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Compare Texas Electricity Rates

Looking for the cheapest Texas electricity rates? Save up to 30% by comparing the best providers and plans in just a few clicks.

 
   
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Last Updated: May 9, 2025

Current Texas Electric Rates

As of April 2025, the EIA reports the average electric rate in Texas is 14.68 cents per kilowatt-hour. That is about 8% lower than the national residential average.

You can compare electricity plans in your area by entering your zip code on a marketplace such as EnergyPricing.com.

Tips for Finding the Lowest Energy Rates in Texas

  • Enter your Zip Code
    This will direct you to all our available electricity providers in your area.
  • Compare Rates and Providers
    Carefully compare the Texas energy rates in the marketplace. Look for the provider’s Electricity Facts Label (EFL) to see the price per kWh. You can also consider the renewable energy sourcing percentage and early termination fees.
  • Enroll Online
    Once you find the perfect Texas electric or energy rate on the EnergyPricing.com marketplace, enroll online in less than 2 minutes.
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The Best Electric Rate in Texas Right Now

Understanding Texas's Deregulated Electricity Market

Governor George W. Bush signed Senate Bill 7 into law on June 18th, 1999. Since then, Texas residents have had the power to switch their retail electricity provider. Today, over 85% of Texans are required to shop for an energy company. As a result, Texas has become the largest deregulated electricity market in the country.

What are Texas Electricity Providers?

Texas electricity providers are also known as Retail Electricity Providers (REPs). 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.

Factors to Consider When Shopping Texas Electric Providers Rates

When shopping for electricity providers in Texas, there are a few important factors to consider. These include:

  1. Price: Be sure to compare different rates and plans from each provider to find the best options for your needs and budget.
  2. 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.
  3. 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.
  4. 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.
  5. 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 latest report released in 2022:

  1. TXU Energy Retail Co, LLC - 1,742,792 Customers
  2. Reliant Energy Retail Services - 1,676,373 Customers
  3. Ambit Energy Holdings, LLC - 400,643 Customers
  4. US Retailers, LLC - 376,699 Customers
  5. Green Mountain Energy Company - 363,389 Customers
  6. Direct Energy Services - 316,557 Customers
  7. Gexa Energy, LP - 298,875 Customers
  8. Just Energy - 298,175 Customers
  9. Constellation NewEnergy, Inc. - 247,884 Customers
  10. Stream SPE, LTD - 217,146 Customers

With that said, some of the best deals in Texas come from new and upcoming suppliers. These newcomers are willing and able 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 TexasCenterPoint EnergyOncor, 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 Electricity Plan Fixed Electricity Plan

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. It will remain consistent regardless of market fluctuations.

Variable Electricity Plan Variable Electricity Plan

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 100% Green Energy Plans

100% Green Energy Plans

Do you prioritize environmentally friendly energy? 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.

Instead, most Texas electric providers offset your energy usage by purchasing Renewable Energy Credits (RECs). RECs are generated from solar or wind energy.

Promotional Energy Plans Promotional Energy Plans

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. It’s the only way 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. It also includes 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. 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 electric company rates in Texas, you want 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.

  1. 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!
  2. 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!

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 ensures you always get the best deal possible.

So what are you waiting for? Simply press the Get Started button and start comparing electricity rates today!

Frequently Asked Questions

What 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?

We are a registered electricity and natural gas broker with the PUC in each state where we operate. Thus, energy suppliers pay us a small referral fee for connecting customers like you with them.

What is a good rate per kWh in Texas?

As of May 2025, a good rate per kWh in Texas is typically below the state’s average residential rate of 14.87 cents per kWh, according to the EIA. In Texas’ deregulated market, competitive suppliers often offer rates as low as 11 to 13 cents per kWh for fixed-rate plans. For example, EnergyBot highlights plans from providers like TXU Energy and Reliant Energy starting at 11.9 cents per kWh for 12-month terms. A rate under 14 cents per kWh is generally considered a good deal, especially with potential increases expected in late 2025 due to rising natural gas prices. To secure a competitive rate, explore Energy Pricing, which compares pre-screened suppliers in Texas’ deregulated market, offers personalized support, timely renewal notifications, and a bidding system for businesses to find the best rates. Enter your zip code to discover savings opportunities.

Who is the cheapest electric provider in Texas?

As of May 2025, a good rate per kWh in Texas is typically below the state’s average residential rate of 14.87 cents per kWh, according to the EIA. In Texas’ deregulated market, competitive suppliers often offer rates as low as 11 to 13 cents per kWh for fixed-rate plans. For example, Energy Pricing rates from providers like Cirro Energy and Discount Power that is just $0.1090 per kWh for 12-month and 24-month terms. A rate under 14 cents per kWh is generally considered a good deal, especially with potential increases expected in late 2025 due to rising natural gas prices. To secure a competitive rate on electric prices in Texas, explore Energy Pricing. We compare pre-screened energy suppliers in Texas’ deregulated market, offer personalized support, timely renewal notifications, and even have a bidding system for businesses in Texas to find the best rates. All you have to do is enter your zip code to discover savings opportunities on your electric rate in Texas.

What is the current price of electricity in Texas?

As of May 2025, the average residential electricity price in Texas is around $0.1537 cents per kWh, based on data from poweroutage.us. However, rates vary by provider and region. For example, ElectricityPlans reports specific utility averages: AEP Texas Central at $0.1662 cents per kWh, AEP Texas North at $0.1817 cents per kWh, CenterPoint Energy at $0.1591 cents per kWh, Lubbock Power & Light at $0.1724 cents per kWh, and Oncor at $0.1649 cents per kWh, all at 1,000 kWh usage. However, competitive suppliers in Texas’ deregulated market, like Cirro Energy and Discount Power, offer rates as low as $0.109 cents per kWh for fixed-rate plans, which are available on Energy Pricing. Generally, you can expect to pay between 11 and 15 cents per kWh, though it depends on your specific area and power consumption. To find the lowest electricity rates in Texas tailored to your usage, explore Energy Pricing and compare pre-screened Texas energy suppliers, get personalized support, timely renewal notifications, and a bidding system for businesses to secure the best electric rates in Texas. Simply enter your zip code to discover savings options on your Texas electricity bill.

Why is Texas electric bill so high?

Your Texas electric bill might be high due to several factors. As of May 2025, the average residential rate is around 15.37 cents per kWh, according to poweroutage.us. High usage during extreme weather, like Texas’ notoriously hot summers, can spike bills. Average residential electric usage in Texas often exceeds 1,200 kWh monthly, leading to bills over $184. Reliance on natural gas for 45 percent of electricity makes rates sensitive to price volatility, and recent grid reliability investments post-2021 Winter Storm Uri have increased delivery charges. Additionally, if you’re on a variable-rate plan, price fluctuations can inflate costs. To lower your bill, switch to a fixed-rate plan with suppliers like Cirro Energy and Discount Power, who offer rates as low as $0.109 cents per kWh for both 12-month and 24-month plans. You can also reduce your power usage in Texas with energy-efficient appliances, by setting your thermostat to 78°F in summer, and use ceiling fans. You can use Energy Pricing to find the best electricity rates in Texas from reliable, pre-screened Texas energy companies. We provide personalized support, timely renewal notifications, and a bidding system for businesses to secure the best rates. Simply enter your zip code to save on electricity in Texas.

How can I lower my electric bill in Texas?

You can lower your electric bill in Texas by taking advantage of the state’s deregulated energy market. As of May 2025, the average rate is $0.1537 cents per kWh, per poweroutage.us, but suppliers like Cirro Energy and Discount Power offer rates as low as $0.109 cents per kWh. First, consider switching to a fixed-rate plan using Energy Pricing, where you can find the lowest electricity rates in Texas from reliable, pre-screened energy companies. Second, consider reducing your electrical usage by setting your thermostat to 78°F in summer, using ceiling fans, sealing drafts, and switching to LED bulbs. You can also shift your energy consumption in Texas by consuming on off-peak hours, especially if your provider offers free nights or weekends. Energy Pricing provides personalized support, timely renewal notifications, and a bidding system for businesses to secure the best rates. Enter your zip code on Energy Pricing to explore savings options on Texas electric suppliers and cut your bill.

Can I choose my electricity provider in Texas?

Yes, you can choose your electricity provider in Texas because the state has a deregulated energy market since 2002, covering about 85 percent of residents. You select your supplier, then local utilities like Oncor or CenterPoint Energy handle delivery. As of May 2025, competitive suppliers like Discount Power and Cirro Energy offer rates as low as $0.109 cents per kWh, compared to the state average of $0.1537 cents per kWh. You can use Energy Pricing to find the lowest electricity rates in Texas from reliable, pre-screened Texas energy companies. We provide personalized support, timely renewal notifications, and a bidding system for businesses in Texas to secure the best rates. Simply add your ZIP code and save on your electricity bill in Texas.

How many kWh a day is normal in Texas?

A normal daily kWh usage in Texas for a residential household averages around 40 kWh per day, based on an annual usage of 14,400 kWh, comes out to 1,200 kWh monthly (source: EIA). Usage varies by season, but generally spikes in summer due to air conditioning. Some households may use up to 60 kWh daily during July, when the average high is 93 to 96 degrees Fahrenheit. Other factors, like home size, insulation, and appliance efficiency also impact usage. To help manage costs with your electrical bill, you can use Energy Pricing to find the lowest electricity rates in Texas from reliable, pre-screened Texas energy companies. We provide personalized support, timely renewal notifications, and a bidding system for businesses to secure the best rates. All you have to do is enter your zip code to explore options and save on your electric bill in Texas.

What is the best energy company to use in Texas?

The best energy company to use in Texas depends on your needs and location, but as of May 2025, Gexa Energy stands out for its competitive rates and reliability. If you're going for cost, Cirro Energy and Discount Power offer plans as low as $0.109 cents per kWh for a 12-month fixed-rate term. This is well below the state average of $0.1537 cents per kWh (per poweroutage.us). Gexa Energy, however, provides 100 percent renewable energy options and high customer satisfaction, and is often highlighted in reviews on TexasElectricityRatings. Other strong contenders include Reliant Energy, who is known for flexible plans and excellent customer service. TXU Energy offers free nights or weekends plans. To find the best fit, you can use Energy Pricing to compare pre-screened electric suppliers in Texas’ deregulated market. We provide personalized support, timely renewal notifications, and a bidding system for businesses in Texas to secure the best rates. Just enter your zip code to find the cheapest electric rates in Texas.

How much is the electric bill for a 2000 sq ft house in Texas?

The electric bill for a 2,000 sq ft house in Texas averages about $246 per month as of May 2025. This estimate is based on an average usage of 1,600 kWh per month for a house this size. Using the state average rate of $0.1537 cents per kWh, we get this number (1,600 kWh x $0.1537 = $245.92). Usage can and will vary by season. Summer months, especially July and August, may push usage to 2,000 kWh due to air conditioning, which can raise your bill to around $307. To lower your bill, you switch to a cheaper supplier like Cirro Energy and Discount Power, which are offering rates as low as $0.109 cents per kWh. Doing this would reduce your hypothetical bill to $174, assuming a 1,600 kWh usage. Use Energy Pricing to find the cheapest electricity rates in Texas from pre-screened, Texas energy companies. We provide you personalized support, timely renewal notifications, and a bidding system for businesses to secure the best rates. Just enter your ZIP code to save on your electricity bill in Texas.

Shop by Popular Cities in Texas

Here is a list of the top cities in Texas where electricity shopping is popular.

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