What to know about electricity rates in Texas
- The average Texas electricity rate is 15.86 cents per kWh while the average national rate is 16.82 cents
- The cheapest electricity rate is 6.49 cents per kWh for Texas residents
- Texas's deregulated electricity market includes 170 providers
Best Texas electricity rates
Texas electricity rates range from 6.49 cents to 44.81 cents per kWh. The rates you find vary depending on the providers and plans available to you, and comparing companies is the best way to find better rates. Below are some rates from popular electric companies in Texas.
What is the cheapest electricity company in Texas?
| Rank | Provider | Service | Rate (c/kWh) | Customers |
|---|---|---|---|---|
| 1 | San Saba, Texas Electric Utility | Bundled | 6.44 | 1,923 |
| 2 | Mason, Texas Electric Utility | Bundled | 7.59 | 1,629 |
| 3 | Lea County Electric | Bundled | 7.69 | 5,119 |
| 4 | Southern Federal Power | Bundled | 7.93 | 18,516 |
| 5 | Kerrville Public Utility Board | Bundled | 8.86 | 24,831 |
| 6 | YEP Energy | Bundled | 8.91 | 21,283 |
| 7 | APG&E | Bundled | 9.35 | 54,666 |
| 8 | Rita Blanca Electric | Bundled | 10.11 | 1,802 |
| 9 | Deaf Smith Electric | Bundled | 10.15 | 16,687 |
| 10 | Champion Energy Services | Bundled | 10.46 | 180,329 |
Because Texas has a deregulated electricity market, you have the flexibility to shop around for a cheaper electricity bill. Many states don't offer this choice. If you're looking to reduce your energy bill, consider switching to a different provider or plan. Texas electricity providers offer different types of plans for residents and businesses to satisfy a range of needs.
Average cost of electricity in Texas
According to our data, the average electricity rate in Texas is 15.86 cents per kWh. This equates to an average residential bill of $176.52 per month. The national average rate is 16.82 cents per kWh, and Texas ranks as the 28th lowest priced state in the nation.
| Rate | Usage | Bill | |
|---|---|---|---|
| Texas Average | 15.86c | 1,113 kWh | $176.52 |
| United States Average | 16.82c | 875 kWh | $147.24 |
Since the average price is 15.86 cents per kWh or $176.52 per month for residential electricity, prices lower than these can be considered affordable. Electricity rates in Texas depend on your home size and usage, so the kWh rate is more useful when comparing your rate to the average.
Best electricity plans
In Texas, the best electricity plans provide competitive rates, renewable energy options, and fixed or variable pricing. Top providers offer reliability, transparency, and customer incentives so you can save money and enjoy responsive support.
We've analyzed the prices, terms, and conditions of popular Texas electricity plans. Below are our picks for the best residential plans in the state.
| Provider | Contract Term | Rate | Plan |
|---|---|---|---|
12 months | 11.9¢ /kWh | ||
12 months | 12.9¢ /kWh | ||
12 months | 13.9¢ /kWh | ||
12 months | 14.8¢ /kWh | ||
12 months | 15.4¢ /kWh | ||
24 months | 15.8¢ /kWh | ||
24 months | 16.4¢ /kWh | ||
6 months | 17.8¢ /kWh | ||
12 months | 17.8¢ /kWh | ||
| See All Plans | |||
Compare Texas electricity providers
There are 170 electricity providers in Texas. While some providers only serve specific areas, you have multiple options for electricity wherever you are. Different providers can offer different specials, plan types, and sales throughout the year. However, always read the fine print of the energy plans you consider to avoid hidden penalties.
Residential electricity providers in Texas
| Provider | Service Type | Rate (c/kWh) | Rate State Rank | Bill | Bill State Rank |
|---|---|---|---|---|---|
| San Saba, Texas Electric Utility | Bundled | 6.44 | 1 | $69.07 | 2 |
| Mason, Texas Electric Utility | Bundled | 7.59 | 2 | $87.24 | 7 |
| Lea County Electric | Bundled | 7.69 | 3 | $106.88 | 14 |
| Southern Federal Power | Bundled | 7.93 | 4 | $117.99 | 28 |
| Kerrville Public Utility Board | Bundled | 8.86 | 5 | $104.35 | 12 |
| YEP Energy | Bundled | 8.91 | 6 | $85.89 | 5 |
| APG&E | Bundled | 9.35 | 7 | $127.15 | 42 |
| Rita Blanca Electric | Bundled | 10.11 | 8 | $247.18 | 167 |
| Deaf Smith Electric | Bundled | 10.15 | 9 | $86.74 | 6 |
| Champion Energy Services | Bundled | 10.46 | 10 | $129.80 | 46 |
Showing 10 of 170 providers
Business electricity rates in Texas
Commercial rates are typically cheaper than residential rates in Texas because businesses consume much more energy than homes on average. Businesses basically get a volume discount on electricity since they use so much. Our data shows the average business in Texas pays 8.67 cents per kWh for electricity and has an average bill of $838.64 per month.
| Rate | Usage | Bill | |
|---|---|---|---|
| Texas Average | 8.67c | 9,673 kWh | $838.64 |
| United States Average | 12.43c | 5,742 kWh | $713.88 |
Finding ways to reduce overhead costs is essential as a business owner. You have the opportunity to do that in a deregulated electricity market. Even reducing your electricity by one or two cents per kWh can make a huge difference when you have a high monthly bill. Compare commercial electricity rates to find the plan that makes the most sense for your business.
Best commercial electricity plans
Below are the top commercial electricity plans in Texas.
| Provider | Contract Term | Rate | Plan |
|---|---|---|---|
54 months | 5.066¢ /kWh | ||
48 months | 5.074¢ /kWh | ||
42 months | 5.159¢ /kWh | ||
36 months | 5.179¢ /kWh | ||
54 months | 5.215¢ /kWh | ||
48 months | 5.224¢ /kWh | ||
54 months | 5.234¢ /kWh | ||
48 months | 5.243¢ /kWh | ||
54 months | 5.248¢ /kWh | ||
48 months | 5.257¢ /kWh | ||
30 months | 5.302¢ /kWh | ||
24 months | 5.303¢ /kWh | ||
42 months | 5.322¢ /kWh | ||
54 months | 5.333¢ /kWh | ||
42 months | 5.342¢ /kWh | ||
48 months | 5.343¢ /kWh | ||
36 months | 5.344¢ /kWh | ||
36 months | 5.364¢ /kWh | ||
42 months | 5.372¢ /kWh | ||
54 months | 5.385¢ /kWh | ||
| See All Plans | |||
How to switch Texas electricity companies
Three simple steps can help you switch Texas electricity providers while avoiding service interruptions and unnecessary fees:
- Review your current plan and usage, checking your contract end date to avoid early termination fees.
- Compare providers' rates about 14 days before your contract expires. You'll need your address, driver's license, and Social Security number ready.
- Select your new provider, who'll handle the entire switching process, including notifying your current company.
The switch typically takes a few days, and you won't experience any service disruption.
When is the best time to switch energy providers in Texas?
While choosing the right electricity provider in Texas is important, timing your switch can also help you save on energy bills.
Here are a few times to consider switching:
- Spring and fall: Switch during these seasons when electricity demand is lowest, helping you secure better rates.
- Pre-season planning: Consider switching just before summer or winter to avoid seasonal price spikes.
- Contract end: Time your switch within 14 days of your contract expiration to avoid termination fees.
- Promotions: Take advantage of promotions and special offers during low-demand periods.
Remember to review your current contract terms and compare rates from multiple providers before making the switch.
How deregulated electricity works in Texas
When Texas deregulated its electricity market in 2002, the state transformed its energy landscape by splitting the traditional utility model into three distinct segments: generation, transmission, and retail.
Here's how it works for you:
- Power Generation Companies create electricity and sell it wholesale.
- Transmission and Distribution Utilities maintain the power lines and infrastructure.
- Retail Electric Providers (REPs) purchase electricity and sell it to you.
Texas residents can choose from over 170 REPs in competitive areas, which serve about 85% of Texas power consumers. The Public Utility Commission of Texas operates the Power to Choose website, which displays plans and providers in each zip code.
While you select your provider, your local utility company still handles power line maintenance and outages, ensuring reliable delivery to your home.
Types of electricity plans in Texas
The Texas electricity market offers several distinct plan types, each designed to match different consumer needs and preferences.
You'll find four main options:
- Fixed-rate plans lock in your rate per kilowatt-hour for 6 to 36 months, providing predictable bills and protection from market swings. Most customers choose 12 or 24-month terms.
- Variable-rate plans fluctuate with market conditions, offering flexibility but higher risk.
- Time-of-use plans charge different rates based on when you use electricity, with potential savings during off-peak hours.
- Prepaid plans let you pay in advance without deposits, while specialty options include indexed and renewable energy plans.
Compare Texas electricity rates
Compare Texas electricity rates to save money and avoid overpaying in the deregulated market. Your bill can vary greatly depending on the provider and plan structure. Take the time to read the fine print and do the math to figure out which is your best option.
Texas electricity rates vs other states
Electricity rates for the biggest cities in Texas
Texas electricity rate FAQs
In Texas, a good electricity rate falls between 15 cents to 17 cents per kWh. Tired of high bills? Shop during spring and fall to lock in lower prices before HVAC use spikes in the summer or winter.
Texas electricity rates currently average 15.86 cents per kWh, but you'll likely pay between 14 to 18 cents depending on your provider, location, and plan type.
Your Texas electricity costs may be high because of massive grid upgrades and rising natural gas prices. You'll pay more as utilities spend billions on infrastructure while data centers and extreme weather strain the system.
Electricity rates fluctuate due to energy demand, fuel costs, grid infrastructure, and regulatory policies. While short-term declines may occur, long-term trends often show increases due to inflation, grid modernization, and shifts to renewable energy.