Find The Best Electricity Rates in Texas (2024)

Looking for the cheapest electricity rates in Texas? Compare the best providers and plans in just a few clicks.

Paul Rhoads By Paul Rhoads, CEM, CEP linkedin
Last Updated: February 5, 2024
five stars 36 reviews Clock 20 min read
Electricity Utility Towers illustrating Texas Electricity RatesElectricity Utility Towers illustrating Texas Electricity Rates

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Are you looking for the best electricity rates in Texas? Then look no further! With EnergyPricing.com, you can quickly and easily compare rates, plans, and providers in just a few clicks.

Plus, by using this comprehensive guide, you’ll gain all the knowledge you need to make an informed decision when shopping for a new energy provider for your home or business.

So why wait? Let’s dive right in and find the right electricity plan for you! 

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. 

Average Texas Electric Rates vs. National Average

How does the average electricity rate in Texas stack up against the national average in the US? The most reliable source for this data is the Energy Information Administration (EIA). According to their latest report as of March 2024, below are the average Texas electricity rates for residential and commercial customers.

  • The average Texas residential electricity rate is 14.61 ¢/kWh (10% lower than the national average).
  • The average Texas commercial electricity rate is 8.76 ¢/kW (30% lower than the national average).

Fun Fact: Did you know that Hawaii has the highest average residential electricity rate in the US? It stands at a whopping 43.53 ¢/kWh!

Weekly Texas Electricity Rate Trends

Current Avg. Electricity Rates 

12 Month Fixed Rate $0.1520
24 Month Fixed Rate $0.1565
36 Month Fixed Rate $0.1586
These are the weekly Texas average price trends as of April 17, 2024. Pricing shown is based on an exact usage of 1,000 kWh.

How to Make a Texas Electric Rates Comparison

Finding the best electricity rates in Texas doesn't have to be overwhelming. With EnergyPricing.com's easy-to-use interface, comparing rates is a breeze!

Compare Electric Rates in Texas in just 3 Easy Steps:

  1. Click the Get Started Button: This will direct you to all our available electricity providers in your area.
  2. Compare Rates and Providers: Our easy-to-use interface allows you to compare all the providers and plans effortlessly.
  3. Enroll Online: Once you find the perfect plan, you can enroll online in less that 2 minutes.

Would you like to see how it works in real-time? Watch the video below to learn how shop online with EnergyPricing.com.

How to Shop Youtube CoverHow to Shop Youtube Cover

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:

  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.

Best Electric Company 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 the report:

  1. TXU Energy Retail Co, LLC – 1,668,676 Customers
  2. Reliant Energy Retail Services- 1,440,089 Customers
  3. Direct Energy Services- 516,248 Customers
  4. Ambit Energy Holdings, LLC- 408,661 Customers
  5. Green Mountain Energy Company- 364,913 Customers
  6. US Retailers, LLC- 348,361 Customers
  7. NextEra Energy Services, LLC- 293,050 Customers
  8. Stream SPE, LTD- 241,597 Customers
  9. Just Energy- 236,182 Customers
  10. Constellation NewEnergy, Inc - 218,526 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:

  1. 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!
  2. 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.
  3. 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.
  4. Consider 100% Green Plans: A 100% Green Energy Plan may be the perfect option for those prioritizing environmentally-friendly energy sources.
  5. 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.

  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. 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.
  3. 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.

So what are you waiting for? Simply press the Get Started Button and start Comparing Texas 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?

As a registered electricity broker with the Public Utility Commission in Texas, electricity providers pay us a small commission for connecting customers like you with them. Here is a full explanation on how we make money

What is an Electricity Facts Label?

The Electricity Facts Label "EFL" provides important details such as the average electricity rate per kWh, recurring charges, early termination fees, and contract length.

Shop by Popular Cities in Texas

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


 

Author

Paul Rhoads

Paul Rhoads, CEM, CEP

Paul is the Vice President of EnergyPricing.com. He has over a decade of experience in the energy industry, advising clients on how to shop in deregulated energy states. In addition to his experience, Paul is a Certified Energy Manager (CEM) and Certified Energy Procurement Professional (CEP).

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