Fort Worth Electricity Rates and Plans (December 2024)

Thanks to the Texas’ deregulated energy market, Fort Worth residents can choose their electricity plans and providers, which means you can potentially save money on your utility bills each month by switching to a provider with lower rates. Payless Power currently has the cheapest electricity plan in Fort Worth at 13.1 cents per kilowatt-hour (kWh). Since EcoWatch prioritizes eco-friendliness, the table below includes a list of the cheapest electricity plans in Fort Worth that at least partially include renewable energy.

*Rates will vary based on your TDU. 

How to Choose the Best Electricity Plan in Fort Worth

When searching for the best electricity rates in Fort Worth, 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:

Types of Electricity Plans

When choosing an energy provider in Fort Worth, you’ll be presented with a few plan options. Here’s an overview of the types of electric plans offered in Fort Worth, as well as their pros and cons, so you can pick which plan works best for you.

Fixed-Rate vs Variable-Rate Plans

Fixed-rate and variable-rate plans differ in how your electricity charges are determined. With a fixed-rate plan, you have a single rate per kWh that remains the same regardless of the demand. Your bill can still vary based on your electricity usage, but you’ll always know exactly how much you’ll pay per kWh for the length of your contract.

With a variable-rate plan, you sign up with a base rate, but that rate changes based on the market. In times of high demand, the rate can and usually does increase, but in times of low demand, your rate can dip below what you would pay with a fixed-rate plan.

Based on recent history in Fort Worth, a variable-rate plan likely would have saved you more than a fixed-rate plan, but you’re always taking a risk by going with a variable rate. For example, the unexpected winter storm in 2021 saw variable rates spike due to high demand—from an average of between 10 and 15 cents per kWh to $9 per kWh. That’s an increase of over 5700%. Keep in mind that variable-rate plans can also swing in the other direction, but the risk of spikes is always there.

Green Energy Plans

Many Texas power providers offer green energy plans, which guarantee that a certain portion of the electricity—between 25% and 100%—you use comes from renewable energy sources, like wind or solar power. These plans—particularly the ones that guarantee 100% renewable energy—let you reduce your carbon footprint and support the clean energy movement without having to pay thousands of dollars to install solar panels on your roof.

We strongly recommend choosing a green energy plan because it brings down emissions and helps slow climate change. Non-renewable energy plans use fossil fuels burned by your production company to produce the power, which generates carbon dioxide that traps heat in our atmosphere. Green energy plans use solar, wind, biomass or hydroelectric sources, which don’t generate the same emissions.

Your Energy Usage

You probably know that your overall electricity consumption is a major factor when it comes to your monthly electric bill—the more power you consume, the higher your bill will be, whether you have a fixed-rate or variable-rate plan. However, there are some nuances you should understand that affect your monthly costs.

First off, most Fort Worth electric companies charge different rates per kWh based on your consumption, with lower consumption equating to higher rates. For example, the cheapest electricity plan in Forth Worth as of this writing is the PTC 3 Month plan from Payless Power. The rate for most customers—who use around the average 1,172 kWh per month—is 13.1 cents per kWh. If you use 500 kWh or less per month—well below the city average—the rate for that plan is 13.5 cents per kWh, and if you use 2,000 kWh or more, your rate would be 12.9 cents per kWh.

You’ll still pay more per month with higher consumption, but your per-kWh rate can go down as consumption goes up. As such, you should consider your average monthly consumption before choosing a plan, as rates can vary even more widely than they do in our example above. You can check your past electric bills to see your average consumption.

Additionally, some Fort Worth electricity providers offer time-of-use (TOU) plans, which include rates that are based on the time of consumption. Typically, hours of low demand—the early morning, overnight and on weekends—come with lower prices per kWh, while hours of high demand will come with higher costs. If you have a TOU plan, you can save on your monthly bill by planning out your consumption—for example, charging an EV or doing laundry overnight rather than in the afternoon.

If you know you use most of your electricity during off-peak hours, you might be able to save with a TOU plan. Conversely, if you work from home or routinely need to charge an EV during the late morning, afternoon or evening, a TOU plan likely will end up costing you more.

Contract Length

Most residential electricity plans in Fort Worth include a set contract length, typically 12, 24 or 36 months. Some companies have plans that are 3 or 6 months, and others have month-to-month plans, but these are less common. The contract term length tells you the amount of time you’ll be locked into your plan and rate.

Shorter contracts tend to come with slightly higher rates because the provider is taking less of a risk that the market rate will go up over the contract term, which could result in them losing money. You should check with your provider, though, as some companies do have lower rates for longer contracts, presumably because they’re guaranteeing long-term business for themselves.

Keep in mind that you can always back out of a contract, although that often involves paying an early termination fee.

Electricity Facts Label

When shopping for an energy provider, always ask for an Electricity Facts Label (EFL). Similar to a nutrition label you see on packaged foods, 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.⁵ Here’s an example of what that’ll look like:

If you’re interested in seeing the best energy rates you’re eligible for in Fort Worth, you can start comparing prices and plans here. As a trusted energy information source, EcoWatch is often able to secure discounted rates for our readers.

Watchouts

Unfortunately, with a deregulated energy market comes the opportunity for scammers to trick unwitting homeowners into divulging personal information.

One popular scam includes homeowners getting calls from people reporting to be with the power company and demanding immediate payment over the phone to avoid the power being shut off. Another scam in Fort Worth involves false representatives going door-to-door asking for personal information to reduce electricity rates or even sign up for energy-saving equipment. To protect yourself from scams, never provide personal information in person or over the phone, especially in high-pressure situations.

Aside from scams, we suggest you read the fine print in your contract to ensure you understand if and when your rate can change. Especially if you have a variable-rate plan, make sure you understand what can cause your rate to increase and how high it could climb in times of high demand.

Understanding Deregulated Energy in Fort Worth

In most states, customers don’t have the power to choose their electricity providers. Instead, production companies and distribution companies are heavily regulated, and each home is assigned a single provider. This was the case in Fort Worth, as well, until 1999, when a bill was passed to deregulate the market.

Today, production facilities and distribution companies are still heavily regulated, meaning the companies that generate electricity—often referred to as “power plants”—and the companies that own and maintain the electrical lines and poles that bring power to your home are assigned to you, and you don’t have options. However, the companies that create electricity plans, set consumer rates and handle marketing of energy plans—often called retail electricity providers (REPs)—are deregulated and compete for your business. Here, Fort Worth residents have options and can choose a provider and plan that works for them.

The power to choose your REP and the plan you enroll in often means savings for you on your monthly electric bills. You can pick a plan based solely on the rate, or you can choose one that works best and leads to savings with your lifestyle, like a TOU plan if you can plan out your bulk consumption during off-peak hours. Provided you know the options available to you and routinely look for the best options when your current contract is up, you’ll typically save money over time.

Read Also: What Are the Best Energy Rates in Texas?

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

A utility company—called a transmission and delivery utility or TDU—is a company that owns and maintains the distribution network for electricity, which includes power lines, poles and transformers. These companies are separate from both production companies and REPs. TDUs in Fort Worth are still heavily regulated, so you cannot choose between them, and the wholesale rate they charge for power is determined by the local governing agency.

An electricity provider—also called a retail electricity provider or REP—is the company that handles packaging deals for homeowners and end users. REPs purchase wholesale electricity from production companies and TDUs and then create and market different electricity plans and rates to consumers like you. You have a choice when it comes to your REP, and these companies all compete with each other for your business.

There are five TDUs in Texas, but only one services Fort Worth: Oncor Electric Delivery Company. The prices from Oncor will have an effect on your electricity costs, but not nearly as much as the REP you choose. Oncor is regulated, so prices can vary from the other TDUs but is subject to government intervention. REPs are unregulated and can swing your cost per kWh up or down by several cents.

If you don’t choose an REP, you’ll receive service directly from Oncor using its regulated prices. These are often higher than what you’ll find by choosing the cheapest electricity plan from an REP because you aren’t buying power wholesale like your REP would.

Fort Worth Electricity Rate Trends

*This information comes from the Federal Reserve Economic Data (FRED)

As you can see in the chart above, electricity prices have steadily been on the rise since 2014. Over the past decade, the average price per kWh in Fort Worth has increased by around 53%. Fort Worth residents saw a dip in late 2020 and 2021, which could be attributed to COVID; as more residents stayed home and consumed more electricity, the cost of the power went down. Price dips can result from higher consumption because power plants have a base operating cost that doesn’t change with total production. Therefore, the more energy produced, the cheaper it becomes per kWh.

The winter storm that occurred in February 2021 also likely had a lot to do with rising prices. From February 2021 to December 2021, the cost per kWh rose from 13.1 to 15.4 cents per kWh, a jump of over 17%.

The gradual rise of electricity costs in Fort Worth also undoubtedly has something to do with renewable energy adoption. As more customers convert to solar and make use of wind power, more and more customers rely only intermittently on plants that produce continuous power. Operational costs remain the same, but the plants are called on less frequently—when the sun isn’t shining or the wind isn’t blowing—so the cost per kWh increases to account for the losses.

Choosing an Electricity Plan When Moving to Fort Worth

If you’re just making the move to Fort Worth, you’ll likely want to choose an REP to serve your home. Otherwise, you’ll default to direct service from Oncor, which often means higher electricity prices per kWh. Keep in mind that, either way, you should contact your provider a few days before moving in, as it often takes up to three business days to activate your account.

To choose an electricity plan, we recommend you search for plans available in your area and then compare based on the rate, contract length, percentage of renewable energy included and other terms. In the next section, we’ll include a comprehensive guide on how to search for and choose the best plan for your situation in Fort Worth. To sign up, you’ll need your contact information, and most providers will require your social security number to run a credit check if you’re choosing a no-deposit plan. If your plan requires a deposit, you’ll instead have to have payment information on-hand to make the payment.

You can also ask your real estate agent or new neighbors for recommendations, but doing a little leg work and comparing rates and plans yourself is likely a better idea and should lead to savings. Consider things like company reviews, company history and longevity, and, of course, the rate per kWh available through the REP.

Switching Electricity Plans in Fort Worth

The process of signing up with an REP is the same if you already live in Fort Worth and are just switching providers. You can start by using the guide below to find and compare electricity plans available in your area. You’ll then need to provide your contact information and social security number for a no-deposit plan, or your contact information and a method of payment for a standard plan that includes a deposit.

The only difference is that you’ll also need to cancel your current contract, if you have one. In many cases, that includes paying an early termination fee to your previous provider to get out of the agreement early. The termination fee will vary depending on your provider. Keep in mind that some REPs offer to cover your termination fee if you switch to their service, so look out for companies that offer that if you are looking to cancel early with your old REP.

Unlike with new customers, you don’t need to worry about the timeline for signing up. Since your electrical service is already active, switching providers won’t cause any gaps in service.

How to Choose Electricity Plans in Fort Worth

Switching to a new electricity plan in Fort Worth is simple and should only take you a few minutes. You can use the detailed guide below to help find and choose the best plan for your specific needs.
Just follow the steps below to find the best provider and electricity rate for you:

1. Scroll to the top of this page and enter your zip code.
2. Choose whether you’re switching providers or if you just moved to Fort Worth and need new service. If you’re getting new service, then you don’t need to worry about paying a cancellation fee for your current provider. 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, and others charge $200 or more. In the next step, if you choose to have a live advisor help you, they can do the necessary research for you and potentially even help you reduce the cancellation fee.
3. You have three options to choose from. Advisor Plus+ is a paid service, but a live representative will help you choose the best plan for your needs. This is beneficial, as the cheapest plan isn’t always the best. The advisor will consider fixed and variable-rate plans, go over when you tend to use electricity to get the best time-of-use rates, check your bill to see how much electricity you use per month to secure the best prices and more.
   EnergyBot Advisor is a free service, and a plan is chosen for you based on criteria that you enter. This option delivers a less customized selection, but it should still meet the needs of most customers.
   Standard View is also a free service, but it requires the most work on your part, as you’ll need to look at the plan options and choose one manually. You’ll see the contract term, rate, discounts, renewable energy percentage and more for each plan available in your area.
4. If you chose one of the first two options in the previous step, you’ll get on-screen prompts to help you make the switch from your current provider to the new one selected for you. If you chose the Standard View prompt, you’ll get a list of providers with plan rates and terms, and you can simply click on Select Plan to move forward.
5. Finally, you’ll be prompted with a button that will take you to the provider’s site. You’ll also be told what plan to look for once you’re there to sign up and lock in your new rate.