Electricity rates in Texas can vary, typically falling between 11¢ and 25¢ per kilowatt-hour (kWh). However, the majority of Texas households usually experience rates in the range of 11¢ to 14¢ per kWh.
Currently, the most competitive energy plan available starts at just 10.70¢/kWh—a significant 25% less than the average Texas electricity rate of 15.60 ¢/kWh.
Historically, winter months in Texas often bring a dip in energy demand. This seasonal moderation can lead to more competitive electricity rates, making it an opportune time for consumers to shop for and secure an energy plan before prices potentially rise during the peak demand of summer.
February 2025: Key Electricity Rate Insights
- As of February 2025, the average electricity rate in Texas is approximately 15.60 ¢/kWh.
- The lowest electricity rate currently available in Texas is 10.70¢/kWh.
- Winter presents a strategic window to lock in a fixed-rate electricity plan before the anticipated price increases of the summer season.
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Cheapest Electricity Rates in Texas Today: City by City Breakdown
To help you quickly assess your options, here are the lowest electricity rates available in some of Texas’s most populous cities. These rates are categorized by typical household energy 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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Navigating Texas Energy Compare: How to Choose the Right Plan
While securing the lowest electricity rate is appealing, it’s crucial to understand that the cheapest option isn’t always the most beneficial in the long run. Here’s why:
- The Nuances of Advertised Rates: The attractively low rates you often see advertised are typically contingent on specific energy usage levels, such as 500, 1,000, or 2,000 kWh per month. If your actual energy consumption deviates from these benchmarks, you might end up paying more than anticipated.
- Understanding Usage-Based Credits: Many plans incorporate usage-based credits, designed to reward specific consumption patterns. However, narrowly missing a usage threshold – for example, using 999 kWh instead of 1,000 kWh – can result in the forfeiture of these credits. This can unexpectedly inflate your electricity bill.
- The Impact of Seasonal Energy Demand: Energy usage is not static; it fluctuates significantly throughout the year. In Texas, you might see your energy consumption soar to 2,513 kWh during the peak heat of July, while it could drop to a mere 632 kWh in the milder month of March. These seasonal swings are important to consider when choosing a plan.
- Aligning Your Plan with Your Energy Habits: The key to effective energy cost management lies in selecting a plan that closely matches your unique energy usage patterns. By doing so, you can effectively navigate these seasonal fluctuations and maximize your savings.
Harnessing the Power of Live Link™ for Data-Driven Decisions: To eliminate guesswork, Live Link™ offers data-driven recommendations by securely accessing your actual energy usage data directly from your utility. This innovative tool allows you to bypass the uncertainties and choose an energy plan that is precisely tailored to your real energy consumption habits.
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Exploring Texas Electricity Plan Types for Informed Decisions
Understanding the different types of electricity plans available in Texas is crucial for making an informed choice that aligns with your needs and preferences. Here’s a breakdown of common plan types:
Fixed-Rate Plans: These plans offer rate stability by locking in your electricity rate for the entire duration of your contract. Fixed-rate plans are particularly well-suited if you prioritize predictable monthly bills and protection against market volatility.
Variable-Rate Plans: In contrast to fixed-rate plans, variable-rate plans feature rates that fluctuate month-to-month based on market conditions. While they might offer short-term benefits when rates are low, they carry the risk of increased costs during peak demand seasons. Variable-rate plans are often favored by those who value flexibility and are comfortable with potential rate variability.
Time-of-Use Plans: These innovative plans offer discounted or even free electricity during specified off-peak hours. This makes them an attractive option for consumers who have the flexibility to shift their energy-intensive activities to these periods. For example, Reliant’s “Truly Free Nights” plan provides free electricity usage from 8 PM to 6 AM daily. Free nights and weekend plans are especially beneficial if you can strategically shift a significant portion of your energy consumption (70% or more) to nights and weekends.
Prepaid Plans: Prepaid electricity plans offer a pay-as-you-go approach, eliminating the need for deposits or credit checks. This makes them a popular choice for individuals seeking greater control over their spending or those with fluctuating income. Prepaid energy plans from providers like Payless Power allow you to recharge your account as your balance decreases, providing budget-conscious consumers and renters with a flexible, commitment-free energy solution.
Flat Rate Electricity Plans: If predictability and stability are your priorities, flat-rate electricity plans in Texas deliver consistent pricing across different usage levels (500, 1000, and 2000 kWh). These plans minimize price fluctuations, offering peace of mind in budgeting.
Business Electricity Plans: Texas businesses have the opportunity to achieve significant savings with competitive electricity rates, tailored plans, and green energy options. Request a custom electricity quote for your business to explore specialized solutions.
| Featured Texas Electricity Plans | Plan Length | Rate (per kWh) |
|—|—|—|
| Amigo Energy – Simply Days Free – 12 | 12 months | 17.2¢ |
| Amigo Energy – Simply Days Free – 24 | 24 months | 17.4¢ |
| Amigo Energy – Nights Free Plan – 12 | 12 months | 15.7¢ |
| Amigo Energy – 12th Month Free – 12 | 12 months | 16.5¢ |
| Amigo Energy – Secure Energy – 24 | 24 months | 15.9¢ |
| Amigo Energy – Nights Free Plan – 24 | 24 months | 16.5¢ |
| Tara Energy – Value Wise – 12 | 12 months | 13.5¢ |
| Tara Energy – Value Wise – 24 | 24 months | 13.4¢ |
| Tara Energy – Weekends Free Plan – 24 | 24 months | 16.5¢ |
| Just Energy – Simple Choice – 12 | 12 months | 15.1¢ |
| Just Energy – Basics – 12 | 12 months | 16.3¢ |
| Just Energy – Power Plus – 18 | 18 months | 11.6¢ |
| Just Energy – Basics – 24 | 24 months | 16.2¢ |
| Just Energy – Power Plus – 24 | 24 months | 11.6¢ |
| Just Energy – Simple Choice – 24 | 24 months | 16.4¢ |
| 4Change Energy – Cash Money 12 | 12 months | 16.1¢ |
| 4Change Energy – Maxx Saver Select 12 | 12 months | 10.4¢ |
| 4Change Energy – One Rate 12 | 12 months | 15.7¢ |
| 4Change Energy – Power Maxx Saver 12 | 12 months | 18.2¢ |
| 4Change Energy – Maxx Saver Select 24 | 24 months | 10.4¢ |
| 4Change Energy – One Rate 24 | 24 months | 15.9¢ |
| 4Change Energy – Power Maxx Saver 24 | 24 months | 18.2¢ |
| 4Change Energy – Smart Thermostat 24 | 24 months | 16.1¢ |
| 4Change Energy – Power Savvy Saver 12 | 12 months | 16.9¢ |
| Frontier Utilities – Frontier Saver Deluxe 12 | 12 months | 20.2¢ |
| Frontier Utilities – Frontier Saver Premier 12 | 12 months | 20.4¢ |
| Frontier Utilities – Frontier Saver Value Plus 12 | 12 months | 15.8¢ |
| Frontier Utilities – Light Saver 12 | 12 months | 15.6¢ |
| Frontier Utilities – Frontier Saver Value 12 | 12 months | 19.6¢ |
| Frontier Utilities – Frontier Saver Plus 12 Plan | 12 months | 10.5¢ |
| Frontier Utilities – Frontier Straight Power $159 | 12 months | 15.9¢ |
| Gexa Energy – Gexa Eco Saver Advantage 12 | 12 months | 20.2¢ |
| Gexa Energy – Gexa Eco Saver Lite 12 | 12 months | 19.6¢ |
| Gexa Energy – Gexa Eco Saver Plus 12 Plan | 12 months | 10.5¢ |
| Gexa Energy – Gexa Eco Saver Premier 12 | 12 months | 20.4¢ |
| Gexa Energy – Gexa Eco Saver Value 12 | 12 months | 15.8¢ |
| Gexa Energy – Gexa Light Saver 12 | 12 months | 16.5¢ |
| Green Mountain – Pollution Free e-Plus 24 Preferred | 24 months | 17.2¢ |
| Discount Power – Bill Credit Bundle 12 | 12 months | 10.5¢ |
| Discount Power – Bill Credit Bundle 24 | 24 months | 10.5¢ |
| Discount Power – Wise Buy Basic 24 Online | 24 months | 16.2¢ |
| Discount Power – Bill Credit Bundle 2000 kWh 12 | 12 months | 20.7¢ |
| Discount Power – Bill Credit Bundle 2000 kWh 24 | 24 months | 20.5¢ |
| Reliant – Reliant Basic Power 12 plan | 12 months | 16.8¢ |
| Reliant – Reliant Power Savings 12 plan | 12 months | 14.9¢ |
| Reliant – Reliant Basic Power 24 plan | 24 months | 16.2¢ |
| Reliant – Reliant Power Savings 24 plan | 24 months | 14.5¢ |
| Reliant – Reliant Conservation 12 plan | 12 months | 16.9¢ |
| Reliant – Reliant Power Savings 2,000 kWh 12 plan | 12 months | 22.3¢ |
| Reliant – Reliant Conservation 24 plan | 24 months | 16.5¢ |
| Reliant – Reliant Power On 24 plan | 24 months | 16.4¢ |
| Reliant – Reliant Power Savings 2,000 kWh 24 plan | 24 months | 21.7¢ |
| Reliant – Reliant Truly Free Nights 100% Solar 12 plan | 12 months | 18.8¢ |
| Reliant – Reliant Truly Free Weekends 100% Solar 12 plan | 12 months | 17.8¢ |
| Cirro Energy – Simple Bill Credit 12 | 12 months | 10.5¢ |
| Cirro Energy – Smart Simple 12 Online | 12 months | 17.1¢ |
| Cirro Energy – Simple Bill Credit 24 | 24 months | 10.5¢ |
| Cirro Energy – Smart Value 24 | 24 months | 15.9¢ |
| Cirro Energy – Smart Value 12 | 12 months | 15.9¢ |
| Cirro Energy – Smart Simple 24 Online | 24 months | 17.0¢ |
| Cirro Energy – Simple Bill Credit Bundle 2000 kWh 12 | 12 months | 20.7¢ |
| Cirro Energy – Simple Bill Credit Bundle 2000 kWh 24 | 24 months | 20.5¢ |
| Direct Energy – Live Brighter 12 | 12 months | 22.0¢ |
| Direct Energy – Live Brighter Lite 12 | 12 months | 15.9¢ |
| Direct Energy – Live Brighter 1K+ 24 | 24 months | 17.2¢ |
| Direct Energy – Live Brighter Lite 24 | 24 months | 15.9¢ |
| Direct Energy – Twelve Hour Power 12 | 12 months | 21.6¢ |
| Payless Power – 6 Month – Prepaid | 6 months | 18.6¢ |
| Payless Power – 12 Month – Prepaid | 12 months | 19.1¢ |
| TXU Energy – Flex Forward | 1 months | 18.0¢ |
| TXU Energy – Clear Deal 12 | 12 months | 15.5¢ |
| TXU Energy – Live Your Free 12 | 12 months | 19.3¢ |
| TXU Energy – Saver’s Discount 12 | 12 months | 20.9¢ |
| TXU Energy – Simple Rate 12 | 12 months | 18.2¢ |
| TXU Energy – Clear Deal 24 | 24 months | 16.5¢ |
| TXU Energy – Saver’s Discount 24 | 24 months | 22.2¢ |
| TXU Energy – Solar Saver 12 | 12 months | 20.9¢ |
| TXU Energy – Solar Value 12 | 12 months | 16.9¢ |
| TXU Energy – Free Nights & Solar Days 12 (8 pm) | 12 months | 18.9¢ |
| Rhythm Energy – Simply Green 13 | 13 months | 16.9¢ |
| Rhythm Energy – Simply Green 23 | 23 months | 17.2¢ |
| Rhythm Energy – Simply Secure 24 | 24 months | 17.3¢ |
| APGE – True Simple 6 | 6 months | 15.6¢ |
| APGE – True Simple 12 | 12 months | 15.1¢ |
| APGE – True Simple 14 | 14 months | 15.0¢ |
| APGE – True Simple 24 | 24 months | 15.8¢ |
| APGE – True Simple 36 | 36 months | 16.1¢ |
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 the Right Moment to Secure a Texas Energy Plan?
As Texas transitions into the cooler winter season, energy demand typically stabilizes. This can lead to more competitive electricity rates, presenting a strategic opportunity for consumers.
Winter Advantage: The stability in demand during winter often translates to more predictable energy rates. Locking in a fixed-rate plan during this period can shield you from potential market shifts as summer approaches and energy costs tend to rise.
Pre-Contract Expiration Strategy: To avoid being automatically rolled onto a potentially expensive month-to-month holdover rate, it’s advisable to start exploring new energy plans 2-3 weeks before your current contract concludes.
Variable-Rate Plan Consideration: If you are currently on a variable-rate plan, switching now could be a prudent move to protect yourself from potential rate spikes in the near future. Winter is an advantageous time to secure a fixed-rate plan for long-term price stability.
Market Condition Awareness: Keep an eye on market conditions. Factors like natural gas price fluctuations and severe winter weather events can impact electricity rates.
Regular Rate Monitoring: The energy market is dynamic. Checking electricity rates every 3-6 months is a good practice to ensure you are not overpaying and to identify potential savings opportunities.
Pro Tip for Savvy Shoppers: Be cautious of exceptionally low-rate plans with short contract terms (3, 5, 7, or 9 months), often advertised on the state-run Power to Choose website. These plans are frequently designed to expire during the high-demand summer months, potentially leading to costly renewals when rates are typically higher.
Texas Electricity Rates: Historical Trends and Future Outlook
This chart illustrates the historical fluctuations in Texas electricity rates, providing valuable context for understanding current pricing and anticipating future trends.
Notably, commercial electricity rates have shown greater stability over time, while residential rates have experienced more pronounced peaks and valleys.
These rate variations are often driven by factors such as changes in fuel costs, grid infrastructure challenges, and the impact of extreme weather events on energy demand.
Why Understanding Rate Trends Matters for Texas Energy Compare: Being informed about these historical trends can empower you to make more strategic decisions about your energy plan and potentially realize significant cost savings.
Texas electricity rates are known for their dramatic fluctuations, primarily due to demand-driven market dynamics.
Variable-rate plans, as well as holdover rates, are particularly susceptible to these market swings.
Opting for a fixed-rate plan can provide a buffer against sudden price surges, offering greater budget predictability and stability in your electricity expenses.
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Texas Electricity Rates FAQs: Your Questions Answered
Navigating the landscape of Texas electricity rates can be confusing. Here are answers to some frequently asked questions to clarify common concerns.
Should I Lock in an Electricity Rate Now or Wait?
Deciding whether to lock in a fixed electricity rate now or wait is a common dilemma for Texas consumers. Securing a fixed rate is akin to having insurance against potential price increases.
With winter approaching and the anticipation of increased heating demands, locking in a fixed rate provides peace of mind. You’ll be shielded from the unpredictable price swings that can occur during periods of extreme weather.
While there’s always a possibility of short-term price dips, historical trends suggest that winter typically brings upward pressure on electricity rates. Waiting, therefore, carries a degree of risk.
A fixed-rate plan delivers bill predictability, regardless of weather extremes or market fluctuations.
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 a typical monthly electricity bill of around $156.00.
It’s important to remember that your actual bill will vary depending on your geographic location within Texas, your individual energy consumption habits, and the specific electricity plan you choose.
Businesses in Texas generally benefit from slightly lower average 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 a Good Time to Switch Texas Electricity Plans?
If you haven’t recently reviewed your electricity plan or are currently out of contract, switching plans now could potentially lead to substantial savings.
Current market trends indicate that electricity rates are generally trending upwards. Delaying a switch might mean encountering higher prices later.
Pro Tip: Consider the benefits of longer-term contracts (1-2 years). These contracts often provide greater protection against seasonal price hikes, offering long-term cost stability.
Which Texas Providers Offer the Cheapest Electricity Rates?
While the “cheapest” provider can vary based on location and specific energy usage, some providers consistently appear among those offering competitive rates in Texas. Gexa Energy, Frontier Utilities, and Rhythm Energy are frequently cited as offering some of the most attractive rates.
However, it’s essential to recognize that electricity plan pricing is not a one-size-fits-all proposition. Your specific location and energy consumption patterns play a significant role in determining the most cost-effective plan for you.
The most effective approach is to compare electricity plans available in your specific area to identify the best fit for your unique needs and usage profile.
What Constitutes a Good Electricity Rate in Texas?
In the current energy market of 2024, a competitive fixed-rate electricity plan in Texas 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 factors such as your location and your household’s energy consumption.
Resist the temptation to automatically choose the absolute lowest rate without carefully evaluating whether the plan aligns with your typical energy usage habits. A slightly higher rate plan that better matches your usage could ultimately be more cost-effective.
How Can I Effectively Compare Electric Rates in Texas?
The first step in comparing Texas electric rates is to gain a clear understanding of your household’s energy consumption. Review your past electricity bills to determine your average monthly kWh usage.
Once you have this usage information, you can then effectively compare available electricity plans in your area. Focus on identifying plans that offer the most favorable rate for your specific consumption level.
Understanding your energy usage is the cornerstone of making an informed and cost-effective decision when choosing an electricity plan.
What’s the Best Way to Find the Lowest Electricity Rates in Texas?
Finding the lowest electricity rates in Texas starts with knowing your average monthly energy consumption in kWh.
Next, explore both fixed-rate and variable-rate plan options to understand the pricing structures and potential benefits of each. Critically, always read the fine print of any plan to fully understand any additional fees or charges that may apply.
The “best” rate is ultimately the one that aligns with your consumption habits while striking a balance between cost and the level of flexibility you require. Utilizing a comparison platform like Compare Power is highly recommended to streamline this process.
Which Texas Electricity Provider Has the Best Rates Overall?
The provider with the “best” electricity rates in Texas can vary depending on individual energy needs and geographic location. There isn’t a single provider that consistently holds the top spot for everyone.
However, providers like TXU Energy, Reliant Energy, and Green Mountain Energy are frequently recognized for offering competitive rates and a range of plan options in the Texas market.
It’s crucial to conduct your own comparison of plans and also consider customer reviews and ratings to find the provider and plan that best suits your specific home and energy requirements.
Why Are Texas Electric Bills Sometimes So High?
Elevated electric bills in Texas are often attributed to several key factors. Increased air conditioning usage during the hot Texas summers is a primary driver of higher consumption. The state’s deregulated energy market, while offering choice, can also lead to rate fluctuations. Finally, extreme weather events can strain the grid and contribute to price volatility.
Additional fees levied by some providers can also contribute to higher overall electricity costs.
To mitigate high bills, consider implementing energy efficiency improvements in your home and proactively explore more competitive electricity plans that better match your usage.
Why Does Texas Electricity Sometimes Seem Expensive?
The perception of expensive electricity in Texas is rooted in several factors. The high demand for air conditioning during the prolonged hot season is a major contributor. Fluctuations in natural gas prices, a key fuel source for electricity generation in Texas, also impact rates. The state’s deregulated energy market, while designed to foster competition, can also lead to price variability.
While electricity rates can fluctuate, diligently comparing plans and selecting one that closely aligns with your energy usage is an effective strategy for managing your electricity expenses more effectively.
Will Texas Electricity Rates Decrease in 2024?
Predicting future electricity rates with certainty is challenging. However, there are factors that suggest rates could potentially stabilize or even decrease in 2024. The increasing contribution of renewable energy sources to the Texas energy mix and ongoing improvements to the state’s electrical grid infrastructure could exert downward pressure on rates.
Despite these positive trends, external factors such as unpredictable weather patterns and global energy price volatility can still introduce fluctuations.
The most prudent approach is to stay informed about market trends and regularly review your energy plan to ensure you are consistently paying a fair and competitive rate.
What Is the Current Price of Electricity in Texas?
As of 2024, electricity rates in Texas typically range from 11 to 25 cents per kWh. The majority of Texas households are experiencing rates in the 11 to 14 cents per kWh range.
It’s important to note that prices can vary based on your specific geographic location within Texas and your household’s energy usage patterns. For the most accurate and up-to-date rates, it’s always recommended to check current pricing in your area regularly.
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Why Texans Trust Compare Power for Energy Comparison
We understand that navigating the complexities of Texas energy plans can be a frustrating experience. That’s why, as fellow Texans, we created Compare Power with the goal of making the process of finding the best electricity rates straightforward and transparent.
- Instant Plan Comparison: Effortlessly compare plans from leading Texas energy providers side-by-side.
- Data-Driven Recommendations: Benefit from intelligent, data-driven plan recommendations tailored to your needs.
- All-Inclusive Pricing & Easy Enrollment: Enjoy transparent, all-inclusive pricing with a seamless online enrollment process.
With a proven track record of serving millions of Texans and earning over 75,396+ 5-star reviews, we are committed to helping you cut through gimmicks and find genuine value in your Texas energy plan.
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Stay Informed: Explore Our Latest Energy Insights
Expand your knowledge and empower yourself to make informed energy choices with our collection of insightful articles.
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
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
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. Read More: Get Power ON Today
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
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
Stay Ahead of Rising Prices! 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. Read More: Best Time to Switch Electric Providers 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. Read More: Electricity Contract Expiration Guide
Author: Brad Gregory
Editor: Ryan Hatch
Disclaimer: Any product or company names, marks, or logos displayed on this page are the trademarks of their respective owners. ComparePower operates as an independent marketplace, unaffiliated with these entities. We are committed to providing unbiased, accurate information, guided by our editorial integrity policy.
