Texas Electricity Rates (October 2024)

  • Texas Electricity Rates (October 2024): 14.58 cents per kilowatt-hour1
  • Average monthly electric bill: $162.17, based on average usage of 1,178 kilowatt-hours2
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Residents of Texas are fortunate to have the ability to choose their electric plan, with a variety of electricity companies offering plans that range in rate, length, and renewable energy percent. The table below lays out the cheapest plan provided by each Texas electricity company:

Compare Cheap Energy Rates in Texas

PROVIDER

CHEAPEST ELECTRICITY PLAN RATE (¢/KWH)

PLAN LENGTH (months)

PERCENT OF RENEWABLE ENERGY

Discount Power

10.9

24

0%

Gexa Energy

11.3

12-24

100%

Change Energy

11.3

12-24

0%

Frontier Utilities

11.3

12-24

0% in each plan with 100% renewable plan options (in some areas)

Express Energy

11.3

12-24

0%

Flagship Power

12.9

36

0%

TXU Energy

13.9

12

0%

TriEagle Energy

13.9

24-36

0%

Cirro

14.5

24

0% in each plan

Overall, Discount Power currently has the lowest electricity rates in Texas at just 10.9 cents per kWh, around 25% lower than the average cost per kWh in the Lone Star State. However, we recommend Gexa Energy over Discount Power – for just 4 cents more, you can have a plan with 100% renewable energy.

Types of Electricity Plans 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.

  • Fixed-Rate Energy Plans
  • Variable-Rate Energy Plans
  • Green Energy Plans

Fixed-Rate vs Variable-Rate Plans in Texas

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.

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. If you prefer paying month-to-month instead of being locked into a length-based contract, you may consider a variable-rate electric plan. 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 $16,700.3 Texas power companies were reportedly overcharged $16 billion dollars by the electric grid operator.

Fixed Rate vs Market Rate Electricity Rates in TexasVariable Rate vs Market Rate Electricity Rates in Texas

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.4

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.5

How To Choose the Best Electricity Plan

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.6

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.7 Here’s an example of what to expect on an EFL:

Texas Electricity Facts Label

Additional Factors to Consider

Whether you are moving to Texas and a deregulated energy area for the first time, or considering switching plans or energy providers, you should 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%.

Understanding Deregulated Energy in Texas

A deregulated energy market simply means that the companies that market and sell electricity plans compete with one another for your business. The power producers and distribution companies are still regulated, but the Retail Electricity Providers (REPs) are not. Texas deregulated its electricity market in 1999, giving most Texas homeowners the opportunity to shop around for a plan that works for them.

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.8

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).

Historical Texas Energy Pricing Trends

Year

Average Retail Electricity Price (per kWh)

2014

8.94 cents

2015

8.70 cents

2016

8.43 cents

2017

8.38 cents

2018

8.48 cents

2019

8.60 cents

2020

8.36 cents

2021

9.14 cents

2022

10.16 cents

2023

14.64 cents

2024

14.31 cents

*This information comes from the U.S. Energy Information Administration

As you can see based on the data above, the average retail electricity rate in Texas was reasonably steady from 2014 through 2020. It’s possible that COVID caused an increase in the price for electricity, as 2020 to 2021 brought nearly a 12% increase in the cost. Between 2014 and 2024, the price has increased by over 37%. The EIA notes that the cost of fossil fuels increased between 2021 and 2022, which was a big reason for the nationwide price increase. The unexpected deep freeze Texas saw in 2021 also drove up average electricity prices.

How to Purchase an Electricity Plan in Texas

Buying a cheap electricity plans in Texas is very simple and takes just a few minutes of your time. Since all of the providers in Texas deliver energy from the same producers, switching plans is all done digitally. Your service won’t be affected, and the only thing that will change is your rate.

Before you get started, you should check to see if you’re enrolled in a contract, as you might need to pay a cancellation fee to get out of it. Most plans switch to a month-to-month option after the contract expires, though, so chances are good that you’ll be able to make the switch without a fee.

Just follow the steps below to find the best provider and electricity rate for you:

  1. Browse plans that fit your budget and needs by submitting your ZIP code at the top of the page
    • If you’re currently enrolled in a contract with a different provider, you should contact them or check your contract for information on cancellation fees. Some providers don’t charge an early cancellation fee, while others charge $200 or more.
  2. Read the EFL (Electricity Facts Label) of the different plans. We recommend going with a plan that doesn’t offer high bill credits to ensure you receive a more predictable bill.
  3. Once you select a plan, go through the steps of entering your information. You will be prompted to submit the address of service, your personal information such as your name, date of birth, contact information, and social security number.
    • Our Home Energy Club partners ask for your social security number to determine if you need to be enrolled with a deposit. They perform a soft credit check, which should not affect your credit score—this is standard procedure.
  4. From there, Home Energy Club will enroll you, and you can expect to get power as soon as you are approved!

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!

FAQ: Texas Electricity Plans

Here at EcoWatch, we often get questions about how to navigate the wide range of suppliers and how to choose the best one. Below, we’ll answer some of the questions we see most often.

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Article author
Dan Simms is an experienced writer with a passion for renewable energy. As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. In his free time — when he's not checking his own home's solar production — he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing.
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Expert reviewer
Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral.