×

Texas Electricity Rates

Texas is a power to choose energy market.  This means that Texas electricity rates are not set by regulators.  Instead, Texas electric companies compete with each other by creating their own electricity plans and setting their own rates.    As a Texas consumer, this creates an opportunity to lower your utility bills by comparing electricity rates and switching to a new provider any time you can find a better deal.  Here and throughout this site, we have provided you with the tools and information you need to shop for cheap electricity rates.

Page contents: (click to jump to section)

  1. How to Compare Texas Electricity Rates
  2. Texas Electricity Rates Table
  3. 2019 Electricity Rate Outlook
  4. March 2019 Texas Electricity Rate Update
  5. February 2019 Texas Electricity Rate Update
  6. January 2019 Texas Electricity Rate Update
  7. November 2018 Texas Electricity Rates Update
  8. October 2018 Texas Electricity Rates Update

Texas electricity rate index

Texas Electricity Rates Table

Texas Location/Size Average Rate Lowest Rate Cheapest Provider
Houston  Apartment (500 kWh) 12.2¢/kWh 11.7¢/kWh Gexa Energy
Houston  Sm Home (1000 kWh) 9.0¢/kWh 7.9¢/kWh 4Change Energy
Houston  Lg Home (2000 kWh) 10.0¢/kWh 8.9¢/kWh 4Change Energy
Dallas  Apartment (500 kWh) 11.0¢/kWh 10.2¢/kWh Gexa Energy
Dallas  Sm Home (1000 kWh) 8.1¢/kWh 6.9¢/kWh 4Change Energy
Dallas  Lg Home (2000 kWh) 9.1¢/kWh 7.9¢/kWh 4Change Energy
Lewisville  Apartment (500 kWh) 13.3¢/kWh 12.1¢/kWh Direct Energy
Lewisville  Sm Home (1000 kWh) 8.7¢/kWh 7.9¢/kWh 4Change Energy
Lewisville  Lg Home (2000 kWh) 10.5¢/kWh 8.9¢/kWh 4Change Energy
Victoria  Apartment (500 kWh) 12.9¢/kWh 12.4¢/kWh Trieagle
Victoria  Sm Home (1000 kWh) 9.6¢/kWh 8.5¢/kWh 4Change Energy
Victoria  Lg Home (2000 kWh) 10.6¢/kWh 8.9¢/kWh 4Change Energy
Abilene  Apartment (500 kWh) 12.2¢/kWh 11.6¢/kWh Cirro Energy
Abilene  Sm Home (1000 kWh) 9.8¢/kWh 7.9¢/kWh 4Change Energy
Abilene  Lg Home (2000 kWh) 10.1¢/kWh 8.9¢/kWh 4Change Energy

March 2019 Texas Electricity Rates Update

The average electricity rate offered by Texas electric companies fell slightly for the second month.  With the beginning of the spring season, electricity usage for the state will drop.  This is as a result of mild seasonal temperatures.  Electricity usage in the state tends to spike during the summer months and, to a lesser extent, during the colder winter months.  As heaters and A/C go silent during the spring months, Texans use less power.

Once again this month, the cheapest light company in Texas in 4change Energy.  Although, depending on how much power to typically use, you might find a better deal on an energy plan with one of the other companies.

4Change has 2 plans that are aggressively targeted toward homes that usage around 1000 kWhs per month.  In Dallas, the 4change Maxx saver 12 plan is has a rate of 6.8¢ per kWh at 1000 kWhs.  If you have a larger home that uses closer to 2000 kWhs per month, a different 4Change energy plan is currently the cheapest.  The Budget Saver 12 plan is listed at 7.9¢ per kWh at 2000 kWhs.

If you live in an apartment in Dallas, you should look at the Gexa Saver Value 12 plan.  This is the best electricity plan for an apartment in the Dallas area because it has the cheapest rate for 500 kWh usage at 10.2¢ per kWh.

If you live in Houston of other parts of the state, you should enter your zip code in the search box above to compare electricity rates to find the best deal for your area.

Spring is the season for wind energy in Texas

Along with milder temperatures, spring typically is the windiest part of the year.  As a result of this, wind energy will make up a proportionally larger percentage of electricity output in the state.   It is reasonable to expect that during mild windy days of the next couple of months, wind could possibly be the largest source of power for the state for the day.

January 2019 Texas Electricity Rates 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.

How to Compare Texas Electricity Rates

Shopping for electricity in Texas can be a little tricky. There are dozens of electric companies in Texas that compete daily to win your business.  Here is a step by step guide to finding the best plan for your needs.

Step 1 – How much electricity do you use each month on average?

Start by determining how many kWhs of electricity your use each month on average.  You will need to look at more than one month of electricity usage to get an average amount.

Every electricity provider in Texas must disclose the average electricity rate for each plan they sell at three benchmark usage levels.  They are:

  • 500 kWh
  • 1000 kWh
  • 2000 kWh

If you live in an apartment, you probably use around 500 kWh per month on average.  If you live in a larger home, it’s probably closer to 2000 or more.

Step 2 – How much electricity do you use in the summer and spring?

Next, determine what your range of electricity usage is.  This is critical because each electricity plan has different electricity rates for different usage levels.  This means that your average electricity rate will change every month depending on how much electricity you use.  This is the case even if the plan is labeled as a “fixed rate” plan.

Step 3 – Find an electricity plan that performs best at your average usage level

Enter your zip code to see the list of electricity providers with their plans and rates in your area.  Make sure to select your home size so you are seeing the rates based on your average usage level.  By default, the page will display rates based on the 1000 kWh usage level.  Use the ‘Home Size’ drop down menu to change rates to 500 kWh or 2000 kWh to change the rates if you need to.

Step 4 – Look at the electricity rates for every usage level for this electricity plan

This is a critical step that many people miss.  We will show you what the average electricity rate for the plan is at each standard usage level (500, 1000, and 2000 kWhs). If you see an extremely wide range of rates between these usage levels, this might not be the plan for you.

If you are like most Texans, you will use substantially more power in the summer than in the spring.  You don’t want to find yourself in an electricity plan that advertises a cheap electricity rate at 1000 kWh but skyrockets in the summer when you may use closer to 2000 kWh or in the spring where you may use only 500 kWhs.

Ideally, you want to select a plan that has a good rate not just for your average usage level but at every usage level.  This might mean selecting a plan that has a slightly higher advertised rate at 1000 kWh if that plan performs more consistently at the other usage levels.  By the end of the year you will end up paying less.

Here is an example of two electricity plans you might encounter.

If you are comparing rates based on 2000 kWhs of usage, you might think this first plan is the better deal.

electricity rate example 1

But look at the rates for the 500 and 1000kWh usage levels.  This should be a red flag.  On months where you use less electricity (think spring and fall) your average rate will be much higher.  The reason for this is in the fine print of the plan.

This plan features a bill credit that applies only within usage ranges of between 1,500 and 2,000 kWhs per month.  This brings down the average rate within that narrow range of usage but, if you use less or more than that, your electric bill jumps by $60.

All of this information can be found in the plan’s ‘electricity facts label’.  Always read the electricity facts label before you enroll in an electricity plan.

electricity facts label

Consider this second plan.  The average electricity rate is higher at 2000 kWh but the rates at lower usage levels are substantially better.  With such a plan, your electricity rates will be more predictable and, in all likelihood, you will save money over the course of a year.  Again, read the electricity facts label to understand all of the components that go into this price

electricity rates example 2

Step 5 – Enroll in an electricity plan

Once you find the plan that works best for you, you can enroll right here online or over the phone.

Step 6 – Come back and compare electricity rates in the future

Bookmark this website and return when your plan term is coming to an end.  Texas electricity rates are always changing.  It’s very likely that when your plan comes up for renewal, there will be another electric company offering a cheaper rate.

 Texas Electricity Rate Guide January 2019

Texas Location/Size Average Rate Lowest Rate Cheapest Provider
Houston  Apartment (500 kWh) 12.9¢/kWh 10.9¢/kWh Gexa Energy
Houston  Sm Home (1000 kWh) 11.6¢/kWh 9.6¢/kWh Cirro Energy
Houston  Lg Home (2000 kWh) 10.3¢/kWh 9.2¢/kWh Frontier Energy
Dallas  Apartment (500 kWh) 11.6¢/kWh 9.9¢/kWh Gexa Energy
Dallas  Sm Home (1000 kWh) 10.1¢/kWh 9.0¢/kWh Cirro Energy
Dallas  Lg Home (2000 kWh) 9.3¢/kWh 8.1¢/kWh Frontier Energy
Lewisville  Apartment (500 kWh) 13.5¢/kWh 12.8¢/kWh Direct Energy
Lewisville  Sm Home (1000 kWh) 10.9¢/kWh 9.3¢/kWh Cirro Energy
Lewisville  Lg Home (2000 kWh) 9.8¢/kWh 9.0¢/kWh Frontier Energy
Victoria  Apartment (500 kWh) 13.5¢/kWh 12.6¢/kWh Trieagle
Victoria  Sm Home (1000 kWh) 11.5¢/kWh 9.9¢/kWh 4Change Energy
Victoria  Lg Home (2000 kWh) 10.4¢/kWh 9.7¢/kWh Frontier Energy
Abilene  Apartment (500 kWh) 12.9¢/kWh 11.7¢/kWh Trieagle
Abilene  Sm Home (1000 kWh) 10.9¢/kWh 9.8¢/kWh Cirro Energy
Abilene  Lg Home (2000 kWh) 10.3¢/kWh 9.9¢/kWh 4Change Energy

****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.

************************************

November 2018 Texas Electricity Rates Update

Electricity rates in Texas remained largely unchanged in November. This isn’t surprising.  Electricity rates are often less volatile this time of year.  The average electricity rate across all usage levels (500 kWh, 1000 kWh, and 2000 kWh) was 10.9¢/kWh.  The slightly higher average over October was due mostly to higher average rates for the 500 kWh and 1000 kWh usage rates.  At 2000 kWh the average rate available remained steady at 10.9¢/kWh.

The larger brand name electricity providers such as TXU and Reliant continue to be significantly more expensive than the smaller providers.  This isn’t necessarily always the case, but in recent months TXU and Reliant have had much higher rates than other providers.  This points to the importance of comparing electricity rates rather than relying on tv commercials and name recognition when selecting an electricity provider in Texas.

It is perhaps surprising that electricity rates aren’t going up faster.  Natural gas prices have been spiking.  Recently touching their highest rates in over 4 years.  Although the correlation between natural gas prices and electricity rates in Texas isn’t as tight as it once was, natural gas is still the most important single source fueling Texas power plans.

If natural gas prices continue to rise, it will put more pressure on electricity rates in Texas.  The volatility in natural gas means shorter term plans are not a bargain right now.  For example, the Pollution Free e-Plus Preferred month-to-month plan offered by Green Mountain Energy is priced at 14.8¢/kWh in Houston.

Texas Electricity Rate Guide November 2018

Texas Location/Size Average Rate Lowest Rate Cheapest Provider
Houston  Apartment (500 kWh) 11.9¢/kWh 10.9¢/kWh Gexa Energy
Houston  Sm Home (1000 kWh) 10.3¢/kWh 9.6¢/kWh Cirro Energy
Houston  Lg Home (2000 kWh) 10.1¢/kWh 9.2¢/kWh Frontier Energy
Dallas  Apartment (500 kWh) 11.1¢/kWh 9.9¢/kWh Gexa Energy
Dallas  Sm Home (1000 kWh) 9.8¢/kWh 9.0¢/kWh Cirro Energy
Dallas  Lg Home (2000 kWh) 9.2¢/kWh 8.1¢/kWh Frontier Energy
Lewisville  Apartment (500 kWh) 13.2¢/kWh 12.8¢/kWh Direct Energy
Lewisville  Sm Home (1000 kWh) 10.6¢/kWh 9.3¢/kWh Cirro Energy
Lewisville  Lg Home (2000 kWh) 9.6¢/kWh 9.0¢/kWh Frontier Energy
Victoria  Apartment (500 kWh) 13.2¢/kWh 12.6¢/kWh Trieagle
Victoria  Sm Home (1000 kWh) 11.0¢/kWh 9.9¢/kWh 4Change Energy
Victoria  Lg Home (2000 kWh) 10.4¢/kWh 9.7¢/kWh Frontier Energy
Abilene  Apartment (500 kWh) 12.5¢/kWh 11.7¢/kWh Trieagle
Abilene  Sm Home (1000 kWh) 10.7¢/kWh 9.8¢/kWh Cirro Energy
Abilene  Lg Home (2000 kWh) 10.3¢/kWh 9.9¢/kWh 4Change Energy

****IMPORTANT***

The rates listed here are a snapshot as of 11/16/2018.  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.

November 2018 Texas Electricity Rate Snapshot

Cheapest Electricity Rates in Texas

Unfortunately, the great rate Bounce Energy was offering on their 6 month plan has ended.  The cheapest plans in both the Dallas/Fort Worth and Houston areas are currently being offered by Frontier Utilities.  In the Oncor service area (DFW and other parts of Texas) Frontier’s Beat The Heat 12+ plan is currently priced at 8.1¢/kWh for 2000 kWh.  This is about a penny better than the next best 12 month plan.

This plan is not for everybody though.  Frontier has structured the pricing of the plan to be at it’s cheapest at between 1,900 and 2,400 kWh.  If you typically use less electricity than that, your rate will jump substantially with this plan.  For example, at 1000 kWh the rate fort this plan in the Oncor delivery area is 10.6¢ /kWh.  There are a number of plans that are better deals for homes that size.

What Is the Cheapest Electricity Provider in My Area?

As you can see, shopping for electricity in Texas is a tricky business.  The answer to who has the cheapest electricity rate depends on where you live, how much electricity you use, and how long you want to lock in the rate.  To begin the process, enter your zip code at the top of this page.  We will return the list of electricity plans available in your area.  Make sure to use our filter to select the appropriate usage level for your home or apartment.  Once you select a plan, you can enroll online or over the phone.

************************************

October 2018 Texas Electricity Rates Update

Texas electricity rates have ticked up slightly in October after falling in September following a summer spike in electricity rates.  The average 12 month rate for new electricity plans available in Texas sets at 10.7¢/kWh.  This is up slightly from the 10.6¢/kWh rate in September.

For the Houston area specifically, the average rate is currently 10.8¢/kWh, up slightly from 10.7¢/kWh.  In the Oncor service area which includes Dallas, Fort Worth, Arlington, Irving, and other cities, the average went up to 9.9¢/kWh from 9.6¢/kWh.

For the second straight month however, there are deals to be found by opting for shorter length plans.  The Fantastic Fixed 6 plan from Bounce Energy was already among the cheapest electricity plans available before getting an even lower rate in October.  This 6 month plan is a priced at 8.7¢/kWh in Houston for the 2,000 kWh usage level.

The Gexa Energy Steady Saver 9 plan is a 9 month plan that is also cheaper than most currently available 12 month plans.  It is available for 8.7¢/kWh in the Oncor deliver area.

The average rate available for apartments (500 kWh usage) across the state in October is 12.1¢/kWh with the best rate being the Bounce Energy Easy Fixed 3 plan in the Dallas area. For large homes (2000 kWh usage) the average across Texas is 9.9¢/kWh

Texas Electricity Rate Guide October 2018

 

Texas Location/Size Average Rate Lowest Rate Cheapest Provider
Houston  Apartment (500 kWh) 11.8¢/kWh 10.9¢/kWh Gexa Energy
Houston  Sm Home (1000 kWh) 10.3¢/kWh 9.6¢/kWh Cirro Energy
Houston  Lg Home (2000 kWh) 10.1¢/kWh 9.4¢/kWh Frontier Utilities
Dallas  Apartment (500 kWh) 10.8¢/kWh 10.0¢/kWh Gexa Energy
Dallas  Sm Home (1000 kWh) 9.6¢/kWh 9.0¢/kWh Cirro Energy
Dallas  Lg Home (2000 kWh) 9.3¢/kWh 8.2¢/kWh Frontier Utilities
Lewisville  Apartment (500 kWh) 12.7¢/kWh 12.3¢/kWh Direct Energy
Lewisville  Sm Home (1000 kWh) 10.1¢/kWh 9.3¢/kWh Cirro Energy
Lewisville  Lg Home (2000 kWh) 9.7¢/kWh 9.0¢/kWh Frontier Utilities
Victoria  Apartment (500 kWh) 12.8¢/kWh 12.2¢/kWh Trieagle
Victoria  Sm Home (1000 kWh) 10.8¢/kWh 9.9¢/kWh 4Change Energy
Victoria  Lg Home (2000 kWh) 10.4¢/kWh 9.7¢/kWh Frontier Utilities
Abilene  Apartment (500 kWh) 12.1¢/kWh 11.4¢/kWh Trieagle
Abilene  Sm Home (1000 kWh) 10.3¢/kWh 9.8¢/kWh Cirro Energy
Abilene  Lg Home (2000 kWh) 10.2¢/kWh 9.9¢/kWh 4Change Energy

****IMPORTANT***

The rates listed here are a snapshot as of 10/8/2018.  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.

 October 2018 Texas Electricity Rate Snapshot

Cheapest Electricity Rates

The cheapest electricity plan currently available in Texas is the Bounce Energy Easy Fixed 3.  This is a 3 month plan.  In Dallas this plan is priced at a rate of 8.2¢/kWh for the 1000 kWh usage level.  This is compared to the cheapest 12 month plan available which is the Smart Value 12 Online plan offered by Cirro energy.

Interestingly, the Easy Fixed 3 is the lowest rate plan across all three of the standard usage levels – 500 kWh, 1000 kWh, and 2000 kWh.  This is unusual as plans are normally crafted to target their best rate for the 1000 or 2000 kWh usage levels.  This plan has no tiers or bill credits.  Aside from the standard pass through charges that are included on all Texas electricity plans, the Easy Fixed 3 plan only includes an additional energy charge and a $4.95 per month base charge.

So the Cheapest Electricity Rate Is?

Electricity rates very throughout the state of Texas.  To find a complete list of electricity companies and plans in your area, enter your zip code above.   When you find the plan that is right for you, you can enroll right here online or over the phone.

******************************

September 2018 Texas Electricity Rates Update

Texas electricity rates are on their way down again.  After a summer spike, electricity rates across Texas have fallen.  Utility officials were concerned about having enough electricity to meet peak summer demand.  This resulted in electricity providers increasing the rates on their fixed rate plans in anticipation of higher wholesale electricity prices.

Now that summer is over and the feared power shortages never materialized, Texas electricity rates are back down.  Now is a great time to lock in a great rate if you are not under contract.

For example, Bounce Energy has a 6 month plan for just 8.4¢/kWh in the DFW area (9.2¢ in Houston area).  If you have a larger home, Frontier has a plan targeted for the 2,000 kWh usage rate at just 7.3¢/kWh.

The average electricity rate for a 12 month plan at the 2000 kWh usage rate stands at 9.9¢/kWh for the Houston area.  In the DFW area the average rate is 9.1¢/kWh.  This is down from the peak average in August 2018.  Certain shorter term electricity rate plans have lower rates.

Texas Electricity Rate Guide September 2018

Texas Location/Size Average Rate Lowest Rate Cheapest Provider
Houston  Apartment (500 kWh) 11.7¢/kWh 10.9¢/kWh Gexa Energy
Houston  Sm Home (1000 kWh) 10.3¢/kWh 9.6¢/kWh Cirro Energy
Houston  Lg Home (2000 kWh) 9.9¢/kWh 8.5¢/kWh Frontier Utilities
Dallas  Apartment (500 kWh) 10.6¢/kWh 10.0¢/kWh Gexa Energy
Dallas  Sm Home (1000 kWh) 9.0¢/kWh 6.9¢/kWh Pennywise Power
Dallas  Lg Home (2000 kWh) 9.1¢/kWh 7.3¢/kWh Frontier Utilities
Lewisville  Apartment (500 kWh) 12.4¢/kWh 12.1¢/kWh Champion Energy
Lewisville  Sm Home (1000 kWh) 10.1¢/kWh 9.3¢/kWh Cirro Energy
Lewisville  Lg Home (2000 kWh) 9.5¢/kWh 8.1¢/kWh Frontier Utilities
Victoria  Apartment (500 kWh) 12.8¢/kWh 12.0¢/kWh Trieagle Energy
Victoria  Sm Home (1000 kWh) 10.8¢/kWh 9.9¢/kWh 4Change Energy
Victoria  Lg Home (2000 kWh) 10.3¢/kWh 9.1¢/kWh Frontier Utilities
Abilene  Apartment (500 kWh) 12.2¢/kWh 11.3¢/kWh Trieagle Energy
Abilene  Sm Home (1000 kWh) 10.3¢/kWh 9.8¢/kWh Cirro Energy
Abilene  Lg Home (2000 kWh) 10.0¢/kWh 9.7¢/kWh Direct Energy

 

****IMPORTANT***

The rates listed here are a snapshot as of 9/14/2018.  To see current rates in your city use our real time electricity rate comparison tool at the top of this page.

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

Texas Electricity Rates - September 2018  

Cheapest Electricity Rates Today

The lowest rate electricity plans currently include the Bounce Fantastic 6 Plan.  This is a straightforward plan with a simple pricing structure that is unlikely to lead to surprises in your electric bill.

For smaller homes that use around 1,000 kWh per month, the Pennywise Power Wise Buy Conserve Plus 12 plan priced at a very attractive 6.9¢/kWh in the Oncor deliver area that includes Arlington, Grand Prairie and several other Texas cities.

For apartments that use around 500 kWh, the cheapest electricity rate going is the Fantastic Fixed 6 plan at  9.7¢/kWh

Is it Just Me, or Do Texas Electricity Rates Change All of the Time?

Electricity rates very throughout the state of Texas.  To find a complete list of electric companies and plans in your area, enter your zip code above.   When you find the plan that is right for you, you can enroll right here online or over the phone.