Compare Texas electricity rates and plans (December 2024)

Energy deregulation means that Texans have the power to choose — and the responsibility to do their homework on — their energy provider.

The average Texas electricity rate is [brand_field brand_list=”114837″ brand=”Texas State Avg ” field=”cbf_rate_%c2%a2_kwh”] per kilowatt-hour (kWh), according to data compiled through the Power To Choose state website. This is 11% cheaper than the average price for the United States as a whole. According to Brandon Young, CEO of Payless Power, the competition created by energy deregulation is a big differentiator.

“Competition is always good for the consumer,” he said. “Prices in Texas are very competitive and cheap compared to other major markets.”

Still, deregulated electricity can make the Texas energy market feel like the Wild West. Whether you’re a native Texan and are switching energy plans or you’re new to the state, you’ll find dozens of providers and hundreds of plans to choose from when shopping for the best energy provider. But the guidance below can help you find a plan that’s right for you and your energy usage needs.

Top 10 lowest rates and plans in Texas

The free market in Texas has led to a variety of plan types, offering prices that range in cost starting from [brand_field brand_list=”114837″ brand=”Texas State Avg ” field=”cbf_cheapest_12_month_%c2%a2_kwh”] per kWh for a 12 month plan. If your main focus is getting the lowest price, you’ve got options.

Before enrolling in one of the cheapest plans out there, note that many of these plans feature bill credits, times of use or tiered rates. While they may help you save money if your energy usage matches their requirements, they can also cause you billing headaches if you don’t qualify for their discounted rates.

But if you’re set on finding the cheapest plan regardless, the table below details some of the lowest Texas electricity rates.

Energy Provider	Plan Name	Plan Length	Rate per Kilowatt-Hour
Express Energy	Flash 24	24 months	[brand_field brand_list=”114697″ brand=”Express Energy- Flash 24″ field=”cbf_rate_%c2%a2_kwh”]
Veteran Energy	Valor 12	12 months	[brand_field brand_list=”114697″ brand=”Veteran Energy-Valor 12″ field=”cbf_rate_%c2%a2_kwh”]
Champion Energy	Champ Saver 12	12 months	[brand_field brand_list=”114697″ brand=”Champion Energy – Champ Saver 12″ field=”cbf_rate_%c2%a2_kwh”]
4Change Energy	Charitable Saver 12	12 months	[brand_field brand_list=”114697″ brand=”4Change Energy – Charitable Saver 12″ field=”cbf_rate_%c2%a2_kwh”]
Rhythm Energy	Power to Shift 12	12 months	[brand_field brand_list=”114697″ brand=”Rhythm Energy – Power to Shift 12″ field=”cbf_rate_%c2%a2_kwh”]
TriEagle Energy	Savvy Value 36	36 months	[brand_field brand_list=”114697″ brand=”TriEagle Energy – Savvy Value 36″ field=”cbf_rate_%c2%a2_kwh”]
Discount Power	Wise Buy 12	12 months	[brand_field brand_list=”114697″ brand=”Discount Power – Wise Buy 12″ field=”cbf_rate_%c2%a2_kwh”]
Frontier Utilities	Frontier Budget Saver 12	12 months	[brand_field brand_list=”114697″ brand=”Frontier Utilities – Frontier Budget Saver 12″ field=”cbf_rate_%c2%a2_kwh”]
Green Mountain	Pollution Free e-Plus 24	24 months	[brand_field brand_list=”114697″ brand=”Green Mountain – Pollution Free e-Plus 24″ field=”cbf_rate_%c2%a2_kwh”]
Cirro Energy	Smart Simple 12 Online	12 months	[brand_field brand_list=”114697″ brand=”Cirro Energy – Smart Simple 12 Online” field=”cbf_rate_%c2%a2_kwh”]
Gexa Energy	Gexa Energy Saver 24	24 months	[brand_field brand_list=”114697″ brand=”Gexa Energy – Gexa Energy Saver 24″ field=”cbf_rate_%c2%a2_kwh”]
TXU Energy	Simple Rate 12	12 months	[brand_field brand_list=”114697″ brand=”TXU Energy – Simple Rate 12″ field=”cbf_rate_%c2%a2_kwh”]
Payless Power	6 Month – prepaid	6 months	[brand_field brand_list=”114697″ brand=”Payless Power – 6 Month – prepaid” field=”cbf_rate_%c2%a2_kwh”]

How can you lower your electric bill in Texas?

You can use a variety of strategies to lower your Texas monthly electricity bill. Naturally, one route to electricity savings is by switching to a cheaper energy provider.

When shopping for cheaper plans, note that the lowest rate isn’t always the best bet, according to Houston-based Allan Schurr, COO of Enchanted Rock. “A lot of people think that the cheapest energy plan is always the best choice, but that’s not always the case. Sometimes plans with lower upfront costs have additional fees or rates that can spike unexpectedly,” Schurr said.

“It’s important for customers to read the fine print, evaluate their historical electrical usage, and choose a plan that fits their needs, balancing cost and stability, ” Schurr added.

Another option that may help lower your electricity costs is referral credits. Some electric companies offer gift cards or bill credits when you refer a friend or family member and they successfully enroll in an energy plan. Some of the best Texas electricity providers that offer referral programs include the following:

• Green Mountain Energy
• TXU Energy
• Reliant Energy
• Cirro Energy
• Gexa Energy
• TriEagle Energy
• Direct Energy

Other companies offer time of use plans that deliver $0 energy during off-peak hours. You may have heard them referred to as “free nights and weekends” plans. While TXU Energy was one of the early providers of such plans, many light companies now offer this plan type, including Reliant Energy and Green Mountain Energy.

Some providers offer bill credit plans, which can yield big electricity savings. These plans feature usage credits when your energy consumption stays within a set zone of kWh. Some bill credits are as high as $125 a month. That said, if you use more or less than the required amount of electricity, you may end up paying a much higher energy rate.

Another way to save on energy is by simply reducing the amount of electricity you use. Check out the following tips for reducing your energy usage and maybe even your electric bill.

What are the energy plan types in Texas?

Thanks to deregulation, many Texans can choose from a variety of energy plan types. Each has its pros and cons, and there’s no one-size-fits-all for Texas electricity. The plan type you pick should match your personal energy needs.

Below, you’ll find some of the most popular energy plan types in Texas:

• Fixed-rate plans: Fixed-rate energy plans have locked rates that don’t increase for the entirety of your contract, offering price protection.
• Variable-rate plans: Variable-rate energy plans feature prices that change on a monthly basis, often advertising low starting rates and increasing drastically after enrollment.
• Time of use plans: Also known as “free nights and weekends” plans, time of use plans promise zero-cost electricity at certain times. Note that they typically charge very high rates during paid periods to offset the loss of money during free times.
• Prepaid and no-deposit plans: No-deposit, prepaid energy plans don’t require a deposit for enrollment. You can prepay for the energy you use when enrolled in these plans, offering a more flexible payment method.
• Renewable energy plans: Also called green energy plans, renewable energy plans provide electricity derived from renewable sources, such as solar power, wind power and hydropower. Once more costly, renewable energy plans can be as affordable as — if not cheaper than — traditionally sourced energy plans.

How do you switch electricity plans in Texas?

Switching energy providers is one tactic for lowering your energy bill. While many who switch do so to find better rates, others also choose their new electricity provider because they’re looking for an electric company with a better reputation, or they want more plan offerings, according to our April 2024 survey data.

To successfully get the most value when switching providers, it pays to know how many kWh you use on average. We recommend reviewing your energy bills for an entire year to account for rises or dips in usage due to the changing of seasons.

Once you’ve found the right plan for you, enroll online or over the phone. Your new provider will start your service for you, and you won’t even have to cancel with your old electric company. 

If you’re canceling a fixed-rate energy plan, keep an eye out for early termination fees (ETFs). Most fixed-rate plans come with cancellation charges ranging from $150 to $395, although some light companies just charge a flat rate of $20 per month remaining in your contract.

When to switch energy plans in Texas

Historically, spring and fall have been the best times to switch energy plans in Texas because the milder weather during these seasons reduces energy demand, causing prices to drop.

Meanwhile, energy rates often spike in winter and summer because severe weather events, such as winter storms and extreme heat, increase demand for energy, causing spikes in cost. 

Compare Texas energy plans by city

Unless you live in a regulated city, such as Austin or San Antonio, you can shop a wide range of cheap energy plans in your neighborhood. 

From Houston to Lubbock, you’ll find some of the cheapest plans out there, as well as plans that provide predictable monthly electricity bills. 

When shopping for energy plans in your Texas city, note that plans with the highest value may not have the lowest rates. Instead, they may have slightly higher rates with straightforward prices that provide more predictable bills.

City	TDSP	Cheapest 12 month Plan Rate	Average Rate
Houston	Centerpoint	[brand_field brand_list=”114751″ brand=”TDU Rates” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114751″ brand=”TDU Rates” field=”cbf_rate_%c2%a2_kwh”]
Dallas	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]
Fort Worth	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]
Arlington	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]
Corpus Christi	AEP Central	[brand_field brand_list=”114753″ brand=”TDU” field=”cbf_median_rate_%c2%a2_kwh”]	[brand_field brand_list=”114753″ brand=”TDU” field=”cbf_rate_%c2%a2_kwh”]
Plano	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]
Lubbock	Lubbock P&L	[brand_field brand_list=”114755″ brand=”TDU” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114755″ brand=”TDU” field=”cbf_rate_%c2%a2_kwh”]
Katy	Centerpoint	[brand_field brand_list=”114751″ brand=”TDU Rates” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114751″ brand=”TDU Rates” field=”cbf_rate_%c2%a2_kwh”]
McKinney	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]
Killeen	Oncor	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_cheapest_12_month_%c2%a2_kwh”]	[brand_field brand_list=”114697″ brand=”TDU Rates ” field=”cbf_rate_%c2%a2_kwh”]

For the most up to date rates, request quotes using your ZIP code.

What are the top Texas energy providers?

While you can search for energy in Texas by plan, you can also shop by searching for and comparing specific energy providers.

Based on our review standards, the top three companies are Green Mountain Energy, TXU Energy and Reliant Energy. Green Mountain rates very highly because it provides 100% green energy plans. It also scores well in plan cost.

Looking at individual electric companies can give you a more well-rounded view of a supplier, including the quality of its customer service, its range of plans and how long it’s been in business.

How do you pick the best energy plan for you?

Picking the best energy plan for you comes down to knowing your electricity usage, doing your research and choosing an energy plan based on your unique needs. Once you know your energy consumption, you can review plan types and check the fine print for any hidden fees to be certain you’re enrolling in the best plan for you. 

Know your energy usage

Electricity rates in Texas are charged per kilowatt-hour, a measurement of energy usage over time. Rates typically vary at three key usage levels: 500 kWh, 1,000 kWh and 2,000 kWh. Knowing how many kWh you use can help you find the best plan for your needs.

Note that energy usage tends to vary and can shift dramatically depending on the season. While spring and fall tend to see fairly minimal energy usage, the harsher weather of summer and winter often causes huge increases in energy use. Even a simple summer heatwave can send energy prices soaring.

While you may qualify for a plan’s lowest energy rate during winter or summer, your energy usage may drop enough during the spring or fall that you no longer get the lowest rate. This can cause serious bill surprises.

Research plan types

You can choose from a range of plan types and lengths in Texas. Knowing which one is right for you comes down to how you use electricity.

If you find that your home regularly consumes 1,000 kWh or more, one of the cheap bill credit energy plans from Gexa or Frontier may suit you. On the other hand, if your energy usage is concentrated almost entirely at nighttime or over the weekends, consider enrolling in a time of use plan, such as those offered by TXU or Reliant. 

To determine which plan type is best for you, read its electricity facts label (EFL). The EFL is a state-mandated document that provides important electricity rate information, including the provider’s cost per kWh, as well as any base charges. Plus, the EFL details any transmission and distribution (TDU) fees per kWh and any flat TDU charges. You’ll also find any deals or discounts, including times of use or bill credits.

Finally, be sure to read the fine print. Some plans come with tiered rates that can have a big impact on your monthly bill. Meanwhile, most fixed-rate plans come with ETFs. It’s important to know about these fees in case you may want to cancel your plan early. We also suggest reading a plan’s terms of service to find any additional fees or charges before enrolling.

Pick a plan based on your needs

We encourage you to compare Texas energy rates and plans at Home Energy Club, an online energy shopping marketplace. Home Energy Club allows you to compare plans and rates based on your energy usage to help you find an electricity plan that meets your needs.

Electricity comparison marketplaces such as Home Energy Club offer a place for you to search providers, review plans and enroll online. These electricity markets can help you save time by letting you review rates for many electric companies without having to visit dozens of websites.

What should new residents of Texas understand about deregulated energy?

If you’re not from Texas, the deregulated energy market may be a new concept for you. You should know a few things before your move. In 1999, Texas was fully regulated, letting a few monopolies control all things electricity, including power generation, transmission and billing. 

In 2002, Senate Bill 7 broke up those monopolies, giving Texas residents the power to choose their energy provider. The goal of this was to ensure competition between electric companies so that customers like you could get lower electricity prices.

Deregulation has resulted in lower prices. But it has also increased the number of light companies and the plans that they offer, which could make it tough to find the right one for you.

That’s why the Public Utility Commission of Texas (PUCT) established Power to Choose, a government-run energy marketplace where users compare retail electricity providers and plans.

The Electricity Reliability Council of Texas (ERCOT) manages the energy grid with some oversight from the PUCT. ERCOT serves power to 27 million Texans.

We recommend starting your electricity search at least a month before you move to Texas, to allow time to research and compare the best electricity rates. Knowing your new home’s usage is key for finding the right plan for you. You can use Smart Meter Texas to try and find your new home’s estimated usage. Otherwise, you can use your home’s size and shop at the relevant kWh level as detailed in the EFL.

Differences between utilities and energy providers

One of the biggest changes caused by deregulation is the breaking up of monopolies. In the past, single companies generated power, transmitted energy to customers and billed them for it. Now, three types of companies are involved: Generators, TDUs and retail energy providers (REPs). 

As a customer, you’ll deal almost entirely with the REP — the company that markets energy and bills you for your usage. Meanwhile, TDUs are responsible for maintaining lines and repairing power outages. If you’re dealing with an outage, you can contact the TDU, also called a utility company, in your electricity service area.

Note that your electricity rate may vary depending on where you live. This is because all TDUs charge transmission fees per kWh, as well as flat TDU fees per month. According to our research, Oncor was the cheapest service area in the past, but as of July 2024, you’ll find the cheapest rates in the CenterPoint service area.

How have electricity rates changed in Texas?

Currently, the average Texas electricity rates are 15.02 cents per kWh, while the U.S. average is 16.88 cents, according to the EIA. From 2020 to 2023, the average electricity cost in Texas climbed by 22.3%, from 11.71 cents to 14.32 cents per kWh.

Texas energy costs remain lower than the national average. However, the nationwide increase over the past four years has come at a slightly lower percentage than in Texas.

From 2020 to 2023, the average electricity price across the nation increased by 21.5% to 15.98 cents per kWh — almost 1 percentage point less than in Texas.

Additionally, the repercussions of the 2021 widespread power outage during Winter Storm Uri still can be felt in Texas.

“In the wake of Winter Storm Uri in 2021, ERCOT has switched to a very conservative operational posture, and this has incentivized dispatchable resources to not fully commit to the real-time market,” said Don Whaley, current advisor to Texas REP OhmConnect and past president of two other Texas REPs.

“In addition, environmental pressure and costs are forcing either early retirement of fossil generation or more conservative dispatch,” he said.

Part of the reason prices are increasing is that past periods of unusually high demand — such as during unexpected storms — have led power production facilities to throttle supply to save power in case of another spike in demand. The effective dip in supply pushes prices higher.

Some traditional fossil-fuel power plants have been shut down for environmental reasons. Others have slowed power production in favor of renewable energy sources. This can also increase prices to compensate for the time the plant isn’t running at full capacity.

Frequently asked questions about Texas electricity rates

Are Texas electricity rates going up?

Yes, Texas electricity rates have been steadily increasing since 2021, according to data from the EIA and the Bureau of Labor Statistics. That said, many light companies still offer very competitive prices, with some of the cheapest electricity rates starting as low as 10.9 cents per kWh.

Why do I need to have a credit check when buying electricity?

In Texas, energy companies use a credit check to verify your identity and to determine whether you need to pay a deposit before enrolling in your new energy plan. With a good credit score, you might avoid paying a deposit. If you don’t have the strongest credit score, the company may charge you a refundable deposit before your enrollment. If you want to avoid a credit check, some providers offer no-deposit energy plans with no down payment and no credit check.

What month is electricity the cheapest in Texas?

Because the market is so volatile, energy prices tend to increase and decrease unpredictably. However, rates may cost the least in November or March, depending on the weather and other market conditions, such as the commodity cost of gas. Typically, spring or autumn have milder weather, which can reduce demand and cause prices to drop. That said, there’s no guarantee of cheap rates based on past trends.

What’s next?

Consider comparing Texas electricity rates through an online marketplace such as Home Energy Club. You can even filter plans by how predictable they should be.

Before checking out energy rates, familiarize yourself with your energy usage. We recommend reviewing your usage history for a whole year to account for changes in usage due to seasonality. You can also pull your home exact historic usage using Smart Meter Texas.

When comparing electricity companies and energy rates in Texas, don’t just focus on the dollar signs. Also consider a brand’s reputation, renewable energy offerings and ETFs to ensure you find the best provider for your needs.

Our methodology

Our goal is to help you find the best Texas energy provider for your needs. With more than 130 electric companies to choose from, not to mention hundreds of energy plans, picking the right light company for you can be a challenge. We’ve researched dozens of top energy companies in Texas, analyzing electricity costs, billing predictability, plan offerings, customer sentiment and more to review and rank companies — all to help you narrow down your options and make your energy choice with confidence.

Using our research, we’ve put together a robust review methodology, scoring company performance in the following key categories: 

• Provider plan features (33%)
• Customer satisfaction (27%)
• Provider rates and pricing options (20%)
• Provider’s plans bill predictability (20%)

Using a weighted average to highlight the importance of cost and customer satisfaction, we then score these providers out of 5 stars.

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