Katy Electricity Rates and Plans

Katy Electricity Rates and Plans

  • Average Katy electricity rates: 15.63 cents per kilowatt-hour (kWh)
  • Average Katy monthly electric bill: $183.18, based on average usage of 1,172 kWh

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Texas has a deregulated energy market, which means Katy residents can choose their retail electricity provider (REP) — potentially reducing the cost of monthly utility bills. The cheapest electricity plan in Katy is the PTC 3 Month plan from Payless Power, with a cost of just 13.1 cents per kWh. The cheapest electricity plan in Katy that provides 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 includes the top 20 cheapest electricity plans available in Katy right now that use clean energy. At EcoWatch, we support the clean energy movement first and foremost, so we’re only including plans here that guarantee 100% renewable energy.

PROVIDER

PLAN NAME

LENGTH (months)

RATE (¢/kWh) (1,000 kWh plans)

Chariot Energy

Free Nights 36

36

14.2

Octopus Energy

Octo 12 with Smart Thermostat Connected

12

14.4

Octopus Energy

Octo 12 with Electric Vehicle (EV)

12

14.4

Chariot Energy

Free Nights 24

24

14.5

Gexa Energy

Gexa SavEV Choice 24

24

14.5

Gexa Energy

Gexa Eco Choice 12

12

14.6

Chariot Energy

Free Nights 12

12

15.1

PowerNext

PowerNext Green Fixed 36

36

15.2

Gexa Energy

Gexa Eco Choice 24

24

15.2

Branch Energy

Branch Fixed 12 – Free Home Energy Audit

12

15.4

CleanSky Energy

Embrace Green 36

36

15.5

CleanSky Energy

Embrace Green 24

24

15.5

Octopus Energy

Octo 12

12

15.6

Green Mountain Energy

Pollution Free e-Plus 36 Choice

36

15.9

PowerNext

PowerNext Green Fixed 12

12

15

Rhythm Energy

Digital Discount 12

12

16.0

Rhythm Energy

Power to Shift 12

12

16.0

Rhythm Energy

Power to Shift 12

12

16.1

Rhythm Energy

Simply Choose 12

12

16.1

TriEagle Energy

Simple Green 36

36

16.2

BKV Energy

Daisy Green 36

36

16.2

*Rates will vary based on your TDU.

How To Choose the Best Electricity Plan in Katy

When searching for the best electricity rates in Katy, 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 Katy, you’ll be presented with a few plan options. Here’s an overview of the types of electric plans offered in Katy, 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 rate per kWh never changes, meaning no surprises on your bills
  • Makes budgeting for utility consumption much easier
  • Can be more expensive than variable rates if the market price drops
  • Usually come with long terms that lock you into a specific provider

Variable-Rate Energy Plans

  • Can be less expensive than fixed-rate plans if the market price drops
  • Short terms of one month at a time
  • Can lead to unexpected spikes in your per-kWh rate
  • Budgeting for utilities can be more of a challenge

Green Energy Plans

  • Lets you support the clean energy movement with no up-front investment
  • You can still pick variable or fixed rates based on your preference
  • Tend to be a bit more expensive than traditional plans on average
  • Potentially contribute to higher prices for energy created using fossil fuels

Fixed-Rate vs. Variable-Rate Plans

A fixed-rate plan, as the name suggests, has a fixed rate that you pay per kWh for the entire length of your contract. Fixed-rate plans can have rates that vary based on the time of day, but no matter what, you’ll know your exact rate per kWh when you sign up. Your electricity bill can and will vary from month to month based on consumption, but there are no surprises when it comes to the rates per kWh you’ll pay.

With a variable-rate plan, the price you pay per kWh will change based on the market rate for electricity on a given day. During periods of high demand, the price can spike, but it can also fall below what you’d pay with a fixed-rate plan throughout your contract.

In most cases, variable-rate plans tend to be a bit less expensive than fixed-rate plans, but there’s always a risk that your bill will be higher. Per recent history in Katy, fixed-rate plans would have saved money over a variable-rate plan, as the average fixed-rate cost per kWh has been around 15.63 cents per kWh, whereas the average for variable-rate plans is 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

Many REPs in Katy offer green energy plans, which guarantee that a specific percentage of the electricity the REP delivers comes from renewable energy sources, like solar or wind power. REPs can have plans that fall into five different brackets:

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

We strongly recommend choosing a plan that guarantees 100% renewable energy, as this does the most to reduce your carbon footprint and your reliance on fossil fuels. It’s also a great way to get the same environmental benefits of converting to solar power but without the high up-front cost and risk of roof damage from solar panel installation.

Green energy plans can have either fixed or variable rates, and they can also be time-of-use plans, so you can choose a green energy plan with the rate structure that works best for you.

Check out the video below from Chariot Energy for a quick explanation of how utility-scale solar works:

Your Energy Usage

Your energy consumption is a crucial factor to consider when choosing an electricity plan in Katy, because your consumption habits can affect your bill in a few different ways. The most obvious is that you get billed on a per-kWh basis, so the more electricity you use per month, the higher your bill will be. This is the case no matter when you use your electricity or the type of plan you have.

However, there are some other variables that can influence your monthly electric bill when it comes to your electricity usage. First, the amount of power you consume each month will usually affect your per-kWh rate. Most REPs in Katy have three tiers for consumption, with the highest rates reserved for homeowners who consume an average of 500 kWh per month, average rates for those who consume 1,000 kWh per month and the lowest rates for those who consume 2,000 kWh per month. For example, the rates for the cheapest 100% renewable energy plan in Katy are as follows:

  • 500 kWh per month: 15.6 cents
  • 1,000 kWh per month: 14.2 cents
  • 2,000 kWh per month: 13.5 cents

Most homeowners in Katy will fall around the average cost (1,000 kWh) since the typical monthly consumption is around 1,172 kWh in the area.

Second, the time of day you consume your electricity can make a difference if you have a time-of-use (YOU) plan. These plans include different rates based on the time of day you use your energy, usually with the lowest rates in the early morning and overnight (usually 11p.m. to 6 a.m.). If you have a TOU plan and can prioritize electricity consumption overnight, you’ll likely save quite a bit of money.

Contract Length

Fixed-rate energy plans in Katy all include a contract term, which is the amount of time you agree to be locked into a particular agreement and per-kWh rate. Most electricity plans in Katy are set at 12-month, 24-month or 36-month intervals, but this can vary based on the REP you choose and the plan you pick. For example, Payless Power has a three-month contract available in Katy.

Different REPs in Katy have different protocols when it comes to pricing structures based on the contract term. For some REPs, shorter contracts come with higher per-kWh costs because they’re taking less of a risk when it comes to electricity prices changing over time — if the market price goes up over a year-long contract, they’re losing far less money than if that same rate continues to rise over three years.

Other REPs offer lower prices per kWh for longer contracts because they’re guaranteeing your business for longer and are comfortable betting that the market rate for electricity won’t rise too far above the fixed rate and cause them to lose money on the contract. Since the trends can vary based on your provider, I recommend finding an REP that has good customer service ratings and then looking at their plans to see which length plans are most affordable.

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. Here’s an example of what that’ll look like:

Electricity Facts Label for Houston Homeowners

Watchouts

The first thing to pay close attention to when choosing an electricity plan is how your rate is determined. If you’re choosing a TOU plan, make sure you fully understand how your rate changes based on the time of day you use electricity, and try to prioritize plans that fit with your consumption habits. If you’re choosing a variable-rate plan, make sure you understand that your rate could change unexpectedly based on the market price for electricity. These plans can save you money, but they inherently come with risks.

Additionally, there are scams related to the electricity market that you should be on the lookout for. One of the most prevalent scams in Katy involves fake REP representatives calling and demanding payment over the phone to avoid a shut-off. These scammers steal your personal and payment information, so make sure you always double-check your account online to see if you’re really behind.

Another scam reported in Katy involves fake REP reps coming to your door and asking for personal information or payment information to lower your energy bill or install energy-efficient equipment in exchange for up-front payment.

To keep yourself protected from scams like these, make sure you never provide personal information or credit card information over the phone or in person. Always contact your REP directly rather than letting them come to you.

Understanding Deregulated Energy in Katy

A deregulated energy market like the one Texas has adopted doesn’t mean that all parts of the energy production and distribution chain are privatized. Most parts are still heavily regulated.

There are three portions of the chain: production, distribution and retail. Production facilities — often just called power plants — produce the power. They run solar or wind farms or burn fossil fuels to produce the electricity that you eventually use in your home. These entities are heavily regulated, so you don’t have a choice when it comes to which you indirectly buy power from.

Then, there are distribution companies, typically called transmission and delivery utilities (TDUs). TDUs own and maintain the distribution network, including power lines. These companies are also still highly regulated in Katy, so you can’t choose which one serves your home. In Katy, most homes are served by Centerpoint Energy.

Finally, there are REPs, which buy energy at wholesale rates from the TDUs and power plants and sell the power to you. REPs are responsible for creating and marketing energy plans as well as customer service and payment collection. The REP part of the picture is where you have an energy choice. You can choose the REP you work with, and they all compete for your business, which tends to lead to lower rates overall.

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

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

The term “utility company” usually refers to your TDU, which is Centerpoint for most Katy residents. Utility companies handle the delivery of electricity from the power plants, and they’re responsible for maintaining the electrical lines and responding to power outages and downed power lines.

An REP is the customer-facing energy company that markets and sells energy plans to customers. They buy power at wholesale rates and then mark up the price to turn a profit, but this is tempered by the need to remain competitive in the market. If you don’t choose an REP in Katy, you’ll usually default to getting service directly from Centerpoint. In many cases, this will be more expensive than choosing an REP since you can’t secure the same wholesale rates that REPs can.

Katy 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)

Over the past decade alone, electricity prices in Katy have increased by nearly 36%, which follows the upward national trend. The largest electricity price increase throughout that period was between 2022 and 2023, representing a single-year increase of over 31%. It’s interesting to see that Katy electricity rates weren’t immediately affected by the severe winter storm in February 2021 and instead saw a bump in prices a few months after the spike in demand and per-kWh prices.

There was, however, a dip in energy prices in 2020, likely caused by the COVID pandemic. Most residents were home for longer periods during COVID and called on the grid more. The base operating costs of the power plants didn’t change during this time, so profits likely increased a bit over previous years. When demand increases, power companies are able to reduce energy costs and still turn a profit.

Choosing an Electricity Plan When Moving to Katy

If you’re moving to Katy from out of state, you’ll want to set up new electricity service as soon as possible to ensure you have power when you move in. Most REPs take three to five business days to connect your service after you sign up, so giving them a bit of lead time is a good idea.

We’ll go through the process of researching and comparing REPs in the following section, but I recommend prioritizing a company with a high customer rating to ensure you have a positive experience. I also suggest choosing a contract that’s 12 months long or less, as this gives you the opportunity to switch REPs until you find one that serves your particular needs well. I also suggest choosing a non-TOU fixed-rate plan to start with until you understand your energy demands in the area a bit better.

When you contact your REP, you’ll need your personal contact information and either your social security number for a no-deposit plan or your credit card information for a standard plan with a deposit.

Switching Electricity Plans in Katy

If you already live in Katy and are just looking to switch providers, you can follow the same steps to find and compare REPs, which we’ll outline below. However, you might have different priorities, which means you might want to look for different things in your REP.

I suggest choosing an REP with a rate structure that you know works well for your consumption habits. Since you’ve lived in Katy already, you’ll know how much electricity you tend to use and when, so you can explore companies with a tier of consumption that meshes well with your habits or even a TOU plan that will save you money.

You’ll still need your contact information and either a social security number or credit card information to make the switch. I also recommend you consider your cancellation fee with your existing REP, as you’ll either have to pay that to get out of your contract or find a new REP that offers to pay it for you if you’re still within your contract term.

How to Choose Electricity Plans in Katy

Switching to a new electricity plan in Katy 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 Katy 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 Katy

At Ecowatch, we take a sustainable approach to our best lists. We selected the best energy providers in Katy by examining a variety of different components of the energy provider 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 providers’ track records 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.

FAQ: Katy Energy Plans

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