Texas Electricity Rates.
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Texas Electricity Rates
Electricity rates across the country have been on the rise. Texas residents are feeling the cost increase like many other parts of the U.S. Now more than ever is an ideal time to lock in an electric rate for better budgeting and control over your energy costs.
Take a look at the many fixed energy rates we offer and find a term that fits your budget and energy needs today!
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Electricity Rates Texas Residents Count On
If you have been living in Texas for some time or are a new resident of the state, you may have heard about electricity rate shopping in Texas. Yes, that’s right! As a resident of the Lone Star state, you can shop for electricity rates Texas residents count on to save money on their utility bills. Now, shopping can get confusing if you are not too careful! We are here to clear the confusion and show you the best ways to find low electricity rates in Texas. Here is an overview:
Shop For Energy In Texas!
As a resident of Texas, you have the option to purchase your electricity supply from a competitive retail electricity provider. In fact, if you have Oncor, AEP, CenterPoint, or TNMP as your utility provider, you must choose a third party electric provider or you will be placed on the "provider of last resort". When Texas deregulated its utilities in the late 90's, residents got to enjoy supplier competition and lower energy prices.
Different Texas Electric Options
Now, energy deregulation in Texas brings many different electric rate options. Since the market is fully deregulated, TX electricity providers use their rate plans and offers as ways to stand out from the competition. This is good news as a consumer shopping for Texas electricity rates! You can take advantage of this competitive electricity market to find a low rate, a renewable energy supply option, or even an offer that comes with other perks and incentives.
Use Our Site To Browse Texas Electric Suppliers
But, shopping for the lowest electricity rates in Texas can be challenging. Without doing extensive research on Google and contacting multiple suppliers to find a rate, how do consumers do it? Enter EnergyPricing.com. We have developed an online search engine for electric rates in Texas! Simply enter your zip code, set your search parameters, and browse the top offers from Texas electric providers!
How To Compare Electric Rates In Texas
Interested in comparing electric rates in Texas? Great! You’ve come to the right spot! Next, we will teach you how to use our online search engine to find the best electric rate for your home or business. Oh, and did we mention that we can also offer custom quotes to larger businesses? Simply click on the custom quote option. Here are the best steps to take when comparing electric rates in Texas:
Decide On What You Want
First, decide on the type of TX electric rate you want. Is the cheapest price your priority? Maybe you are looking for other features such as no cancellation fees or deposits?
Filter and Search The Top Electric Rates In Texas
Next, type in your TX utility or TX zip code into our search bar and open the cheapest Texas electric rates near you! Then set your specific search parameters to your exact wants and needs.
Select a Texas Electric Offer and Sign Up!
After you found what you are looking for, simple click to enroll in your new electricity plan. You will be prompted to enter your account details and agree to the supplier's terms.
Compare Rates Near You
Texas Electric Utility Companies
If you live in Texas, there are five major Texas electric utility companies: AEP Texas Central, AEP Texas North, CenterPoint Energy, Oncor, and Texas-New Mexico Power (TNMP). If you live in the Houston, chances are that CenterPoint Energy is your local utility distribution company. Howevder, there are two other electric utilities in Houston: TNMP and AEP Texas Central. If you are in the Dallas-Fort Worth area, chances are Oncor is your electric utility. Other areas of Texas are covered by AEP and TNMP.
CenterPoint Energy covers most of the Houston metro area with TNMP servicing some pockets of the city, and AEP Texas Central servicing some of the outer areas of Houston. Oncor services the Dallas-Fort Worth area, and AEP Texas services the other parts of Texas. Below is some high-level information about each Texas electric utility company. Please click on the links to visit each Texas electric company’s individual page. On those pages, you will find customer service phone numbers, outage maps, and more.
AEP Central Texas is part of American Electric Power (AEP), a national electric utility company servicing over 5 million customers in 11 states. AEP owns the largest electricity transmission network in the country and is one of the nation's biggest electric utilities.
AEP North Texas is part of American Electric Power (AEP), a national electric utility company servicing over 5 million customers in 11 states. AEP owns the largest electricity transmission network in the country and is one of the nation's biggest electric utilities.
CenterPoint Energy, formerly known as Reliant Energy, is one of America's Fortune 500 companies. CenterPoint serves electricity and natural gas customers in eight states and is a publicly traded company on the New York Stock Exchange (NYSE).
Oncor is the single largest electric distribution company in the state of Texas serving over 13 million customers. Oncor is formerly known as TXU, and their revenues exceed $4 billion dollars. Oncor services most of northern Texas including the Dallas-Fort Worth area.
Texas-New Mexico Power Company provides electricity to over 260,000 homes in Texas. Headquartered in Lewisville, the company has over 400 employees and services over 20 Texas communities. Despite its name, the company only serves Texas customers.
Compare Electric Rates Texas: Shop By City
Looking to compare electric rates in Texas? We have organized electricity rate shopping by Texas city. In fact, we have separate rate pages for Dallas, Fort Worth, Arlington, Houston, and Corpus Christi. Click on your city on the map below to find the electric rates Texas residents use to save money on utility bills:
Don't See Your City On The Map? Shop Electric Rates By Texas City Below:
Our Most Popular Texas Cities
Check out the most popular Texas cities where our customers enjoy the lowest electricity rates.
In Houston, customers can shop for electricity rates from leading Texas providers such as Constellation, Energy Texas, NRG, Direct Energy, and more. Houstonians are served by CenterPoint Energy as their local utility provider. Check out the lowest Houston electricity rates here.
Dallas area residents have been enjoying Texas energy deregulation for a number of years. There are many leading energy companies headquartered in Dallas, TX such as Vistra, Reliant, and Frontier Utilities. If you are looking for a cheap electric company in Dallas, check out our Dallas electricity rates page.
Fort Worth is part of the Dallas metroplex but is its own city with its own identity. If you live in Fort Worth, Irving, or the surrounding areas, then you have the option to choose lower-cost electricity options for your home or business. Want to find a low power rate in Fort Worth today? Check out our page with the best Fort Worth electric rates.
The Types of TX Electricity Rate Plans
Are you wondering what time of TX electricity rates are available for your home or business? Rest assured knowing that our website is extensive. We have direct connections with all TX electricity providers so you can shop the best TX electric rates today. Here are some of the common electricity plans Texas energy suppliers offer:
Fixed Rate Texas Electric Plans
Fixed-rate electricity plans allow residents and businesses in Texas to lock-in electricity unit costs at a certain $/kWh for a contract period term. This provides price certainty and a relatively simple way to budget for energy costs.
Residential & Commercial Electric Plans In Texas
Our site also gives Texas residents the option to choose between residential electricity rates and commercial electricity rates. Commercial businesses in Texas even have the ability to request a custom quote that is tailored to the business's individual usage.
100% Green Electricity Plans In TX
Are you looking for a green electricity plan in Texas? Our site displays rates from some of the leading green energy suppliers in Texas. Whether you want electricity generated from wind or solar, you can easily sort by 100% renewable plans.
Electricity Providers in Texas: Shop By Texas Electric Supplier
Texas was the first state in the United States to deregulate its electric utility sector. In fact, according to Wikipedia, the wholesale electricity generation markets deregulated in 1995, with the distribution market following in 1999. After the passing of Texas Senate Bill 7, retail electricity suppliers could contract with generation facilities to supply power to Texas customers.
There are many licensed electricity providers in Texas that offer electricity supply rate options. As you might know, electricity providers in Texas differ from the local utility distribution companies in the fact that they simply supply electricity and do not deliver it. Companies like CenterPoint, TNMP, Oncor, and AEP Texas deliver power to customers’ homes and businesses, while electricity providers supply electricity over the distribution companies’ power lines. Here is a list of the top licensed electricity providers in Texas. Click on each company below to shop by Texas Electric Supplier:
TX Electricity Market Information
As one of the most mature deregulated electricity markets in the United States, Texas has a great deal of historical rate information. In fact, today over 60% of electricity generation in Texas is generated by using natural gas and both the gas and electric commodities are closely correlated in price in Texas.
Besides California, Texas is the only other U.S. state with its own independent electrical grid. In Texas, the grid is known as ERCOT, which stands fro the Electric Reliability Council of Texas. ERCOT is responsible for regulating both the wholesale and retail markets in Texas and oversees electricity generation, transmission, supply, and delivery.
Below is a chart outlining the historical wholesale costs of electricity in Texas (ERCOT) when compared to the other major electrical grids throughout the United States. This chart is from the Energy Information Administration (EIA.gov):
Average Price of Electricity in Texas
Today, the average price of electricity in Texas is approximately $0.10/kWh for commercial customers and $0.14/kWh for residential customers. Historically, Texas electricity rates are the lowest in the United States. In fact, the average electricity rate in Texas is 10% to 25% lower than the national average cost of electricity in the country.
Why Are Texas Electric Prices Lower Than The Rest of the U.S.?
Texas customers get to enjoy the most seasoned and mature deregulated electricity market in the country. Because Texas power rates have been deregulated for so long, supplier pricing is much lower in Texas when compared to other deregulated states.
Another big factor contributing to low electric rates in Texas is the absence of a capacity market. In most deregulated states, the electricity supply rate is comprised of three major cost components: electricity, transmission, and capacity. Let’s break these down more below:
- Electricity: This is the cost of the actual electricity that is generated at a power plant.
- Transmission: This is the cost to move the electricity from the power plant to the local electric utility company.
- Capacity: This is a cost that customer pay to electricity generation companies so they will ensure a reliable supply of power.
Because of the efficiencies of the ERCOT electricity market in Texas, rate payers are not required to pay a capacity charge. In fact, there is no capacity charge in Texas at all. So, when customers sign up for electricity rates with Texas energy providers, they are only paying for electricity and transmission. This is another key element to cheaper Texas electric rates.
Texas Electricity Deregulation
Houston is the largest city in Texas with a population of just over 3 million residents. If you live or own a business in Houston, Texas, you can find a new electricity provider with a low supplier rate. EnergyPricing.com offers transparency and energy market education, making us a valuable resource to your search for a low-cost Houston electricity provider. Whether you are shopping for your home, apartment, or business, you can find a rate and contract that works for your individual electricity usage. If you have any questions about shopping for electricity in Houston and would like to speak to someone, contact us today.
Electric Reliability Council of Texas (ERCOT)
ERCOT is a corporation with a board of directors made up of investors and municipally owned electric utilities, generators, and independent members to maintain and ensure the reliability of the power grid in Texas. They ensure that electric is flowing to your business or home and maintains the wholesale bulk-power market. They are a non-profit and subject to the oversight of the Public Utility Commission of Texas (PUCT).
An Electric Service Identifier ID (ESIID) is used for electricity consumers in Texas. It is between 17 and 22 digits long and identifies a unique point of electric service delivery to your home or business. This number is different from your meter number and is required when switching your retail electric supplier.
North American Electric Reliability Corporation (NERC)
The North American Electric Reliability Council (NERC) is a non-profit regulatory body that works to assure a reduction in risk to the electricity grid. In deregulated states like Texas, NERC plays an integral role ensuring that generators, suppliers, and other market participants remain in compliance.
Power To Choose Texas
What Is Power To Choose?
Power To Choose is the official energy shopping website established, owned, and run by the Texas Public Utilities Commission (PUC). This site was established to bring transparency and lower electricity rates to Texas residents. Power To Choose Texas allows customers to shop for Texas electricity providers all throughout the state.
How Does Power To Choose Work?
Like our website here, Power To Choose allows Texas customers to browse electricity providers, offers, and rates. Customers can sort by utility, kWh usage, and other filters to find the electricity plans that are right for them. And like our site, you can even enroll electronically with a provider! Yes, that’s right! No more paperwork or hassles! Simply enter your customer information and enroll in an electric plan.
EnergyPricing.com vs. PowerToChoose.org
While Power To Choose is a great idea by the Texas PUC, it does have its downfalls. Because Power To Choose is run by the Public Utility Commission, there is no true passion for customer service. Here are some of the differences between Power To Choose and EnergyPricing.com:
Any Suppliers vs. Pre-Vetted Suppliers
Yes, not all Texas electricity providers are created equal. If you’ve been shopping for electricity in Texas for some time, then you might have had a bad experience or two or three with an unreputable supplier. Some of the tricks suppliers play on customers are hidden contract language such as auto-renewals, high variable rates after the contract expires, and changing fixed rates mid contract!
On Power To Choose, all retail electricity providers are accepted, providing they have a supplier license. On EnergyPricing.com, however, we pre-vet our electricity suppliers to make sure that only the most reputable companies are displayed on our site. We do the heavy lifting for you, so you can rest assured knowing that you are shopping among the very best and most trusted!
Simplicity of Use
On the Power To Choose TX site, if you want to read the fine print of your agreement, you need to navigate to a new page and let a slow document load. That can be a hassle! When checking out on our site, we make it simple to read the terms of your new Texas electricity plan so you truly understand the ins and outs of your new contract.
Ol' Fashioned Customer Service
Yes! We know what you’re thinking! Where has the good ol’ customer service gone? Are people so enthralled with technology that they have forgotten we are all human? Unlike Power To Choose, where you are simply signing up with an electric supplier and plan, at EnergyPricing, you can a dedicated Customer Relationship Specialist dedicated to your account. We take the time to thank each and every one of our customers and are available to answer any questions you might have!
Because we are a for profit business and not a non-profit, we are serious about our dedicated to exceptional customer service. In the free enterprise market that is America, businesses without excellent customer service eventually die and go away. Electricity is not the product we are selling, it’s our service. We want you to judge us from the very start!
Frequently Asked Questions
Like any state that has deregulated electricity, there is a wholesale electricity market thats sets the price for retail customers. In Texas, over 60% of electricity is generated by using natural gas in the wholesale market. So, natural gas prices play a large role in setting the total rate for electricity in Texas. Typically, when natural gas prices are high, Texas electricity rates are also high. And, when gas prices are low, electricity prices also come down.
Retail electricity suppliers in Texas, like the ones displaying rates on this website, purchase electricity from the wholesale market and resell it to residential and commercial customers. When their costs are low, they can afford to offer lower electricity rates. And, when their wholesale costs are higher, rates are typically higher too.
Great question! Ever since the onset of electricity deregulation in Texas, there have been many retail electricity providers offering electricity rates in the state. Before websites like ours, consumers were forced to do their own manual research to compare electricity rates or pay a broker a middle-man fee to make the comparisons on their behalf. Now, with websites like this one, you can easily compare the best electricity rates in Texas with a few clicks of the mouse.
Electricity costs in Texas, like in any deregulated electricity market, fluctuate up and down with the price of the market. In Texas, over 60% of electricity is generated using natural gas, so electricity costs typically follow the price of natural gas. When natural gas rates are high, then electricity rates in Texas are also high. And, when natural gas prices fall, Texas electricity prices fall. Typically, when you see the price of the natural gas NYMEX market rise by $0.10/MMBtu, then you will see electricity prices in Texas rise by approximately $0.001/kWh.
Although recently there has been no rhyme or reason to the electricity market, prices are usually the lowest when supply outweighs demand. So, when there is more energy in the market then there is consumer demand for it, prices typically come down.
Since most electricity in Texas is generated by using natural gas, when natural gas prices are low, electricity rates are also low. Natural gas is also highly affected by supply and demand. When there is an excess amount of natural gas storage and lesser demand for the fuel, then prices are lower.
Natural gas and electricity rates used to be seasonal. There was less demand for energy in the Fall and Spring due to the weather, and more demand in the Winter and Summer. Now, with U.S. natural gas exports to Europe and Asia, the demand for natural gas can be seen at any time throughout the year. It’s always best to check out site for the cheapest rates in your utility.