Texas Electricity Rates (2025)

  • Average Texas Electricity Rate: 14.68 cents per kilowatt-hour (kWh) 1
  • Average Monthly Electric Bill: $168.23 (based on average usage of 1,146 kWh) 2

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Texas has a deregulated energy market, giving consumers the power to choose from over 140 electricity providers and more than 1,500 unique energy plans. According to the U.S. Energy Information Administration (EIA), the average residential electricity rate in Texas was 14.68 cents per kWh as of January 2025, 8.6% below the national average of 15.95 cents per kWh.

When comparing electricity plans in Texas, you will see advertised rates ranging from 11 to 23 cents per kWh. However, the lowest rates often depend on complex pricing structures that advertise low rates but can lead to unpredictable bills, including bill credits and time-of-use rates.

In large metropolitan areas of Texas, electricity plans with fixed rates and no hidden fees usually range from around 14 to 17 cents per kWh. You can often find even better deals in spring and fall, when mild weather reduces demand for heating and cooling, leading to low electricity prices.

Provider Plan Name Electricity Rate (Cents Per kWh) Plan Length (Months) Renewable Energy Percentage
Ranchero Powe Smart & Fixed 12 13.7 12 6%
Champion Energy Services Champ Saver 12 15.4 12 16.4%
Rhythm Energy Digital Discount 12 15.4 12 100%
Frontier Utilities Budget Saver 12 15.7 12 30%
TriEagle Energy Simple Savings 12 15.8 12 9%
Veteran Energy Secure 12 15.9 12 7%
4Change Energy One Rate 12 16.2 12 9%
Gexa Energy Gexa 12 17.1 12 100%

NOTE: These electricity rates are for a monthly usage of 1,000 kWh, for ZIP code 75217 in the Dallas-Fort Worth metroplex, the largest metropolitan area with deregulated electricity in Texas.

Average Electricity Rates in Texas

The average residential electricity rate in Texas is 14.68 cents per kWh, based on EIA data from January 2025 — the most recent data available as of April 2025. When browsing rates on an energy comparison marketplace, such as Home Energy Club, you can find rates ranging from 11 to 23 cents per kWh. Rates vary based on usage level and plan type.

If you check the electricity facts label (EFL) for time-of-use plans, rates can exceed 30 cents per kWh during peak-usage hours.
The lowest advertised rates often depend on usage-based bill credits or discounts for new customers, meaning they’re not available for all customers or usage levels.

To avoid unexpected charges and confusion, we recommend choosing fixed-rate plans with no hidden fees. These plans usually advertise rates between 14 and 17 cents per kWh. While these rates aren’t the lowest on the market, they should provide stability and predictability month over month. Many plans in this rate range also offer 100% renewable energy for Texans who want to reduce their carbon footprint.

How To Compare Texas Electricity Rates

For any given ZIP code in Texas, you can expect to find between 130 and 200 options from dozens of light companies. With so many choices, shopping for electricity plans can be overwhelming, especially if you recently moved to Texas. However, here are some expert tips to guide your search:

  • Focus on fixed-rate plans: To avoid surprises on your monthly power bills, avoid confusing or complicated plans with discounted rates based on usage levels.
  • Look for clean energy: Most Texas light companies now offer affordable clean energy plans, including solar and wind energy options.
  • Consider provider reviews: Besides comparing energy plans and rates, we recommend finding verified customer reviews to assess customer service quality and general customer satisfaction levels.
  • Read the EFL: Mandated by the state, the EFL details the average rates, energy charges, delivery fees and other charges that may appear on your energy bill. It also includes any relevant discounts. You can use the details in the EFL to determine if an energy plan is right for your home. Read the EFL carefully before enrolling in any plan.
  • Watch out for cancellation charges: Check your plan’s early termination fee (ETF), which applies if you switch or cancel before the contract ends.

As a final recommendation, we suggest avoiding any plans with “gimmicky” features. These include bill credit plans, which charge high rates if you don’t meet a specific usage threshold. The same applies to “free nights and free weekends” plans, which usually charge very high rates outside their free schedules.

Promotional short-term rates for new customers can offer savings for a few months, but watch out for their expiration date — these short contracts often end in summer when rates historically increase.

We also recommend avoiding any promotional plans that end in summer or winter, since you will be forced to shop for plans when market rates are at their highest.

Historical Texas Energy Pricing Trends

Texas electricity rates remained stable until 2020, but increased significantly between 2021 and 2024, as shown in the table below. Despite recent price hikes, energy prices in the Lone Star State remain below the U.S. average.

Year Average Retail Electricity Price, Texas (Per kWh) Average Retail Electricity Price, U.S. (Per kWh)
2014 11.82 cents 12.50 cents
2015 11.64 cents 12.67 cents
2016 11.02 cents 12.55 cents
2017 11.18 cents 12.90 cents
2018 11.39 cents 12.89 cents
2019 11.96 cents 13.04 cents
2020 11.96 cents 13.20 cents
2021 12.06 cents 13.72 cents
2022 13.55 cents 15.12 cents
2023 14.32 cents 15.98 cents
2024 14.94 cents 16.48 cents
2025 14.68 cents (January only) 15.95 cents (January only)

*This information comes from the U.S. EIA Electric Power Monthly Reports.

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 of 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.

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Types of Electricity Plans in Texas

Texas electricity companies offer more than 1,500 energy plans across the state, but most fall into six broad categories:

  • Fixed-rate plans
  • Variable-rate plans
  • Green energy plans
  • Bill credit plans
  • Time-of-use plans
  • No deposit or prepaid plans

Fixed-Rate Vs. Variable-Rate Plans

Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout your contract. Note that “fixed rate” does not mean your electric bill will be the same every month. Instead, it means the rate you pay per kWh of electricity won’t change. Your bills will increase and decrease in an amount commensurate with how you use electricity.

A variable rate means — you guessed it — the price you pay varies based on the whims of the deregulated energy market, including supply and demand. While variable-rate plans offer the flexibility to switch at any time without penalties, they also carry the risk of sudden price hikes — these usually happen in summer or winter, precisely when homes tend to use more electricity.

We saw the biggest risk of variable rates in the form of indexed-rate plans rapidly changing rates during Texas’s winter storm Uri in February 2021, when millions were in the dark due to a massive power outage.

Unlike regular variable rates, which change on a monthly basis, indexed-rate plans can change every few minutes based on the value of whatever market index to which the plan is tied. Texans who kept their lights on paid the price, with at least one customer facing an electric bill over $16,700. Three 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 provide electricity generated from renewable sources — mainly wind and solar energy in Texas 4. Some retail electric providers (REPs) may also carry certifications like Green-e to verify that their electricity is produced, transmitted and distributed responsibly. In contrast, traditional plans typically contain less than 33% renewable energy in Texas 5.

Note that green energy plans can have either fixed or variable rates, although most are fixed. For predictable monthly bills, we recommend looking for fixed-rate options. Some green energy plans also include discounted electric vehicle (EV) charging schedules and solar buyback rates, ideal for homeowners using EVs or solar panels.

Bill Credit Plans in Texas

These plans offer a monthly bill credit if your electricity usage falls within a specified consumption range, typically above 1,000 or 2,000 kWh per month. If your usage is consistently within the eligible range, you can achieve effective rates as low as 10 to 13 cents per kWh.

However, if your usage falls outside the eligible range even once, you won’t receive the bill credit, and your rate can spike above 20 cents per kWh. We don’t usually recommend bill credit plans due to their unpredictable pricing.
Theoretically, these plans can help you save if your monthly consumption is stable and consistently within the eligible range. Unfortunately, this is not the case for most homes in Texas, where energy usage tends to vary drastically depending on the season.

Time-of-Use Plans in Texas

A time-of-use (TOU) plan promises discounted energy rates — or even free electricity — depending on the time of day. Specifically, these plans offer rate savings during off-peak hours, or times of low demand.
On the other hand, TOU plans charge excessively high energy charges during peak demand periods, with rates that often exceed 26 cents per kWh.

You can save on power bills with a TOU plan if you can shift your energy usage towards the off-peak hours, but this comes with major lifestyle changes that are impractical for most homeowners. Generally, our energy experts don’t recommend TOU plans due to the changing and excessively high rates they may levy.

No-Deposit or Prepaid Plans

A traditional electricity plan has a monthly billing cycle and may require a security deposit based on your credit record. A prepaid energy plan eliminates the monthly power bill, removing the need for a deposit or credit check:
You can prepay for electricity anytime, as long as you keep a positive balance.

The light company subtracts your daily usage from your account balance.
Since prepaid energy plans bill you ahead of time, they don’t require a security deposit like traditional options. Although you make an initial payment to establish service, it becomes a usable balance on your account. For this reason, prepaid electricity plans are also known as no-deposit plans.

Moving or Switching Providers in Texas

Whether you’re moving or you simply want to switch your current electricity provider, we recommend starting by comparing the electricity plans available in your area.

Our partners at Home Energy Club let you compare plans specifically for your ZIP code. You can filter plans by features, such as contract length and renewable energy content. Once you select a plan, you only need to provide your contact details and service address — Home Energy Club coordinates the process with your new electricity provider.

  • Beware of any early termination fees (ETFs) if your contract hasn’t ended.
  • Some ETFs are just $15 or $20 per month, while others range from $99 to $395 total.

You won’t owe an ETF if you’re moving.
Most electricity providers offer same-day service, but this can limit your options. You can usually find better deals if you shop for electricity plans in advance.

If you’re moving to Texas from out of state, you’ll be well served to set up your electricity service before your move-in date. Because deregulated energy can feel overwhelming, we suggest starting your search at least 30 days before your move.

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 transmission 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?

Electricity providers (REPs) purchase electricity on the wholesale market and sell it to customers at varying rates. While you can choose your light company, you don’t have a choice of utility company, called a transmission and distribution utility (TDU) in Texas. Instead, your utility will automatically be assigned to you based on where you live.
Unlike electric companies, which handle electricity sales to homes and businesses, utilities handle transmission and distribution.

In other words, utilities are responsible for delivering electricity to your home, regardless of your light company. Utilities are also responsible for electricity service reliability, restoring power outages and providing maintenance to the grid.
Your choice of light company will not affect the frequency of power outages that you may experience, since electric companies have no direct control over the grid. You must contact the local utility company to report power outages and other grid-related issues.

There are six TDUs in Texas, including:

  • AEP Texas Central
  • AEP Texas North
  • CenterPoint
  • Oncor
  • Lubbock Power and Light (LP&L)
  • Texas New Mexico Power (TNMP)

Oncor is the largest TDU by far, serving over 13 million customers in the Dallas-Fort Worth and surrounding areas. CenterPoint is the second largest, with around 2.9 million customers in the Greater Houston area. AEP Texas has around 1.1 million customers across its two business divisions, while TNMP has around 260,000 customers, and LP&L has around 108,000 customers.

Keep in mind that your utility will impact your Texas electricity rate, but not as much as your light company. Each utility 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 energy company. All utility rates are regulated by the Public Utility Commission of Texas (PUCT).

Shopping for Energy Plans in Texas

When comparing electricity plans in Texas, here are some of the most important factors to keep in mind:

  • Your energy usage: Electricity providers show their rates at three standard usage levels — 500 kWh, 1,000 kWh and 2,000 kWh. When comparing electricity plans, make sure you check the pricing tier that is closest to your monthly consumption.
  • Contract length: Most Texas energy plans have contract terms of 12, 24 or 36 months. However, you can also find contracts as short as 3 to 6 months or as long as 60 months. Some providers offer small discounts if you choose their longer plan options.
  • Customer reviews: Comparing electricity companies is just as important as comparing their rates. You can check their customer reviews on sites like Google, Trustpilot, Yelp or the Better Business Bureau (BBB). You can also check provider ratings from our partner Home Energy Club and the Public Utility Commission of Texas (PUCT).
  • Renewable energy content: Most electricity plans in Texas contain less than 30% renewable energy, but you can find 100% green energy options. Some providers like Reliant, 4Change Energy and Veteran Energy let you upgrade any plan to 100% green energy for a small monthly fee. Other providers like Green Mountain Energy and Gexa Energy are exclusively dedicated to 100% renewable plans.
  • Electricity facts label (EFL): The EFL of an electricity plan is like the nutrition label for food and beverages. This document contains a detailed breakdown of all charges, including base charges, energy charges and utility delivery fees. It also explains key details like the contract length, cancellation fee and green energy content. Reviewing the EFLs allows you to easily rule out plans with confusing rates and hidden fees.

Texas Electricity Facts Label

EcoWatch Methodology for Rating 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 the number of plan types available, the years of experience and what terms and contracts looked like at each company. Lastly, we reviewed the provider’s track record for delivering the service and customer service. We examined BBB ratings, looked into B Corp certifications and determined if it offered competitive and fair pricing.

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.