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Rates Updated: 8/27/2026
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Texas Electricity Snapshot
Updated: May 22, 2026
Current Texas electricity pricing and usage averages.
- AVERAGE RATE14.35¢/ kWh
Average residential rate
- LOWEST RATE7.20¢/ kWhView lowest-rate plan ↗
- AVG. MONTHLY USAGE1,210kWh
Average usage
- AVG. MONTHLY BILL$180.00
Average monthly bill
Note: Rates updated daily for Texas ZIP codes on the Power Texas marketplace.
Compare Texas Electricity Rates
Rates shown at 1,000 kWh usage.
| Electricity Plan | Term | Rate |
|---|---|---|
All rates above are accurate as of Aug 27, 2026, 8:44 AM CDT for ZIP Code 75204. Rates may have changed since this date/time. For the most up to date rates in your area, please enter your zip code above.
How to Choose an Electricity Plan in Texas
Texans use more electricity than most states due to the state's large homes, long air conditioning seasons, and extreme summer temperatures. However, electricity usage and demand can vary significantly depending on where you live. North Texas homes may experience higher winter heating demand and more seasonal weather swings, while South Texas and Gulf Coast cities like Houston often see longer cooling seasons, higher humidity, and elevated summer electricity usage. Because many Texas electricity plans are structured around specific usage levels, it's important to compare plans based on your actual monthly usage instead of relying only on advertised rates.
- 1
Understand Your Electricity Usage
The most important part of shopping for electricity in Texas is knowing your typical monthly usage. Many electricity plans in Texas are priced around usage thresholds such as 500, 1,000, or 2,000 kWh per month, meaning your effective rate can change significantly based on your monthly usage. You can review your usage through past electricity bills, your provider's customer portal, or through Smart Meter Texas.
- 2
Compare Plans Based on Your Usage
Once you know your average monthly usage, compare electricity plans using that usage level instead of focusing only on the advertised rate. Some plans advertise extremely low rates at specific usage thresholds that may not reflect your actual monthly consumption.
- 3
Decide Between Fixed-Rate, Bill Credit, or No-Deposit Plans
The most common Texas electricity plans include fixed-rate electricity plans, bill credit electricity plans, and no-deposit or prepaid electricity plans. Fixed-rate electricity plans are usually the simplest and most predictable option because rates remain more consistent across usage levels. Bill credit electricity plans can sometimes offer lower effective rates, but only if your monthly usage consistently reaches the threshold required to trigger the credit. Customers with limited credit history may also want to compare No-deposit electricity plans or prepaid options, which often provide more flexible enrollment requirements but may have higher average electricity rates.
- 4
Review Fees, Usage Credits, and Plan Details
Before enrolling, review the plan's Electricity Facts Label (EFL) carefully. Pay attention to early termination fees, base charges, bill credits, minimum usage fees, renewable energy content, and how pricing changes across different usage levels.
- 5
Consider Contract Length
Texas electricity plans range from month-to-month options to multi-year contracts. Longer contract terms may provide pricing stability, while shorter contracts offer flexibility if you plan to move or switch plans sooner.
- 6
Choose a Trusted Texas Electricity Provider
Price is important, but customer experience matters too. When comparing providers, consider factors such as billing accuracy, customer reviews, plan transparency, online account management, and overall reputation in the Texas electricity market.
Average Electricity Rates in Texas
Texas electricity rates can vary significantly based on monthly usage, plan structure, contract length, and market conditions. Many Texas electricity plans are priced around usage thresholds such as 500, 1,000, or 2,000 kWh per month, which can impact your effective electricity rate. As a general benchmark, residential electricity rates in Texas typically fall within these ranges:
| Monthly Usage | Home Type | Average Rate (¢/kWh) |
|---|---|---|
| 500 kWh | Apartment / small home | 11.5 – 12.5¢ |
| 1,000 kWh | Average home | 10.9 – 11.9¢ |
| 2,000 kWh | Large home | 10.5 – 10.9¢ |
Texas Shopping Tip
Compare plans using your actual monthly usage instead of advertised rates alone. Many Texas electricity plans are priced around usage thresholds that can significantly impact your effective electricity rate.
Best Electricity Providers in Texas
Texas is home to dozens of retail electricity providers across deregulated energy markets. While most providers purchase electricity from the same ERCOT wholesale market, they differentiate themselves through pricing, plan options, renewable energy offerings, and customer experience.
| Provider | What They’re Known For |
|---|---|
 | Large Texas provider known for broad plan selection and strong brand recognition. |
 | Large established provider offering a wide range of plan options and flexible contract structures. |
 | Competitively priced fixed-rate and renewable energy plans with straightforward pricing structures. |
 | Largest independent green energy provider in the U.S. known for transparent pricing and digital-first customer experience. |
 | Value-oriented provider offering fixed-rate and bill-credit style plans across Texas markets. |
 | Straightforward fixed-rate plans and simple pricing designed for easier plan comparison. |
 | Well-known Texas electricity provider offering straightforward fixed-rate plans and strong customer service. |
Texas Provider Insight
In Texas, power outages and electricity delivery are managed by your local utility company, not your retail electricity provider. Most customers should compare providers based on pricing, contract structure, customer experience, and plan simplicity rather than grid reliability.
Moving to Texas & Starting Electricity Service
If you are moving to Texas from another state, it's important to understand that much of Texas operates in a deregulated electricity market. In deregulated areas like Houston, Dallas, Fort Worth, Corpus Christi, and many other Texas cities, residents can choose their electricity provider and compare competing electricity plans online before starting service. However, not every part of Texas is deregulated. Some cities and regions, including Austin and San Antonio, are served by municipal utilities or electric cooperatives where residents receive electricity service from a default local utility instead of shopping for a retail electricity provider. Whether you need to shop for electricity depends on the exact ZIP code and utility area where you are moving.
You can enter your ZIP code on the Power Texas marketplace to see whether competitive electricity plans are available in your area and compare rates from Texas electricity providers.
Fortunately, customers in deregulated Texas markets can choose from dozens of competing electricity providers offering different rates, contract options, renewable energy plans, and no-deposit options. While having many choices can feel overwhelming at first, comparing plans online is usually fast and straightforward once you understand your household's electricity usage and shopping preferences. Learn more about choosing the right plan in our [How to Choose an Electricity Plan in Texas] guide.
- 1
Choose Your Move-in Date
Select the date you want your electricity service to begin at your new Texas home or apartment. Most providers allow customers to schedule service up to 60 days in advance, while some offer Same-day electricity service for homes with active smart meters if enrollment is completed before the daily cutoff time.
- 2
Check Availability & Shop Plans
Enter your ZIP code to see whether your new address is located in a deregulated Texas electricity market. If plans are available in your area, compare electricity providers, rates, contract lengths, and plan types to find the best fit for your home and budget.
Texas Moving TipIf you are moving from a non-deregulated area to a deregulated Texas city, this is a perfect time to compare providers instead of accepting a default plan.
- 3
Enter Your Information
Provide your move-in address, contact information, and some basic account details to get started.
- 4
Review & Confirm Your Service
Review and confirm your plan. You'll receive a confirmation email with your start date and plan details.
Transfer Your Current Electricity Plan
If you are moving within a deregulated Texas electricity market, your current electricity provider may allow you to transfer your existing contract to your new address. Customers considering a new provider should review their current contract terms before switching plans and learn [how to switch electricity providers in Texas], since some contracts may include early termination fees.
Understanding Texas Utilities & Deregulation
Texas operates one of the largest deregulated electricity markets in the country, allowing millions of homes and businesses to choose their electricity provider instead of receiving service from one default electric company.
In deregulated areas such as Houston, Dallas, Fort Worth, and many other Texas cities, retail electricity providers compete to offer different rates, contract terms, and plan types.
Your local utility company — also called the Transmission and Distribution Utility (TDU) — continues delivering electricity, maintaining power lines, and restoring outages in your area. Your utility company is determined by where you live and does not change when you switch providers.
Major Texas Utility Companies
Texas utility companies serve different regions of the state. Your utility company is based on your physical location and determines the delivery charges included in your electricity rate.
Utility Company
Major Service Area
OncorOncor Electric Delivery
Dallas–Fort Worth metroDallas, Fort Worth, Arlington, Plano, Irving, Frisco
CenterPoint EnergyCenterPoint Energy Houston
Greater Houston areaHouston, Katy, Sugar Land, The Woodlands
AEP Texas NorthAEP — Northern service territory
West Texas marketsAbilene, Midland, Odessa
AEP Texas CentralAEP — Central service territory
South Texas marketsCorpus Christi, McAllen, Laredo
Gulf Coast & smaller marketsTexas City, Lewisville, Pearland and surrounding areas
Lubbock Power & LightLP&L — City of Lubbock utility
LubbockCity of Lubbock service territory
Utility companies (TDUs) are regulated by the Public Utility Commission of Texas and are not chosen by electricity shoppers — they are determined by your service address.
Texas Utility Delivery Charges for August 2026
All Texas electricity plans include regulated utility delivery charges approved by the Public Utility Commission of Texas (PUCT). These delivery fees vary depending on which utility company serves your area and are included in your electricity rate.
| Utility Company | Monthly Base Charge | Delivery Charge (¢/kWh) |
|---|---|---|
| Oncor | $4.39 / meter | 4.512¢ / kWh |
| CenterPoint Energy | $5.25 / meter | 5.910¢ / kWh |
| AEP Texas North | $4.89 / meter | 4.518¢ / kWh |
| AEP Texas Central | $5.79 / meter | 3.986¢ / kWh |
| Texas-New Mexico Power (TNMP) | $5.16 / meter | 5.511¢ / kWh |
| Lubbock Power & Light (LP&L) | $4.49 / meter | 4.957¢ / kWh |
Learn More About Texas Utilities & Deregulation
Explore how Texas utility companies, delivery charges, and deregulated electricity markets work across the state in our [How Deregulated Electricity Works in Texas] guide.
Utility delivery charges are regulated and may change periodically based on PUCT approvals.
Average Electric Bill in Texas
Texas electricity bills can vary significantly depending on where you live, your home size, insulation, air conditioning usage, heating needs, and electricity plan structure. Homes in hotter regions of Texas — especially in South Texas and along the Gulf Coast — often experience much higher summer electricity usage due to extended cooling seasons and extreme temperatures. North Texas homes may also see higher winter usage during colder months.
| Home Type | Monthly Usage | Average Bill Amount |
|---|---|---|
| Apartment | 500 – 800 kWh | … |
| Average Texas Home | 800 – 1,400 kWh | … |
| Large Texas Home | 1,400 – 2,500+ kWh | … |
Texas Electricity FAQs
The average electricity rate in Texas typically ranges between 11¢ and 15¢ per kWh at 1,000 kWh usage, depending on your location, electricity usage, plan type, and current market conditions. Rates can vary significantly based on contract length and pricing structure.
The best electricity plan depends on your home's electricity usage, contract preference, and need for pricing stability. Many Texas households choose Fixed-rate electricity plans for more predictable monthly pricing, while others may prefer bill credit or prepaid options depending on their usage patterns.
Yes. No-deposit electricity plans are available in many deregulated Texas markets. These plans allow customers to start electricity service without paying an upfront deposit and are commonly used by renters, students, and customers with limited credit history.
Yes. Most Texas residents living in deregulated areas can switch electricity providers. Switching providers is usually simple and does not interrupt your electricity service. Learn more about How to switch electricity providers in Texas.
Your local utility company — such as Oncor, CenterPoint Energy, AEP Texas, or TNMP — delivers electricity and maintains the local power grid infrastructure in your area. Your electricity provider manages your billing and electricity plan. Learn more about Texas utility companies and deregulation.
Power outages are handled by your local utility company, not your electricity provider. Even if you switch providers, your utility company remains the same based on where you live. Learn more about How Texas utility companies work.
The cheapest electricity provider in Texas can vary depending on your ZIP code, monthly electricity usage, contract length, and current market conditions. Comparing plans based on your actual usage is usually the best way to find the lowest effective electricity rate. You can also compare providers in our Best Electricity Providers in Texas guide.
Prepaid electricity plans allow customers to pay for electricity in advance instead of receiving a monthly bill. These plans often provide flexible enrollment requirements and no long-term contracts, but pricing structures can vary by provider.
Choosing the right electricity plan depends on your electricity usage, contract preference, and pricing goals. Comparing plans side-by-side based on your actual monthly usage is usually the best way to find the right option for your home. Learn more in our How to Choose an Electricity Plan.
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