Electricity rates in Texas can be confusing, with prices typically fluctuating between 11¢ and 25¢ per kilowatt-hour (kWh). Most Texas households are currently paying between 11¢ and 14¢ per kWh. However, finding the absolute lowest rate is possible.
Currently, the cheapest energy plan available starts at a competitive 10.70¢/kWh, which is a significant 25% less than the average Texas electricity rate of 15.60¢/kWh. Historically, winter months often bring lower electricity demand, which can translate to more competitive rates. This makes winter an ideal time to Compare Power Companies and lock in a favorable energy plan before prices potentially increase during the peak summer season.
Key Takeaways for February 2025:
- As of February 2025, the average electricity rate in Texas is 15.60¢/kWh.
- The lowest electricity rate currently available in Texas is 10.70¢/kWh.
- Winter is a strategic time to compare power companies and secure a fixed-rate plan before summer price hikes.
We understand the challenges of navigating the Texas energy market. Built in Texas for Texans, Compare Power simplifies your electricity shopping experience. We cut through the noise of misleading advertising, complex plan details, and confusing fine print to help you confidently compare power companies.
Our mission is to empower you to quickly and easily find the perfect energy plan for your home and lifestyle, without the stress of hidden fees or unexpected surprises.
We are an independent platform, separate from any energy providers. This ensures that every recommendation we offer is completely unbiased and focused solely on your best interests. You can rely on us to prioritize your needs when you compare power companies.
Our Proven Track Record:
- Over 100 Power Companies Thoroughly Reviewed
- More Than 250 Electricity Plans Compared Side-by-Side
- Trusted by Over 5 Million Texans
- Over 75,396 5-star Customer Ratings & Reviews
- Proudly Serving Texas Residents for Over 15 Years
“Compare Power helped me find the right energy plan for my family. It was a great experience!” Chuck Harris
“Found it easy to choose an electric provider with great rates.” Shelby Cowger
Compare Cheapest Electricity Rates by Texas City
To help you start comparing power companies, here are the lowest electricity rates currently available in several major Texas cities:
| 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 Rates Near You
Choosing the Right Power Company: Beyond the Lowest Rate
While finding a low electricity rate is a priority, it’s crucial to understand that the absolute lowest advertised rate might not always be the most beneficial choice for your specific needs. When you compare power companies, consider these important factors:
-
Beware of Misleading Advertised Rates: Power companies often advertise very low rates, but these are typically based on specific energy usage levels, such as 500, 1,000, or 2,000 kWh per month. If your actual energy consumption doesn’t perfectly align with these benchmarks, you might end up paying more than anticipated.
-
Understand Usage-Based Credits: Many plans include usage-based credits that can significantly lower your bill if you meet certain consumption thresholds. However, narrowly missing these thresholds—for example, using 999 kWh instead of 1,000 kWh—can result in the loss of these credits and an unexpectedly higher bill. Carefully compare power companies’ credit structures.
-
Account for Seasonal Usage Changes: Your energy usage can vary dramatically throughout the year due to seasonal weather changes. For instance, you might use significantly more electricity during the hot summer months (e.g., 2,513 kWh in July) compared to cooler months (e.g., 632 kWh in March). When you compare power companies, think about how plans accommodate these fluctuations.
-
Match Plans to Your Unique Usage Pattern: The most effective way to save money on your electricity bill is to select a plan from a power company that closely matches your individual energy consumption habits. This alignment helps you effectively manage seasonal fluctuations and optimize your savings.
Data-Driven Recommendations with Live Link™: To take the guesswork out of comparing power companies, Compare Power offers Live Link™. This innovative tool provides data-driven plan recommendations by securely accessing your actual energy usage data directly from your utility. By using Live Link™, you can bypass potential billing surprises and choose a plan specifically tailored to your real energy habits.
Try Live Link™ today →
Types of Texas Electricity Plans from Different Power Companies
When you compare power companies, you’ll encounter various types of electricity plans, each designed to cater to different needs and preferences:
Fixed-Rate Plans: These plans offer a stable electricity rate that remains constant throughout your contract term. Fixed-rate plans are an excellent choice if you value predictable monthly bills and protection from energy market volatility. When comparing power companies, consider fixed-rate plans for budget certainty.
Variable-Rate Plans: In contrast to fixed-rate plans, variable-rate plans feature rates that fluctuate month-to-month based on wholesale energy market prices. While these plans can potentially offer lower rates during periods of low demand, they also carry the risk of price increases during peak seasons. Variable-rate plans might be suitable if you prioritize flexibility and are comfortable with rate variability. Carefully assess your risk tolerance when comparing power companies offering variable rates.
Time-of-Use Plans: These plans offer differentiated pricing based on the time of day, often providing discounted or even free electricity during off-peak hours. For example, Reliant’s popular “Truly Free Nights” plan provides free electricity usage between 8 PM and 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. Compare power companies that specialize in time-of-use plans if your lifestyle allows for flexible energy consumption.
Prepaid Plans: Prepaid electricity plans provide a pay-as-you-go approach, eliminating the need for deposits or credit checks. Prepaid energy plans from providers like Payless Power allow you to add funds to your account as needed, offering greater control over your spending and making them a good option for budget-conscious consumers or renters seeking commitment-free electricity. When you compare power companies, prepaid plans offer flexibility and budget management.
Flat Rate Electricity Plans: If you prioritize consistent billing and predictable expenses, flat-rate electricity plans in Texas offer relatively stable pricing across different usage levels (500, 1000, and 2000 kWh), minimizing fluctuations in your monthly bills. Compare power companies’ flat rate options for predictable budgeting.
Business Electricity Plans: Texas businesses can also benefit from the deregulated energy market by comparing power companies and securing competitive rates, tailored plans, and even green energy options. Get a custom electricity quote for your business to start saving.
These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.
When is the Best Time to Compare Power Companies and Buy?
Timing your electricity plan purchase can significantly impact your savings. Here’s when to compare power companies and consider locking in a new plan:
Winter Months: Historically, winter in Texas sees more stable electricity demand. This often translates to power companies offering more competitive rates. Winter is an opportune time to compare power companies and secure a favorable fixed-rate plan before market conditions change in anticipation of higher summer demand and prices.
Before Your Current Contract Expires: Don’t wait until the last minute! Begin comparing power companies and exploring new plans 2-3 weeks before your current electricity contract expires. This proactive approach helps you avoid automatic enrollment in a costly month-to-month holdover rate with your existing provider.
If You Are on a Variable-Rate Plan: Variable-rate plans can be risky due to potential price spikes. Switching away from a variable-rate plan, especially during winter when fixed rates are often competitive, can protect you from future rate increases. Winter is an excellent time to compare power companies’ fixed-rate offerings and secure long-term price stability.
When Market Conditions Shift: Keep an eye on factors that can influence electricity rates, such as natural gas price fluctuations and significant weather events, especially during winter. These market shifts can create opportunities to compare power companies and find better deals.
Regularly Check Rates: The energy market is dynamic. It’s wise to compare power companies and check electricity rates every 3-6 months, even if you are under a contract. Regular monitoring ensures you remain informed and aren’t overpaying for your electricity.
Pro Tip: Be cautious of extremely low-rate plans with short contract terms (3, 5, 7, or 9 months) that you might find advertised on the state-run Power to Choose website. These plans are often structured to expire during the high-demand summer months, potentially leading to costly renewals when rates are typically higher. Always compare power companies’ contract terms carefully.
Texas Electricity Rates Chart: Understanding Price Trends
Historical Texas electricity rates chart showing residential and commercial price trends.
This chart illustrates the historical trends in Texas electricity rates. You can see that commercial electricity rates have generally remained more stable, while residential rates have experienced greater volatility, with more pronounced peaks and valleys.
These price fluctuations are often driven by factors such as changes in fuel costs (natural gas is a primary fuel source for electricity generation in Texas), grid reliability issues, and the impact of extreme weather events on demand and supply.
Why is understanding these trends important when you compare power companies? Recognizing historical rate patterns can empower you to make more informed decisions and potentially save money on your electricity bills.
Texas electricity rates are known to fluctuate dramatically, primarily due to changes in demand. Variable-rate plans and holdover rates are particularly susceptible to these market swings. Opting for a fixed-rate plan from a power company can provide valuable stability, protect you from unexpected price surges, and make it easier to manage your household budget. Compare power companies and consider fixed-rate plans for price predictability.
Compare Rates & Save
FAQs About Comparing Texas Power Companies and Electricity Rates
Navigating the landscape of Texas electricity rates and power companies can raise several questions. Here are answers to some frequently asked questions:
Should I Lock in a Rate Now, or Wait to Compare Power Companies?
Deciding whether to lock in a fixed electricity rate now or wait and continue comparing power companies is a common dilemma. Locking in a fixed rate now offers a degree of price certainty and acts as a form of “insurance” against potential future price increases.
With winter approaching and the likelihood of increased heating costs, securing a fixed rate now can provide peace of mind. You’ll avoid the anxiety of unpredictable price swings that often accompany extreme weather conditions.
While there’s always a possibility that prices might dip slightly in the short term, historical trends suggest that winter typically drives electricity prices upwards. Therefore, waiting to compare power companies and lock in a rate carries a certain level of risk.
Choosing a fixed-rate plan provides predictable monthly bills, regardless of weather-related demand fluctuations. While prices might decrease slightly in the near future, the overall trend in winter is usually upward. Locking in a rate now when you compare power companies can be a prudent decision for budget stability.
What are the Average Electricity Rates in Texas?
For residential customers in Texas, the average electricity rate currently stands at 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 remember that your actual electricity bill will vary based on several factors, including your geographic location within Texas, your individual energy consumption habits, and the specific electricity plan you choose when you compare power companies.
Businesses in Texas typically pay a slightly lower average electricity rate of 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 Now a Good Time to Switch Power Companies and Plans?
If you haven’t switched electricity plans recently, or if you are currently out of contract, switching power companies and plans now could lead to significant savings.
Current trends indicate that electricity rates are generally trending upwards. Therefore, delaying your decision to switch and compare power companies might result in encountering higher prices later.
Pro tip: When comparing power companies and plans, consider longer contract durations (1-2 years). These longer-term contracts often offer better protection against seasonal price increases and can pay off in the long run.
Which Power Companies Have the Cheapest Electricity Rates in Texas?
Several power companies in Texas are known for consistently offering some of the most competitive electricity rates. These include Gexa Energy, Frontier Utilities, and Rhythm Energy.
However, it’s crucial to remember that “cheapest” isn’t always synonymous with “best.” The ideal power company and plan for you will depend on your specific location and your unique energy usage patterns.
The most effective approach is to compare plans available in your specific area to identify the power company and plan that provides the optimal combination of rate and features tailored to your individual needs.
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 somewhat subjective and depends on your individual circumstances, including your location and your average monthly energy consumption.
Don’t solely focus on the absolute lowest rate you find when you compare power companies. Instead, prioritize finding a plan that aligns with your specific energy usage habits and provides the best overall value for your needs.
How Do I Effectively Compare Electric Rates in Texas?
The first step in effectively comparing electric rates in Texas is to understand your own energy consumption. Begin by reviewing your past energy bills to determine your average monthly electricity usage in kWh.
Once you have a clear understanding of your typical usage, you can then use online comparison tools like Compare Power to compare available plans from different power companies in your area. Focus on finding plans that offer the most competitive rates for your estimated usage level.
Understanding your energy usage is key to making an informed decision when you compare power companies and select a plan that truly meets your needs and budget.
How Can I Find the Best Electricity Rates When Comparing Power Companies in Texas?
Finding the best electricity rates in Texas involves a strategic approach to comparing power companies and plans. Start by accurately assessing your average monthly energy usage.
Next, utilize online comparison platforms to explore both fixed-rate and variable-rate plans offered by different power companies. Carefully review the plan details and fine print to identify any additional fees or charges that might apply.
The “best” electricity rate is ultimately the one that best fits your individual consumption habits while striking a balance between cost-effectiveness and the level of flexibility or price stability you desire. Compare power companies thoroughly to find this optimal balance.
Which Power Company Has the Best Electric Rates in Texas?
The “best” power company in Texas, in terms of electricity rates, can vary depending on your specific energy needs, location, and plan preferences. There isn’t a single company that universally holds the title of “best” for everyone.
However, some well-regarded power companies known for offering consistently competitive rates in Texas include TXU Energy, Reliant Energy, and Green Mountain Energy.
To find the best power company and plan for you, it’s essential to actively compare plans from various providers and read customer reviews to gauge overall satisfaction and service quality. Compare power companies based on your unique requirements.
Why Are Texas Electric Bills Often So High?
High electricity bills in Texas are often a result of several contributing factors. Increased air conditioning usage during the long, hot summers is a primary driver of higher consumption. The deregulated energy market, while offering choice, can also lead to fluctuating rates. Extreme weather events can further strain the grid and impact prices.
Additionally, various fees and charges levied by different power companies can add to the overall cost of your electricity service.
To mitigate high bills, consider implementing energy efficiency improvements in your home and proactively compare power companies and plans to ensure you are on the most cost-effective option for your usage.
Why Is Electricity in Texas Sometimes So Expensive?
The cost of electricity in Texas can be influenced by a combination of factors. The high demand for air conditioning during the hot Texas summers is a significant contributor, as is the fluctuating price of natural gas, a key fuel source for power generation in the state. Texas’s deregulated energy market structure also plays a role in price variability.
While electricity rates can fluctuate, actively comparing power companies and carefully selecting a plan that aligns with your specific energy consumption patterns is the most effective way to manage your electricity expenses.
Will Texas Electricity Rates Decrease in 2024?
Predicting future electricity rates with certainty is challenging. There is potential for rates to stabilize or even decrease in 2024, driven by the increasing contribution of renewable energy sources to the Texas power grid and ongoing grid infrastructure improvements.
However, external factors such as unpredictable weather patterns and global energy price volatility can still exert influence and cause rate fluctuations.
The best approach is to stay informed about energy market trends and regularly review your electricity plan. Consistently comparing power companies and plans will help ensure you are always paying a fair and competitive rate for your electricity service.
What is the Current 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 are currently paying between 11 and 14 cents per kWh.
It’s important to note that electricity prices can vary depending on your specific geographic location within Texas and your individual energy usage patterns. To obtain the most accurate and up-to-date rates, it’s always recommended to regularly check current rates and compare power companies in your area.
Get Personalized Help Comparing Power Companies and Finding Your Best Plan
If you prefer personalized assistance in comparing power companies and finding the ideal electricity plan for your needs, our Power Advisors are here to help.
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.
Why Trust Compare Power When You Compare Power Companies?
We understand that navigating the complexities of energy plans and choosing the right power company can be a frustrating experience. As fellow Texans, we created Compare Power to simplify this process and make finding the best rates transparent and straightforward.
- Instantly Compare Plans: Our platform allows you to quickly and easily compare electricity plans from multiple power companies side-by-side.
- Data-Driven Recommendations: We provide data-driven plan recommendations based on your usage, ensuring you see relevant and personalized options when you compare power companies.
- All-Inclusive Pricing & Easy Enrollment: We present all-inclusive pricing, eliminating hidden fees and making online enrollment simple and hassle-free.
With millions of Texans served and over 75,396+ 5-star reviews, Compare Power has a proven track record of helping Texans avoid gimmicks and find the best value when choosing a power company.
Find Your Cheapest Electric Rate
Stay Informed: Latest Articles on Texas Electricity
Expand your knowledge of the Texas electricity market with our informative articles, designed to help you understand your options, make informed choices, and avoid overpaying for your electricity.
Informative graphic leading to article about choosing the best Texas electric company.
Effortlessly navigate the Texas electricity market with our detailed guide. Learn how to select the best provider tailored to your specific needs by considering various factors. Read More How to Choose Your Texas Electricity Company
Image relating to lowering electricity bills in Texas.
Are you burdened with high electricity bills? You could be on an unsuitable plan. In Texas, you can select a plan tailored to your energy use and budget. Read More How to Lower Your Electricity Bill
Graphic promoting same-day electricity service in Texas.
Same-Day Electricity Service Do you need power in your Texas home today? Sign up for same-day service on the specified days before the cutoff time. Requests after cutoff are typically processed the following business day. Same-Day Electricity Providers Here are the providers offering same-day electricity service and their cutoff times: ProviderCutoffDaysPhone4Change Energy4 pm Mon-SatAmigo Energy2 pmMon-FriCirro… Read More Get Power ON Today
Image related to apartment electricity plans in Texas.
Discover how to find the best electricity plan for your Texas apartment, using real usage data and expert tips to save on energy costs. Read More Apartment Electricity
Graphic encouraging users to shop for electricity based on kWh usage.
Learn how shopping with your kWh usage in Texas can help consumers save money and how ComparePower’s tools make it easy to find the best plan based on your specific usage. Read More Usage-Based Shopping
Image suggesting the best time to switch electric providers in Texas.
Stay Ahead of Rising Prices Hey there, energy-savvy Texan! Are you wondering when is the best time to switch electricity providers in Texas? Timing is key to maximizing your savings and avoiding potential price hikes. In this guide, we’ll explore factors you should consider to help you stay one step ahead of rising prices. TLDR:… Read More Best Time to Switch Electric Providers in Texas
Image prompting users to switch electricity companies in Texas.
Electricity Contract Expiration Guide Imagine your A/C humming along on a scorching Texas day…then your electricity bill arrives and knocks the wind out of you. An expired contract and a holdover rate could be the culprits. These rates can double your electricity costs overnight. So, if you’re feeling anxious because your electricity contract in Texas… Read More Electricity Contract Expiration Guide
Author: Brad Gregory
Editor: Ryan Hatch
Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.
