Texas Electricity Rates and Providers (2023)

How Do Texas Electricity Prices Compare Based On Provider?

Here at EcoWatch, we strive for a more sustainable planet and encourage our readers to take action to improve the environment whenever feasible. As such, we’ve chosen to highlight some of the best electricity plans in Texas that offer 100% renewable energy or sustainable options.

The charts below show green energy plans and prices available throughout the Lone Star State.

Keep in mind that these electricity prices may not be exact, as rates can fluctuate daily and may vary depending on where you live. For instance, if you live outside of densely populated metropolitan areas, you’ll likely enjoy low rates that may be cheaper than what’s below.

What’s the Difference Between Utility Companies and Electricity Provider Companies in Texas?

Retail Electricity Providers (REPs) purchase electricity on the wholesale market and sell it to customers at varying rates. While you can choose your own REP, you don’t have a choice of utility company (called a TDU in Texas). Your TDU will automatically be assigned to you based on where you live.

Unlike REPs, TDUs handle the transmission of electricity. In other words, utilities are responsible for delivering electricity to your home, despite your choice of REP. TDUs are also responsible for the reliability of your electricity. Your choice of REP will not affect the frequency of power outages that you may experience.

There are technically five TDUs in Texas: Oncor, Centerpoint, AEP Texas North, AEP Texas Central and Texas New Mexico Power (TNMP). The majority of Texans are served by Oncor, followed by AEP and CenterPoint. TNMP serves roughly 260,000 customers in the western part of the state.⁷

Keep in mind that your utility will impact your electricity rates, but not as much as your REP. Each TDU has its own costs for delivering electricity, meter readings, wiring and more. You’ll pay these charges no matter which Texas energy plan or provider you choose, and they’ll be baked into the monthly bill from your REP. All TDU rates are regulated by the Public Utility Commission of Texas (PUCT).

How Do You Find the Best Electricity Rates in Texas?

When searching for the best electricity rates in Texas, keep in mind that rates and the average cost of electricity can vary based on numerous factors, so you may be given a different electric rate than that of your neighbors. Here are a few things to consider:

Your Energy Usage

The amount of electricity your household consumes may affect the rate you pay per kWh. Most REPs offer tiered plans based on average energy usage. Tiered-rate energy plans are often called “V-shaped plans” because the rates are more expensive for people who use the least and most amounts of energy and are lowest for those in the middle.

For example, in a typical tiered plan, customers who use around 500 kWh or 2,000 kWh per month will pay more than those who use around 1,000 kWh per month. According to the EIA, the average Texas home uses around 1,094 kWh per month.⁸

Your Contract Length

The length of the contract will also play a factor in the cost of your electricity. As with most things, the longer you commit to one provider, the better deal you’ll get. We’ll discuss the different types of electricity plans in the next section.

A word of caution: Read the fine print and ask questions before you sign.

Many contracts come with startup fees as well as cancellation fees for early termination. And while some Texas electricity providers advertise a $10 cancellation fee, the fine print may read that it’s really $10 per month left on the contract.

Some additional things to consider when comparing contract lengths include:

• Early-termination fees
• Cancellation fee
• Enrollment or sign-up fees generally reserved for shorter terms
• New-customer or introductory rates that will increase part way through your contract

Unfortunately there are a lot of sketchy energy companies out there just trying to get your money. To get connected with an energy provider we trust, use this tool or click one of the links below to compare prices and find the right plan for you.

Electricity Facts Label

When shopping for energy providers in Texas, always check their Electricity Facts Label (EFL). Similar to a nutrition label you see on your favorite snacks, an EFL will give you all of the information about a company’s electricity prices, contract lengths and terms, sources of generation, and emission levels.⁹ Here’s an example of what to expect on an EFL:

Best National Company

5/5

Many years of experienceGreat industry reputationAward-winning company

Get Energy Rates

Best Rates

4.5/5

Many years of experienceMakes charitable contributionsLow rates

Get Energy Rates

Best Plan Variety

4/5

Award-winning companyMakes charitable contributionsMany years of experience

Get Energy Rates

What Types of Electricity Plans Are Offered in Texas?

Most Texas electric companies will offer a few plan options for customers to choose from. Here’s an overview of the different types offered in the Lone Star State, as well as their advantages and disadvantages, so you can pick what’s best for your household.

Texas Fixed-Rate Plans

Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout the entire duration of your contract.

Note that “fixed rate” does not mean that your electric bill will be exactly the same every month. Instead, it means the rate you pay per kilowatt-hour (kWh) of electricity won’t change. So, your bills will still be higher during months you use more electricity.

With a fixed-rate plan, you’ll pay the same amount month over month for each kilowatt-hour of energy you use. This ensures your rates will stay the same even when the market rate of electricity fluctuates. Some months, you’ll pay less than the market rate, and others, you’ll pay more.

Variable-Rate Plans for Texas

If you prefer paying month-to-month instead of being locked into a length-based contract, you may consider a variable-rate electric plan.

A variable rate means — you guessed it — the price you pay is based on variables in the energy market. The price per kWh will increase or decrease depending on supply and demand.

We saw the biggest risk of the variable-rate plan during Texas’ winter storm of February 2021, when millions were in the dark due to a massive power outage. Texans who kept their lights on paid the price, with at least one customer facing an electric bill over $16,700.¹⁰ Texas power companies were reportedly overcharged $16 billion dollars by the electric grid operator.

^{With a variable-rate plan, prices change each month based on the market rate of electricity. Some months, you’ll pay less than homes with fixed-rate plans, and others, you’ll pay more. You may also see surprisingly high bills during extreme fluctuations.}

No-Deposit and Prepaid Energy Plans in Texas

Many power plans require a deposit upon signing a contract to protect the REP from losses should a customer be unable to pay their energy bill. However, certain companies will offer a no-deposit electricity plan option so long as the customer passes a credit check.

If the customer doesn’t have a high enough credit score for no-deposit electricity, they can still avoid paying a deposit by opting for a prepaid, or “pay-as-you-go,” electricity plan.

With a prepaid plan, the customer pays in advance for a set amount of electricity. The good news is that the customer is able to track their electricity usage online and can reload the account when it runs low. However, rates are not fixed in a prepaid plan, so it can be harder to plan out expenses.

Green Energy Plans in Texas

Green energy plans are those that supply electricity from renewable energy sources. That’s going to be primarily wind and solar energy in Texas.¹¹

Some REPs may have Green-e Verification or a similar certification to ensure that the electricity is responsibly generated, transmitted and distributed. Non-green energy plans, at least in Texas, rarely meet 25% of their total energy from renewable sources.¹²

Most green energy REPs will still offer variable- and fixed-rate plan options; the main difference is where their energy comes from.

Business Energy Plans in Texas

Are you a Texas business owner or in charge of choosing an electricity provider for a business? It’s important to know that not all REPs will provide commercial electricity, so you’ll need to search for the ones that do.

Business energy plans may also be needed for industrial properties, schools, government buildings and churches.

Most business energy suppliers will offer variable or fixed-rate options.

Need more information to help your decision-making? You can use this tool or click below to be connected with local energy providers near you.

Best National Company

5/5

Many years of experienceGreat industry reputationAward-winning company

Get Energy Rates

Best Rates

4.5/5

Many years of experienceMakes charitable contributionsLow rates

Get Energy Rates

Best Plan Variety

4/5

Award-winning companyMakes charitable contributionsMany years of experience

Get Energy Rates

What Should You Look For When Choosing an Electricity Provider In Texas?

Whether you’ve just moved to Texas or you’re looking to save money by switching electricity companies, there are certain things you should look out for when researching an electricity provider.

Choosing an Electric Provider as a New Texas Resident

You’re new to Texas, so you may not be as familiar with the idea of deregulation. Maybe you’re moving from a state where deregulated energy isn’t an option. It can be tempting to pick the provider with the lowest rates, but if you’re moving from a different state (especially one with a different climate) you may not know how your energy usage is going to be in your new home.

As a new Texas resident, we encourage you to consider the following:

• Customer reviews: Hearing first-hand accounts of what it’s like to work with this electricity provider will tell you a lot about how your experience will go. Keep in mind that people don’t exactly love paying for electricity, so you won’t find a perfect rating with any company. But still, you should sift through customer reviews online to see what people in your area are saying about their experience with this company. Better yet, ask your neighbors!

• Company history: There are more than 150 REPs in Texas. If a company has been able to stick around for decades despite all the competition, it likely means they have a lot of happy customers who wouldn’t ever look to switch energy providers.

• Percentage of renewable energy: You’re reading EcoWatch, so we assume you care deeply about your environmental impact. Be wary that not every energy company that claims to offer “green plans” is actually offering a renewable energy plan. Fortunately, each Texas energy company has an EFL that clearly outlines how much of their energy is sourced from renewables. The state standard is at least 25%.

Switching Electric Providers in Texas

If you’ve been living in Texas but you’re unhappy with your electricity provider, you probably don’t need us to tell you why they haven’t been living up to your energy needs (or wants).

Still, before choosing a new Texas electricity company, we recommend considering the following:

• Percentage of renewable energy: Consider switching to a provider who is striving to make a more positive environmental impact. The bad news is that not every energy company that offers “green plans” is using 100% renewable energy. The good news is that each company is required to have an EFL for each plan that states how much of their energy is sourced from renewables (the state standard is at least 25%).

• Electricity rates — read the fine print: Compare providers to see who’s offering the best value plan. Notice: we don’t say the cheapest price. If one company is offering a lower rate but it’s a new customer deal and it only lasts for the first three months of a 36-month contract, it may not be the best price over time. Be sure you fully understand the terms and conditions before you sign.

• Types of plans offered: A lot of Texans on variable-rate plans were shocked to see their electricity bills skyrocket during the winter storm of February 2021. If you were one of the victims of an insanely high utility bill, you may consider switching to a fixed-rate plan.

Who Offers the Best Green Energy Plans?

As mentioned, there are well over 150 energy providers in Texas. EcoWatch has chosen to focus on REPs that get their basic power from a clean energy source, like solar or wind power.

Here are a few examples of the best energy companies in Texas that offer 100% renewable plans and what makes them top suppliers by our standards.

Green Mountain Energy: Most Eco-Friendly Provider

• 100% renewable options
• Green-e verified plans
• Fixed-rate plans
• Variety of contract term options
• 20+ years of experience
• Low complaint rate
• A+ BBB accredited business

Best National Company

5/5

Many years of experienceGreat industry reputationAward-winning company

Get Energy Rates

Best Rates

4.5/5

Many years of experienceMakes charitable contributionsLow rates

Get Energy Rates

Best Plan Variety

4/5

Award-winning companyMakes charitable contributionsMany years of experience

Get Energy Rates

Constellation

• Award-winning company, one of the best in the business
• Offers 100% renewable energy options
• Options for customers to go solar via Sunrun with guaranteed prices
• Veteran solar energy supplier
• The No.1 producer of carbon-free energy in the U.S. (producing 10% of all carbon-free energy)
• 20+ years of experience
• A+ BBB accredited business

Best National Company

5/5

Many years of experienceGreat industry reputationAward-winning company

Get Energy Rates

Best Rates

4.5/5

Many years of experienceMakes charitable contributionsLow rates

Get Energy Rates

Best Plan Variety

4/5

Award-winning companyMakes charitable contributionsMany years of experience

Get Energy Rates

TXU Energy

• Offers 100% renewable energy options
• Overwhelming amount of positive customer feedback
• Extremely solar-friendly, with buyback plans for Texas homeowners who install solar panels
• TXU’s Solar Club supports Texas solar farms
• Offers plan incentives like bill credits, cash back, solar buyback and free nighttime usage
• Over a decade of experience serving Texas homeowners
• A+ BBB accredited business

Rhythm

• Offers 100% renewable energy
• Majority of customer reviews are positive
• Promotes transparency, promises not to charge any hidden fees
• 90-day free trial
• Up to $150 in bill credits to cover switching fee from old provider
• Note: Very young company, just launched in 2020

Best National Company

5/5

Many years of experienceGreat industry reputationAward-winning company

Get Energy Rates

Best Rates

4.5/5

Many years of experienceMakes charitable contributionsLow rates

Get Energy Rates

Best Plan Variety

4/5

Award-winning companyMakes charitable contributionsMany years of experience

Get Energy Rates

Additional Popular Energy Providers in Texas

EcoWatch has chosen to feature providers that align with our mission of offering 100% renewable energy or solar benefits in most cases. Here are some of the other popular electricity providers in Texas that may not hit that goal, but may be a better fit for your needs.

All energy rates are accurate as of November 2022 for zip code 75001 served by Oncor. Rates may have changed since the last update. For the most recent daily electricity rates in your area please enter zip code above to get connected with power supplier

EcoWatch Methodology on Energy Providers in Texas:

At Ecowatch we take a sustainable approach to our best lists. We selected the best energy providers in Texas by examining a variety of different components of the energy providers business. We considered their renewable options or green plans as the most weighted component of our scoring. We looked at how many different types of plans were available, how many years of experience the companies had, what terms and contracts looked like at each company. Lastly, we took a look at the providers track record when it came to delivering the service and customer service. We examined BBB ratings, looked into B Corp certifications, and found out if they offered competitive and fair pricing. All of these factors helped us decide which companies to recommend and which superlative to award!