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How to Find the Best Electric Rates in Houston

Written By: Jesse Shaver

Last Updated: 08/16/2023

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As humans, it’s natural to want the best of everything. We want the best homes in the best neighborhoods, food from the best restaurant, and so on. In addition to everyday things we can see and feel, we also want the best utility plans and providers.

If you’re wondering how to find the best electric rates in Houston from the finest companies, you’ve come to the right place. This article will explore how electricity rates work in Houston, why they’re so different from one another, and how to find the best of the best.

What Are the Average Electric Rates in Houston?

As with over 80% of the rest of Texas, Houston is home to a deregulated electricity market. This means that every electricity provider in Houston can create their own electricity plans and determine their own rates. As such, electricity rates vary wildly from one company to another. On average, however, Houston’s electric rates tend to hover around 12 to 13 cents/kWh.

When you enter your ZIP Code into the free rate comparison tool at the top of the page, you may be able to find a rate much lower than 13 cents/kWh.

Shop Houston Electricity Rates

Texas
Best Electricity Rates
ProviderPlan NameLengthRate Per kWh
At 1000kWh avg. usage
Sign Up
4Change Energy
PUCT #10041
Maxx Saver Select 12
12 Mo.11.3¢Select
Frontier Utilities
PUCT #10169
Frontier Saver Plus 12
12 Mo.11.3¢Select
4Change Energy
PUCT #10041
Maxx Saver Select 24
24 Mo.11.5¢Select
APG&E
PUCT #10105
True Classic 12
12 Mo.14.4¢Select
Constellation
PUCT #10014
12Mo Usage Bill Credit + A/C Protection
12 Mo.15.4¢Select
PlanRate Per kWh
At 1000kWh avg. usage
4Change Energy
Maxx Saver Select 12

12 Months
11.3¢
Select
Frontier Utilities
Frontier Saver Plus 12

12 Months
11.3¢
Select
4Change Energy
Maxx Saver Select 24

24 Months
11.5¢
Select
APG&E
True Classic 12

12 Months
14.4¢
Select
Constellation
12Mo Usage Bill Credit + A/C Protection

12 Months
15.4¢
Select
  • 100% Renewable Sources
  • A/C Protection Included
See All Plans

Which Company Has the Best Electric Rates in Houston?

As a side effect of deregulation, it’s next to impossible to say who has the best electric rates in Houston. Some providers have plans and rates catering to one group of people, while others cater to those with different needs.

For example, some providers have plans where your electricity rate is cheaper when you use small amounts of electricity, whereas other providers reward you for using copious amounts. If you live alone and don’t use much electricity, the first provider will have the best rates for you. However, if you have a large family that uses a ton of electricity, you’ll be better off choosing the plan that rewards excess usage.

Therefore, the best electric rates in Houston will vary from company to company, depending on your needs.

What Does It Mean to Have the Best Electric Rates in Houston?

Contrary to what you may think, the best electric rates in Houston aren’t always the lowest, and here’s why. Most electricity providers offer fixed-rate electric plans with indexed rates. This means that while your base fixed rate stays the same, your rate might increase or decrease depending on how much electricity you use. Here’s an example of how fixed-rate electricity plans with indexed rates works.

While this plan has three different fixed rates, it will be advertised at a rate of 14.2 cents/kWh. However, this rate only applies if you use at between 1,000 and 2,000 kilowatt-hours of electricity. If you use over 2,000, your rate will jump to 19 cents/kWh. If you use less than 1,000 kWh, your rate skyrockets to 24.7 cents/kWh.

This is just one example of a fixed-rate electricity plan. Some plans will have lower rates when you use between 1,000 and 2,000 kWh, while others will have lower rates when you use less than 1,000 kWh or more than 2,000 kWh. Therefore, to know who has the best electric rates in Houston for your needs, it’s essential to see a company’s indexed rates, not just their listed rate.

Factors Included in Your Houston Electricity Rate

If you’re serious about finding the best electric rates in Houston, it’s important to understand how your rate is calculated. Here are the factors that go into determining your electricity rate.

  • Cost of energy production – The company from which you purchase electricity, your REP, doesn’t create the electricity they sell you. Instead, they purchase it from power-generating plants wholesale and sell it to you at retail value.
  • Transmission and delivery fee – Your REP must also pay Houston’s local utility company for safely delivering electricity to your home or business. This cost is included in your electricity rate as a “delivery fee.”
  • Initiation fee or deposit – Most REPs charge a deposit or start-up fee when you first sign up for their plans. This fee will be applied as a flat charge or factored into the first several months of your electricity plan.

In addition to these factors, your electricity rate could also increase or decrease depending on the time of year, the weather, and the type of electricity plan you choose.

Can I Switch Providers If I Find a Better Rate?

The nice thing about electricity plans in Texas is that you can easily switch electricity providers if you find someone offering a better rate. Remember, though, that you might have to pay an early termination fee if you want to change plans before the end of your contract. However, if you’re using ElectricityRates.com to switch to a provider with the best electric rates in Houston, paying the early termination fee might be worth it!

All Houston Electricity Rates

Contact ElectricityRates.com For the Best Electric Rates in Houston

If you’re serious about choosing a plan with the best electric rates in Houston, enter your ZIP Code into our free rate comparison tool at the top of the page. Once you do that, we’ll collect a list of the best electricity plans with the lowest rate in your area. We’ll organize these plans based on their rates, perks, benefits, hidden fees, and other factors. Best of all, we’ll do this in seconds, whereas it could take you hours or days to complete the same task.

Our only goal is to make choosing the right electricity plan as easy as possible. We do this by displaying plan details that are easy to read and understand. However, we believe that you know your needs better than we do. That’s why we only make recommendations at ElectricityRates.com, but we will always leave the final decision up to you.

ElectricityRates.com Houston, TX Location

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