Compare the Best Electricity Rates in Texas for January 2023
Texas residents can choose their electricity providers and whether the residential electricity they use is green or not. The Texas electricity market is big, with many energy provider companies, producers, and the regulatory body known as ERCOT. The Texas energy market is a deregulated energy market, which means that you can always find affordable electricity rates to power your home.
A deregulated market means that Texas providers compete to offer the most affordable electricity rates and the highest quality service. Many utility companies now offer renewable energy for those who would like to enjoy cheap electricity rates while reducing their overall electricity prices. And while Texas electricity rates increased in the past few years, there are still ways to compare energy rates and purchase electricity at the cheapest rates.
However, Texas electricity rates are far from uniform. With a large number of electricity providers comes a lot of different electricity rates per kilowatt-hour and hidden fees that can significantly affect your monthly electricity bill month after month. Properly comparing the average price of electricity plans in your ZIP code area is of paramount importance as it can help you save money in the long run.
The most recent data shows that Texas power rates are on the rise. The same is true for total energy use. This translates to higher bills and more cash out of your pocket every month. For this reason, we suggest looking for low rates, but never the cheapest rate, since the cheapest price usually comes with hidden fees which you have to pay every month depending on the provider.
Texas Electricity Rates
To make sure you are making the right decision when choosing your energy provider and the electricity plan you think would work the best for you, here is a comprehensive list of some providers in Texas as well as their contract lengths and the price of energy you would have to pay. Bear in mind that these factors are subject to fluctuation, so always give the provider a call and check before signing any contracts.
|Energy Provider + Plan Name||Length of Contract with the Plan||Price of Energy per kWh|
|Express Energy - Flash Bundled 12||12 months||$0.075 / kWh|
|Frontier Utilities - Frontier Super Value 12||12 months||$0.074 / kWh|
|4Change Energy - Maxx Saver Bundled 12||12 months||$0.075 / kWh|
|Gexa Energy - Gexa Saver Deluxe 12||12 months||$0.075 / kWh|
|Pulse Power - Texas Saver 12||12 months||$0.0785 / kWh|
|Just Energy - Power Plus 12||12 months||$0.089 / kWh|
|Constellation - 12 Month Flat Tier Product||12 months||$0.099 / kWh|
|Cirro - Smart Value 12 Online||12 months||$0.109 / kWh|
|TriEagle Energy - Real Deal 36||36 months||$0.109 / kWh|
|TXU Energy - Smart Edge 12||12 months||$0.109 / kWh|
|Discount Power - Value Plus 12||12 months||$0.113 / kWh|
|Reliant - Conservation Plan 24||24 months||$0.126 / kWh|
|Direct Energy - Live Brighter 36||36 months||$0.128 / kWh|
|Chariot Energy - Green Saver 36||36 months||$0.128 / kWh|
|First Choice Power - You Got This 24||24 months||$0.130 / kWh|
|Green Mountain - Pollution Free e-Plus 24 Preferred||24 months||$0.136 / kWh|
|Payless Power - Premier 12 - Prepaid Plan||12 months||$0.159 / kWh|
The Texas legislature says that customers sign plans that are not controlled by the state. This is one of many benefits of a deregulated power market. For this reason, customers can opt for:
- The cheapest rate,
- Free electricity,
- Average electricity bills,
- Energy plans tailored to their energy needs,
- Choosing and switching their electric provider,
- Choosing a green energy plan,
- Business customers can choose low commercial electricity rates and the best business energy plans that suit them,
- Short-term plans,
- Prepaid energy plans,
- Competitive rates,
- Many providers to choose from,
- Varying price of electricity based on your usage level,
- First month for free, and
- Dozens of other perks and benefits
- of a deregulated electricity market.
Energy Rates in Different Parts of 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 monthly usage of 1000 kWh
*For a Dallas zip code 75019
(Based on an estimated monthly usage of 1000 kWh)
*For a zipcode 75028
(Based on an estimated monthly usage of 1000 kWh)
*For a Corpus Christi zip code 78404
(Based on an estimated 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 Electric Companies
As regulating the energy market is not something that the Texas government does, you can navigate and choose whichever power provider you want to purchase power from. However, wandering through long lists and Excel spreadsheets can be confusing, so always choose Electricrate. This way, you will be checking the best electricity plans in your area in a matter of seconds.
Once you have chosen the new electricity plan with the best electricity rate, you can check the company on the Internet and contact them. To make sure the data you have is up to date, always contact the electric companies and make sure you have the right information. Here is a list of a few Texas providers and their phone numbers.
|Electric Companies in Texas||Phone Number|
Utility Companies vs. Energy Providers
Utility companies and energy providers are not the same kinds of companies. Utilities are a kind of company that takes care of all the necessary hardware to power your home. The utilities’ hardware includes power lines, transformers, electrical infrastructure, breakers, and other technical equipment, such as electricity meters.
Their job is also maintaining electrical infrastructure in the events that could damage it: storms, windstorms, and nearby tree branches can all damage power lines and disrupt the energy supply in your area. If any of this happens, the utility company’s responsibility is to fix the damage and make sure that your energy provider can keep sending you electricity. The utility company also ensures there is enough capacity to meet demand, both short-term and long-term speaking. This work is paid for by the delivery fees portion of your electricity bill.
Five utilities that work in Texas:
- ARP Central,
- ARP North,
- CenterPoint Energy,
- Oncor Electricity, and
- Texas-New Mexico Power.
On the other side of the spectrum are energy providers. Energy providers buy electricity on the wholesale market and sell it to you. The wholesale energy market is where electricity is sold from various electricity generators, such as thermal plants, electric dams, solar and wind farms, and many others.
Energy providers then deliver the energy to your home through the grid that your utility company maintains. This is the company you sign your electric contract with and the electricity company to which you pay for the electricity. Suppose you go for renewable electricity and decide to install solar panels on your rooftop. In that case, this is the company that installs a net-metering meter and credits you with bill credit for all excess energy you send onto the grid.
In a nutshell, the difference between a utility company and an electricity provider is the same as between an airport and an airliner. The airport is in charge of keeping the terminal buildings and the runway clean and operable. This is our utility company. Moreover, the company whose plane you board is like the energy provider: their job is to provide you with the service you need.
Texas Retail Electricity Providers (REP)
Texas Retail Electricity Providers (REPs) buy electricity on the wholesale market and then sell it to you in the form of residential electricity. Based on who your REP is, they can sell you renewable energy or energy coming from other energy generators. You pay your electricity bill directly to your REP.
Currently, there are 22 Retail Electricity Providers in Texas working with the five utilities. This means you have the right to choose your energy provider and the electricity rate you pay. Choosing the right energy plan tailored to your needs can help you save money on your monthly bill through a cheap electricity rate. You can also save a lot by choosing the energy provider that offers free energy when it suits you the best.
Texas Power Companies
- 4Change Energy
- Axon Power
- Acacia Energy
- Accent Energy
- Agera Energy
- Alliance Power
- Ambit Energy Texas
- American Light & Power
- AmeriPower Energy
- Amigo Energy
- Bounce Energy
- Breeze Energy
- Brilliant Energy
- Bulb Energy
- Champion Energy
- Cirro Energy
- Constellation Energy
- Direct Energy
- Gexa Energy
- Just Energy
- Reliant Energy Texas
- TXU Energy
ERCOT and the Texas Electric Grid
ERCOT, the Electric Reliability Council of Texas, was formed to regulate electric power delivery to some 26 million Texas customers. ERCOT is responsible for delivering power to over 90% of Texas households. The Public Utility Commission (PUC) of Texas oversees the work of Texas.
ERCOT is solely in charge of Texas grid stability. It does not own any energy production capacities and does not charge for the electricity consumed by the end customers, be that residential or commercial power. Electricity companies make their demands from ERCOT, and then this body makes sure there is enough electricity in the grid to satisfy the needs in that particular area.
ERCOT ensures that the electricity produced matches the electricity consumed in small, 15-minute intervals. This brings the network stability tested only twice: during the blackout of 2011 and winter 2020/2021. However, weather extremes can take down even the biggest and the most reliable energy networks.
However, any break in the electrical infrastructure is a valuable opportunity to learn. As many of the problems happen for the first time, they can influence decision-making and the ability to respond to similar issues quickly in the future. The grid needs to be modernized but renewing it takes years, although it will solve many of the issues currently happening during weather extremes.
Energy Deregulation in Texas
Texas boasts its deregulated energy market. Back in 2002, the Texas Senate Bill 7 deregulated the energy market in the Lone Star State. This means that utilities and Texas electricity providers now had to compete to offer their customers the cheapest electricity rates and the best service.
The deregulation was supposed to bring down the cost of residential electricity. Texas can now be proud of having commercial electricity rates that are 30% cheaper than in the rest of the country. Residential energy rates are on average 15% lower per kilowatt-hour kWh than in other states.
The deregulated power grid had to be monitored to ensure that a power outage did not happen now and then. To do so, ERCOT, the Electric Reliability Council of Texas, was formed. This body oversees the flow of electricity through the grid, from electricity generators to consumers.
Other big benefits of a deregulated market that many deregulated states can offer to their residents include:
- Energy plans that match their needs, and to be able to compare electric rates,
- Being able to explore, do your research, and sign contracts with trusted providers without complicated paperwork – a few days is usually enough,
- Enjoying a low average Texas electricity rate from Texas energy companies,
- Special offers from most business energy suppliers, and competitive commercial electricity market conditions,
- Reliable electricity supply with few power outages,
- Choosing between green energy options and non-green energy plans, solar days plan options, free weekends, free nights, carbon-free energy,
- Paying a lower electricity rate in Texas based on how much electricity you use and on your energy habits,
- Choosing between a variable-rate plan and fixed-rate options, for lower monthly energy bills, prepaid energy plans (paying for electricity upfront),
- Flexible contract expiration and contract length (for example, a 12-month, a 24-month, or a 36-month contract), and special benefits for new home connections, as well as low cancellation fees,
- Transparency through Electricity Facts Label-EFL (Electricity Facts Label-EFL is a summative label with basic information about the energy plan and the exact rate you will be paying – never sign a contract before seeing one), and knowing your approximate monthly electricity bill,
- Having a clear overview of the transmission and delivery fees, knowing how much you pay to the Texas power grid, and
- Knowing where and how your electricity is generated – the regulated market lets you choose.
However, there is also more than one downside to living in a deregulated electricity market:
- Having to compare and choose from hundreds of popular providers in Texas, taking a lot of time to find the right Texas energy plan among rising electricity prices,
- Getting calls and offers from unaffiliated companies about another company’s best electricity plan,
- Having to browse for information in a non-standardized way (ElectricRate can help, please enter your ZIP code),
- Renewable energy options are available only through offsets or REC purchases,
- Free nights discounts are only available for the amount of daily use – anything above has to be paid for,
- Having to pay attention to the exact usage, pricing shown, whether the electricity is for home or business, as well as the fine print,
- Having difficulties selecting plan length, and the source of energy for keeping your home powered, and
- Having overt competition and energy companies which may resort to less-than-ideal works and practices.
Texas Energy Plans
Texas energy plans and electricity rates vary based on your ZIP code and the electricity provider you choose. Being mindful of this and comparing the electricity plans offered in your area can save you a lot of money. However, the first thing to understand is the differences between different plans and any accompanying costs, such as the early termination fee.
There are several kinds of energy lans and Texas electric rates:
- Fixed-rate plan – the best energy plans in Texas according to ElectricRate,
- Variable-rate plans,
- Texas green energy plans the right plan for all eco-conscious power users,
- Prepaid plans,
- Time of use plans,
- Solar energy plans,
- Average use/billing plans,
- Pay-As-You-Go / Pay-As-You-Use plans,
- No-deposit plans (no credit check), and
- Business plans – provide commercial electricity to small businesses, industrial properties, and all in-between.
Fixed-rate energy plans are most often suggested to customers. The cost of electricity with these plans is always the same. A fixed-rate electricity plan is usually signed for a fixed period, ranging from six months to three years.
The biggest advantage of fixed-rate energy plans is that your electricity rates remain the same for the plan’s duration. Weather events such as flooding, sub-zero temperatures, storms, and other events that can disrupt the energy supply will not fluctuate your electricity rates.
During the blackout of the winter of 2020/2021, many customers on variable rate plans found themselves with significantly increased monthly bills. This was because the price of energy jumped as natural gas pipes froze and generators halted. These customers had no protection that the fixed-rate plans offered.
Fixed-rate electricity plans can be combined with other options, such as average energy usage based payments for better control over your expenses. For even better control, you can opt for a fixed-rate energy plan and net metering with solar panels. This way, you can use the grid as a solar storage option and even sell your renewable energy credits for extra income. As Texas electricity prices are low, you should expect a longer payoff time through energy bill savings than, let’s say, homeowners in Hawaii.
Variable-rate plans and the electricity rates you pay can fluctuate on a monthly and even day-by-day basis. Normal fluctuations in the price you pay per kilowatt-hour kWh reflect the prices in the wholesale energy markets and are based on several factors. These factors include but are not limited to weather events, energy source, energy supply, and demand variables, etc.
Although the baseline electricity rate you pay with variable-rate energy plans is usually somewhat lower than with fixed-rate plans, they enable you to enjoy a level of protection against energy prices that are too high. We strongly advise our customers against getting variable rate plans.
Renewable Energy Plans
Texas electricity plans usually include renewable energy plans or green energy plans. Although different Texas electric providers call them by different names, the basic idea is the same. These plans power your home with green energy, and you get low electricity prices and protect the environment.
Solar energy, wind energy, biogas energy, and many other green solutions are used as a power source in electricity generation. In Texas, 25.9% of total electricity comes from renewable sources other than hydroelectric, 0.4% comes from hydroelectric, and 9.9% comes from nuclear. Although this is a non-renewable source of electricity generation, many states still keep their nuclear fission plants up and running because they release no CO2.
Renewable energy plans usually include a green premium. This should say that green electricity prices are a little bit higher compared to conventional energy. However, with a significant reduction in wind and solar generation prices, the ‘green premium’ is set to disappear in the next few years.
Prepaid energy is the best solution for those who know exactly how much energy they will use in a certain month. Before the month starts, you pay for expected usage and then use the fixed amount of electricity for that month. Prepaid energy plans are gaining in popularity because they allow you great flexibility and no minimum contract duration. What you pay is what you spend.
Time of Use
Time of Use energy plans fluctuates their rates throughout the day. The price of the energy is updated several times every hour, in general in 5-minute intervals. These plans do not provide a fixed rate but are a great way to save on your electric bill.
The savings are made because these plans generally include both the most expensive and the cheapest electricity rates. In some areas, depending on your ZIP code, they can also include periods of the day when the energy is free. Focusing your expenditure on this period of the day or the weekend can provide you with massive benefits: simply using the delayed start with some of your appliances can significantly reduce your electric bill.
A solar energy plan is aimed at all those who have installed solar panels and can now enjoy the benefit of green energy and the cheapest electricity rate. This kind of Texas energy plan allows you to send all the power you produce and not consume it onto the grid. If you have solar panels, you can check solar plan availability in your area.
Head over to your local utility webpage and enter your ZIP code. Find your desired electricity plan and see if this energy plan offers bill credits that are good enough to power your home during the night and winter.
Average Billing allows you to always pay the same rate. Many providers offer average billing, and the price you pay is calculated based on your average monthly usage. This allows you to always pay the same amount of money for different electricity usage which can be seen as the seasons fluctuate.
Your electricity bill is calculated by taking your annual electricity usage and then dividing it by 12. This is the price you pay monthly. Adjustments are made once a year, usually in October. These plans are a great solution for those who want to have fixed electricity expenses.
If you’ve paid more electricity than you’ve used, you are eligible for compensation. If you’ve used more than you’ve paid, you pay the difference, and the energy price per month is recalculated for the next year.
This electricity plan is similar to a prepaid electricity plan. Although many power providers see them as the same kind of plan, there could be small differences. Namely, funds in a prepaid energy plan are usually deposited for the same amount of energy every month.
With this type of electricity plan, you always have the same electricity rates but are free to estimate your energy usage for that particular month. You deposit funds into your account, and once you start using the electricity, the funds are used to pay for it. Once you’re low on funds, your energy company sends you a message or an email to inform you that you need to top off your balance.
No Deposit Options
A no-deposit energy plan typically does not require you to pay a deposit amount upfront. The most common forms of a no-deposit energy plan are prepaid plans and pay-as-you-go plans. Alternatively, for customers with very high credit scores, any plan can be made a non-deposit energy plan upon request and if supported by your local utility.
There are many pros and cons to no-deposit plans. The pros include no deposit, bill control through upfront payments, and energy usage monitoring in real-time. The cons include upfront payments, automatic shut-offs, and a higher average electricity rate. Energy companies will, in general, let you know before you’ve spent the electricity you’ve prepaid.
Business Energy Plans
The Lone Star state is home to many 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 information for the commercial customer service team of any retail energy provider on the Power to Choose website. Get in touch, either by calling or sending an email and they will be happy to design a tailored energy rate for you.
Alternative Energy Solutions in Texas
Because of its size and natural resources, Texas has got tremendous potential to produce 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 many options on how to express their love for our planet:
|Almost 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. |
|You 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.|
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.
What’s Power to Choose Texas?
As the energy grid in Texas got deregulated, the market was flooded with new Texas electric providers. Every electricity company wanted to offer the most affordable Texas electricity rates to their customers and the best quality of service. Unfortunately, this made choosing top energy providers a burdensome task, as there were so many.
This is when the Power to Choose Texas was formed. It is the official deregulated energy program in Texas. The program, run by the Public Utility Commission (PUC) 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 straightforward:
- Enter your residential zip code
- 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.
- Hit ‘View Plans’ and marvel at how much could you be saving on your next electric bill
You will most likely see many competitive energy rates, including information about the green energy content, cancellation fees (if any), and other relevant terms. 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 requirements and therefore, whether you use on average 500 kWh or 1000 kWh makes a difference. You can find out your usage by looking at your electric bill.
How to Switch Electricity Companies in Texas?
There are several easy, comprehensive steps in switching electricity companies in Texas. First of all, you should check out your current electricity plan. Electric utilities are generally allowed to charge an early termination fee, and many decide to do so. However, if you want to switch to another electricity company 14 days or less before your current contract expires, you can do that without paying the fee.
The Public Utility Commission guarantees this right. In general, you do not pay any early termination fees for plans with a variable rate. Fixed-rate plans with an average electricity rate that remains the same usually pay this fee.
Furthermore, use Power to Choose Texas to find the best Texas electricity rates. Enter your ZIP code, and you will get a list of power providers working in your service area that can provide you with the best electricity rates. This sheet is arranged by the companies’ electric rates from the lowest to the highest price per kWh.
After you’ve found your desired electric company from the list of trusted energy providers, you should compare their rates to overall electricity rates in Texas. You can check the number of complaints this new energy provider has had in the past and finally, see if they offer bill credit for solar customers.
Once you have your best electricity plan, contact your new power provider. In general, this new company will switch the contract for you so that there is no power outage in your home. The streamlined approach is a great way to keep enjoying electricity without interruptions.
Typically, if you have signed a very long contract, it may be not easy to switch to a new provider. Green energy plans such as PPA are signed for 20 years and more and may not be easy to cancel. The equipment that has to be taken down costs a lot of money, and based on your contract, you may have to cover those expenses.
Below are answers to some of the burning questions you might have about Texas electricity 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).
What uses the most electricity in a home?
Any form of heating uses the most electricity in a home. Your electric space heaters, as well as water heaters and boilers, typically use the most electricity. The second biggest consumer is air conditioning, especially in hot states, such as Texas. If you are not on fixed-rate plans, you may have noticed that your electric providers typically charge higher electric rates during summer.
The next biggest item on your electric bill is the lighting. An average American household pays 30% of its electric bill for the lights in the house. Switching to energy-efficient LEDs can save you significant amounts of money.
Can I change electric companies if I owe money?
Yes, you can switch your electric company even if you owe money. If you’ve found cheaper electricity rates in Texas and have owed money to your old energy provider, then you can switch to a new energy provider. On the other hand, if you’re owed money for more than 28 days, you cannot switch to your new electricity supplier until all the debt has been settled.
Texas electricity rates vary depending on your ZIP code and the utility company. Power to choose is there to make your job of searching for the lowest electricity rates in Texas easies and hassle-free. Always make sure that you understand all the electric rates the electric providers in your area offer before going electricity shopping.
Choosing trusted energy providers and avoiding variable rates will save you a lot of headaches in the long run, as electricity rates in Texas vary significantly. You should customize the electric rates you pay for for your electricity needs, so compare as many providers as you can. Only this way will you be able to save some money and pay affordable energy prices for years to come.