Electricity rates in Texas can vary, typically falling between 11¢ and 25¢ per kilowatt-hour (kWh), but most Texan households usually pay between 11¢ and 14¢ per kWh. Finding the best rate is crucial to managing your energy costs, and understanding the market dynamics can help you save significantly.
Currently, the lowest electricity plan available starts at a competitive 10.70¢/kWh, which is a substantial 25% less than the average Texas electricity rate of 15.60 ¢/kWh. Historically, winter months often present a favorable opportunity to shop for electricity. Lower demand during winter can lead to more competitive rates, making it an ideal time to secure a plan before prices potentially rise in the summer due to increased energy consumption.
February 2025 Key Takeaways:
- As of February 2025, the average electricity rate in Texas is 15.60 ¢/kWh.
- You can find electricity plans as low as 10.70¢/kWh in Texas right now.
- Winter is a smart time to lock in a fixed-rate electricity plan before summer price hikes.
Built in Texas, For Texans. At Compare Power, we understand the complexities of the Texas electricity market. We are dedicated to simplifying your electricity shopping experience by navigating through confusing advertisements, complicated plans, and lengthy fine print on your behalf.
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Cheapest Electricity Rates in Texas Today
Below are some of the lowest electricity rates currently available in popular Texas cities. These rates are categorized by different usage levels to help you compare based on your estimated monthly consumption.
| City | 500 kWh | 1000 kWh | 2000 kWh |
|---|---|---|---|
| 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 Electricity Rates Near You
How to Choose Your Best Energy Plan
While finding the lowest electricity rate is appealing, it’s not always the most beneficial choice for your specific needs. Here’s why focusing solely on the lowest advertised rate can be misleading:
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Misleading Advertised Rates: The extremely low rates you often see advertised are typically based on very specific energy usage benchmarks, such as 500, 1,000, or 2,000 kWh per month. If your actual energy consumption doesn’t precisely match these levels, you might end up paying a significantly higher rate than expected. Understanding your own energy usage is key to accurately comparing plans.
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The Impact of Usage-Based Credits: Many electricity plans offer bill credits based on specific usage thresholds. However, these credits can be structured in a way that you might lose the entire credit if your usage slightly misses the target. For example, using 999 kWh instead of 1000 kWh might mean you don’t qualify for a substantial credit, leading to a surprisingly higher electricity bill. Always check the fine print regarding usage credits and thresholds.
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Seasonal Energy Usage Fluctuations: Your energy consumption isn’t constant throughout the year. It can vary dramatically with the seasons. For instance, in the peak of a Texas summer in July, you might use as much as 2,513 kWh due to air conditioning, whereas in a milder month like March, your usage could drop to just 632 kWh. Failing to account for these seasonal changes can lead to choosing a plan that isn’t optimized for your overall energy needs.
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Matching Your Plan to Your Usage Pattern: The key to saving money on your electricity bill is to find a plan that closely aligns with your unique energy usage patterns. By understanding how much energy you typically use each month and during different seasons, you can select a plan that offers the most competitive rates for your consumption levels, helping you manage fluctuations and maximize your savings.
Data-Driven Recommendations with Live Link™: To take the guesswork out of choosing the right plan, Compare Power offers Live Link™. This innovative tool provides data-driven recommendations by securely accessing your actual energy usage data directly from your utility. By using your real consumption numbers, Live Link™ helps you avoid surprises and find an electricity plan that is truly tailored to your energy habits and needs.
Try Live Link™ today →
Texas Electricity Plans: Understanding Your Options
Navigating the types of electricity plans available in Texas is essential to making an informed decision. Here’s a breakdown of the most common plan types:
Fixed-Rate Plans: These plans offer a stable electricity rate that remains constant for the entire duration of your contract. Fixed-rate plans are excellent if you value predictability in your monthly bills and want to shield yourself from potential market price volatility. They provide peace of mind knowing your rate won’t change, regardless of external factors.
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 during periods of low demand, they also carry the risk of price increases during peak seasons or due to market events. Variable plans are best suited for those who prefer flexibility and are comfortable with rate changes.
Time-of-Use Plans: These plans, also known as “Time-of-Use” or “TOU” plans, offer different electricity rates depending on the time of day or day of the week. Often, they provide discounted or even free electricity during off-peak hours. For example, Reliant Energy’s popular “Truly Free Nights” plan provides free electricity usage from 8 PM to 6 AM. Free nights and weekend plans are ideal if you can shift a significant portion of your energy consumption (70% or more) to these off-peak times, such as charging electric vehicles overnight or running appliances during free hours.
Prepaid Plans: Prepaid energy plans offer a pay-as-you-go approach to electricity. They typically don’t require a deposit or credit check, making them accessible to a wide range of consumers. Providers like Payless Power allow you to add funds to your account and recharge when your balance is low. Prepaid plans are a great option for budget-conscious individuals, renters seeking no-commitment options, or those who want greater control over their energy spending.
Flat Rate Electricity Plans: If you prioritize bill stability and predictability above all else, flat-rate electricity plans in Texas are worth considering. These plans aim to provide consistent pricing across different usage levels (like 500, 1000, and 2000 kWh), minimizing fluctuations in your bill regardless of your monthly energy consumption.
Business Electricity Plans: Texas businesses can also benefit from the deregulated energy market by securing competitive electricity rates. There are numerous plans tailored to business needs, including options for green energy and customized contracts. Get a custom electricity quote for your business to explore potential savings.
These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated recently. Pricing shown is based on an exact usage of 1000 kWh.
Is Now a Good Time to Buy Electricity in Texas?
Timing your electricity plan purchase can significantly impact your rates. Here’s a guide to help you determine the best time to shop for electricity in Texas:
Winter Months: As Texas transitions into the cooler winter season, electricity demand typically stabilizes. This reduced demand can lead to more competitive electricity rates. Winter is often an opportune time to lock in a favorable plan before market conditions potentially shift in anticipation of higher summer energy consumption and costs.
Before Your Current Contract Expires: Avoid costly month-to-month holdover rates by starting your electricity plan shopping process 2 to 3 weeks before your current contract is set to expire. This proactive approach ensures you have ample time to compare options and switch to a new plan seamlessly without any rate hikes due to contract expiration.
If You Are Currently on a Variable-Rate Plan: Switching away from a variable-rate plan now could protect you from potential rate spikes in the near future. Winter is generally considered an excellent time to secure a fixed-rate plan for long-term price stability and budget predictability.
When Market Conditions Change: Keep an eye on factors that can influence electricity rates, such as natural gas price fluctuations and severe weather events, even in winter. These market shifts can create opportunities to find better rates or highlight the need to lock in a fixed rate to avoid potential increases.
Regularly Check Electricity Rates: The energy market is dynamic and rates can change frequently. It’s a good practice to check electricity rates every 3 to 6 months, even if you are on a contract, to ensure you remain informed about the market and are not overpaying compared to current available offers when your contract nears expiry.
Pro Tip: Be cautious of electricity plans with unusually short contract terms like 3, 5, 7, or 9 months, which are often advertised on the state-run Power to Choose website. These plans are frequently structured to expire during the high-demand summer months when electricity rates are typically at their peak. This can lead to costly automatic renewals at higher rates or force you into a less favorable plan when you need to renew.
Texas Electricity Rates Chart: Historical Trends
This chart illustrates the historical trends in Texas electricity rates, showing how prices have evolved over time for both residential and commercial customers.
As you can see, commercial electricity rates have generally remained more stable, while residential rates have experienced more pronounced fluctuations, characterized by both increases and decreases.
These pricing changes are often driven by factors such as changes in fuel costs (primarily natural gas, which is a major fuel source for electricity generation in Texas), grid reliability issues, and the impact of extreme weather events that can significantly increase demand.
Why should understanding these trends matter to you? Knowledge of historical electricity rate trends can empower you to make more informed decisions and potentially save money on your electricity bills.
Texas electricity rates are known to fluctuate dramatically, largely due to changes in demand and market conditions.
Variable-rate plans and holdover rates are particularly susceptible to these fluctuations, meaning your monthly bill can vary significantly.
Opting for a fixed-rate electricity plan can provide valuable stability and protection against sudden price hikes, making it easier to manage your household budget and energy expenses consistently.
Texas Electricity Rates FAQs: Your Questions Answered
Confused about the intricacies of Texas electricity rates? Here are answers to some frequently asked questions to help clarify things:
Should I lock in an electricity rate now, or wait for rates to potentially go down?
Deciding whether to lock in a fixed electricity rate now or wait is a common dilemma. Locking in a fixed rate now provides a form of insurance against potential price increases.
With winter approaching and the anticipation of higher heating costs in some parts of Texas, locking in a fixed rate means you won’t be subject to unpredictable price swings that can occur due to extreme weather or increased demand.
While electricity prices might experience minor dips in the short term, historical trends indicate that winter conditions often drive prices upwards again. Waiting in anticipation of lower rates carries a risk, as prices are more likely to increase, especially as we approach peak demand seasons.
Choosing a fixed-rate plan provides budget predictability, ensuring your electricity bill remains consistent, even if weather conditions become severe or market prices rise.
What are the average electricity rates in Texas currently?
For residential electricity customers in Texas, the average rate is currently around 15.60 ¢/kWh. Based on an average monthly usage of 1000 kWh, this translates to an average monthly electricity bill of approximately $156.00.
It’s important to note that your actual electricity bill can vary depending on several factors, including your geographic location within Texas, your specific energy consumption habits, and the type of electricity plan you are on.
Business customers in Texas typically pay a slightly lower average electricity rate compared to residential customers, averaging around 8.73 ¢/kWh. For a business using 1,000 kWh per month, this would result in an average monthly bill of about $87.30.
Is it beneficial to switch electricity plans right now?
Switching electricity plans now could potentially lead to significant savings, especially if you haven’t switched plans recently or if your current contract has expired.
Current trends suggest that electricity rates are generally trending upwards. Therefore, waiting to switch plans might mean you could end up paying a higher price for electricity later on.
Pro tip: Consider opting for longer-term contracts, such as 1-year or 2-year fixed-rate plans. These longer contracts often provide better value in the long run by shielding you from seasonal price hikes and potential market volatility, ensuring a stable rate for a more extended period.
Which electricity providers typically offer the cheapest electricity rates in Texas?
Several electricity providers in Texas are known for consistently offering some of the most competitive and cheapest electricity rates. Providers like Gexa Energy, Frontier Utilities, and Rhythm Energy are often among those with attractive pricing.
However, it’s crucial to remember that “cheapest” is not always universally applicable. The best provider and rate for you will depend on your specific location and your unique energy usage patterns.
To find the most suitable and cheapest electricity plan for your needs, always compare plans available in your specific area. This localized comparison will ensure you find a plan that truly fits your consumption profile and offers the best value for your money.
What is considered a good electricity rate in Texas in the current market?
In 2024, a solid fixed-rate electricity plan in Texas will likely fall within the range of 10 to 15 cents per kWh. Finding a rate within this range can be considered competitive and reasonable.
However, remember that the definition of a “good” electricity rate is relative and depends on your individual circumstances. Factors such as your location, the type of plan, and your energy consumption habits all play a role in determining what constitutes a good rate for you.
Don’t solely focus on securing the absolute lowest rate you can find. It’s essential to ensure that the plan you choose aligns well with your energy consumption habits to maximize your savings and avoid unexpected charges or unfavorable terms.
How can I effectively compare electric rates in Texas to make the best choice?
To effectively compare electric rates in Texas, start by gaining a clear understanding of your own energy consumption. Review your past energy bills to determine your average monthly electricity usage in kWh.
Once you know your typical usage, you can use online comparison tools like Compare Power to compare available electricity plans in your area. Enter your usage information to see plans ranked by price for your specific consumption level.
Understanding your energy usage is the foundation for making an informed decision and ensuring you compare plans based on your actual needs, not just advertised rates for generic usage levels.
What are the key steps to find the best electricity rates in Texas for my home?
Finding the best electricity rates in Texas involves a few key steps. First, determine your average monthly energy usage by reviewing your past bills.
Next, explore the different types of electricity plans available in Texas, such as fixed-rate and variable-rate plans. Consider which plan type best aligns with your risk tolerance and budget predictability needs.
Carefully read the fine print and plan details for any plan you are considering. Pay attention to contract terms, any additional fees, and how rates are structured based on usage.
The best electricity rate is not just about the price per kWh; it’s about finding a plan that fits your consumption habits while balancing cost, contract terms, and flexibility.
Which electricity providers are known for having the best electric rates in Texas overall?
The providers offering the “best” electricity rates in Texas can vary depending on your specific energy needs, location, and plan preferences.
However, some providers are frequently mentioned for offering competitive rates and a range of plan options. Providers like TXU Energy, Reliant Energy, and Green Mountain Energy are often considered strong contenders in the Texas market, offering a variety of plans and sometimes leading in competitive pricing depending on the specific offerings at any given time.
It’s always recommended to compare plans from multiple providers and read customer reviews to get a well-rounded perspective and find the provider and plan that best suits your individual home and energy needs.
Why are Texas electric bills sometimes so high, even when rates seem competitive?
High electric bills in Texas can result from a combination of factors. Increased air conditioning usage during the hot Texas summers is a primary driver, as cooling homes consumes significant electricity.
The deregulated energy market in Texas, while offering choice, can also lead to rate fluctuations. Additionally, extreme weather events, which are increasingly common, can drive up demand and prices.
Hidden or less transparent fees charged by some providers can also contribute to higher overall costs that may not be immediately apparent when just looking at the base rate.
To mitigate high bills, consider implementing energy efficiency improvements in your home, such as better insulation or energy-efficient appliances. Actively explore and compare more competitive electricity plans regularly to ensure you are always on a cost-effective option.
What are the primary reasons electricity in Texas can be expensive?
Several factors contribute to the cost of electricity in Texas. High demand, particularly for air conditioning during the long, hot summers, is a major factor.
Changes in the price of natural gas, a key fuel source for electricity generation in Texas, directly impact electricity rates. The state’s deregulated energy market, while intended to foster competition, can also lead to price volatility and complexity for consumers.
While electricity rates in Texas can be subject to these upward pressures, comparing plans and actively selecting one that closely matches your energy usage profile remains the most effective way for consumers to manage their electricity costs and potentially find more affordable options.
Is it predicted that Texas electricity rates will decrease or go down in 2024?
Predicting future electricity rates with certainty is challenging, but there are factors that suggest rates could potentially stabilize or even decrease somewhat in 2024. The increasing contribution of renewable energy sources in Texas, such as wind and solar power, and ongoing improvements to the state’s electrical grid infrastructure could exert downward pressure on prices over time.
However, external factors like unpredictable weather patterns and global energy market prices can still introduce fluctuations. These factors make it difficult to guarantee rate decreases.
Staying informed about market trends and regularly reviewing your electricity plan remains the best approach. By being proactive and informed, you can position yourself to take advantage of any potential rate decreases and ensure you are paying a fair and competitive rate for your electricity.
What is the current average price of electricity in Texas right now in 2024?
As of 2024, electricity rates in Texas generally range from about 11 cents per kWh to as high as 25 cents per kWh. However, the majority of Texas households typically experience rates in the range of 11 to 14 cents per kWh.
It’s crucial to recognize that electricity prices are not uniform across the state and can vary depending on your specific geographic location, the service area you are in, and your individual energy usage patterns. Therefore, it is always advisable to regularly check for the most accurate and up-to-date electricity rates applicable to your specific address and consumption profile to make informed decisions.
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Why Trust Compare Power for Your Electricity Needs?
We understand that navigating the world of energy plans can be confusing and frustrating. As fellow Texans, we created Compare Power to simplify the process and make finding the best electricity rates straightforward and transparent.
- Instantly Compare Plans: Our platform allows you to quickly compare electricity plans from multiple providers side-by-side, saving you time and effort.
- Data-Driven Recommendations: We provide data-driven recommendations using tools like Live Link™ to ensure you get a plan that truly matches your energy usage.
- All-Inclusive Pricing & Easy Enrollment: We present all-inclusive pricing, so you see the full cost upfront, and offer easy online enrollment to make switching plans hassle-free.
With millions of Texans served and over 75,396+ 5-star reviews, Compare Power is a trusted resource for avoiding gimmicks and finding the best value electricity plan for your home or business.
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Stay Informed with Our Latest Articles on Texas Electricity
Explore our latest articles for valuable tips and insights to help you understand your electricity options, make informed choices, and avoid overpaying for your energy needs.
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Author: Brad Gregory
Editor: Ryan Hatch
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