Houston Electricity Rates and Plans (April 2025)

Houston is part of the Texas deregulated electricity market, offering residents more than 150 electricity plans to choose from. According to the most recent rate data from our partners at Home Energy Club, the average energy price in the Houston metropolitan area was 14.3 cents per kWh as of April 2025. That’s somewhat lower than the Texas average, which is 14.68 cents per kWh, according to January 2025 data from the U.S. Energy Information Administration (EIA).

As of April 2025, advertised electricity rates for the Greater Houston area range from around 10 to 25 cents per kWh. However, at EcoWatch, we recommend fixed-rate plans with no hidden fees or “pricing gimmicks,” which currently range from 14 to 17 cents per kWh. While you can find lower rates in Houston, they typically depend on usage-based bill credits or short-term discounts.

The Best Electricity Rates in Houston

When shopping for electricity plans in Houston, we recommend looking for fixed-rate options with straightforward pricing. These plans lock in your rate during their entire contract term, protecting you from seasonal price hikes and unpredictable rate changes.

While your total bill can still increase or decrease based on your monthly usage, the unit price you pay per kilowatt-hour remains constant.

Below, you can compare some of the best electricity plans in Houston, featuring fixed rates and straightforward pricing. These plans have no hidden fees, usage-based bill credits or complex rate structures. Additionally, all of them are from top-rated electricity providers with a strong track record in the Texas energy market.

We recommend 12-month contracts, which provide flexibility to switch or renew your plan annually. Longer terms, such as 24 or 36 months, are also available.

**NOTE: Electricity rates are based on ZIP code 77084, one of the most populous in Houston. These rates include delivery charges from CenterPoint Energy, the local transmission and distribution utility (TDU).

Average Electricity Rates in Houston

As of December 2024, residential users in the Houston–The Woodlands–Sugar Land metropolitan area were paying an average rate of 17.0 cents per kWh, according to the Federal Reserve Economic Data (FRED). 

However, the average market rate as of April 2025 is 14.3 cents per kWh, based on the latest rate data from our partners at Home Energy Club. This figure is somewhat lower than the Texas average residential rate of 14.68 cents per kWh, according to January 2025 data from the U.S. Energy Information Administration (EIA).

The price gap between billed rates and advertised rates may come down to the fact that many customers had high-rate plans during the period of high inflation that followed the COVID-19 pandemic. As a Houston resident, you currently have an excellent opportunity to save on electricity bills by switching to a plan with a lower rate.

Historical Houston Electricity Rates

Electricity prices in Houston — and Texas in general — were relatively stable before 2020. However, there was a drastic price hike after 2020, and the average rate in Houston reached nearly 20 cents per kWh in 2022. Although local electricity prices were lower in 2023 and 2024, they remain significantly higher than the annual rates reported before 2021.

The high inflation period that followed the COVID-19 pandemic may have contributed significantly to the recent increase in electricity prices in Houston and across Texas. Additionally, Texas generates around half its electricity from natural gas, which has suffered price volatility due to recent armed conflicts and other geopolitical factors.

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

As you can see, Houston electricity rates increased by 40% between 2020 and 2024. The largest price spike happened between 2021 and 2022, representing a 33% increase in just one year. According to the EIA, the rising cost of acquiring and delivering fossil fuels caused a nationwide jump in electricity prices in 2022, which likely contributed to the price spike in Houston.

Houston Energy Companies

Houston residents have a wide range of electricity companies to choose from, each offering unique plans and customer benefits. However, three energy providers stand out in 2025 for their affordable rates in Houston and customer satisfaction record:

• TriEagle Energy
• Green Mountain Energy
• Reliant Energy

TriEagle Energy stands out for its straightforward pricing and consistently low fixed rates, including clean energy plans. Green Mountain Energy earns a top spot because it offers only 100% green energy plans, backed by top-notch customer service.

Reliant Energy provides excellent customer service and a range of plan offerings, including some 100% renewable energy plans. However, both Reliant and Green Mountain tend to have higher price tags. For green energy with more competitive rates, consider Rhythm Energy.

Here are 10 top-rated energy companies with scores of 4.5 out of 5 stars or higher, along with a recommended plan from each provider:

Note: Electricity rates can vary depending on your Houston ZIP code and monthly consumption.

Types of Electricity Plans in Houston

When choosing an energy provider in Houston, you’ll be presented with a few different types of plans. Here’s an overview of the different options offered by most companies in Houston, as well as their pros and cons, so you can pick the best plan for you.

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 the entire duration of your contract. Note that “fixed rate” does not mean your electric bill will stay exactly the same month over month. Rather, the rate you pay per kilowatt-hour will be fixed. So, your overall bills will still be higher during the months you use more electricity.

If you prefer the flexibility to switch plans at any time rather than locking in a long-term contract, you may consider a variable-rate electricity plan. However, these plans also bring the risk of unpredictable power bills — our energy experts recommend fixed-rate plans for price stability.

As its name suggests, a variable-rate plan can adjust its price every month based on market conditions, increasing or decreasing based on supply and demand. We saw the biggest negative impact of variable-rate plans during the February 2021 winter storm, 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 $16,700.2 Texas power companies were reportedly overcharged $16 billion by the electric grid operator.

Renewable and Green Energy in Houston

Texas generates around 50% of its electricity from natural gas, but renewables are the second-largest source, accounting for more than 30% of total generation, according to the U.S. EIA. As of 2025, the Lone Star State is the largest wind power producer in the United States and ranks second in solar energy generation, after California.

Electricity plans in Houston typically offer 33% or less renewable energy, which reflects the statewide power mix. However, several providers offer 100% green energy options:

• Green Mountain Energy, Gexa Energy, Chariot Energy and Rhythm Energy include 100% renewable energy by default in all their plans.
• Reliant and TXU Energy offer a mix of renewable and traditional electricity plans.
• Express Energy, 4Change Energy, and Veteran Energy allow you to upgrade any plan to 100% green energy for a small monthly fee.

There is a common misconception that renewable energy is more expensive than fossil fuels, but this is not always the case. In Houston, you can find 100% green energy plans with fixed rates below 17 cents per kWh — and sometimes under 15 cents during low-demand periods in spring and fall.

How To Choose the Best Electricity Plan in Houston

With over 150 electricity plans available in Houston, finding the best option for your home can be challenging. If you’re new to Texas, you may find yourself drawn to the plans with the lowest advertised rates. However, these plans often come with hidden fees and complex rate structures, which can result in high monthly bills. When comparing electricity plans in Houston, consider the following tips from our energy experts:

Tip 1: Know Your Monthly Energy Usage

Texas electricity companies display their rates at three usage levels: 500 kWh, 1,000 kWh and 2,000 kWh per month. Some electricity plans offer similar pricing across these usage tiers, while others charge very different rates based on your consumption. Before you start shopping for energy plans, we recommend taking the time to analyze your monthly usage. For example, if you typically use around 1,200 kWh per month, the rates shown for 1,000 kWh provide a better reference than those for 500 kWh and 2,000 kWh.

Tip 2: Watch Out for Hidden Fees, Tiered Rates and Other “Gimmicks”

When comparing electricity plans in Houston, the advertised rates often differ significantly from the actual rates you’ll pay. We recommend fixed-rate plans with no hidden fees, which offer straightforward pricing and predictable monthly bills. Here are some common “pricing gimmicks” to avoid:

• Tiered rates: Some plans charge different rates per kilowatt-hour based on your usage level, making your monthly bill unpredictable.

• Free energy periods: Plans that advertise “free nights” or “free weekends” usually charge very high rates during paid hours.

• Bill credits: Some plans offer credits if your usage falls within a specific range, but charge very high rates outside of that range.

Generally, if an electricity plan has a complex rate structure, it will most likely result in unpredictable bills. You can find many fixed-rate options with clear pricing terms in Houston.

Tip 3: Secure an Affordable Rate in Spring or Fall

Electricity rates in Houston fluctuate due to changes in supply and demand in the competitive energy market. Rates are usually highest in summer and winter, due to the power demand of air conditioners and space heaters. However, HVAC equipment has a much lower workload in spring and fall — this usually results in affordable electricity rates. During these off-peak seasons, you might be able to secure rates as low as 14 to 15 cents per kWh.

We also recommend you avoid locking in a high rate during summer or winter, unless you find an unusually low deal. Otherwise, you may end up with overpriced electricity bills for 12 months or more.

Tip 4: Read the 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:

Houston’s Utility Company

Companies like TriEagle Energy, Reliant and TXU are retail electricity providers (REPs), meaning they supply energy to homes and businesses. However, these companies don’t operate the power grid that distributes this electricity. This responsibility is assigned to transmission and distribution utilities (TDUs), also known as “poles and wires” companies.

For a given location in Texas, you might find around 40 to 60 light companies competing for customers, but there is a single utility in charge of the local grid. CenterPoint Energy is the TDU that serves most of the Greater Houston metropolitan area. Regardless of your electricity plan, CenterPoint adds the following delivery fees to your monthly bills:

• Base Charge: $4.39 per month
• Delivery Charge: 4.338 cents per kWh

When you compare electricity plans in Houston, the rates displayed usually include these fees. However, if you’re unsure about the total rate for a specific plan, you can check its EFL.

Commercial Electricity in Houston

The Texas deregulated electricity market also allows businesses to choose their electricity providers. Business electricity rates are usually lower than residential rates, which is reflected in the latest data from the U.S. EIA:

• Texas average residential rate: 14.68 cents per kWh
• Texas average commercial rate: 8.60 cents per kWh
• Texas average industrial rate: 6.59 cents per kWh

As of April 2025, business electricity rates in Houston range from around 9 to 14 cents per kWh. This price range applies to a medium-sized business with an average monthly usage of 20,000 kWh.

In general, if your company has a monthly bill below $2,500 and fewer than five power meters, you can shop for electricity plans online like a residential customer. However, if your bill exceeds $2,500 or you have five or more power meters, you can request customized offers from light companies.

Understanding Deregulated Energy in Houston

Houston is known as the Energy Capital of the World, hosting a slew of headquarters and intellectual capital for pretty much every segment of the energy industry.⁷ The city has also had what’s called a “deregulated energy market” since 2002, which allows residents to shop for their own electricity providers.⁸

As a result, there are well over 100 different Houston electric companies that are competing for your business. These companies, also called retail electricity providers (REPs), offer plans that vary when it comes to contract terms, quality and environmental impact. On top of paying your REP, you’ll be charged an additional fee from your transmission and delivery utility company (TDU) to cover the costs of delivering electricity, meter reading, wiring and more.

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

Moving or Switching Providers in Houston

Whether you’re moving to Houston or already live in the area and want a better electricity rate, the deregulated market gives you the power to choose your provider. You can compare dozens of plans by ZIP code using tools like Home Energy Club — filtering plans by contract length, green energy content and other features. Whether you’re switching to a new provider or setting up service at a new address, the process is quick and can often be completed online in just a few minutes.

Signing up for an Electricity Plan When Moving to Houston

If you’re moving to Houston from another deregulated area of Texas, you’re probably familiar with the process of choosing an electricity plan. Once you know your new address, you can compare electricity plans for your ZIP code and choose one that suits your energy usage and billing preferences. 

Many providers offer same-day or next-day service, but shopping early usually gives you access to better rates and more plan options. You must usually pay an early termination fee (ETF) to end your existing contract, but Texas law exempts you from this penalty if you switch energy plans while moving to a new address.

For customers coming from a regulated town or other states, setting up an electricity service in Houston may be a new experience. Unlike regulated energy markets, which have a single electricity provider for all homes and businesses, Houston’s deregulated market lets you choose your provider and plan. 

Once you have a move-in date and service address, you can compare providers at Home Energy Club and choose a suitable option for your home. However, make sure to select the “new service” option during enrollment, since you aren’t transferring or switching an existing account.

How To Switch Electricity Plans in Houston

Switching your electricity plan in Houston is a simple process if you follow the steps below. Once you select a new energy plan, you can usually request the switch in less than 10 minutes.

• Compare electricity plans in your ZIP code: There are over 1,500 electricity plans available across Texas, but if you search by location, the list narrows down to around 130 to 200 options. You can shop for electricity plans by ZIP code at comparison sites like Home Energy Club.

• Focus on plans with your preferred features: EcoWatch recommends fixed-rate electricity plans with no hidden fees, since they offer stable pricing over time. However, you may also be interested in perks like solar buyback rates, EV charging discounts or 100% green energy options. These features are often available along with fixed rates.

• Sign up for your new electricity plan: Most electricity providers in Texas offer a simple sign-up process. You’ll need to provide your contact details, address and service start date. When you sign up through our partners at Home Energy Club, the process typically takes five minutes.
• Be aware of ETFs: If you switch an electricity plan during an active contract, you may have to pay a cancellation fee, also known as an ETF. Some providers charge a fee per month for the remaining time in your contract, often around $20. Others charge a flat fee regardless of the time left in your agreement. These fees can range from $150 to $395, so it’s worth knowing what you may owe if you cancel early. However, you’re exempt from the ETF if you switch plans while moving to a new address.