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How to Compare Electricity Rates in Houston

Updated: 01/04/2023

Choosing the right electricity rate and company in Houston, Texas is a job that’s easier said than done. Houston is the energy capital of the United States, which means that energy companies are in great abundance. This mass of energy entities includes retail electric providers – companies selling electricity plans to residential and commercial properties in Houston.

However, there are more than 120 REPs in Texas, many of which offer electricity plans in Houston. Rather than spending hours – if not days – searching on your own for the right electricity plan, ElectricityRates.com provides a different option. While you still have the opportunity to choose your electricity plan, ElectricityRates.com lays out all the plans available in your area in a way that’s easy to read, understand, and compare.

Choosing your electricity plan with us can save you hours and hundreds of dollars. All you have to do is enter your zip code into the free Rate Comparison Tool at the top of the page, and we’ll take it from there!

What Affects Houston Electricity Rates?

Electricity rates in Houston are affected by many things, some predictable and others less so. Your electricity rate can go up or down depending on the time of year, unexpected weather patterns, or who your REP is.

Unexpected Weather

If the Great Texas Freeze taught us anything a few years ago, it’s that electricity rates will skyrocket depending on the weather. The reason for this is that extreme weather can cause damage to the equipment and methods by which electricity gets created. When there’s damage to these things, there isn’t enough electricity to go around, so the prices skyrocket.

What Time of Year It is

The reason that the time of year affects electricity rates is the weather during those times. In the winter, the temperatures in Houston drop, so people are more apt to use their heating appliances in earnest. As a result, there isn’t always enough electricity to go around, so the prices go up. The same happens during hot Houston summers when people use their air conditioners around the clock.

Your REP

However, the biggest thing that will affect your Houston electricity rate is your REP. There are many different REPs in Houston, and they all have different electricity plans and rates. You could save hundreds of dollars by using ElectricityRates.com to compare electricity plans in Houston.

Are Gas and Electricity Rates the Same?

While gas and electricity are forms of energy, gas and electricity rates aren’t the same. In most cases, gas and electricity come from different companies. While ElectricityRates.com can compare gas rates in several other parts of the country, we don’t yet have that ability in Houston.

What are the Average Electricity Rates in Houston

Inflation is hitting the country hard, and it’s affecting electricity rates in Houston. The average electricity rate in Houston had been the same as the rest of Texas for years – between 12 and 13 cents/kWh. However, in recent months, the average electricity rate in Houston has jumped to 13.3 cents/kWh.

When you enter your zip code into the free Rate Comparison Tool at the top of the page, however, there’s a chance you can still find an electricity rate below 13 cents/kWh.

Will Your Type of Plan Affect Your Electricity Rate?

While the weather and your REP play a role in your electricity rate, the type of plan you choose might play the most significant role.

Prepaid Electricity Plans

Prepaid electricity plans, aka no deposit plans, are much like prepaid phone and internet plans, where you pay for electricity at the beginning of each month. Prepaid electricity plans are very low-risk and flexible because they don’t require any type of commitment from their customers. However, because of the low risk and the fact that prepaid plans don’t need a credit check or deposit, their rates are usually higher than other electricity rates.

Flat Rate Electricity Plans

With flat-rate electricity plans, you pay the same monthly price, no matter how much electricity you use. So, if you have a flat-rate plan at $300/month, you’ll pay $300 whether you use 500 kilowatt-hours of electricity or 5,000. However, electricity companies often figure rates for flat-rate plans obnoxiously high to ensure you don’t use more power than you pay for.

Fixed Rate Electricity Plans

Fixed-rate electricity plans are Houston’s most popular type of plan. They’re also the type of Houston electricity plans that you can compare online with ElectricityRates.com. Fixed-rate plans are where you pay the same amount for your electricity for a set amount of time. The reason it's important to compare fixed-rate electricity plans in Houston is that the rates change depending on how much electricity you use.

For example, let's say you see a fixed-rate plan advertised at 12 cents/kWh. Sounds great, right? Unfortunately, you don't see that the rate of 12 cents is based on using a minimum of 2,000 kilowatt-hours. Here's how the plan is actually structured.

How to Choose the Best Electricity Company in Houston

ElectricityRates.com can help make finding your next electricity plan as easy as possible. Our personalized recommendation is tailored to your home’s energy usage, allowing you to find the right plan with the right provider. As you get started, it’s important that you know your average monthly energy usage when signing up for an electricity plan.

We offer rates from several of the best retail energy providers in the country, giving consumers more options when picking who will provide service at their residence or business. Our goal is to help consumers make informed decisions about their energy provider selection and by providing all of this information in one place. We’ll help you compare electricity rates until you find the right plan with the lowest price based on your location and monthly usage.