January 2019 Texas Electricity Rate Update

2019 is starting with higher electricity rates in Texas. Average available rates on 12 month plans are up over December in all areas of Texas.  The increase is modest for larger homes that use 2000 kWhs.  The largest increase in average available rates for new electricity plans occurred at the 500 kWh usage level.

For example, people who are shopping for electricity for an apartment in Houston will find that the average rate has gone up from 12.1¢/kWh to 12.9¢/kWh for a 12 month plan in the Centerpoint delivery area.  The Centerpoint delivery area includes Houston and surrounding suburbs.  The average 500 kwh rate in the Oncor delivery area (DFW) rose from 10.9¢/kWh in December of last year to 11.6¢/kWh in January of 2019.  Some of the increase in various parts of the state is a result of increases in transmission and distribution utility pass through fees.  Such fees tend to have a larger impact on homes that use less electricity.

 Texas Electricity Rate Guide January 2019

****IMPORTANT***

The rates listed here are a snapshot as of 1/16/2019.  To see current rates in your city use our real time electricity rate comparison tool at the top of the page.

Rates listed in table are for 12 month plans.  Rates will be different for longer or shorter duration plans.

The good news is that the best available rate at the 2000 kwh usage level is unchanged in nearly every region of the state.  This means that you can still get a good deal by shopping for the cheapest rate.  Frontier Utilities remains the cheapest electric company for large homes in most areas.  In Arlington, for example, the Frontier Beat The Heat 12+ plan is offered at 8.1¢ per kWh.  This is more than a penny better than the next best rate of 9.3¢ per kWh from the 4Change Budget Saver 12 plan.

The Beat The Heat 12+ plan is not a good option for homes that use less electricity.  At the 1000 kWh usage level, the Cirro Smart Value 12 Online plan is the cheapest rate at 9.0¢/kWh in the Oncor region.

2019 Electricity Rate Outlook

Continued tight short term capacity margins will keep pressure in electricity rates throughout at least the summer of 2019.   A handful of power plant projects that were expected to begin delivering power to the Texas electricity grid have recently been cancelled or delayed.  This has led to a warning by officials that capacity for the summer of 2019 will be less than ideal.

Capacity concerns going into the summer of 2018 caused electricity providers to raise rates going into the summer to protect themselves.  As it turned out, there was plenty of electricity to meet demand in the summer.   We are likely to see a repeat of those pre-summer rate increases this year.  Consumers should take advantage of any drops in rates that occur in the spring to lock in a long term plan.