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Texas Electricity Rates

texas electricity rate trendTexas is big – not only when it comes to land size and population, but also in the energy choice it offers. Several retail energy suppliers compete for the attention of residents and as a result, Texas electricity rates are very attractive. This Texas power guide will take you through who are the main players in the Texas retail energy industry, where to find the best rates, what alternative energy options you can choose from and more.

Energy Companies in Texas

Are you not convinced? Let’s look at some available electricity rates in different Texas zip codes, served by different transmission and distribution utilities:


*For a Houston zip code 77095

(Based on an estimated average monthly usage of 1000 kWh


*For a Dallas zip code 75019

(Based on an estimated average monthly usage of 1000 kWh)


*For a zipcode 75028

(Based on an estimated average monthly usage of 1000 kWh)


*For a Corpus Christi zip code 78404

(Based on an estimated average monthly usage of 1000 kWh)

Found an energy plan you like? You can sign up directly through the Power to Choose or enter your zip code to cross-check your find against more options, to ensure you are not missing out.

Texas Energy Deregulation Overview

For the residents of the second largest US state, the energy freedom came in the form of retail electricity industry deregulation on January 1, 2002. Since then, Texans, who were unhappy with their default electricity provider could simply switch to a new one. And as it almost always happens with increased competition, it wasn’t long before the price that Texans pay for their electricity fell below the national average.

Soon enough, there were dozens of retail energy suppliers, competing for the attention of Texas customers with cheaper rates, green energy options, and outstanding customer service. You might be wondering – OK, but what does this mean for me?

Today, over 85% of Texas territory is deregulated (with only a few exceptions, like Austin, San Antonio, and El Paso). If you live in or are moving to Texas, there is a very high chance, that you have the power to choose too. However, even veterans of the Texas deregulated system have trouble wading through the amount of available information about rates, suppliers and plans.

If you live in Texas and you haven’t yet switched, don’t worry! We gathered all the information that you need to know to kick start the process.

Compare Electricity Rates in Texas

The official deregulated energy program in Texas is called Power to Choose. The program, run by the Public Utility Commission of Texas aims to shield Texans from unnecessary high energy costs by making it easy to compare available energy offers and if needed, switch to another power company. Using the simple online tool is straight-forward:

  1. Enter your residential zip code
  2. Narrow your search by indicating your energy usage, what type of plans (fixed or variable rate) and how long of a commitment are you looking for.
  3. Hit ‘View Plans’ and marvel at how much could you be saving on your next electric bill

You will most likely see a large number of competitive energy rates, including information about the green energy content, cancellation fees (if any) and other relevant terms and conditions. It is always good to cross-check your great find with another resource to ensure you are not missing out on a better deal. You can shop for cheaper electricity in Texas by entering your zip code on our website.

Don’t forget – know your usage! The offered electric rates are usually based on minimum usage requirement and therefore, whether you use on average 500 kWh or 1000 kWh makes a lot of difference. You can find out your usage by looking at your electric bill.

Texas Electricity Rates for Business

The Lone Star state is home to a large number of thriving businesses, including well – known Texas natives, such as AT&T, American Airlines, JCPenney, Dell, and many others. If you have a business of your own, Texas has got your energy needs covered.

As a business, you probably want to contact the supplier directly to discuss your individual energy requirements and get a quote. You can find the contact details for the commercial customer service team of any retail energy provider on the Power to Choose website. Get in touch, either by phone or email and they will be happy to design a tailored energy rate for you.

Energy Plans & Products in Texas

Energy plans are like shoes. One size does not fit all. Navigating through complex information about power rates can be confusing and can ultimately deter you from shopping for a better deal. Below is all you need to know about the different energy products that power companies offer to Texas residents:

PlanDescriptionWhat's Good?What's Bad?
Green / Renewable EnergyOn this plan, your supplier will match the energy you consume by buying an equal amount from renewable generators
  • A great option for the environmentally conscious Texans
  • Renewable energy still costs a bit more than non-renewable energy (though the good feeling is priceless)
PrepaidThis plan lets you pre-purchase power for your home at a set price, like a prepaid cell phone
  • Reduced chance of a bill shock at the end of the month
  • If you are forgetful and don’t update your plan, you might find yourself without power half-way through shower
Variable RateYour per-unit gas and electricity costs can vary at the discretion of your supplier
  • More flexible than fixed-rate, can exit without incurring fees
  • More expensive than fixed rates
  • Supplier is free to hike up the price
Fixed Rate Your unit price for gas and electricity will remain the same for the duration of the plan
  • Protection against supplier’s price hikes
  • Usually cheapest
  • Often carry cancellation fees, if you want to exit early

Alternative Energy Solutions in Texas

Because of its size and natural resources, Texas has got a tremendous potential to generate renewable power. The state has twice surpassed its sustainability goals and it now generates more wind power than California. Some Texas towns, such as Georgetown power themselves entirely on renewable energy. It is therefore not surprising that Texans have a number of options on how to express the love for our planet:

texas electricity price forecastAlmost all retail electric providers offer many different green energy plans in Texas. If you are worried about the high costs of eco-friendliness, don't! Renewable energy no longer comes with a steep price tag. There are some great, competitive 100% green energy rates available in Texas. Just enter your zip code and search for a plan that's good for both your wallet and the environment.
best texas energy providersYou can generate renewable energy yourself, for example by installing a solar panel. If you don't use all the energy you produce, you can sell the excess energy back to the grid, by signing an interconnection agreement with your retail power provider. The terms and conditions of such agreements vary, based on where you live and who your supplier is, so it's good to contact them to find out the details.
unlimited electricity plan texas

The third option is, of course, purchasing Renewable Energy Certificates (RECs). A REC is a certificate that 1 MWh energy has been generated from renewable sources such as solar or wind power. Whether you are a small business, large corporations, or individual concerned about your carbon footprint, you can purchase RECs directly with the organization that certifies green energy - Green- E.

FAQs

Below are answers to some of the burning questions you might have about Texas electric rates:

What is the best energy plan in Texas?

The best energy plan is tailored to the specific needs of the customer. You can compare the available rates on the official state program Power to Choose or simply enter your zip code on our website to shop for electricity plans.

Is electricity expensive in Texas?

According to the U.S. Energy Information Administration agency (EIA), the average retail electricity price that residential customers in Texas pay is 11.85¢ / kWh, which is well below the national average (14.05¢ / kWh).

When did Texas become deregulated?

Electricity deregulation in Texas was approved by the Texas Senate Bill 7 on January 1, 2002. As a result, 85% of Texas residential customers can now select their electricity or natural gas service from a variety of competitive providers.

They say that everything’s bigger in Texas and it applies especially to electric choice. Texas customers can switch electricity providers and enjoy cheaper rates, more convenience, and better customer service. The official state energy program Power to Choose helps Texans shop around and switch. The alternative energy choices include finding a green energy plan or generate your own energy with a panel – and even sell it back to the grid. In Texas, the power of choice is yours.

CenterPoint Electricity Plans and Rates in Texas

Rates updated daily

ProviderPlan LengthRate
Constellation12 months10.00¢ / kWh
Frontier Utilities12 months10.30¢ / kWh
Amigo Energy24 months10.60¢ / kWh
4Change Energy36 months10.60¢ / kWh
4Change Energy24 months10.70¢ / kWh
Tara Energy24 months10.70¢ / kWh
Frontier Utilities12 months10.90¢ / kWh
First Choice Power24 months11.00¢ / kWh
First Choice Power12 months11.10¢ / kWh
Direct Energy12 months11.20¢ / kWh

Oncor Electricity Plans and Rates in Texas

Rates updated daily

ProviderPlan LengthRate
TriEagle6 months9.00¢ / kWh
Frontier Utilities12 months9.30¢ / kWh
Constellation12 months9.70¢ / kWh
4 Change Energy24 months9.90¢ / kWh
Frontier Utilities12 months10.10¢ / kWh
TriEagle24 months10.30¢ / kWh
First Choice Energy24 months10.30¢ / kWh
Frontier Utilities24 months10.30¢ / kWh
TriEagle36 months10.30¢ / kWh
First Choice Energy12 months10.40¢ / kWh

TNMP Electricity Plans and Rates in Texas

Rates updated daily

ProviderPlan LengthRate
TriEagle6 months10.50¢ / kWh
Frontier Utilities12 months11.10¢ / kWh
Constellation12 months11.20¢ / kWh
TriEagle36 months11.30¢ / kWh
Frontier Utilities12 months11.60¢ / kWh
TriEagle12 months11.70¢ / kWh
TriEagle24 months11.70¢ / kWh
TriEagle36 months11.70¢ / kWh
Frontier Utilities24 months11.90¢ / kWh
Frontier Utilities12 months12.00¢ / kWh

AEP Central Electricity Plans and Rates in Texas

Rates updated daily

ProviderPlan LengthRate
TriEagle6 months9.40¢ / kWh
Constellation12 months9.60¢ / kWh
TriEagle36 months10.30¢ / kWh
Frontier Utilities12 months10.60¢ / kWh
TriEagle12 months10.70¢ / kWh
Frontier Utilities12 months10.70¢ / kWh
TriEagle24 months10.70¢ / kWh
TriEagle36 months10.70¢ / kWh
First Choice Power24 months10.80¢ / kWh
First Choice Power12 months10.90¢ / kWh

AEP North Electricity Plans and Rates in Texas

Rates updated daily

ProviderPlan LengthRate
TriEagle6 months8.30¢ / kWh
Frontier Utilities12 months9.20¢ / kWh
Frontier Utilities12 months9.60¢ / kWh
First Choice Power24 months9.70¢ / kWh
TriEagle36 months9.70¢ / kWh
First Choice Power12 months9.80¢ / kWh
Frontier Utilities24 months9.90¢ / kWh
Frontier Utilities12 months10.00¢ / kWh
Amigo Energy24 months10.00¢ / kWh
Tara Energy24 months10.10¢ / kWh