Electricity costs can be a significant household expense, and in Texas, where the energy market is deregulated, prices can vary widely. Typically, Texans see electricity rates ranging from about 11¢ to 25¢ per kilowatt-hour (kWh), with the average household paying between 11¢ and 14¢ kWh. However, finding the best deal requires you to actively Compare Power Prices and understand the factors that influence your electricity bill.
Currently, you can find energy plans starting as low as 10.70¢/kWh, which is a substantial 25% less than the Texas average of 15.60 ¢/kWh. Historically, winter months often present a good opportunity to compare power prices due to moderate demand, potentially leading to more competitive rates. Locking in a fixed-rate plan during this period can be a smart move to protect yourself from price increases during the peak summer months.
February 2025 Key Insights for Comparing Power Prices:
- As of February 2025, the average electricity rate in Texas is around 15.60 ¢/kWh.
- The lowest electricity rate currently available in Texas is 10.70¢/kWh.
- Winter is an opportune time to compare power prices and secure a fixed-rate plan before summer price hikes.
We, at Compare Power, are Built in Texas for Texans, and we understand the complexities of the energy market. Our mission is to simplify the process of shopping for electricity by cutting through the noise of misleading advertisements, confusing plan details, and extensive fine print.
Our Commitment: We are dedicated to helping you quickly and confidently find the energy plan that best suits your home and lifestyle, without hidden surprises or unnecessary hassle.
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- We’ve reviewed over 100 Electricity Companies.
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Cheapest Electricity Rates in Texas Today: Compare and Save
To help you start your journey to savings, here are some of the lowest electricity rates available in popular Texas cities. Remember to compare power prices specific to your location as rates can vary.
City | 500 kWh | 1000 kWh | 2000 kWh |
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Houston | 16.80¢ | 11.60¢ | 13.80¢ |
Dallas | 14.00¢ | 12.30¢ | 12.10¢ |
Arlington | 14.00¢ | 12.30¢ | 12.10¢ |
Corpus Christi | 15.40¢ | 10.70¢ | 13.20¢ |
Plano | 14.00¢ | 12.30¢ | 12.10¢ |
Laredo | 15.40¢ | 10.70¢ | 13.20¢ |
Garland | 14.00¢ | 12.30¢ | 12.10¢ |
Irving | 14.00¢ | 12.30¢ | 12.10¢ |
Katy | 16.80¢ | 11.60¢ | 13.80¢ |
Grand Prairie | 14.00¢ | 12.30¢ | 12.10¢ |





Find the Best Rates Near You. Start comparing power prices in your city today to see potential savings.
How to Choose Your Best Energy Plan: Beyond Just Comparing Power Prices
While finding the lowest rate is tempting, it’s crucial to understand that the cheapest advertised rate isn’t always the best deal. Effective comparison of power prices involves more than just looking at the surface rate. Here’s why:
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Misleading Advertised Rates: The attractively low rates you often see are typically calculated based on specific energy usage levels (like 500, 1,000, or 2,000 kWh). If your actual monthly energy consumption deviates from these benchmarks, you might end up paying significantly more than advertised. Therefore, when you compare power prices, check the usage levels associated with the rate.
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The Impact of Usage-Based Credits: Many plans include usage-based credits, designed to reward specific consumption levels. However, narrowly missing a usage threshold—for instance, using 999 kWh instead of 1,000 kWh—can result in the loss of these credits. This can lead to unexpected spikes in your monthly bill, even if you thought you were getting a good deal by comparing power prices based on the advertised rate.
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Seasonal Energy Usage Fluctuations: Your energy consumption isn’t constant throughout the year. It can dramatically fluctuate with the seasons. For example, you might use as much as 2,513 kWh during the peak heat of July but only 632 kWh in the milder month of March. When you compare power prices, consider how seasonal changes will affect your overall cost based on your usage patterns.
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Matching Your Plan to Your Usage Habits: The key to truly saving money on electricity is to find a plan that closely aligns with your specific energy usage patterns. By carefully comparing power prices and plan structures, you can manage these seasonal fluctuations and ensure you’re not overpaying during certain times of the year.
Understanding your kWh usage is key to effectively compare power prices and find the best electricity plan in Texas.
Data-Driven Recommendations with Live Link™: To take the guesswork out of choosing the right plan and truly compare power prices effectively, Compare Power offers Live Link™. This innovative tool provides data-driven recommendations by securely accessing your actual usage data directly from your utility. By using Live Link™, you can skip the surprises and find a plan that’s precisely tailored to your real energy habits, ensuring you get the most accurate power price comparison.
Try Live Link™ today → and experience a smarter way to compare power prices and choose your electricity plan.
Understanding Texas Electricity Plans: A Key to Smart Power Price Comparison
When you compare power prices, it’s also essential to understand the different types of electricity plans available in Texas. Each plan type has unique characteristics that can impact your overall costs and savings.
Fixed-Rate Plans: These plans offer a stable electricity rate that remains constant for the entire contract duration. Fixed-rate plans are your shield against market volatility and price fluctuations. They are ideal if you prioritize predictable monthly bills and long-term budget stability. When you compare power prices, fixed-rate plans provide certainty in your energy expenses.
Variable-Rate Plans: In contrast to fixed-rate plans, variable-rate plans feature rates that fluctuate month-to-month based on the wholesale energy market. While they can potentially offer lower rates in the short term, especially during periods of low demand, they also carry the risk of higher costs during peak seasons or unexpected market changes. Comparing power prices for variable-rate plans requires careful consideration of market trends and risk tolerance.
Time-of-Use Plans: These innovative plans, also known as “free nights and weekend plans” [(https://comparepower.com/electricity-rates/texas/free-electricity/)], offer discounted or even free electricity during specified off-peak hours. For instance, Reliant’s “Truly Free Nights” plan provides free power from 8 PM to 6 AM. These plans are a great option for households with flexible energy usage patterns, such as those who can shift a significant portion of their energy consumption (70% or more) to nights and weekends. When you compare power prices of time-of-use plans, assess your ability to shift your energy usage to maximize savings.
Prepaid Plans: Prepaid energy plans offer a pay-as-you-go approach to electricity, eliminating the need for deposits or credit checks. Providers like Payless Power allow you to recharge your account as your balance runs low, giving you greater control over your spending. These plans are particularly suitable for budget-conscious consumers, renters, or anyone seeking a flexible, commitment-free energy solution. When you compare power prices of prepaid plans, consider the convenience and budget control they offer.
Flat Rate Electricity Plans: If predictability and stability are your priorities, flat-rate electricity plans in Texas offer consistent pricing across different usage levels (500, 1000, and 2000 kWh) with minimal rate fluctuation. This type of plan simplifies budgeting and makes comparing power prices more straightforward across different consumption scenarios.
Business Electricity Plans: Texas businesses can also benefit from comparing power prices. Competitive business electricity plans offer low rates, various contract terms, and green energy options. Get a custom electricity quote for your business and start saving.
To give you a clearer picture of available options and facilitate your power price comparison, here’s a table showcasing a range of plans and rates:
These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.
Is Now a Good Time to Buy Electricity? Timing Your Power Price Comparison
Understanding market trends is crucial when you compare power prices and decide when to lock in a new electricity plan. Texas’s seasonal climate significantly impacts electricity demand and, consequently, rates.
Winter: As Texas transitions into the cooler winter months, electricity demand typically stabilizes. This reduced demand often leads to more competitive and predictable rates. Winter can be an ideal window to compare power prices and lock in a fixed-rate plan before market conditions shift in anticipation of summer’s higher energy consumption and costs.
Before Your Contract Expires: Don’t wait until the last minute! Start comparing power prices and shopping for a new plan 2-3 weeks before your current contract expires. This proactive approach helps you avoid being automatically rolled over into a costly month-to-month holdover rate, which can significantly increase your electricity expenses.
If You’re on a Variable-Rate Plan: Variable-rate plans can be risky due to their fluctuating nature. If you are currently on a variable-rate plan, winter is an excellent time to compare power prices and consider switching to a fixed-rate plan. Securing a fixed rate now can protect you from potential rate spikes that may occur later in the year due to weather events or market changes.
When Market Conditions Shift: Various factors can influence electricity rates, including natural gas prices (a primary fuel source for power generation in Texas) and severe weather events, even in winter. Being aware of these market dynamics is important when you compare power prices.
Regular Rate Checks: The energy market is dynamic, and rates can change frequently. To ensure you’re always getting a competitive rate, make it a habit to compare power prices every 3-6 months, even if you are satisfied with your current plan. Regular checks help you identify potential savings and ensure you’re not overpaying.
Pro Tip: Be cautious of very short-term, low-rate plans (3, 5, 7, or 9-month terms) that are often advertised on the state-run Power to Choose website. These plans are frequently structured to expire during the high-demand summer months. This timing can force you into renewing at significantly higher rates when demand and prices are typically at their peak, negating any initial savings you might have gained by comparing power prices superficially.
Texas Electricity Rates Chart: Visualizing Price Trends for Informed Comparison
This chart provides a visual representation of how Texas electricity rates have evolved over time. Observing these trends can be incredibly valuable when you compare power prices and make decisions about your energy plan.
As the chart illustrates, commercial electricity rates have generally remained more stable, while residential rates have experienced greater volatility, showing more pronounced ups and downs. These fluctuations in residential power prices often correlate with factors such as changes in fuel costs, grid reliability issues, or extreme weather conditions that impact demand.
Why is this chart relevant to your power price comparison? Understanding these historical trends empowers you to make more informed decisions and potentially save money on your electricity bills. For example, knowing that rates tend to increase in the summer can reinforce the strategy of locking in a fixed-rate plan during the winter months, as discussed earlier.
Texas electricity rates are known to fluctuate dramatically, primarily driven by changes in demand. Variable-rate plans and holdover rates are particularly susceptible to these market swings. In contrast, choosing a fixed-rate plan can provide a buffer against sudden price increases, offering greater budget predictability and peace of mind. Therefore, when you compare power prices, consider the stability offered by different plan types in the context of these historical rate trends.
Compare Rates & Save. Start comparing power prices now to find a plan that fits your needs and budget.
Texas Electricity Rates FAQs: Answers to Common Questions When Comparing Power Prices
Navigating the world of Texas electricity rates can be confusing. Here are answers to some frequently asked questions to help you compare power prices more effectively and make informed choices.
Should I lock in a rate now, or wait?
Deciding whether to lock in a fixed electricity rate or wait for potential price drops is a common dilemma. Locking in a fixed rate now can be seen as a form of insurance against future price hikes. With winter approaching and the anticipation of increased heating costs, securing a fixed rate provides predictability and shields you from potential price swings during periods of extreme weather or high demand. While there’s always a possibility that prices might dip slightly in the short term, historical trends indicate that winter typically drives prices upwards. Waiting could be a gamble. A fixed-rate plan ensures your bill remains predictable, regardless of weather volatility or market fluctuations. This predictability is a key benefit to consider when you compare power prices and make your decision.
What are the average electricity rates in Texas?
For residential customers in Texas, the average electricity rate is approximately 15.60 ¢/kWh. This translates to an average monthly electricity bill of around $156.00, based on an average usage of 1000 kWh per month. It’s important to remember that your actual bill will vary depending on several factors, including your specific location within Texas, your household’s energy consumption habits, and the specific electricity plan you choose. Businesses in Texas typically pay a slightly lower average rate for electricity, around 8.73 ¢/kWh. This would result in an average monthly bill of about $87.30 for a business using 1,000 kWh per month. These averages provide a useful benchmark when you compare power prices and assess whether a particular plan offers a competitive rate.
Should I switch plans now to get a better power price?
Switching electricity plans can lead to significant savings, particularly if you haven’t switched plans recently or if your current contract has expired. If you are currently out of contract and paying a holdover rate, switching to a new plan is almost certainly a financially sound decision. Current market trends indicate that electricity rates are generally trending upwards. Therefore, waiting to switch plans might result in you encountering higher prices later. A pro tip to maximize savings when you compare power prices is to consider longer-term contracts (1-2 years). These longer contracts often provide a degree of protection against seasonal price hikes and market volatility.
Who has the cheapest electricity rates in Texas?
Several electricity providers in Texas are known for consistently offering some of the most competitive rates. These often include Gexa Energy, Frontier Utilities, and Rhythm Energy. However, it’s crucial to understand that the “cheapest” provider isn’t universally the same for everyone. The best provider and plan for you will depend on your specific location and your unique energy usage patterns. The most effective way to find the cheapest rate for your needs is to compare power prices and plans available in your specific area.
What is considered a good electricity rate in Texas?
In 2024, a competitive fixed-rate electricity plan in Texas will likely fall within the range of 10 to 15 cents per kWh. However, defining a “good” electricity rate is not absolute. It’s relative to your individual circumstances, including your geographic location and your household’s energy consumption. While it’s tempting to immediately gravitate towards the absolute lowest rate you find when you compare power prices, it’s essential to ensure that the plan aligns with your energy consumption habits. A plan with a slightly higher rate but better terms and conditions that match your usage could be a better value in the long run.
How do I effectively compare electric rates in Texas?
The first step to effectively compare power prices in Texas is to gain a clear understanding of your household’s energy consumption. Start by reviewing your past energy bills to determine your average monthly electricity usage in kWh. Once you have this usage information, you can begin to compare available electricity plans in your area. Focus on finding plans that offer the best rates for your specific usage level. Understanding your consumption habits ensures that you are comparing power prices in a way that is relevant to your actual energy needs, leading to a more informed and cost-effective decision.
How can I find the best electricity rates when comparing power prices in Texas?
Finding the best electricity rates involves a strategic approach to comparing power prices. Begin by accurately determining your average monthly energy usage. Then, explore the different types of electricity plans available, such as fixed-rate and variable-rate plans. Carefully read the fine print and plan details for each option, paying close attention to any additional fees, usage credits, or contract terms. The “best” rate is not just the lowest number; it’s the rate that, when combined with plan features and conditions, best fits your consumption habits while balancing cost and flexibility. Thorough power price comparison is key to finding the optimal plan.
Which providers offer the best electric rates in Texas?
The providers offering the “best” electricity rates in Texas can vary depending on your specific energy needs and geographic location. However, some providers consistently receive positive customer reviews and are known for offering competitive rates. These often include TXU Energy, Reliant Energy, and Green Mountain Energy. When comparing power prices, it’s beneficial to consider plans from these and other reputable providers. Beyond just looking at rates, take the time to read customer reviews and assess the overall reputation and service quality of different providers to find the one that best suits your home and preferences.
Why are Texas electric bills sometimes so high?
High electric bills in Texas can be attributed to a combination of factors. Increased air conditioning usage during the hot Texas summers is a primary driver of higher consumption. The state’s deregulated energy market, while offering choice, can also lead to fluctuating rates. Extreme weather events can strain the grid and further impact prices. Additionally, various fees and charges levied by providers can contribute to higher overall costs. To mitigate high bills, consider implementing energy efficiency improvements in your home and proactively compare power prices to find more competitive electricity plans.
Why can electricity in Texas be considered expensive?
While Texas benefits from a deregulated energy market, electricity costs can sometimes be perceived as expensive due to several underlying factors. The high demand for air conditioning during the long, hot summers significantly increases overall energy consumption. Fluctuations in the price of natural gas, a major fuel source for electricity generation in Texas, directly impact electricity rates. The deregulated market itself, while promoting competition, can also introduce complexities in pricing. However, despite these factors, consumers can effectively manage their electricity costs by diligently comparing power prices, understanding their usage, and selecting plans that align with their needs and budget.
Are Texas electricity rates expected to decrease in 2024?
Predicting future electricity rates with certainty is challenging due to market volatility and external influences. However, there are factors that suggest rates could potentially stabilize or even decrease in 2024. The increasing adoption of renewable energy sources in Texas, such as wind and solar power, is adding more diverse and potentially cheaper energy to the grid. Ongoing improvements to the state’s electrical grid infrastructure can also enhance efficiency and reliability. Despite these positive trends, external factors like unpredictable weather patterns and global energy price fluctuations can still exert influence on rates. The most prudent approach is to stay informed about market trends and regularly compare power prices and your energy plan to ensure you are paying a fair and competitive rate.
What is the current average price of electricity in Texas?
As of 2024, electricity rates in Texas generally range from approximately 11 to 25 cents per kWh. However, the majority of Texas households typically experience rates between 11 and 14 cents per kWh. It’s important to note that these are average ranges, and actual prices can vary based on your specific geographic location within Texas and your household’s unique energy usage patterns. To get the most accurate and up-to-date rates for your situation, it’s always recommended to compare power prices directly from providers serving your area.
Get Help Finding Your Best Plan
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m. Our Power Advisors are ready to assist you in comparing power prices and finding the perfect plan.
Why Trust Compare Power for Your Power Price Comparison Needs?
We understand that navigating the complexities of energy plans can be frustrating. As fellow Texans, we created Compare Power to simplify the process of finding the best electricity rates, making it simple and transparent. When you use Compare Power to compare power prices, you benefit from:
- Instant Plan Comparison: Easily compare power prices and plan features side-by-side from multiple providers.
- Data-Driven Recommendations: Get personalized plan recommendations based on your actual energy usage with Live Link™.
- All-Inclusive Pricing and Easy Enrollment: We provide transparent, all-inclusive pricing, and streamline the online enrollment process.
With millions of Texans served and over 75,396+ 5-star reviews, Compare Power is your trusted partner in avoiding gimmicks and finding the best value when you compare power prices.
Find Your Cheapest Electric Rate and start saving today by comparing power prices with Compare Power.
Stay Informed with Our Latest Articles
Expand your knowledge and make informed decisions about your electricity choices with our helpful articles.
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Timing is everything when comparing power prices. Discover the best time to switch electricity providers in Texas to maximize your savings and avoid price increases.
Read More Best Time to Switch Electric Providers in Texas
Don’t let your electricity contract expire without a plan. Learn about contract expiration and how to avoid costly holdover rates by proactively comparing power prices.
Read More Electricity Contract Expiration Guide
Author: Brad Gregory
Editor: Ryan Hatch
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