good Charlie
GoodGreen 36

36 Months
14.7¢
Select
Constellation
36Mo Usage Bill Credit + A/C Protection

36 Months
16.9¢
Select
  • 100% Renewable Sources
  • A/C Protection Included
See All Plans

What is the Average Electricity Rate in Houston?

Houston is on par with most of the other deregulated cities in Texas in terms of what the average citizen will pay. Currently, the average electricity rate in Houston is 12.8 cents/kWh, which is slightly lower than the national average.

While the type of plan you have and the amount of electricity you use play a factor, the average monthly electricity bill in Houston is right around $135. If you want to be lower than the average and save on your electricity, Enter your ZIP Code in the free Rate Comparison Tool at the top of the page to switch to a better plan with lower rates.

How to Compare Houston Electricity Rates

We're an electricity plan comparison company and our only goal is to make finding your next electricity provider as easy as possible. We've created our Rate Comparison Tool which lays out plan options that are easy to understand in 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.

What to Consider When Shopping for Electricity Rates in Houston

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 details section of 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

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. 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. 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.

The other 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.

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.

What to Look for in a Houston Electricity Company

Transparency

No matter what you're shopping around for, transparency should always be at the top of your priority list. Transparency is especially important with electricity companies because they're notorious for sneaking hidden fees and tiered rates into their plans. The only way to spot these fees and rates is by looking into the fine print of the plan in question and investigating for yourself.

Perks and Benefits

Because of how competitive the market is, many companies offer discounted rates when you sign up. They also offer free gifts and perks such as a smart thermostat, solar specials, and more.

Free Nights and Weekends

Free nights and weekend plans don't pay off for everyone, but they might be perfect for you. With this type of plan, users get free electricity every evening and on the weekends for a specified amount of time. If these time periods are when you use a majority of your electricity, it might be worth enrolling in one of them.

The Type of Plan You Need

Another one of the most important things to think about before you sign up with an electricity company is if they have the type of plan you're looking for. There are prepaid, fixed-rate, variable-rate, month-to-month, and renewable energy plans. Each type of plan has its own set of pros and cons, and it's important to consider them before deciding which plan is best for you.

Who is the Best Electricity Company in Houston?

Because there are so many different electricity companies in Houston, it's tough to say who the best one is. Each of these companies offers different plans with different rates. Many of them throw in extra perks and benefits or structure their plans in a way that works for some people but not for others. Rather than looking for who your friend or neighbor thinks the best company is, it's important that you decide for yourself.

Doing this takes time and research, but it's well worth it when your electricity bill is lower than before. 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.

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.

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.

Electricity Rates in Houston Neighborhoods

Find your neighborhood below to compare rates for your specific area

Electricity Rates in Houston ZIP Codes

Find your ZIP Code below to compare rates for your specific area

Learn more about electricity rates across the Lone Star State:

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.

ElectricityRates.com Houston, TX Location

  • Address: 4201 Main St Suite 200, Houston, TX 77002
  • Phone: (832) 476-8721

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

Houston Electricity FAQs

What Is the Average Electricity Rate in Houston?

As of May 2021, the average Texas electricity rate is 13.15¢ 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.