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Everything You Need to Know About Houston Power Rates

Updated: 03/06/2023

Whether you’re new to Houston or have been a lifelong resident, it’s vital to understand how your electric rates work. Houston’s power rates work similarly to how rates do in the rest of the state and country. However, Houston’s power rates can get slightly confusing because of the fierce competition and the number of electricity companies in the area.

If you need help understanding your Houston power rates or how to find a more affordable option, you’ve come to the right place. This article will tell you everything you need to know about your electricity rates, what affects them, and how to secure an affordable rate. We’ll also look at who to turn to if you’re searching for a new electricity plan in Houston!

What are the Average Houston Power Rates?

Currently, the average Houston power rates are sitting around 14 cents/kWh, slightly higher than the Texas average of 13.25 cents/kWh. However, just because 14 cents/kWh is the average rate doesn’t mean it will be your rate. There are hundreds of electricity providers and plans to choose from in Houston, many of which offer rates lower than 14 cents.

However, in order to find those affordable plans, you’ll want to get a basic understanding of what to know before you start shopping around. Our helpful page on How to Compare Electricity Rates will give you an overview of what you need to know. is also here to help you select an electricity provider. Enter your ZIP Code into the free rate comparison tool at the top of the page. We will then compile a list of all the electricity plans and their rates available in your area. Once you have all the information, you’ll easily find the most affordable Houston power rates.

Who has the Cheapest Houston Power Rates?

Because of the volatile nature of the Texas electricity market, the cheapest company today might not be the most affordable company tomorrow. Additionally, new retail electric providers are constantly opening their doors and starting to offer electricity to the residents of Texas.

Because of these reasons, it’s tough to say who the cheapest electricity company is in Texas. It changes daily, so it’s essential to lock in a low, fixed-rate that won’t change.

What Affects the Cost of Houston Power Rates?

Another thing that makes it tough to find the best Houston power rates is that many factors impact them.

Time of Year

You may have noticed that Houston’s power rates are higher at certain times of the year than others. In particular, the summer and winter months often result in the highest electricity rates. This is because power is in higher demand at these times of the year, leading to less supply and higher prices.

Time of Day

In addition to the time of year, the time of day also plays a role. Electricity rates tend to skyrocket during peak usage hours, typically from early afternoon to evening. This is because everyone wants to use power simultaneously, which places additional stress on the power grid and results in higher electricity rates.


Your location will largely determine how readily available electricity is in your area. The more readily available it is, the cheaper it will be.

Supply Chain Issues

Supply chain issues are closely linked to your location. However, supply chain issues can arise because electricity needs to be produced faster to keep up with the power grid. When this happens, electricity is more expensive, which results in a higher Houston power rate.

Why are Houston Power Rates on the Rise?

Over the last year or two, Houston’s power rates have been higher and more volatile than ever. You can point at any factors, including the ones listed above, and blame them for the high electricity rates. Power rates are more unpredictable than ever between inflation, competition, and supply chain issues because of the Russia-Ukraine conflict.

Additionally, despite having less oil and gas to go around than before, Texas continues to be the leading oil and gas distributor to the U.S. and foreign countries. While this is good for the local economy, it puts even more of a damper on the Texas power grid, resulting in high Houston power rates.

Luckily, while Texas is the country’s leading oil and gas producer, we also produce more electricity from renewable resources than anyone else. Therefore, the Texas power grid isn’t wholly reliant on fossil fuels for electricity production.

How to Lock in the Best Houston Power Rates on the Market

If you have yet to learn by now, the best way to find Houston power rates is to use We take electricity seriously and are industry leaders. We only partner with providers of the best reputation and plans. Feel free to check out our list of Best Texas Electricity Providers to see who we rank the best of the best.

Unlike other online comparison tools when shopping for an electricity plan, we don’t pick the company for you. We believe that you know your needs better than anyone, so we want to provide you with all the details you need to make an informed decision. Here’s how the process works.

  • Find out how much electricity you use on average each month and the average square footage of your home.
  • Our intuitive search engine shops for the best rates based on your exact home address, location, home size, and actual usage.
  • A list of all the electricity companies in your area will pop up, giving you a personalized list of plans tailored to your home.
  • You can go through the list of plans and check things such as the listed rate, the tiered rates based on usage, your estimated bill, the REPs reputation, hidden fees, perks and benefits, and anything else you need to know about the plan.
  • Once you find the plan you like, you can select it and enroll immediately.
  • There won’t be any service interruptions while we switch you from your old plan to the new one.

When choosing the best electricity plan in Houston, is the way to do it.