Welcome to the Lone Star state, the land where everything is bigger – except your electricity rates.
When moving to Texas, you do not have to pay a premium price for premium power. Most Texas residents benefit from Energy Choice and the ability to compare offers from electricity providers that are competing for your business.
Keep reading to learn everything you need to know about electricity rates in the Lone Star state if you’re moving to Texas and setting up electricity service for your new home.
What is the Power to Choose in Texas?
Texas is one of a handful of states with deregulated energy, sometimes referred to as the power to choose or Energy Choice. This means a majority of Texas residents get to choose their electricity company and the terms of their electricity service.Power companies in Texas want your business, and they’re willing to work hard to get it.
The Public Utilities Commission of Texas tries to make it easy by listing thousands of offers from a range of providers with varying credibility on the official Power to Choose website. Weeding through the list takes a long time, and even then, you do not know if you’ve landed on a reliable provider. Some will even include hidden fees and gimmicks to advertise a lower rate than you will actually end up paying.
On ElectricityRates.com, you’ll only find the best rates from leading electricity companies in Texas so that you can make a confident choice. We also take all of the guesswork out by providing your estimated total electricity bill and showing you exactly how your electricity rates are calculated in the plan details section.
Types of Texas Electricity Plans
Fixed-Rate Electricity Plans (Most Popular)
A fixed-rate plan is a plan where the electric company sets your rates at one rate. The rate will not fluctuate with the energy market, so you can expect to pay the same amount per kilowatt-hour every month. These are the most popular choice among electricity shoppers for their simplicity and stability.
Variable-Rate Electricity Plans
A variable-rate plan is a plan where the rate will fluctuate with the energy market. Risk-takers will appreciate this plan because they know they may end up with a significantly lower rate on some months. However, if the energy demand spikes, you’ll end up with a significantly higher bill.
No Deposit or Prepaid Electricity
If you’ve had credit problems in the past or have no record of borrowing money, a prepaid plan is a good option. This plan does not require a credit check. You can pay for your energy ahead of time with no deposit required.
Electricity Plan Features
In addition to the different types of electricity rate structures listed above, some plans come with the following features.
100% Renewable Energy
If you have made a healthy planet your focus, then a renewable energy plan may interest you. These plans allow you to offset up to 100 percent of carbon emissions from your home’s electricity consumption. This is done by the electricity company that you choose purchasing Renewable Energy Credits (REC’s) on your behalf.
Rates with Incentives
Providers want your business. Some work so hard that they’re willing to offer incentives for things like a smart-home device package bundled with an electricity plan. You’ll also find that some plans come with home energy reports to help you achieve maximum efficiency and keep your energy bills low.
Can I Choose my Texas Electricity Provider?
Most of Texas is deregulated giving residents in those areas Energy Choice. Residents in Dallas, Houston, Corpus Christi and many more have the power to choose.
Some areas like Austin, Amarillo and El Paso however are not deregulated and have different rules than the rest of the state. Whether or not you have the power to choose depends on your local utility.
We've provided a helpful map below to help you determine if you have the Energy Choice in Texas:
Learn more about Texas Utilities with Energy Choice:
How to Estimate Your Electricity Usage
Once you’ve determined that you’re moving to an area with the power to choose, the first step to comparing rates is figuring out your estimated electricity usage. If you're moving to a new home, you won't be able to get this information from your past electricity bills.
The best way to determine how much electricity your new home will use is to talk to the previous owners, your real estate agent or landlord. Ask them if they know how much electricity the home used and if any months were higher or lower than usual. You can also find average usage levels by home type below for a ballpark estimate.
Average Electricity Usage Levels in Texas
As of January 2022, Texans consume an average of 1,132 kWh at 11.71 cents per kWh, thus spending $132.59 for their residential electric bill. Several factors will play into your consumption. For example, the hottest months of Texas require the most energy consumption since you’ll want to keep your home cool. Also, the number of people in your home affect your consumption along with the age and insulation of your home.
Comparing Texas Electricity Rates After You’ve Estimated Usage
Once you've found your average estimated usage level, it's time to compare rates. To get started, enter your ZIP Code in the free Rate Comparison Tool at the top of the page for rates in your area. In the marketplace, you'll want to start by filtering plans suited for your average usage level.
- Average Size – 750 sq. ft.
- Average Usage –750 kWh per month
- Shop rates for –500 kWh
- Why? –These rates are the best for homes that use 500-999 kWh per month
Small or Medium House
- Average Size –2000 sq. ft.
- Average Usage –1,325 kWh per month
- Shop rates for –1000 kWh
- Why? –These rates are the best for homes that use 1000-1999 kWh per month
- Average Size –4000 sq. ft
- Average Usage –1,325 kWh per month
- Shop rates for –2000 kWh
- Why? –These rates are the best for homes that use 2000+ kWh per month
*Averages provided for demonstration purposes only. Your actual usage depends on a large variety of factors and will vary.
Choosing an Electricity Plan and Signing Up
Once you’ve chosen the best electricity plan for you, it’s time to sign-up. This is fast, simple and free on ElectricityRates.com’s secure platform. Once you’ve selected a plan, you’ll be asked for some information including:
- Contact Information: How to get in touch with you.
- Your New Address: Where you’ll need electricity service.
- Social Security Number: For your chosen electricity provider to check if they require a deposit (this is process is 100% secure on our encrypted platform).
- Start Date: When you need service for your new home – up to 90 days out from the current date.
After filling out all of the required information, your new electricity company will take care of the rest. There is no need to reach out to your local utility and your service will begin on the date you selected.
Research Texas Electricity Rates and Save
Welcome to the land of Energy Choice. Comparing Texas electricity companies and making a confident choice can be challenging – especially if you're moving to Texas for the first time.
ElectricityRates.com makes that process painless by providing all of the information that you need including a safe and secure platform for signing up.
To find the best Texas electricity rates, enter your ZIP Code at the top of the page. You can also find more information by visiting our Texas electricity rates page.