Compare Texas Electricity Rates and Save Today
Looking for the best electricity rates in Texas? Compare the top providers and plans in just a few clicks, and start saving today!
Last Updated: May, 19, 2023
Paul I. 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 get the best electricity rates and providers. In addition to his vast experience, Paul is a Certified Energy Manager (CEM) and Certified Energy Procurement Professional (CEP).
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Your Guide to Texas Electric Rates, Providers and Plans
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 electricity plan for your home or business. So why wait? Let’s dive right in and find the right electricity plan for you!
Key Points in the Article
Current Texas Electricity Rates
Let’s start with why you are here. Below are our top 5 cheapest electricity plans we currently have in Texas for residential customers located in Oncor. If you want to explore all the different term length options we have available, in any utility, enter your zip code below to get started.
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Plan Name: Moving Made Easy
Term: 1 Months Fixed
Product: Electric
Utility: AEP Texas Central (TX)
Supplier: Energy Texas
Early Termination Fee: $0Plan Description:
Make moving easy without the worry of high energy rates. Receive a $25 DoorDash gift card after one on-time bill payment. 100% clean, renewable energy. Lock in the lowest rate for your first bill. Up to 20% savings on an ADT security system for your new home (optional).
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Plan Name: Moving Made Easy
Term: 1 Months Fixed
Product: Electric
Utility: AEP Texas North (TX)
Supplier: Energy Texas
Early Termination Fee: $0Plan Description:
Make moving easy without the worry of high energy rates. Receive a $25 DoorDash gift card after one on-time bill payment. 100% clean, renewable energy. Lock in the lowest rate for your first bill. Up to 20% savings on an ADT security system for your new home (optional).
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Plan Name: Moving Made Easy
Term: 1 Months Fixed
Product: Electric
Utility: Oncor (TX)
Supplier: Energy Texas
Early Termination Fee: $0Plan Description:
Make moving easy without the worry of high energy rates. Receive a $25 DoorDash gift card after one on-time bill payment. 100% clean, renewable energy. Lock in the lowest rate for your first bill. Up to 20% savings on an ADT security system for your new home (optional).
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Plan Name: Moving Made Easy
Term: 1 Months Fixed
Product: Electric
Utility: TNMP (TX)
Supplier: Energy Texas
Early Termination Fee: $0Plan Description:
Make moving easy without the worry of high energy rates. Receive a $25 DoorDash gift card after one on-time bill payment. 100% clean, renewable energy. Lock in the lowest rate for your first bill. Up to 20% savings on an ADT security system for your new home (optional).
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Plan Name: Moving Made Easy
Term: 1 Months Fixed
Product: Electric
Utility: CenterPoint Electric (TX)
Supplier: Energy Texas
Early Termination Fee: $0Plan Description:
Make moving easy without the worry of high energy rates. Receive a $25 DoorDash gift card after one on-time bill payment. 100% clean, renewable energy. Lock in the lowest rate for your first bill. Up to 20% savings on an ADT security system for your new home (optional).
Compare Texas Electric Rates Today! ⇩
How to Use EnergyPricing.com
We know that sorting through all the different providers and plan options to find the best electricity rates in Texas can be overwhelming. But fret not! EnergyPricing.com is here to save the day (and your wallet). With our easy-to-use interface, you can find the best energy provider and plan for your home or business in just three simple steps:
Step 1: Enter your zip code: This will direct you to all the available electricity plans that we have in your area
Step 2: Compare Rates and Providers: This is the fun part. Our easy to use interface allows you to effortlessly compare all the providers and plans
Step 3: Enroll Online: Once you find the perfect plan, you can enroll online in less than 2 minutes
At EnergyPricing.com, our mission is to make your energy shopping easier so you can focus on the things that matter most. Don’t wait any longer, find your perfect plan today!
Do you want to see how it works in real time? Watch the video below.
Trends in Texas Electricity Prices
Hey there! Did you know that Texas is one of the few states in the US with a deregulated electricity market? That’s right, with a deregulated energy market, you have the power (no pun intended) to choose from multiple providers and plans, so you can find the best rates for your needs. But before you start shopping around, let’s take a look at where Texas electricity prices are currently trending. Here are three metrics I have found helpful over the years to stay up to date on the latest trends in Texas Electricity Prices:
- The Average Texas Electricity Rates vs. the National Average:
- EIA Short-Term Energy Outlook
- Texas Energy Futures Market
Average Texas Electricity Rates vs. National Average
The U.S. Energy Information Administration (EIA) periodically releases reports on all the states’ average Electricity Rates.
Below are the numbers for the most recent report that just came in February 2023.
- The average Texas residential electricity rate is 14.63 ¢/kWh (8% lower than the national average of 15.96¢/kWh).
- The average Texas commercial electricity rate is 9.41 ¢/kWh (26% lower than the national average of 12.77 ¢/kWh.
Source: U.S. Energy Information Administration (EIA), February 2023, Monthly Electric Power Industry Report.
Fun Fact: In February 2023, Hawaii’s average price of residential electricity was 44.24¢/kWh. I bet you are glad you don’t live in Hawaii now!
EIA Short-Term Energy Outlook
The US. Energy Information Administration (EIA) also frequently publishes its forecasted outlook on electricity rates. Below is a chart of their outlook on residential Texas energy prices (their West South Central Region).
Source: U.S. Energy Information Administration (EIA), May 9, 2023, Short-Term Energy Outlook, West South Central
Texas Energy Futures Market
And finally, we have data from the Texas Energy Futures Market. This is my go-to resource for keeping track of where electricity rates in Texas are currently trading. Think of it as the stock market for energy contracts or “futures”. Traders buy and sell contracts, betting on where they think electricity prices will go in the future. It’s like a high-stakes game of energy price prediction!
Source: DTN Prophet X, ERCOT North 345 KV Hub D-A 5 MW Peak
So there you have it – three metrics to help you gauge whether now is a good time to lock in long term or short term rate. Of course, there are other factors to consider, like seasonal changes in demand, but these are a good starting point. If you’re feeling overwhelmed by all the options, don’t worry – that’s what we’re here for! EnergyPricing.com makes it easy to find the best providers and plans in just a few clicks. So what are you waiting for? Let’s find you the cheapest electricity rates in Texas today!Electric Companies in Texas
Ever since June 18th, 1999, when Governor George W. Bush signed into law an electricity deregulation bill known as Senate Bill 7, Texas residents have had the power to choose their own Retail electricity provider. But wait, what’s the difference between an electricity provider and your actual local utility company? Don’t worry, we’re here to break it down for you in a fun and easy-to-understand way.
Retail Electricity Providers
Retail electricity providers are Texas electric companies that buy and sell electricity from the wholesale market and sell it to customers at different prices. These Texas Electricity Providers are what you will be shopping when trying to find a better energy plan. According to the Public Utility Commission of Texas, an electricity provider responsibilities include:
- Buying electricity in the wholesale market and reselling it at Retail Prices,
- Buying delivery service and paying the charges for transmission and distribution service to the Transmission and Distribution Utilities “TDUs”
- Billing the customer and collecting for the REP’s charges
- Communicating with the Independent System Operator (Electric Reliability Council of Texas–ERCOT) and other Market Participants regarding customer switches and meter information.
As of today, there are over 100 active Texas Electric Companies registered with the Public Utility Commission of Texas! That’s a lot of options to choose from, but don’t worry – it’s great news for you. Why? Because competition drives down prices, giving you more opportunities to save on your monthly electricity bill too. And with EnergyPricing.com, it’s easy to compare all these different retail electricity providers and find the best deal for your needs.
Texas Electricity Utility Companies
Hey there, energy-savvy reader! While you have the power to choose your own retail electricity provider in Texas, your local electric utility company is automatically assigned based on your physical address. These Transmission and Delivery Utilities (TDUs) are responsible for delivering electricity from power plants to your home or business, maintaining electrical infrastructure, and dealing with power outages. But don’t worry, EnergyPricing.com has has got you covered and has electricity plan offers in all the major electric utility companies in Texas below:
1. Oncor Electric Delivery – Oncor is the largest energy delivery company in Texas. With over 141,000 miles of distribution and transmission lines, they deliver electricity to more than 13 million Texas.
Below is a list of all major Texas cities that are located in Oncor:
Addison, Aledo, Allen, Alvarado, Andrews, Anna, Archer City, Argyle, Arlington, Athens, Aubrey, Aurora, Austin, Balch Springs, Bay City, Baytown, Bedford, Bellmead, Belton, Benbrook, Big Lake, Big Spring, Blooming Grove, Bonham, Brady, Breckenridge, Brownwood, Buffalo, Burleson, Cameron, Canton, Carrollton, Cedar Hill, Celina, Centerville, Cisco, Clarksville, Cleburne, Colleyville, Collinsville, Columbus, Comanche, Commerce, Cooper, Coppell, Copperas Cove, Corsicana, Crane, Crockett, Crowley, Dallas, De Leon, Decatur, Denison, Denton, Desoto, Diboll, Duncanville, Eastland, Eden, Edgewood, Edom, Ennis, Euless, Eustace, Farmers Branch, Flint, Flower Mound, Forest Hill, Fort Stockton, Fort Worth, Frisco, Garland, Georgetown, Graford, Graham, Granbury, Grand Prairie, Grandview, Grapevine, Greenville, Gun Barrel City, Haltom City, Harker Heights, Henrietta, Hewitt, Hurst, Hutchins, Hutto, Irving, Jacksonville, Jewett, Justin, Kaufman, Keene, Keller, Kermit, Killeen, Lacy Lakeview, Ladonia, Lamesa, Lancaster, Leona, Lewisville, Lindale, Lufkin, Mabank, Malone, Manor, Mansfield, Marlin, Mcallen, Mckinney, Melissa, Mesquite, Midland, Midlothian, Milford, Mineral Wells, Mission, Monahans, Muenster, Nacogdoches, Nevada, Newark, North Richland Hills, Odessa, Palestine, Palmer, Paris, Pecos, Pflugerville, Pharr, Plano, Pottsboro, Prosper, Quinlan, Ranger, Red Oak, Reno, Richardson, Rockport, Rockwall, Round Rock, Rowlett, Sachse, Saginaw, Salado, Santa Anna, Seabrook, Seagoville, Snyder, Southlake, Stanton, Stephenville, Sunnyvale, Sweetwater, Taylor, Temple, Terrell, The Colony, Trinidad, Troy, Tyler, Van, Waco, White Settlement, Whitney, Wichita Falls, Wills Point, Wolfe City, Woodway, Wylie, Yantis, and Zavalla
2. CenterPoint Energy – Headquartered in Houston, CenterPoint Energy serves over 2.8 million metered customers in the greater Houston area and in southwestern Indiana.
Below is a list of all major Texas cities that are located in CenterPoint:
Angleton, Bacliff, Baytown, Bellaire, Bellville, Brazoria, Brookshire, Channelview, Clute, Conroe, Corpus Christi, Crosby, Cypress, Dayton, Deer Park, Dickinson, El Campo, Friendswood, Fulshear, Galena Park, Galveston, Hitchcock, Houston, Humble, Jersey Village, Jewett, Katy, Kemah, Kingwood, La Marque, La Porte, Lake Jackson, League City, Liverpool, Magnolia, Manvel, Missouri City, Pasadena, Pearland, Richmond, Rosenberg, Rosharon, Seabrook, Sealy, South Houston, Spring, Stafford, Sugar Land, Texas City, The Woodlands, Tomball, West Columbia, and Wharton
3. AEP Texas – Serving over one million customers across Texas, AEP Texas headquarters is located in Corpus Christi, Texas. Due to its service territory size of over 97,000 square miles in south and west Texas, Retail Energy Providers generally spilt this Utility into two distinct zones known as AEP Texas Central and AEP Texas North.
Below is a list of all major Texas cities that are located in AEP Texas Central:
Alamo, Alice, Aransas Pass, Austwell, Baird, Barksdale, Bay City, Beeville, Bishop, Brackettville, Brookshire, Brownsville, Carrizo Springs, Columbus, Comstock, Corpus Christi, Cotulla, Crystal City, Del Rio, Devine, Dilley, Donna, Eagle Pass, Edna, El Campo, Escobares, Falfurrias, Fulton, George West, Goliad, Harlingen, Haskell, Hebbronville, Ingleside, Jourdanton, Kenedy, Kingsville, La Feria, Laredo, Leakey, Los Fresnos, Markham, Mathis, Mcallen, Mercedes, Mission, Palmview, Pearsall, Penitas, Pharr, Pleasanton, Port Isabel, Port Mansfield, Portland, Rancho Viejo, Raymondville, Refugio, Rio Grande City, Riviera, Rockport, Roma, Sabinal, San Diego, Seadrift, Sinton, South Padre Island, Taft, Three Rivers, Tivoli, Tuleta, Uvalde, Victoria, Weslaco, Yorktown, and Zapata
Below is a list of all major Texas cities that are located in AEP Texas North:
Abilene, Albany, Alpine, Anson, Aspermont, Baird, Ballinger, Balmorhea, Big Lake, Brady, Bronte, Childress, Christoval, Cisco, Clyde, Columbus, Crane, Cross Plains, Crowell, Dickens, Eden, Eldorado, Fort Davis, Haskell, Junction, Knox City, Munday, Ozona, Paducah, Presidio, Quanah, Quitaque, Rio Grande City, Robert Lee, Rule, San Angelo, Santa Anna, Sheffield, Sonora, Throckmorton, and Vernon
4. Texas-New Mexico Power – Owned by energy company PNM Resources, Texas-New Mexico Power has been an electric company serving the Southwest since 1935. They delivery electricity to over 260,000 homes and businesses throughout Texas.
Below is a list of all major Texas cities that are located in Texas-New Mexico Power:
Angleton, Anna, Aubrey, Brazoria, Clifton, Coppell, Detroit, Dickinson, Edgewood, Emory, Fort Stockton, Gatesville, Graham, Granbury, Grandview, Hamilton, Kermit, La Marque, Lake Jackson, League City, Lewisville, Meridian, Nocona, Olney, Paris, Pearland, Pecos, Pilot Point, Rainbow, Texas City, West Columbia, Whitewright, Whitney, and Wichita Falls
Top 10 Texas Electricity Providers
Today, Texas residents have over 100 active electric companies to choose from, thanks to the deregulated electricity market. With so much competition, it can be challenging to identify the best electric company in Texas for you. Fortunately, the U.S. Energy Information Administration (EIA) has released a detailed report that ranks the top electricity providers in Texas by customer count.
According to the report, the top 10 Texas Energy Companies are:
- TXU Energy Retail Co, LLC – 1,668,676 Customers
- Reliant Energy Retail Services- 1,440,089 Customers
- Direct Energy Services- 516,248 Customers
- Ambit Energy Holdings, LLC- 408,661 Customers
- Green Mountain Energy Company- 364,913 Customers
- US Retailers, LLC- 348,361 Customers
- NextEra Energy Services, LLC- 293,050 Customers
- Stream SPE, LTD- 241,597 Customers
- Just Energy- 236,182 Customers
- Constellation NewEnergy, Inc 218,526 Customers
Source: U.S. Energy Information Administration (EIA), 2021 Utility Bundled Sales to Ultimate Customers- Total
Hey there! I don’t want to confuse you and let you think you only need to consider these electricity providers. In fact, some of the best deals in Texas historically come from new and upcoming suppliers who are willing to undercut the established players Rest assure that at EnergyPricing.com, we’ve done the homework for you and only work with reputable electricity providers.
5 Tips for Comparing Retail Electricity Providers
When comes to comparing retail electricity providers in Texas, everyone thinks it’s just about price. While price is undoubtedly crucial, there are other vital aspects of a supplier that you should consider as well. Here are some tips I use when comparing Texas electricity providers.
- Price– First and foremost, price is undoubtedly a crucial factor when comparing Texas electricity providers. However, be sure you’re comparing apples to apples when comparing suppliers’ rates. As we’ll learn later, some providers have promotional energy plans that maybe misleading on price.
- Read Customer Reviews– To get a sense of a company’s customer service, check out their customer reviews on Google. What are other customers saying about the service they’re getting? Keep an eye out for red flags like poor communication, unresponsive customer service, and billing issues.
- Company Size- It’s also worth checking how many customers a company has. This could be an indication of their size and stability. A larger customer base can mean more resources and better infrastructure to handle customer demands.
- How long have they been in Business?- Researching the history of a company can help you form an opinion on how reliable and trustworthy they are. You can find this information on their website or by reading reviews online. A company with a long history of providing reliable service is a good sign that they’re here to stay.
- Lastly, read the Contract- Don’t just quickly sign the contract and hope for the best. Make sure you read the entire contract carefully before committing yourself to any provider. This is one area where it pays to be thorough. Look out for any hidden fees or penalties, cancellation clauses, and contract length. Don’t hesitate to ask questions if there is anything you’re unsure of.
In summary, price is indeed crucial, but it’s not the only factor to consider when comparing Texas electricity providers. At EnergyPricing.com, we use the same criteria when we thoroughly vet our electricity providers before offering them to our customers.
So there you have it – the top five major electric utility companies in Texas. While you can’t choose your utility company, you can rest assured that these companies are dedicated to providing reliable, high-quality service to their customers.
And when it comes to choosing your retail electricity provider, EnergyPricing.com has got you covered with our easy-to-use interface and top-rated electric providers here. Now go ahead and enjoy the savings!
Texas Electricity Plans Options
When it comes to finding the best energy plans in Texas there are many to choose from. Here’s a breakdown of the most common types of plans and what they offer:
1. Fixed-Rate Plans – With a fixed-rate energy plan, your electricity rate is locked in for the duration of your contract. This means that you’ll pay the same rate for every kilowatt-hour (kWh) of electricity you use, regardless of fluctuations in the energy market. Fixed-rate plans are a popular option for those who want budget certainty and stability.
2. Variable Rate Plans: Unlike fixed-rate plans, variable-rate plans (also know as Indexed Plans) have rates that can fluctuate with the energy market. This means that your bill may be higher or lower depending on the current market conditions. Variable-rate plans can be a good option for those who don’t mind occasional rate changes and prefer flexibility.
3. 100% Green Energy Plans: If you prioritize environmentally-friendly energy sources and don’t mind spending a little extra, a 100% Green Energy Plan is an excellent option for you. It’s worth noting that the electricity flowing through your power lines won’t typically be 100% Green Energy, even with this plan. Instead, most Texas electric providers offset your property’s annual kWh usage by purchasing Renewable Energy Credits (RECs). These RECs are generally generated through solar or wind energy.
4. Promotional Energy Plans: Promotional energy plans are a popular choice among Texas electricity consumers, as they offer lower rates or unique billing structures that can save customers money. Some of the most popular are free weekend plans or Monthly usage bill credit plans that offer credits for staying under a certain usage threshold. However, customers need to be cautious when choosing a promotional energy plan. It’s important to thoroughly read the Suppliers Electricity Facts Label (EFL) to understand the true price you will pay and any fine print details that may affect your overall cost.
5 Tips for Finding the Best Energy Plans in Texas
When you are on a mission to find the best energy plans available in Texas, it is crucial to make a true Texas electric rates comparison and compare the plans apples to apples to one another to ensure you are getting the best possible deal. Here are some tips for doing so:
- Look at the plan’s Electricity Facts Label: In Texas, every residential electricity plan has to have an Electricity Facts Label (EFL). Think of it as nutrition label found on many food products. This EFL is will contain key information such as the plan’s average electricity rate per kWh, any recurring charges, early termination fees, and contract length. Just remember to make a true Texas electric rates comparison just need to look at the EFL!
- Compare plans based on your specific kWh usage range: It’s essential to compare electricity plans based on your particular kWh usage range. For instance, if you live in an apartment and use about 500 kWh every month, it doesn’t help to look at plans designed for 2,000 kWh. It’s important to consider how much electricity you use on average, and choose a plan that is tailored for your specific energy needs. This becomes increasingly crucial when you are looking at promotional plans like Usage Bill Credits. These plans typically offer credits for staying under a certain usage threshold, so understanding your typical usage can help you maximize your savings.
- Take note of any additional fees: When comparing Texas electricity plans, it’s not just about the electricity rate. It’s essential to look at the entire picture, including any additional fees and charges that may be associated with the plan. These can include monthly service fees, renewable energy surcharges, or other add-ons. It’s important to factor these fees into the equation when comparing plans.
- Consider 100% Green Plans: For those who prioritize environmentally-friendly energy sources, a 100% Green Energy Plan may be the perfect option. While these plans often come at a slightly higher cost than traditional plans, many customers find the added expense worthwhile.
- Factor in Contract Length: When choosing an electricity plan in Texas, it’s important to consider the contract length. Fixed-rate plans typically have contract lengths ranging from 6 months to 3 years, while variable-rate plans may have no set contract period. It’s important to understand any early termination fees associated with a plan, as switching plans before the contract is up can result in penalties. Furthermore, longer contract lengths may offer lower rates, but they also lock customers into a set rate for a longer term, potentially limiting their ability to take advantage of lower rates in the future.
Commercial Electricity Rates in Texas
- Direct Access to Suppliers: 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 to you how much electricity providers are compensating us with. Due to our automated online pricing process, we can offer some of the rates in the market.
- Expert Advice: Unsure you which plan or provider to go with? No problem. You will have access to an industry expert that can help you throughout the entire process.
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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 energy supplier where you live.
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