Electricity rates in Texas can be a significant household expense, typically fluctuating between 11¢ and 25¢ per kilowatt-hour (kWh). However, most Texas homes are fortunate to find rates in the range of 11¢ to 14¢/kWh.
Currently, savvy Texas consumers can discover energy plans starting as low as 10.70¢/kWh—a remarkable 25% less than the state average of 15.60 ¢/kWh. This competitive pricing often emerges during the winter months due to moderate energy demand. Winter is strategically the best time to shop for and secure a fixed-rate electricity plan before the higher prices of summer peak season arrive.
February 2025 Electricity Rate Insights for Texas:
- As of February 2025, the average electricity rate in Texas stands at 15.60 ¢/kWh.
- The most competitive electricity rate available in Texas currently dips to 10.70¢/kWh.
- Capitalize on winter rates and lock in a fixed-rate plan now to protect against anticipated summer price increases.
Compare Power Texas: Built By Texans, For Texans. We understand the complexities of the Texas electricity market. Our mission is to simplify your energy shopping experience. We cut through the noise of misleading advertisements, decipher confusing plan details, and eliminate the frustration of endless fine print.
Our Core Mission: To empower you to quickly and confidently find the ideal energy plan tailored to your unique home and lifestyle. We strive to provide a hassle-free experience, free from hidden surprises.
Unbiased and Independent: Compare Power Texas operates independently from all energy providers. This ensures that every recommendation we offer is 100% unbiased, placing your needs and best interests at the forefront. You can rely on us to prioritize your energy needs.
Our Proven Track Record:
- Comprehensive Reviews: 100+ Electricity Companies Analyzed
- Extensive Plan Comparison: 250+ Plans Compared Side-by-Side
- Large Texas Customer Base: 5+ Million Texans Served
- Exceptional Customer Satisfaction: 75,396+ 5-star Ratings & Reviews
- Long-Standing Texas Service: Proudly Serving Texas for 15+ Years
Customer testimonials highlight the value of Compare Power Texas:
“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
Find the Cheapest Electricity Rates in Texas Today
Explore the lowest electricity rates available in major Texas cities. These rates are dynamically updated to give you the most current pricing.
| 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¢ |
Choosing the Right Energy Plan: Beyond the Lowest Rate
While a low rate is attractive, it’s crucial to understand that the absolute lowest advertised rate may not always translate to the best value for your specific energy consumption. Here’s what to consider:
- The Nuances of Advertised Rates: Many enticingly low advertised electricity rates are calculated based on very specific energy usage benchmarks, typically at 500, 1,000, or 2,000 kWh per month. If your actual energy consumption deviates from these benchmarks, you might end up paying a higher rate than initially anticipated.
- The Impact of Usage-Based Credits: Several plans incorporate usage-based credits, designed to reward consumers for hitting specific consumption thresholds. However, narrowly missing these thresholds, even by a single kWh (e.g., using 999 kWh instead of 1,000 kWh), can result in the forfeiture of these credits. This can lead to unexpected spikes in your monthly electricity bill.
- Seasonal Energy Usage Variability: Energy consumption is not static; it fluctuates significantly throughout the year, influenced by seasonal weather patterns. For example, peak summer months in Texas can drive usage to highs like 2,513 kWh in July, while milder months might see consumption drop dramatically to around 632 kWh in March.
- Aligning Plans with Your Usage Profile: The key to effective energy management and cost savings lies in selecting an electricity plan that closely aligns with your unique energy consumption patterns. By matching your plan to your typical usage, you can effectively manage these seasonal fluctuations and maximize your savings potential.
Compare Power Texas Live Link™: Data-Driven Plan Recommendations. To eliminate guesswork and ensure you find the perfect fit, Compare Power Texas offers Live Link™. This innovative tool provides data-driven recommendations by securely accessing your actual energy usage data directly from your utility. By leveraging your real consumption numbers, Live Link™ helps you bypass the surprises and confidently choose a plan that’s precisely tailored to your household’s energy habits.
Try Live Link™ today →
Understanding Texas Electricity Plan Types
Navigating the variety of electricity plans in Texas can feel overwhelming. Compare Power Texas simplifies this by outlining the most common plan types, helping you understand which best suits your needs.
Fixed-Rate Plans: Fixed-rate plans provide rate stability. These plans lock in your electricity rate for the entire contract period, effectively shielding you from unpredictable market fluctuations. If predictable monthly bills and long-term stability are priorities, a fixed-rate plan is often the ideal choice.
Variable-Rate Plans: Variable-rate plans offer rates that fluctuate month-to-month, reflecting the dynamic energy market. While this can be advantageous in periods of declining prices, it also carries the risk of increased costs during peak demand seasons. Variable plans provide flexibility, often without long-term contracts, and are best suited for those comfortable with rate volatility.
Time-of-Use Plans: Time-of-use plans are designed for consumers with flexible energy consumption habits. These plans offer 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. These plans, including free nights and weekend plans, are particularly beneficial if you can shift a significant portion of your energy use (ideally 70% or more) to these designated off-peak times.
Prepaid Plans: Prepaid energy plans offer a pay-as-you-go approach to electricity. These plans typically require no deposit or credit checks, making them accessible to a wider range of consumers. Providers like Payless Power are known for their prepaid options, allowing you to recharge your account as your balance decreases. Prepaid plans are well-suited for budget-conscious individuals, renters, or anyone seeking commitment-free energy solutions.
Flat Rate Electricity Plans: For ultimate billing predictability, consider flat-rate electricity plans in Texas. These plans offer remarkably consistent pricing across varying usage levels (500, 1000, and 2000 kWh), minimizing bill fluctuations regardless of your monthly consumption.
Business Electricity Plans: Texas businesses can also benefit from the deregulated market with competitive business electricity plans. Explore options for low rates, customized plans, and even green energy solutions. Get a custom business electricity quote to see potential savings for your company.
These live rates for ONCOR ELECTRIC DELIVERY COMPANY service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.
Optimal Times to Secure Texas Electricity Plans
Understanding the dynamics of the Texas energy market can help you determine the best timing for securing a new electricity plan. Here are key moments to consider:
Winter Season: Historically, winter in Texas brings a period of more stable electricity demand. This moderation in demand often translates to more competitive and predictable electricity rates. Winter is an opportune time to lock in a fixed-rate plan, taking advantage of these lower rates before market conditions shift in anticipation of summer’s increased energy consumption and higher prices.
Prior to Contract Expiration: Don’t wait until the last minute. Begin shopping for new electricity plans approximately 2-3 weeks before your current contract is set to expire. This proactive approach helps you avoid automatic enrollment into a potentially expensive month-to-month holdover rate.
Variable-Rate Plan Reassessment: If you are currently on a variable-rate plan, now might be an advantageous time to switch. Variable rates are subject to market volatility, and transitioning to a fixed-rate plan during winter’s stable rate period can shield you from potential price spikes later in the year. Securing a fixed-rate plan in winter provides long-term price protection.
Monitoring Market Shifts: Keep an eye on factors that can influence electricity rates, such as natural gas price fluctuations and severe weather events, particularly during winter. These market conditions can create opportunities or necessitate quicker decisions regarding your electricity plan.
Regular Rate Check-Ups: The energy market is dynamic. It’s wise to check electricity rates every 3-6 months, even if you are under contract. Regular monitoring ensures you remain informed about market trends and can identify if you are overpaying relative to current offers.
Pro Tip Regarding Short-Term Plans: Be cautious of exceptionally low-rate plans with unusually short contract terms (3, 5, 7, or 9 months). These plans are often strategically structured to expire during the high-demand summer months. This tactic can lead to costly renewals when rates are typically at their peak, potentially negating any initial savings. Be especially wary of these types of plans commonly advertised on the state-run Power to Choose website; always read the fine print.
Texas Electricity Rates: Historical Trends
Historical Texas Electricity Rate Chart: Residential vs Commercial Trends
This chart visually represents the historical fluctuations in Texas electricity rates, differentiating between commercial and residential sectors.
Notably, commercial electricity rates have demonstrated relative stability over time, whereas residential rates have experienced more pronounced periods of volatility, characterized by both increases and decreases.
These shifts in pricing are often triggered by a combination of factors, including changes in fuel costs (primarily natural gas, a major fuel source for Texas power generation), grid infrastructure challenges, and the impact of extreme weather events on energy demand and supply.
Why Understanding Rate Trends Matters: Knowledge of these historical trends provides valuable context for Texas electricity consumers and can inform smarter energy purchasing decisions, ultimately leading to potential cost savings.
Texas electricity rates are known for their dramatic fluctuations, driven largely by changes in demand. Variable-rate plans, as well as holdover rates that kick in after a contract expires, are particularly vulnerable to these market swings. Opting for a fixed-rate plan provides a buffer against price volatility, offering budget predictability and protection from sudden rate hikes.
Frequently Asked Questions: Texas Electricity Rates
Navigating the complexities of Texas electricity rates often leads to questions. Compare Power Texas addresses common concerns to empower you with clear, concise answers.
Lock in a Rate Now, or Wait for a Better Deal?
Deciding whether to lock in a fixed electricity rate now or wait for potentially lower prices involves weighing risk and potential reward. Locking in a fixed rate acts as a form of price insurance, protecting you from unexpected price surges.
With winter approaching and the anticipation of increased heating demands, energy prices are less likely to decrease significantly. During periods of extreme weather, electricity prices can be particularly volatile. A fixed-rate plan removes this uncertainty, providing predictable billing regardless of external conditions.
While there is always a possibility of short-term price dips, historical trends indicate that winter typically precedes a period of rising electricity costs. Waiting in anticipation of lower rates carries a degree of risk, as prices are more likely to increase than decrease as we move closer to peak demand seasons.
Ultimately, a fixed-rate plan offers peace of mind through predictable electricity bills, insulating you from market volatility and seasonal price fluctuations.
What are the Average Electricity Rates in Texas?
Currently, for residential customers in Texas, the average electricity rate is approximately 15.60 ¢/kWh. Based on an average monthly usage of 1000 kWh, this translates to an average monthly electricity bill of around $156.00.
It’s important to note that your actual electricity bill will vary based on several factors, including your geographic location within Texas, your specific energy consumption habits, and the details of your chosen electricity plan.
Commercial customers in Texas typically benefit from slightly lower electricity rates, averaging around 8.73 ¢/kWh. For a business using 1,000 kWh per month, this would result in an average monthly bill of approximately $87.30.
Is Now the Right Time to Switch Electricity Plans?
For many Texas residents, switching electricity plans now could lead to significant savings, particularly if you are currently on a month-to-month contract or your existing contract is nearing expiration.
Current market trends indicate that electricity rates are generally trending upwards. Delaying a switch might mean facing higher prices later in the year.
Pro Tip for Savings: Consider the benefits of longer-term contracts, typically 1-2 years in duration. These longer contracts often provide a more favorable rate over time, shielding you from seasonal price increases and potential market volatility.
Which Texas Providers Offer the Cheapest Electricity Rates?
Several electricity providers in Texas are known for consistently offering competitive rates. Gexa Energy, Frontier Utilities, and Rhythm Energy are frequently cited as providers with some of the most attractive pricing in the Texas market.
However, it’s crucial to remember that “cheapest” is not universally defined. The best provider for you depends on your specific location and your household’s unique energy consumption patterns. Utilize Compare Power Texas to compare plans available in your precise area to pinpoint the plan that offers the optimal combination of rate and features for your needs.
What Constitutes a Good Electricity Rate in Texas?
In the current Texas energy market of 2024, a competitive fixed-rate electricity plan will likely fall within the range of 10 to 15 cents per kWh.
Keep in mind that the definition of a “good” rate is relative and depends on individual circumstances. Factors such as your location (some areas of Texas have higher transmission costs) and your average monthly energy consumption significantly influence what constitutes a good deal.
Avoid solely fixating on the absolute lowest rate advertised. It’s essential to ensure that the plan structure aligns with your typical energy usage habits to realize genuine savings.
How Can I Effectively Compare Electric Rates in Texas?
The most effective approach to comparing electric rates in Texas begins with understanding your own energy consumption. Start by carefully reviewing your past electricity bills. This review will provide you with a clear picture of your average monthly energy usage in kWh.
Once you have a solid understanding of your usage, you are equipped to compare available electricity plans in your area more strategically. Focus on finding plans that offer the most competitive rates for your specific consumption level. Understanding your usage is the foundation for making an informed and cost-effective energy decision.
What’s the Best Way to Find the Lowest Electricity Rates in Texas?
Finding the best electricity rates in Texas involves a strategic approach. Begin by accurately determining your average monthly energy usage. Then, explore the various plan types available, including fixed-rate and variable-rate options. Critically review the plan details and fine print to identify any additional fees or charges that might impact the overall cost.
The “best” rate isn’t just about the lowest number; it’s about finding a plan that aligns with your consumption habits while striking a balance between cost-effectiveness and the level of flexibility you require.
Which Providers Offer the Best Electric Rates in Texas?
The providers offering the “best” electricity rates in Texas can vary depending on your individual energy needs and your geographic location within the state.
Established providers like TXU Energy, Reliant Energy, and Green Mountain Energy are consistently contenders in the Texas market, often offering a range of competitive plans and rates.
However, the key to finding your best rate is to conduct a thorough comparison of plans available in your area and to consider reading customer reviews and ratings for different providers. This comprehensive approach ensures you select a provider that not only offers a competitive rate but also aligns with your service expectations.
Why are Texas Electric Bills Often So High?
High electricity bills in Texas are often a result of a combination of factors. The intense summer heat drives up air conditioning usage dramatically, increasing overall energy consumption. The deregulated nature of the Texas electricity market means rates can fluctuate based on market conditions. Extreme weather events can also strain the grid and impact prices.
Additionally, various fees and charges levied by providers can contribute to higher overall costs. To mitigate high bills, consider implementing energy efficiency measures in your home and actively explore more competitive electricity plans that better suit your consumption profile.
Why is Electricity in Texas Sometimes So Expensive?
The cost of electricity in Texas can be attributed to several factors. The significant demand for air conditioning during the long, hot summers is a primary driver of high prices. Fluctuations in the price of natural gas, a major fuel source for power generation in Texas, directly impact electricity costs. The state’s deregulated energy market, while fostering competition, also introduces price volatility.
While these factors contribute to potential expense, proactively comparing electricity plans and carefully selecting one that closely matches your energy usage patterns remains the most effective strategy for managing your electricity costs in Texas.
Will Texas Electricity Rates Decrease in 2024?
Predicting future electricity rates with certainty is challenging. There are factors that suggest rates could potentially stabilize or even decrease in 2024. The increasing contribution of renewable energy sources to the Texas power grid, coupled with ongoing improvements to grid infrastructure, could exert downward pressure on prices.
However, external variables such as weather patterns and global energy market prices remain significant influences. These unpredictable factors can still lead to rate fluctuations. The most prudent approach for Texas consumers is to stay informed about market conditions and regularly review their electricity plans to ensure they are consistently paying a fair and competitive rate.
What is the Current Price of Electricity in Texas?
As of 2024, electricity rates in Texas generally range from a low of around 11 cents per kWh to a high of approximately 25 cents per kWh. However, the majority of Texas households are typically paying between 11 and 14 cents per kWh.
It is important to remember that electricity prices are not uniform across the state and are influenced by location, specific energy usage, and plan type. For the most accurate and up-to-date rate information, it’s recommended to regularly check current rates in your specific area using a comparison platform like Compare Power Texas.
Get Help Finding Your Best Plan
For personalized assistance in finding the ideal electricity plan for your needs, Compare Power Texas is here to help.
Call us at 855-441-3030. Our Power Advisors are available Monday through Friday, 8:30 a.m. to 6:30 p.m., and Saturday, 9:00 a.m. to 4:30 p.m.
Why You Can Trust Compare Power Texas
We understand the frustration of navigating the complex world of energy plans. As Texans ourselves, we created Compare Power Texas to simplify the process and make finding the best electricity rates straightforward and transparent.
- Instant Plan Comparison: Quickly compare electricity plans from leading Texas providers side-by-side.
- Data-Driven Recommendations: Receive plan recommendations tailored to your specific energy usage.
- All-Inclusive Pricing & Easy Enrollment: Enjoy transparent, all-inclusive pricing and seamless online enrollment.
With a track record of serving millions of Texans and earning over 75,396 5-star reviews, Compare Power Texas is your trusted partner in avoiding gimmicks and finding genuine value in your electricity plan.
Find Your Cheapest Electric Rate
Stay Informed: Explore Our Latest Articles
Expand your knowledge of the Texas electricity market with these helpful articles, designed to empower you to make informed choices and avoid overpaying for your power.
Guide: How to Choose the Best Electric Company in Texas. Navigate the Texas electricity market with confidence. Learn essential factors to consider when selecting an electricity provider tailored to your unique needs. Read More How to Choose Your Texas Electricity Company
Strategies to Lower Your Texas Electricity Bill. High electricity bills weighing you down? Discover actionable strategies to reduce your energy consumption and potentially switch to a more suitable and budget-friendly electricity plan in Texas. Read More How to Lower Your Electricity Bill
Need Electricity Today? Same-Day Electric Service in Texas. Learn about providers in Texas offering same-day electricity service. Find out cutoff times and providers to get your power turned on quickly. Read More Get Power ON Today
Apartment Electricity: Finding the Best Plans in Texas. Discover how to find the most cost-effective electricity plan for your Texas apartment. Get expert tips and leverage real usage data to maximize your energy savings. Read More Apartment Electricity
Usage-Based Shopping: A Smarter Way to Choose Electricity in Texas. Unlock savings by shopping for electricity based on your actual kWh usage. Learn how Compare Power Texas’ tools simplify finding the best plan tailored to your specific consumption. Read More Usage-Based Shopping
Best Time to Switch Electric Providers in Texas. Timing is everything in the Texas energy market. Learn the optimal times to switch electricity providers to maximize your savings and stay ahead of potential price increases. Read More Best Time to Switch Electric Providers in Texas
Electricity Contract Expiration Guide for Texas Residents. Avoid costly holdover rates! Understand the critical steps to take when your Texas electricity contract is expiring to prevent overpaying for your power. Read More Electricity Contract Expiration Guide
Author: Brad Gregory
Editor: Ryan Hatch
Disclaimer: Any product or company names, marks, or logos featured on this page are trademarks of their respective owners. Compare Power Texas is an independent marketplace, not affiliated with any specific provider. We are committed to providing unbiased, accurate information, upholding our editorial integrity.
