Why Are Texas Electric Rates So High?

Why Are Texas Electric Rates So High?

Brian A.

Brian A.

Energy Advisor

couple-reviewing-their-bills

If you’re like most Texans, you have felt the increase in Texas electricity rates in your residential or commercial utility bills. In fact, Texas power prices have risen over 50% since this time last year, just like the rest of the United States. But why are electric rates so high? We will shed some light on what’s happening in the marketplace below…

Electricity Follows Natural Gas

Almost 50% of the electricity generation sources in ERCOT, the electric grid in Texas, are driven by natural gas. In fact, in the rest of the United States, natural gas accounts for almost 40% of all power generation. Check out the chart below outlining the electricity generation sources in Texas:

bar-chart-of-texas-electricity-generation-by-fuel-in-2019

When Gas Goes Up…

When the price of natural gas increases, so does the cost to generate one kilowatt hour of electricity in Texas. In fact, when gas prices rise by 10 cents, then electricity prices often rise by about $0.001/kWh. The rough correlation between natural gas and electricity in Texas goes something like this:

$0.10/MMBtu (natural gas) = $0.001/kWh (electricity)

As you can see in the market chart below, natural gas prices have risen considerably in the last few years. In fact, at just this time last year, natural gas prices were less than half. In dollars, natural gas prices have increased over $4/MMBtu, meaning that electricity prices have gone up about $0.04/kWh. Now if you are used to paying $0.05/kWh in Texas for electricity, that’s a lot! An average home using 10,000 kWh is now paying an extra $400 in electricity costs! 

But, Why The Increase?

Prices have gone up for a multitude of reasons. Natural gas and electricity prices are strongly driven by supply and demand. When demand is high and supply is low, prices go up. That is just what happened over the last year. Many energy companies were affected by Covid and less and less energy was being put into the market. When Covid re-openings happened, there was an increase in demand for energy. This balance between the two, caused prices to rise.

In addition, there are other external drivers on price, such as the demand for liquid natural gas exports to Europe and other political regulations and decisions that also affect the price of gas and electric. 

Need An Expert Opinion?

If you are looking for an energy expert who can lend some guidance as to the future price of electricity in Texas, then contact us today. Our team of energy advisors has been following the trend of power prices for the last decade, and we have the data to back up our advice. Looking for a better rate for your home or business in Texas? Shop the top Texas electric rates below:

AEP Texas Central Electric Rates

Best AEP Texas Central Electric Rates - Residential
  1. 1 months Fixed

    Utility: AEP Texas Central (TX)

    View Plan Details

    12.10¢

    per kWh
    At 1000 kWh

    13.00 ¢

    PER kWh
    At 500 kWh

    11.60 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Energy Texas Monthly
    Term: 1 Months Fixed
    Product: Electric
    Utility: AEP Texas Central (TX)
    Supplier: Energy Texas
    Early Termination Fee: $0
    Plan Description:

    Lock in a great rate for your first billing cycle!. After your first bill, price is subject to market rate.

  2. 3 months Fixed

    Utility: AEP Texas Central (TX)

    View Plan Details

    13.70¢

    per kWh
    At 1000 kWh

    14.70 ¢

    PER kWh
    At 500 kWh

    13.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Taste of Energy Texas 3
    Term: 3 Months Fixed
    Product: Electric
    Utility: AEP Texas Central (TX)
    Supplier: Energy Texas
    Early Termination Fee: $100.00
    Plan Description:

    Get a taste of Energy Texas and get to know us with our 3 month plan. 3 months of 100% renewable energy. Giddy Up Guaranteed!.

  3. 36 months Fixed

    Utility: AEP Texas Central (TX)

    View Plan Details

    14.40¢

    per kWh
    At 1000 kWh

    15.40 ¢

    PER kWh
    At 500 kWh

    13.90 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: 36 Inflation Fix
    Term: 36 Months Fixed
    Product: Electric
    Utility: AEP Texas Central (TX)
    Supplier: Energy Texas
    Early Termination Fee: $500.00
    Plan Description:

    Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing. 100% renewable energy from Texas sources. Giddy Up Guaranteed!.

  4. 18 months Fixed

    Utility: AEP Texas Central (TX)

    View Plan Details

    14.70¢

    per kWh
    At 1000 kWh

    15.70 ¢

    PER kWh
    At 500 kWh

    14.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: The Gruene 18
    Term: 18 Months Fixed
    Product: Electric
    Utility: AEP Texas Central (TX)
    Supplier: Energy Texas
    Early Termination Fee: $275.00
    Plan Description:

    Lock in a great fixed rate without a long-term commitment. 18 months of 100% renewable energy. Giddy Up Guaranteed!.

  5. 24 months Fixed

    Utility: AEP Texas Central (TX)

    View Plan Details

    14.80¢

    per kWh
    At 1000 kWh

    15.80 ¢

    PER kWh
    At 500 kWh

    14.30 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Bigger Than Texas 24
    Term: 24 Months Fixed
    Product: Electric
    Utility: AEP Texas Central (TX)
    Supplier: Energy Texas
    Early Termination Fee: $400.00
    Plan Description:

    Guarantee your rate for 2 years. Set it and forget it with 24 months of 100% renewable energy. Giddy Up Guaranteed!.

AEP Texas North Electric Rates

Best AEP Texas North Electric Rates - Residential
  1. 1 months Fixed

    Utility: AEP Texas North (TX)

    View Plan Details

    11.60¢

    per kWh
    At 1000 kWh

    12.50 ¢

    PER kWh
    At 500 kWh

    11.10 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Energy Texas Monthly
    Term: 1 Months Fixed
    Product: Electric
    Utility: AEP Texas North (TX)
    Supplier: Energy Texas
    Early Termination Fee: $0
    Plan Description:

    Lock in a great rate for your first billing cycle!. After your first bill, price is subject to market rate.

  2. 3 months Fixed

    Utility: AEP Texas North (TX)

    View Plan Details

    13.30¢

    per kWh
    At 1000 kWh

    14.30 ¢

    PER kWh
    At 500 kWh

    12.80 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Taste of Energy Texas 3
    Term: 3 Months Fixed
    Product: Electric
    Utility: AEP Texas North (TX)
    Supplier: Energy Texas
    Early Termination Fee: $100.00
    Plan Description:

    Get a taste of Energy Texas and get to know us with our 3 month plan. 3 months of 100% renewable energy. Giddy Up Guaranteed!.

  3. 36 months Fixed

    Utility: AEP Texas North (TX)

    View Plan Details

    13.70¢

    per kWh
    At 1000 kWh

    14.60 ¢

    PER kWh
    At 500 kWh

    13.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: 36 Inflation Fix
    Term: 36 Months Fixed
    Product: Electric
    Utility: AEP Texas North (TX)
    Supplier: Energy Texas
    Early Termination Fee: $500.00
    Plan Description:

    Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing. 100% renewable energy from Texas sources. Giddy Up Guaranteed!.

  4. 24 months Fixed

    Utility: AEP Texas North (TX)

    View Plan Details

    14.40¢

    per kWh
    At 1000 kWh

    15.40 ¢

    PER kWh
    At 500 kWh

    13.90 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Bigger Than Texas 24
    Term: 24 Months Fixed
    Product: Electric
    Utility: AEP Texas North (TX)
    Supplier: Energy Texas
    Early Termination Fee: $400.00
    Plan Description:

    Guarantee your rate for 2 years. Set it and forget it with 24 months of 100% renewable energy. Giddy Up Guaranteed!.

  5. 18 months Fixed

    Utility: AEP Texas North (TX)

    View Plan Details

    14.60¢

    per kWh
    At 1000 kWh

    15.60 ¢

    PER kWh
    At 500 kWh

    14.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: The Gruene 18
    Term: 18 Months Fixed
    Product: Electric
    Utility: AEP Texas North (TX)
    Supplier: Energy Texas
    Early Termination Fee: $275.00
    Plan Description:

    Lock in a great fixed rate without a long-term commitment. 18 months of 100% renewable energy. Giddy Up Guaranteed!.

CenterPoint Electric Rates

Best CenterPoint Energy Electric Rates - Residential
  1. 1 months Fixed

    Utility: CenterPoint Electric (TX)

    View Plan Details

    12.60¢

    per kWh
    At 1000 kWh

    13.50 ¢

    PER kWh
    At 500 kWh

    12.10 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Energy Texas Monthly
    Term: 1 Months Fixed
    Product: Electric
    Utility: CenterPoint Electric (TX)
    Supplier: Energy Texas
    Early Termination Fee: $0
    Plan Description:

    Lock in a great rate for your first billing cycle!. After your first bill, price is subject to market rate.

  2. 3 months Fixed

    Utility: CenterPoint Electric (TX)

    View Plan Details

    12.70¢

    per kWh
    At 1000 kWh

    13.60 ¢

    PER kWh
    At 500 kWh

    12.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Taste of Energy Texas 3
    Term: 3 Months Fixed
    Product: Electric
    Utility: CenterPoint Electric (TX)
    Supplier: Energy Texas
    Early Termination Fee: $100.00
    Plan Description:

    Get a taste of Energy Texas and get to know us with our 3 month plan. 3 months of 100% renewable energy. Giddy Up Guaranteed!.

  3. 36 months Fixed

    Utility: CenterPoint Electric (TX)

    View Plan Details

    14.10¢

    per kWh
    At 1000 kWh

    15.00 ¢

    PER kWh
    At 500 kWh

    13.60 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: 36 Inflation Fix
    Term: 36 Months Fixed
    Product: Electric
    Utility: CenterPoint Electric (TX)
    Supplier: Energy Texas
    Early Termination Fee: $500.00
    Plan Description:

    Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing. 100% renewable energy from Texas sources. Giddy Up Guaranteed!.

  4. 18 months Fixed

    Utility: CenterPoint Electric (TX)

    View Plan Details

    14.70¢

    per kWh
    At 1000 kWh

    15.60 ¢

    PER kWh
    At 500 kWh

    14.20 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: The Gruene 18
    Term: 18 Months Fixed
    Product: Electric
    Utility: CenterPoint Electric (TX)
    Supplier: Energy Texas
    Early Termination Fee: $275.00
    Plan Description:

    Lock in a great fixed rate without a long-term commitment. 18 months of 100% renewable energy. Giddy Up Guaranteed!.

  5. 24 months Fixed

    Utility: CenterPoint Electric (TX)

    View Plan Details

    14.80¢

    per kWh
    At 1000 kWh

    15.70 ¢

    PER kWh
    At 500 kWh

    14.30 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Bigger Than Texas 24
    Term: 24 Months Fixed
    Product: Electric
    Utility: CenterPoint Electric (TX)
    Supplier: Energy Texas
    Early Termination Fee: $400.00
    Plan Description:

    Guarantee your rate for 2 years. Set it and forget it with 24 months of 100% renewable energy. Giddy Up Guaranteed!.

Oncor Electric Rates

Best Oncor Electricity Rates - Residential
  1. 3 months Fixed

    Utility: Oncor (TX)

    View Plan Details

    11.10¢

    per kWh
    At 1000 kWh

    11.90 ¢

    PER kWh
    At 500 kWh

    10.70 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Taste of Energy Texas 3
    Term: 3 Months Fixed
    Product: Electric
    Utility: Oncor (TX)
    Supplier: Energy Texas
    Early Termination Fee: $100.00
    Plan Description:

    Get a taste of Energy Texas and get to know us with our 3 month plan. 3 months of 100% renewable energy. Giddy Up Guaranteed!.

  2. 1 months Fixed

    Utility: Oncor (TX)

    View Plan Details

    12.10¢

    per kWh
    At 1000 kWh

    12.90 ¢

    PER kWh
    At 500 kWh

    11.60 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Energy Texas Monthly
    Term: 1 Months Fixed
    Product: Electric
    Utility: Oncor (TX)
    Supplier: Energy Texas
    Early Termination Fee: $0
    Plan Description:

    Lock in a great rate for your first billing cycle!. After your first bill, price is subject to market rate.

  3. 36 months Fixed

    Utility: Oncor (TX)

    View Plan Details

    13.20¢

    per kWh
    At 1000 kWh

    14.00 ¢

    PER kWh
    At 500 kWh

    12.70 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: 36 Inflation Fix
    Term: 36 Months Fixed
    Product: Electric
    Utility: Oncor (TX)
    Supplier: Energy Texas
    Early Termination Fee: $500.00
    Plan Description:

    Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing. 100% renewable energy from Texas sources. Giddy Up Guaranteed!.

  4. 18 months Fixed

    Utility: Oncor (TX)

    View Plan Details

    13.70¢

    per kWh
    At 1000 kWh

    14.50 ¢

    PER kWh
    At 500 kWh

    13.30 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: The Gruene 18
    Term: 18 Months Fixed
    Product: Electric
    Utility: Oncor (TX)
    Supplier: Energy Texas
    Early Termination Fee: $275.00
    Plan Description:

    Lock in a great fixed rate without a long-term commitment. 18 months of 100% renewable energy. Giddy Up Guaranteed!.

  5. 24 months Fixed

    Utility: Oncor (TX)

    View Plan Details

    13.80¢

    per kWh
    At 1000 kWh

    14.60 ¢

    PER kWh
    At 500 kWh

    13.40 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Bigger Than Texas 24
    Term: 24 Months Fixed
    Product: Electric
    Utility: Oncor (TX)
    Supplier: Energy Texas
    Early Termination Fee: $400.00
    Plan Description:

    Guarantee your rate for 2 years. Set it and forget it with 24 months of 100% renewable energy. Giddy Up Guaranteed!.

TNMP Electric Rates

Best TNMP Electric Rates - Residential
  1. 1 months Fixed

    Utility: TNMP (TX)

    View Plan Details

    13.10¢

    per kWh
    At 1000 kWh

    14.30 ¢

    PER kWh
    At 500 kWh

    12.40 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Energy Texas Monthly
    Term: 1 Months Fixed
    Product: Electric
    Utility: TNMP (TX)
    Supplier: Energy Texas
    Early Termination Fee: $0
    Plan Description:

    Lock in a great rate for your first billing cycle!. After your first bill, price is subject to market rate.

  2. 3 months Fixed

    Utility: TNMP (TX)

    View Plan Details

    13.20¢

    per kWh
    At 1000 kWh

    14.50 ¢

    PER kWh
    At 500 kWh

    12.60 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Taste of Energy Texas 3
    Term: 3 Months Fixed
    Product: Electric
    Utility: TNMP (TX)
    Supplier: Energy Texas
    Early Termination Fee: $100.00
    Plan Description:

    Get a taste of Energy Texas and get to know us with our 3 month plan. 3 months of 100% renewable energy. Giddy Up Guaranteed!.

  3. 36 months Fixed

    Utility: TNMP (TX)

    View Plan Details

    14.60¢

    per kWh
    At 1000 kWh

    15.90 ¢

    PER kWh
    At 500 kWh

    14.00 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: 36 Inflation Fix
    Term: 36 Months Fixed
    Product: Electric
    Utility: TNMP (TX)
    Supplier: Energy Texas
    Early Termination Fee: $500.00
    Plan Description:

    Protect yourself against inflation and lock in your rate for 3 years with our most competitive pricing. 100% renewable energy from Texas sources. Giddy Up Guaranteed!.

  4. 18 months Fixed

    Utility: TNMP (TX)

    View Plan Details

    15.20¢

    per kWh
    At 1000 kWh

    16.50 ¢

    PER kWh
    At 500 kWh

    14.60 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: The Gruene 18
    Term: 18 Months Fixed
    Product: Electric
    Utility: TNMP (TX)
    Supplier: Energy Texas
    Early Termination Fee: $275.00
    Plan Description:

    Lock in a great fixed rate without a long-term commitment. 18 months of 100% renewable energy. Giddy Up Guaranteed!.

  5. 24 months Fixed

    Utility: TNMP (TX)

    View Plan Details

    15.30¢

    per kWh
    At 1000 kWh

    16.60 ¢

    PER kWh
    At 500 kWh

    14.70 ¢

    PER kWh
    At 2000 kWh
    SIGN UP
    Plan Name: Bigger Than Texas 24
    Term: 24 Months Fixed
    Product: Electric
    Utility: TNMP (TX)
    Supplier: Energy Texas
    Early Termination Fee: $400.00
    Plan Description:

    Guarantee your rate for 2 years. Set it and forget it with 24 months of 100% renewable energy. Giddy Up Guaranteed!.

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