Written by Jason Thomas | Last updated August 10, 2022
Why you can trust Vault Electricity
At Vault Electricity we strive to help you pay as little as possible for your electricity. We adhere to strict editorial integrity, this post may contain references to products from our partners. This content is powered by Vault Energy Solutions, LLC (PUCT Registration Number BR190328). For more information, please see our Advertising Disclosure.
Texas electricity rates
- The average Texas residential electricity rate is 12.44 ¢/kWh
- The average Texas commercial electricity rate is 8.90 ¢/kWh
Source: Texas energy data from The U.S. Energy Information Administration (EIA). The latest data from the EIA is from March 2022. The averages above are three-month rolling averages. See below for the most up-to-date rates.
What’s on this page:
- How to get the cheapest electricity rate
- Lowest Texas electricity rates
- Types of Texas electric plans
- Historic Texas electricity rates
- Texas electricity prices 2022 forecast
- Frequently asked questions
Lock in the cheapest Texas electricity rates before they increase
Electricity rates in Texas are increasing with no end in sight. While the summer usually brings the highest prices each year, several factors are coming together to make 2022 an unusually expensive year for electricity.
The quicker you lock in a rate, the cheaper your electricity rate will be. Here’s how to easily compare electricity plans and get the best price.
To find the cheapest electric company, simply enter your zip code above. You will then be taken to your city’s page. There you will find the electricity plans available in your area. The cheapest electricity rate will be listed first. You can scroll down to see all of the electric company offerings. Make sure you select the size of home you have.
If you have other criteria you are looking for in an electric company, you can filter for it. For example, if you want a 100% renewable energy plan, use the “GREEN ENERGY” button to filter out the non-green energy plans. If you want to see the plans available by term length, use the drop-down menu to select the length of time you want to see.
Lowest Texas electricity rates
|City/Home Size||Average Rate||Lowest Rate||Cheapest Provider|
|Houston Apartment (500 kWh)||23.2¢/kWh||18.9¢/kWh||Gexa Energy|
|Houston Sm Home (1000 kWh)||16.7¢/kWh||13.4¢/kWh||Express Energy|
|Houston Lg Home (2000 kWh)||19.1¢/kWh||16.2¢/kWh||Express Energy|
|Dallas Apartment (500 kWh)||21.2¢/kWh||16.9¢/kWh||Gexa Energy|
|Dallas Sm Home (1000 kWh)||16.9¢/kWh||12.4¢/kWh||Express Energy|
|Dallas Lg Home (2000 kWh)||18.7¢/kWh||15.4¢/kWh||Gexa Energy|
|Lewisville Apartment (500 kWh)||25.2¢/kWh||19.9¢/kWh||Gexa Energy|
|Lewisville Sm Home (1000 kWh)||17.4¢/kWh||13.2¢/kWh||Frontier Energy|
|Lewisville Lg Home (2000 kWh)||19.9¢/kWh||17.4¢/kWh||Express Energy|
|Victoria Apartment (500 kWh)||21.3¢/kWh||18.3¢/kWh||Trieagle|
|Victoria Sm Home (1000 kWh)||17.1¢/kWh||13.5¢/kWh||Frontier Energy|
|Victoria Lg Home (2000 kWh)||18.6¢/kWh||16.4¢/kWh||Trieagle|
|Abilene Apartment (500 kWh)||21.7¢/kWh||17.7¢/kWh||Gexa Energy|
|Abilene Sm Home (1000 kWh)||15.5¢/kWh||10.9¢/kWh||Express Energy|
|Abilene Lg Home (2000 kWh)||18.6¢/kWh||15.9¢/kWh||Frontier Energy|
Types of Texas electric plans
Texas electric companies offer a wide variety of energy products designed to meet the diverse needs of Texas’ residential and commercial electricity users. Plans and rates are tailored to appeal to people with different energy usage levels and budgets.
Fixed-Rate Electricity Plans [RECOMMENDED]
The most recommended type of energy plan is one based on a fixed rate. Fixed-rate plans are designed to offer affordable power at a predictable cost With a well-designed fixed-rate electricity plan, your monthly utility bill should be consistent. Most electricity plans offered in Texas feature a fixed rate.
One caveat to choosing this plan is ensuring you don’t lock yourself into a long-term plan. Providers have expanded their plans to include 36 – 60 month plans. With rates at near all-time highs, it doesn’t make sense to lock yourself into such a long-term agreement.
Variable Rate Electricity Plans [STAY AWAY]
These plans aren’t recommended for everyone. But there are certain situations when a variable rate electricity plan may be the best option to get the lights turned on.
A flat-rate plan charges a certain fixed dollar amount for electricity usage up to a certain level. For example, a plan may be priced at a flat rate of $100 for any usage level up to 1000 kW.
No Deposit and Prepaid Energy Plans
In the past, having bad credit meant paying a large deposit to get the electricity turned on. Deposits were also held hostage until you moved or changed providers. There were no other options.
Luckily, times have changed, and there are now several no deposit electricity options.
Option 1: Choose A Traditional electricity plan from any electric provider.
Type your zip code into the search bar at the top of the page. Choose an electricity plan from the list that offers the best rate and attempt to enroll in it. This will take you less than 5 minutes. If you get accepted without having to pay a deposit, great! But if you are asked to pay a deposit, you can move on to Option 2.
Option 2: Traditional plan from a provider with lower credit requirements.
Try enrolling with an electricity provider that has lower credit requirements, such as TXU. You can find TXU plans listed right here on this site by entering your zip code above. Because TXU has such a huge base of customers, their overall customer credit risk is diminished, so they tend to accept lower credit scores.
Option 3: Prepaid electricity plan.
The third option is going with a prepaid “pay as you go” electricity plan. These plans work just like a debit card or a prepaid cell phone. There is no credit check and no deposit. You simply create an account and add money to it. You then use the money in that account to pay for your electricity in real-time, instead of paying at the end of the month.
Historic Texas electricity rates
Natural gas prices are the largest driver of electricity rates in Texas
Natural gas prices have tripled in the U.S. in the last 12 months.
Natural gas exports will help prices in Europe but drive prices in the U.S. up even further.
Many providers have stopped offering new sign-ups altogether because they don’t know how high prices will go.
Others are cutting back on the number of 12-month plans they offer and pushing new customers to 24-month plans.
Texans currently on fixed-rate contracts will not feel the increase until the current term of their contract expires.
2022 Texas Electricity Rate Outlook
Summer temperatures are forecast to be higher than normal. This will drive up wholesale electricity rates.
The hurricane season is forecasted to be busier than usual. This has the potential to produce power outages that will further drive up wholesale electricity rates.
Electricity providers are extremely cautious right now.
Electricity providers in Texas are pricing in the current high natural gas prices as well as the risk of an additional significant increase in prices.
Lock in the lowest rate before prices go up.
Frequently asked questions about Texas electricity rates
The long-term average rate per kilowatt hour (kWh) for electricity in Texas is 10.5¢. This rate can vary significantly depending on many factors, so a “good” rate is a moving target. The rate changes based on the size of your home, your location within Texas, and the current price of natural gas. A good per kWh rate for electricity can be found by comparing plans from multiple electricity companies.
Electricity rates in Texas change daily. To ensure you are getting the best deal for your address, enter your zip code into any search box on this page.
As of now, both Gexa and Frontier utilities are offering the most competitive rates for the Centerpoint distribution area, including Houston and most of the surrounding areas. But you may find different results depending on the size of your home and the term length you are looking for on your plan.
Electricity rates vary throughout the state of Texas and throughout the year. Enter your zip code in any search box to find a complete list of electric companies and plans in your area. When you find the right plan for you, you can enroll here online or over the phone.
Natural gas prices are the largest driver of electricity rates in Texas, and natural gas prices have tripled in the U.S. since June 2020.
About the author: Jason Thomas is a native Texan, and Co-Founder and Partner at Vault Energy Solutions, a Texas electricity brokerage firm. Vault Energy Solutions was founded in 2009 with a mission to help homeowners and businesses find the best deal on electricity. Read more |