Galveston Electricity Rates and Plans

Galveston Electricity Rates and Plans

  • Average Galveston electricity rates: 15.92 cents per kWh
  • Average Galveston monthly electric bill: $186.58, based on average usage of 1,172 kWh

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Editor’s note: Plans and rates were accurate at the time of writing for ZIP code 77573 . They may vary over time and for other ZIP codes.

Thanks to Texas’s deregulated energy market, Galveston residents have the power to choose their electricity provider and shop around for rates that could save money on their monthly electric bills. The cheapest electricity plan in Galveston is the PTC 3 Month plan from Payless Power at just 13.1 cents per kWh. The cheapest electricity plan in Galveston that uses 100% renewable energy is the Free Nights 36 plan from Chariot Energy with a per-kWh rate of just 14.2 cents.

The table below lists the top cheapest energy plans in Galveston that include 100% clean energy. We’re prioritizing plans that include 100% renewable energy in Texas since EcoWatch promotes environmental friendliness and aims to help readers reduce their carbon footprint.

PROVIDER

PLAN NAME

LENGTH (months)

RATE (¢/kWh) (1,000 kWh plans)(months)

Chariot Energy

Free Nights 36

36

14.2

Octopus Energy

Octo 12 with Smart Thermostat Connected

12

14.2

Octopus Energy

Octo 12 with Electric Vehicle (EV)

12

14.2

Chariot Energy

Free Nights 24

24

14.5

Chariot Energy

Free Nights 12

12

15.1

Branch Energy

Branch Fixed 12 – Free Home Energy Audit

12

15.4

Gexa Energy

Gexa Eco Choice 12

12

15.1

Octopus Energy

Octo 12

12

15.6

Gexa Energy

Gexa Eco Choice 24

24

15.6

Green Mountain Energy

Pollution Free e-Plus 36 Choice

36

15.9

PowerNext

PowerNext Green Fixed 36

36

15.9

TriEagle Energy

Simple Green 36

36

16.2

BKV Energy

Daisy Green 36

36

16.4

Green Mountain Energy

Pollution Free e-Plus 24 Choice

24

16.5

CleanSky Energy

Embrace Green 36

36

16.5

CleanSky Energy

Embrace Green 24

24

16.5

CleanSky Energy

Breathe Easy 24

24

16.9

Rhythm Energy

Digital Discount 12

12

17.1

PowerNext

PowerNext Green Fixed 12

12

17.1

Rhythm Energy

Simply Choose 12

12

17.1

Editor’s note: There are multiple transmission and delivery utilities (TDUs) in Galveston — prices in the table above are for homeowners serviced by CenterPoint Energy

How To Choose the Best Electricity Plan in Galveston

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

PLAN TYPE

PROS

CONS

Fixed-Rate Energy Plans

  • Your rates never change for the length of your contract
  • You’re not subject to spikes during times of high demand
  • Prices could end up being higher than with a variable-rate plan
  • Usually include lengthy contract terms that lock you into a rate and provider

Variable-Rate Energy Plans

  • Your energy bills could be lower if the market price of energy drops
  • You’re usually not locked into a contract
  • You could see rate spikes during times of high demand
  • Make it harder to budget for utilities

Green Energy Plans

  • Provide access to clean energy without a large up-front investment
  • Can still fall under variable, fixed or TOU rates
  • Tend to be a little more expensive per kWh
  • Potentially a cause of increasing electricity prices

Fixed-Rate vs Variable-Rate Plans

There are many electricity plan options available in Galveston, but they all fall under two rate structures: fixed-rate and variable-rate plans. Fixed-rate plans set your price per kWh for the entirety of your contract, so you’ll always know what you’ll pay for electricity for the length of your contract.

Fixed-rate plans can be further split into two categories: static-rate and time-of-use (YOU) plans. Static-rate plans include a single price you’ll pay per kWh, and that never changes. TOU plans have different prices based on the time of day — and sometimes the day of the week — you use your electricity, but those prices also never change for the entirety of your contract. Both options give you peace of mind that your rates will never spike, and you’ll always know your electricity rates.

Variable-rate plans have rates that change with the market price for electricity. You could end up paying less for power if the market price drops, but you’re also subject to rate spikes during natural disasters or times of high demand.

In the recent past, Galveston homeowners would have saved money by choosing a fixed-rate plan. At the time of this writing, the average price for fixed-rate plans was 15.92 cents per kWh, while the average price for variable-rate plans was 17.38 cents per kWh.

Fixed Rate vs Market Rate Electricity Rates in HoustonVariable Rate vs Market Rate Electricity Rates in Houston

Green Energy Plans

Green energy plans guarantee that some percentage of the power you pull from the grid during your contract will come from a renewable energy source, such as wind or solar. Galveston electricity plans are separated into five tiers:

  • 0% to 25% renewable energy
  • 26% to 50% renewable energy
  • 51% to 75% renewable energy
  • 76% to 99% renewable energy
  • 100% renewable energy

Of course, we recommend you choose a 100% renewable energy plan. Doing so will have the biggest impact on your carbon footprint and your reliance on fossil fuels, which helps combat the worsening global warming problem.

Green energy plans can be either fixed (static or TOU plans) or variable rate. They tend to be slightly more expensive, but many options in Galveston still fall below the average cost for electricity in the area, making them an easy and affordable way to go green while still saving money on your utility bills.

Check out the short video below from Green Mountain Energy for a quick explanation of how to reduce your carbon footprint, including choosing a green energy plan:

Your Energy Usage

Your energy consumption is an important factor to consider when choosing an electricity plan in Galveston. Of course, the more power you consume, the higher your bills will be with any plan since you’re charged based on the number of kilowatt-hours (kWh) you use. However, there are some other things to think about to make sure you get the best rate possible.

First, I recommend looking at your average monthly consumption, which your most recent electricity bill should show. Retail electricity providers (REPs) in Galveston set per-kWh rates based on your consumption. They charge standard rates to homeowners who consume an average of around 1,000 kWh per month, as the average in Galveston is 1,172 kWh monthly.

You’ll see higher charges if you use an average of 500 kWh per month and below-average charges per kWh if you use an average of 2,000 kWh per month. The differences between these consumption tiers is larger with some providers, so if you fall well below or above the average electricity usage, specific providers with smaller gaps between the rate tiers might serve you best, even if their rate for average consumption is a little above the average.

I also recommend you consider when you use your electricity. If you tend to have higher consumption rates at night — again, you can usually find this information on your monthly bill — then a TOU plan might benefit you more. TOU plans tend to have lower rates overnight and in the early morning, so you might end up saving money with a TOU plan.

Contract Length

Another important thing to look at when comparing electricity plans in Galveston is the contract length. Most REPs in the area have contracts that last for 12, 24 or 36 months, but there are some exceptions.

Longer contracts will lock you into a rate and a particular REP for longer, which could be a good thing or a bad thing. If electricity rates go up, you’ve secured a lower rate and saved money. If they go down, you would have saved more with a shorter contract. Since electricity prices are trending upward, longer contracts are a safer bet, in my opinion.

However, you should also look at how your preferred REP sets rates based on contract lengths. Some electric companies in Galveston charge higher rates for longer contracts if they believe rates will rise in the near future in an effort not to lose money over time. Others will charge higher rates for shorter contracts because they’re only securing you as a customer for a short time.

I suggest you choose an REP based on customer reviews and the plans that work with your budget and preferences and then look at how that company sets rates based on contract length before picking a plan.

Electricity Facts Label

When shopping for an energy provider, always look 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. Here’s an example of what that’ll look like:

Electricity Facts Label for Houston Homeowners

Watchouts

I believe one of the most crucial things to look at when choosing an electricity plan in Galveston is the rate structure. Make sure you know if, how and when your rate can change. A variable-rate plan could be a strategic move, but if you’re not aware you’re signing up for a variable rate, you could be unpleasantly surprised if you see your bills skyrocket during times of high demand.

I’d also be remiss if I didn’t mention that there are some scams to look out for. Homeowners in Galveston have reported scams that involve people claiming to be representatives from REPs in the area to ask for payment or collect personal information, usually in exchange for energy efficiency upgrades, a reduction of your rate or to avoid an immediate shut-off.

To protect yourself, never give out any information to people calling or knocking on your door. Always call your REP at the number on your bill if you need to contact them.

Understanding Deregulated Energy in Galveston

The energy market in Galveston was deregulated following the passing of a bill in 1999, but most players in the market still remain regulated. As I’ll discuss in the next section, power production companies and transmission companies are still regulated in Galveston, but homeowners have a choice of electricity providers.

Having options for REPs means the companies compete with one another, and that competition is intended to bring down the average cost of electricity. There’s some debate as to whether or not deregulation is beneficial for the customer, but generally speaking, it does lead to lower per-kWh rates.

A major perk that deregulation has brought about is a focus on power companies providing renewable energy, which is outstanding. Since Texas residents care about their impact on the environment, REPs use renewable energy as a tool to compete with other REPs.

This has led to an uptick in the number of electricity plans in Galveston that include clean energy. Currently, more than 20% of the electricity plans in Galveston include 100% renewable energy, and there aren’t any plans that don’t include at least some percentage of clean energy.

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

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

There are three players in the electricity production and delivery cycle in Galveston: power production companies, delivery companies and retail electricity providers (REPs). Power production companies own the power plants, solar farms or wind farms that produce the electricity. These companies and the prices they charge for power are still heavily regulated in Galveston, and you can’t choose which production company services your home.

Next in the chain are transmission and delivery utilities (TDUs), which own and maintain the distribution systems, including power lines and poles. TDUs are responsible for responding to downed electrical lines and power outages, but they don’t provide any other services if you have https://www.ecowatch.com/solar/how-to-conserve-energyan REP.

As with production companies, you can’t choose your TDU in Galveston. The companies and their rates are regulated by the government. There are two TDUs that service Galveston — CenterPoint Energy and Texas-New Mexico Power Company — but you can’t choose which one services your home. You can purchase electricity directly from your TDU — and you’ll default to this if you don’t choose an REP — but you’ll usually pay higher prices because you aren’t buying at wholesale rates as an REP would.

Finally, you have the REPs, which create and market electricity plans, collect payments, handle collections for overdue accounts and provide customer service. REPs are the deregulated arm of the industry in Texas, so the companies compete with each other, and you can choose one based on what suits you and your budget.

Galveston Electricity Rate Trends

Year

Average Retail Electricity Price (per kWh)

2014

13.1 cents

2015

11.6 cents

2016

10.5 cents

2017

12.5 cents

2018

12.4 cents

2019

14.4 cents

2020

12.3 cents

2021

13.9 cents

2022

13.8 cents

2023

18.1 cents

2024

17,8 cents

Editor’s note: Information for the above table comes from the Federal Reserve Economic Data (FRED)

The cost of electricity in Galveston has increased by just under 36% over the past decade. This tracks with the general upward trend of electricity prices across the country, which can be attributed to the rising cost of sourcing and delivering fossil fuels.

You’ll notice in the table above that the largest spike in electricity prices in Galveston occurred between 2022 and 2023, with a single-year increase of over 31%. Some experts attribute the bump, at least in part, to the invasion of Ukraine, which affected the worldwide natural gas market.

You might also notice that there was a nearly 15% dip in prices from 2019 to 2020. Surprisingly, the pandemic seems to have brought electricity costs down. This could be due to governmental intervention to reduce inflation and keep necessities affordable during the COVID pandemic. It could also be due to higher consumption rates as more people were home all day. When homes use more electricity, the base operation costs of power plants become less impactful on the price of electricity.

Choosing an Electricity Plan When Moving to Galveston

If you’re moving to Galveston from another area in Texas or from out of state, it might be overwhelming to add choosing an REP and electricity plan to your to-do list. There are a few things I recommend to make your choice a bit easier and buy some time before you commit to a long-term contract.

First, I suggest choosing an REP based on customer reviews and the prices available from the company in your consumption tier. Limiting your options based on these metrics will make choosing easier, especially since you might be unfamiliar with the REPs and how they operate if you’re moving from out of state.

Second, I suggest choosing a fixed-rate plan with a contract of 12 months or fewer. A fixed rate will give you some much-needed peace of mind that you won’t be subject to rate spikes as you settle in. A contract under 12 months will give you some time before you have to start researching again, but it won’t lock you into an REP that you’re unfamiliar with for years. Most REPs also charge early cancellation fees, so a 12-month contract is short enough that you’re unlikely to need to make a switch before the contract ends.

When you’re ready to start researching plans, make sure you have your contact and payment information handy, unless you’re choosing a no-deposit plan, in which case you’ll need your social security number in lieu of payment information. Then, you can follow the steps in the following section to research and compare Galveston electricity plans.

One final note: Make sure you contact your REP about a week before your move. Most companies take up to five business days to activate your power for the first time, so you can avoid delays after your move by being proactive.

Switching Electricity Plans in Galveston

If you already live in Galveston and just want to switch REPs or plans, the actual process for researching and comparing your power options will be the same. You can follow the steps below.

However, you might want to prioritize some different things. First, you’re likely already familiar with the REPs that provide service locally, so you can sort based on the companies you’re comfortable with.

You’re also familiar with how and when you use electricity in the area, so you can consider choosing a TOU plan to save money. You also know what your average monthly consumption is, so you can shop for more accurate prices based on the consumption tier you fall under.

Lastly, since you already have electrical service, you don’t need to plan ahead — REPs can switch you over to their plans remotely without interruption to the service, so you can usually make a same-day switch.

How to Choose Electricity Plans in Galveston

Switching to a new electricity plan in Galveston 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.Switching Houston Electricity Plans Step 1
  2. Choose whether you’re switching providers or if you just moved to Galveston 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.Switching Houston Electricity Plans Step 2
  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.Switching Houston Electricity Plans Step 3
  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.Switching Houston Electricity Plans Step 4
  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.Switching Texas Electricity Plans Step 5

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EcoWatch Methodology on Energy Providers in Galveston

At Ecowatch, we take a sustainable approach to our best lists. We selected the best energy providers in Galveston 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 and what terms and contracts looked like at each company. Lastly, we took a look at the providers’ track records when it came to delivering electricity 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.

FAQ: Galveston Energy Plans

At EcoWatch, we frequently receive energy-related questions from readers in Galveston. Below are the most common questions we see, along with our answers.