EnergyPricing.com / Electricity Rates / Texas Electricity Rates
Current Texas Electricity Rates
As of October 2024, the EIA reports that the average electricity rate in Texas is 14.51 cents per kilowatt-hour (kWh), which is about 12% lower than the national residential average. However, rates can vary based on a number of factors including:
- Location: Electricity Rates can vary by city and your local utility company.
- Energy Usage: The amount of electricity your household consumes can affect the rate you pay per kWh.
- Plan Type: Rates vary based on term length and renewable energy percentage.
- Tiered plans: Many REPs offer tiered plans based on average energy usage.
You can compare electricity plans in your area by entering your zip code on a marketplace such as EnergyPricing.com. You can also calcuate your electric bill by multiplying your kWh usage by the sum of your energy cost and TDU delievery charges.
Tips for Finding the Best Electricity Rates in Texas
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Enter your Zip Code
This will direct you to all our available electricity providers in your area. -
Compare Rates and Providers
Before you sign up, carefully compare all the providers Electricity Facts Label (EFL) to see the price per kWh, renewable energy sourcing percentage, and early termination fees. -
Enroll Online
Once you find the perfect plan on the EnergyPricing.com marketplace, you can enroll online in less that 2 minutes.
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The EnergyPricing.com marketplace has helped thousands of customers find electricity plans for their home and business. Our goal is to give you access to all the information you need so you can confidently make informed energy decisions. At EnergyPricing.com, we take pride in our editorial integrity. Our content is not influenced by any energy supplier or provider. Learn more about how our marketplace works and how we make money.
Today's Best Electricity Rates in Texas
Understanding Texas's Deregulated Electricity Market
Since June 18th, 1999, when Governor George W. Bush signed Senate Bill 7 into law, Texas residents have had the power to switch their retail electricity provider. With over 85% of Texans now required to shop for an energy company, Texas has become the largest deregulated electricity market in the country.
What are Texas Electricity Providers?
Texas electricity providers, also known as Retail Electricity Providers (REPs), play a crucial role in the energy market. These companies buy electricity from the wholesale market and sell it to customers at different prices. They also communicate with the Electric Reliability Council of Texas (ERCOT) and other Market Participants about customer switches and meter information.
When you're shopping for electricity providers in Texas, you're essentially looking for a better energy plan that suits your needs. Remember, with over 85% of Texans now required to shop for Texas Electricity Providers, it's essential to consider all the factors so you choose the right one.
Factors to Consider When Shopping Electric Companies in Texas
When shopping for electricity providers in Texas, there are a few important factors to consider. These include:
- Price: Be sure to compare different rates and plans from each provider to find the best options for your needs and budget.
- Read Customer Reviews: Many customers will post reviews of their experience with each provider. This can be a great way to get an idea of the customer service and reliability of each company.
- Company Size: Consider the number of customers a company has. It can indicate their size and stability. A larger customer base means more resources to meet customer demands.
- Company History: Researching a company's history can help you gauge its reliability. A company with a long history of reliable service is a positive sign of its longevity.
- Read the Contract: Read the entire agreement carefully before committing yourself to any provider. Look for hidden fees or penalties, cancellation clauses, and contract length.
Who are the Best Electric Companies in Texas
With over 100 licensed Texas electric companies, finding the best can be challenging. Fortunately, the U.S. Energy Information Administration ranked providers based on customer count. Here are the top 10 Texas energy companies according to their lastest report released in 2022:
- TXU Energy Retail Co, LLC - 1,742,792 Customers
- Reliant Energy Retail Services - 1,676,373 Customers
- Ambit Energy Holdings, LLC - 400,643 Customers
- US Retailers, LLC - 376,699 Customers
- Green Mountain Energy Company - 363,389 Customers
- Direct Energy Services - 316,557 Customers
- Gexa Energy, LP - 298,875 Customers
- Just Energy - 298,175 Customers
- Constellation NewEnergy, Inc. - 247,884 Customers
- Stream SPE, LTD - 217,146 Customers
Please note I don’t want to confuse you and let you think you only need to consider these energy providers. Historically, some of the best deals in Texas come from new and upcoming suppliers willing to undercut the established players.
Texas Electricity Utility Companies
Electricity utility companies are responsible for maintaining the physical infrastructure needed to deliver electricity from power plants to consumers' homes or businesses. They also handle metering, billing, and customer support services. The four primary electricity utilities companies in Texas are AEP Texas, CenterPoint Energy, Oncor, and Texas New Mexico Power.
Remember, If you experience a power outage, contact your local electric utility company, not the Retail Electricity Provider. To see EnergyPricing.com's electricity rates in these utility companies, simply click on the get Started Button below.
Texas Electricity Plans Options
There are many options for finding the best energy plans in Texas. Here’s a breakdown of the most common types of electricity plans and what they offer:
Fixed-Rates Plans - With a fixed-rate energy plan, your electricity rate is locked in for the duration of your contract. This means you'll pay the same rate for every kilowatt-hour (kWh) of electricity you use, regardless of market fluctuations.
Variable-Rate Plans - Unlike fixed-rate plans, variable-rate plans (Indexed Plans) have rates that fluctuate with the energy market. Your bill may vary based on market conditions.
100% Green Energy Plans - If you prioritize environmentally friendly energy and don't mind the extra cost, a 100% Green Energy Plan is a great choice. However, it's important to note that the electricity flowing through your power lines may not be 100% Green Energy even with this plan. Instead, most Texas electric providers offset your energy usage by purchasing Renewable Energy Credits (RECs) generated from solar or wind energy.
Promotional Energy Plans - Promotional energy plans in Texas offer savings through lower rates or unique billing structures. Popular options include free weekend plans and Monthly usage bill credit plans. However, customers should carefully review the Supplier's Electricity Facts Label (EFL) to understand pricing and potential additional costs.
Tips for Finding the Best Energy Plans in Texas
When searching for the best energy plans in Texas, it's important to compare Texas electric rates accurately to get the best deal. Here are some tips for comparing energy plans in Texas:
- Check the plan's Electricity Facts Label (EFL): Every residential electricity plan in Texas must have an EFL. It's like a nutrition label for electricity plans. The EFL provides important details such as the average electricity rate per kWh, recurring charges, early termination fees, and contract length. Just remember to make an accurate Texas electric rates comparison. Look at the EFL!
- Look up your kWh Usage: To compare plans effectively, consider your specific kWh usage. For example, if you use about 500 kWh per month, focus on plans tailored to your needs. This is especially important for promotional plans that offer credits for staying under a usage threshold.
- Note any additional fees: Besides the electricity rate, consider other costs, monthly service fees, cancellation fees, and other add-ons. It’s important to factor these fees into the equation when comparing plans.
- Consider 100% Green Plans: A 100% Green Energy Plan may be the perfect option for those prioritizing environmentally-friendly energy sources.
- Contract Length: Most electric providers in Texas offer plans from one month to three years. You may be able to save money with a longer-term plan, but make sure you understand the cancellation fees before committing yourself to any provider.
Commercial Electricity Rates in Texas
As a business owner looking for commercial electricity rates in Texas, you want to be sure you’re getting the best deal possible. Luckily, with EnergyPricing.com’s proprietary technology, you now have the power to price your electricity accounts directly with multiple Texas electricity providers, all online!
Below are some benefits of using EnergyPricing.com for your next commercial electricity contract.
- Direct Access to Providers: Our easy-to-use interfaces let you submit your commercial electricity accounts directly to our network of electricity providers. Just sit back and watch the bids come in!
- Transparent Pricing: At EnergyPricing.com, we believe in being 100% transparent with our pricing and will disclose how much electricity providers compensate us. Due to our automated online pricing process, we can offer some of the rates in the market.
- Expert Advice: Unsure which plan or energy provider to use? No problem. You will have access to an industry expert who can help you.
Tips for Lowering Your Electric Bill in Texas
To lower your electric bill in Texas and save money, there are various approaches you can take. Whether adopting energy-efficient practices or comparing rates, every small step reduces your monthly expenses. Here are a few suggestions to help you save both energy and money on your electric bill.
Shop for Better Rates: To lower your monthly electricity bill, consider shopping around for better rates. One option is Texas PUC's shopping website, Power to Choose. It's important to note that any licensed provider can post offers there, regardless of reputation and customer service complaints.Unlike the state shopping website, EnergyPricing.com pre-screens all our suppliers and energy plans to bring you the best options.
Energy Efficiency Measures: Another way to lower your electricity bill is to invest in energy-efficient measures. Opt for LED light bulbs, Energy Star-certified refrigerators, washing machines, dishwashers, and programmable thermostats. These choices will save you money and contribute to a greener and more sustainable future.
Smart Usage Habits: Alongside investing in energy efficiency measures, embracing smart energy usage habits can significantly contribute to saving on your electricity bills. You can actively reduce your energy consumption and enjoy lower monthly bills by turning off lights and electronics when not in use, sealing air leaks in your home, and opting for fans instead of air conditioning.
Ready to Start Pricing? Save Today!
This comprehensive guide has helped provide you with all the necessary knowledge to make an informed decision when shopping for electricity pricing for your home or business in Texas. With so many options available, comparing and choosing the best plan for your specific needs can be overwhelming.
Thankfully, using EnergyPricing.com, you can easily shop and compare plans in just a few clicks. Our easy-to-use platform allows you to quickly compare plans from the top-rated Texas electricity providers. Plus, for business customers, our automated online pricing process with energy providers guarantees that you always get the best deal possible.
Frequently Asked Questions
Who is EnergyPricing.com?
EnergyPricing.com is an online marketplace that connects residential and commercial customers in deregulated electricity and natural gas states with energy suppliers.
How does EnergyPricing.com make money?
As a registered electricity and natural gas broker with the Public Utility Commission in each state where we operate, energy suppliers pay us a small referral fee for connecting customers like you with them.
What is deregulation, and how does it affect electricity rates in Texas?
Deregulation in Texas means the electricity market is open to competition among numerous energy providers. Texas electricity consumers can choose from multiple electricity providers and their plans. The tight competition in the Texas energy market often leads to lower rates and more energy plan options for residential and commercial energy consumers.
How can I compare electricity rates in Texas?
Our online comparison tool allows you to compare electricity rates in Texas. We provide a comprehensive list of Texas electricity companies and their plans. Our advanced tool will enable you to enter your ZIP code to see rates specific to your area. Before finalizing a plan, consider your energy consumption habits and the plan terms.
What fees do electricity providers charge when signing up for an electricity plan?
Before signing up for an electricity plan, you must be aware of various fees charged by the provider. Fees such as setup or connection fees, monthly service charges, and early termination fees are typically the most significant charges you should check for and can affect the overall cost of your plan.
Shop by Popular Cities in Texas
Here is a list of the top cities in Texas where electricity shopping is popular.
