Electricity rates in Texas can be confusing, fluctuating anywhere from 11¢ to 25¢ per kilowatt-hour (kWh). However, most Texas households are typically paying between 11¢ and 14¢ per kWh. Finding the best price for electricity is crucial for managing your household expenses.
Currently, you can find energy plans starting as low as 10.70¢/kWh, which is a significant 25% saving compared to the Texas average of 15.60 ¢/kWh. Historically, winter months often bring lower electricity demand, leading to more competitive rates. This makes winter an ideal time to shop around and secure a fixed-rate electricity plan before prices potentially rise during the peak summer season.
February 2025 Electricity Rate Insights:
- As of February 2025, the average electricity rate in Texas is around 15.60 ¢/kWh.
- You can find significantly lower electricity rates in Texas, with the cheapest plans starting at 10.70¢/kWh.
- Winter is a strategic time to lock in a fixed-rate electricity plan to avoid potential summer price increases.
Compare Power: Simplifying Electricity Shopping for Texans
Navigating the Texas electricity market can be overwhelming. At Compare Power, we understand the challenges of misleading advertisements, complex plans, and hidden fine print. We were built in Texas for Texans to simplify this process.
Our mission is to empower you to find the perfect energy plan for your home and lifestyle with speed and confidence. We aim to eliminate the hassle and hidden surprises often associated with electricity shopping.
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- We have reviewed over 100 Electricity Companies
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Discover Cheapest Electricity Rates in Texas Today
Below are some of the lowest electricity rates currently available in popular Texas cities. These rates are essential for consumers looking to compare prices electricity across different locations and usage levels.
| 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¢ |
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Choosing the Right Energy Plan: Beyond Just Comparing Electricity Prices
While comparing electricity prices is essential, the absolute lowest rate isn’t always the optimal choice. Here’s why you should look beyond the advertised price when you compare prices electricity plans:
- The Deception of Advertised Rates: Many attractively low advertised rates are often tied to specific energy usage levels, typically 500, 1,000, or 2,000 kWh. If your actual monthly energy consumption doesn’t precisely match these benchmarks, you might end up paying significantly more than the advertised rate.
- The Impact of Usage-Based Credits: Some plans offer bill credits when you use a specific amount of electricity. However, narrowly missing these usage thresholds, for instance using 999 kWh instead of 1000 kWh, can result in the loss of these credits, leading to unexpected spikes in your electricity bill.
- Seasonal Energy Usage Fluctuations: Your electricity consumption isn’t constant throughout the year. Seasonal changes significantly impact energy usage. For example, you might use as much as 2,513 kWh during the peak summer heat of July, while using only 632 kWh in the milder month of March. These fluctuations highlight the importance of choosing a plan that accommodates your varying energy needs.
- Matching Your Consumption Pattern is Key: To truly save money and avoid bill surprises, it’s crucial to find an electricity plan that closely aligns with your unique energy usage patterns. Simply focusing on the lowest advertised rate might not lead to the most cost-effective solution in the long run.
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Understanding Different Texas Electricity Plans When You Compare Prices Electricity
When you compare prices electricity, you’ll encounter various plan types. Understanding these differences is crucial to making an informed decision:
Fixed-Rate Plans: These plans provide rate stability by locking in your electricity rate for the entire contract term. Fixed-rate plans are excellent for those who prioritize predictable monthly bills and want to shield themselves from market price volatility. If budget predictability is important, especially when you compare prices electricity, fixed-rate plans are a solid choice.
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 might offer lower rates during certain periods, they can also expose you to higher costs during peak demand seasons. Variable-rate plans are best suited for those who prefer flexibility and are comfortable with potential rate changes. Carefully consider your risk tolerance when you compare prices electricity with variable rates.
Time-of-Use Plans: These plans offer discounted or even free electricity during specified off-peak hours. This structure can be advantageous for consumers who have flexible energy usage patterns and can shift their consumption to off-peak times. For instance, Reliant’s “Truly Free Nights” plan offers free electricity from 8 PM to 6 AM. Free nights and weekend plans are ideal if you can shift a significant portion (70% or more) of your energy use to nights and weekends. These plans can be very attractive when you compare prices electricity, but ensure your lifestyle aligns with the off-peak hours.
Prepaid Plans: Prepaid energy plans offer a pay-as-you-go approach to electricity. They eliminate the need for deposits or credit checks, making them a popular choice for those wanting greater control over their spending or those with fluctuating incomes. Providers like Payless Power offer prepaid plans that allow you to recharge your account when your balance is low. Prepaid plans are well-suited for budget-conscious consumers or renters seeking commitment-free electricity options. When you compare prices electricity, consider the convenience and flexibility prepaid plans offer.
Flat Rate Electricity Plans: For those seeking ultimate stability and predictability, flat-rate electricity plans in Texas provide consistent pricing across different usage levels (500, 1000, and 2000 kWh) with minimal rate fluctuation. These plans simplify budgeting and are worth considering when you compare prices electricity for their consistency.
Business Electricity Plans: Texas businesses can also benefit from the deregulated market by securing low electricity rates and competitive plans, including green energy options. Businesses should get a custom electricity quote to compare prices electricity tailored to their commercial needs.
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 Prices Electricity and Buy a Plan?
Knowing when to shop for electricity plans can significantly impact your savings. Here’s a guide to the optimal times to compare prices electricity and make a purchase:
Winter Months: As Texas transitions into the cooler winter season, electricity demand typically stabilizes. This reduced demand often leads to more competitive electricity rates. Winter is generally a favorable period to compare prices electricity and lock in a plan before market conditions potentially shift in anticipation of higher summer costs. Stable demand in winter creates a more predictable rate environment, making it an opportune time to secure a better deal.
Before Your Current Contract Expires: Proactive planning is key to avoiding inflated rates. Start shopping for a new electricity plan approximately 2-3 weeks before your current contract is set to expire. This timeframe allows you ample opportunity to compare prices electricity and choose a new plan without the pressure of an immediate deadline. Failing to switch before your contract ends can result in automatic enrollment into a costly month-to-month holdover rate.
If You Are Currently on a Variable-Rate Plan: Variable-rate plans, by their nature, are subject to market volatility. If you are currently on such a plan, switching to a fixed-rate plan, especially during winter, can be a strategic move. Winter often presents lower rates, and securing a fixed-rate plan now can shield you from potential rate spikes that might occur later in the year. Comparing electricity prices now and switching to a fixed rate provides long-term rate security.
When Market Conditions Shift: Keep an eye on factors that influence electricity prices. Events like fluctuations in natural gas prices and severe weather events, even in winter, can impact electricity rates. Being aware of these market dynamics can help you anticipate potential price changes and make informed decisions about when to compare prices electricity and lock in a favorable rate.
Regular Rate Checks: The energy market is dynamic, and electricity rates can fluctuate frequently. To ensure you are not overpaying, make it a habit to check and compare prices electricity every 3-6 months. Regular monitoring allows you to identify potential savings and switch plans if a more competitive offer becomes available.
Pro Tip: Be cautious of extremely low-rate plans with short contract terms (3, 5, 7, or 9 months). These plans are commonly advertised on the state-run site Power to Choose. The structure of these short-term plans often leads to contract expiration during the high-demand summer months, when rates are typically higher. This can force you into costly renewals. When you compare prices electricity, always consider the contract length and expiration date in relation to seasonal price trends.
Texas Electricity Rates Chart: Understanding Price Trends
Historical Texas electricity rate chart showing trends for residential and commercial customers.
This chart illustrates the historical trends in Texas electricity rates, showing how prices have changed 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 greater volatility, with more pronounced peaks and valleys.
These fluctuations in electricity pricing are often driven by factors such as changes in fuel costs (primarily natural gas, which is a major fuel source for Texas power plants), grid reliability issues, and the impact of extreme weather events on demand and supply.
Why Understanding Rate Trends Matters When You Compare Prices Electricity:
Knowledge of these electricity rate trends can be a valuable tool for saving money on your energy bills.
Texas electricity rates are known to fluctuate dramatically, mainly due to changes in demand. Variable-rate plans and holdover rates are particularly susceptible to these price swings.
Opting for a fixed-rate plan can provide a buffer against this volatility. A fixed rate offers price stability, protects you from unexpected price hikes, and makes it easier to manage your household budget. When you compare prices electricity, consider the long-term stability offered by fixed-rate plans.
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Texas Electricity Rates FAQs: Answers to Common Questions
Navigating the complexities of Texas electricity rates can lead to many questions. Here are answers to some of the most frequently asked questions to help you better understand and compare prices electricity effectively.
Should I lock in an electricity rate now, or wait for prices to potentially drop?
Deciding whether to lock in a fixed electricity rate now or wait for potential price drops is a common dilemma. No one wants to gamble with their electric bill. Locking in a fixed rate now acts as a form of price insurance, protecting you against potential price increases.
With winter approaching, heating costs are likely to rise. Securing a fixed rate now provides peace of mind and predictability, shielding you from unpredictable price swings, especially during periods of extreme weather.
While there’s always a possibility that prices might dip slightly in the short term, historical trends indicate that winter typically drives prices back up. Therefore, waiting in anticipation of a price drop carries a degree of risk.
A fixed-rate plan offers budget predictability – your electricity rate remains constant regardless of weather extremes or market fluctuations. While prices might dip slightly in the short term, the more probable scenario is that winter demand will push them upwards. For most consumers, the security and predictability of a fixed rate outweigh the gamble of waiting to compare prices electricity.
What are the average electricity rates in Texas currently?
For residential electricity customers in Texas, the average electricity 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 remember that your actual electricity bill will vary depending on several factors, including your geographic location within Texas, your specific energy consumption habits, and the type of electricity plan you choose.
Interestingly, 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 electricity cost of about $87.30. These averages provide a helpful benchmark when you compare prices electricity for both residential and commercial needs.
Is now a good time to switch electricity plans in Texas?
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 indicate that electricity rates are generally trending upwards. Therefore, waiting to switch plans might mean locking in a higher price later.
Pro tip: Opting for longer-term contracts, such as 1- or 2-year plans, can often be advantageous. These longer contracts can shield you from seasonal price hikes and provide rate stability over a more extended period. When you compare prices electricity, consider the potential long-term savings of locking in a favorable rate for a longer duration.
Which electricity providers typically have the cheapest electricity rates in Texas?
Several electricity providers in Texas are known for consistently offering some of the most competitive electricity rates. These providers often include Gexa Energy, Frontier Utilities, and Rhythm Energy.
However, it’s crucial to remember that the “cheapest” provider isn’t universally the best choice for everyone. Electricity rates can vary based on your specific location and your unique energy usage patterns. Therefore, the best approach is to compare prices electricity plans available in your area to find the plan that offers the most favorable rate for your specific needs.
What is considered a good electricity rate in Texas in 2024?
In 2024, a solid, competitive fixed-rate electricity plan in Texas will likely fall within the range of 10 to 15 cents per kWh.
However, it’s important to remember that what constitutes a “good” electricity rate is relative. It depends on factors such as your geographic location, your average monthly energy consumption, and your individual priorities (e.g., price vs. green energy options).
Don’t solely focus on finding the absolute lowest rate you see advertised. Instead, ensure that the plan you choose, even if it’s not the absolute cheapest, aligns well with your energy consumption habits. A slightly higher rate plan that better fits your usage might end up being more cost-effective overall than a very low rate plan that doesn’t match your needs. Careful comparison is key when you compare prices electricity.
How do I effectively compare electric rates in Texas?
To effectively compare electric rates in Texas and find the best deal, start by gathering information about your past energy consumption. Review your previous electricity bills to determine your average monthly kWh usage. Understanding your typical usage is the foundation for accurate rate comparisons.
Once you know your average monthly usage, use online comparison tools (like ComparePower) to explore available electricity plans in your area. Focus on plans that are designed for your usage level. By comparing plans based on your usage, you’ll be able to identify the plan offering the most competitive rate for your specific needs. This usage-based approach is the most effective way to compare prices electricity accurately.
What’s the best way to find the best electricity rates in Texas?
Finding the best electricity rates in Texas involves a strategic approach. Start by determining your average monthly energy usage – this is the cornerstone of informed comparison.
When you begin to compare prices electricity, pay attention to both fixed-rate and variable-rate plan options. Carefully read the fine print and plan details to fully understand any additional fees, contract terms, and conditions.
The “best” electricity rate isn’t just about the price per kWh; it’s about finding a plan that aligns with your consumption habits while striking a balance between cost and flexibility. Use online comparison resources to efficiently evaluate multiple providers and plans side-by-side.
Which electricity providers in Texas have the best electric rates overall?
The providers offering the “best” electricity rates in Texas can vary depending on individual energy needs and location. However, some providers consistently appear among the top contenders for competitive rates.
Providers like TXU Energy, Reliant Energy, and Green Mountain Energy are often recognized for offering a range of plans with competitive pricing.
However, it’s crucial to emphasize that the “best” provider for you is the one that best meets your specific needs and offers the most value for your situation. Don’t rely solely on general rankings. Instead, take the time to compare prices electricity plans, read customer reviews, and assess plan features to find the provider that truly suits your home or business.
Why are Texas electric bills often so high?
High electric bills in Texas are often a result of a combination of factors. One significant factor is the intense summer heat, which drives up air conditioning usage dramatically. Increased AC use naturally leads to higher electricity consumption and thus higher bills.
Texas’s deregulated electricity market, while offering consumer choice, can also contribute to price volatility. Fluctuating wholesale electricity rates can be passed on to consumers, especially those on variable-rate plans. Extreme weather events, which are increasingly common, can further strain the grid and lead to price spikes.
Additionally, various fees and charges levied by electricity providers can add to the overall cost of your bill. To mitigate high electricity bills, consider implementing energy efficiency measures in your home and actively explore and compare prices electricity plans to find a more competitive rate.
Why is electricity in Texas sometimes more expensive compared to other states?
The perception that electricity in Texas is “expensive” is nuanced. While Texas boasts a deregulated electricity market designed to foster competition and potentially lower prices, several factors can contribute to higher electricity costs at times.
High demand for air conditioning during the long, hot summers is a primary driver of electricity prices in Texas. The sheer volume of energy needed to cool homes and businesses across the state puts upward pressure on rates. Changes in the price of natural gas, the primary fuel source for electricity generation in Texas, directly impact electricity costs. Increased natural gas prices translate to higher electricity generation costs, which are often passed on to consumers. The deregulated nature of the Texas market itself, while intended to lower prices, can also lead to price volatility and, at times, higher costs compared to regulated markets.
While these factors can contribute to higher electricity prices, remember that Texas also offers a wide range of electricity plans and providers. By actively comparing plans and selecting one that aligns with your usage, you can effectively manage your electricity costs and potentially find very competitive rates. The key is to be an informed consumer and actively compare prices electricity.
Are Texas electricity rates expected to decrease in 2024?
Predicting future electricity rates with certainty is challenging due to the many influencing factors. However, there are reasons to believe that Texas electricity rates could potentially stabilize or even decrease slightly in 2024.
The increasing integration of renewable energy sources, such as wind and solar power, into the Texas grid is expected to put downward pressure on wholesale electricity prices over time. Continued improvements and upgrades to the Texas electrical grid can enhance efficiency and reliability, potentially contributing to rate stabilization.
However, it’s crucial to acknowledge that external factors beyond Texas’s control can still significantly impact electricity rates. Unpredictable weather patterns and global energy price fluctuations can override even the most optimistic projections.
The best approach is to stay informed about energy market trends and regularly review your electricity plan. By proactively monitoring rates and comparing prices electricity plans periodically, you can position yourself to take advantage of any potential rate decreases and ensure you are always paying a fair price for your electricity.
What is the current average price of electricity in Texas right now?
As of 2024, electricity rates in Texas generally range from approximately 11 cents per kWh to 25 cents per kWh. However, the majority of Texas households are typically paying between 11 and 14 cents per kWh.
It’s important to remember that electricity prices are not static. They vary depending on your specific geographic location within Texas, your energy consumption patterns, and the specific electricity plan you choose. To get the most accurate and up-to-date electricity rates for your location, it’s always recommended to check current rates from various providers and actively compare prices electricity in your area.
Get Personalized Help Finding Your Best Plan
If you find the process of comparing electricity prices overwhelming or would prefer personalized assistance, our Power Advisors are here to help.
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Why You Can Trust Compare Power When You Compare Prices Electricity
We understand that navigating the world of Texas energy plans can be frustrating and confusing. That’s why, as fellow Texans, we created Compare Power with the goal of making the process of finding the best electricity rates simple, transparent, and stress-free.
- Instantly Compare Plans: Our platform allows you to quickly and easily compare prices electricity plans from a wide range of providers side-by-side.
- Data-Driven Recommendations: We provide data-driven plan recommendations tailored to your specific usage, ensuring you find the best value when you compare prices electricity.
- All-Inclusive Pricing & Easy Online Enrollment: We present all-inclusive pricing, eliminating hidden fees and surprises, and offer a streamlined online enrollment process.
With millions of Texans served and over 75,396+ 5-star reviews, Compare Power has earned a reputation for helping consumers avoid gimmicks and find the best value electricity plans. Trust us to simplify your search and help you confidently compare prices electricity to secure the best rate for your needs.
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Stay Informed: Explore Our Latest Articles on Texas Electricity
To empower you with knowledge and help you make informed decisions about your electricity, we offer a library of informative articles. These resources provide tips and insights to help you understand your options, make informed choices, and avoid overpaying for electricity in Texas.
Informative graphic for choosing an electric company in Texas.
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 depicting ways to lower your Texas electricity bill.
Are you burdened with high electricity bills? You could be on an unsuitable plan. In Texas, you have the power to 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 suggesting electricity solutions for Texas apartments.
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 highlighting the best time to switch electricity 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 advising on switching electric 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
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