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Energy Rates in Houston: Finding the Best Price For You

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Houston electricity rates are lower than average Texas electricity rates. This means that if you haven’t shopped for energy, now is the right time. Almost all Houston electricity companies offer renewable energy as a part of their portfolio, and many energy plans come at competitive electricity rates. Choosing your energy provider wisely is a must, as finding the cheapest electricity rates can save money for you. 

With the average electricity bill in Houston being $155, cheap electricity rates are a must if you want to gain control over your energy bill and reduce how much you pay to your energy provider. This is one of the perks of living in Texas.  Electricity rates in Houston are prone to fluctuation, so make sure to use the upcoming winter to compare Houston energy plans since this is the time when energy prices are at their lowest. 

Houston Electricity Rates

Houston electricity rates vary widely, depending on your energy provider, the type of plan, and the contract length. To make your job easier, finding the best energy plan for you is as easy as 1, 2: enter your ZIP code and browse. To better understand what energy prices you can expect to pay in Houston, Texas, here is an overview of the 20 most popular Houston electricity plans:  

Plan NamePlan LengthPrice per kWh
Pulse Power - Texas Saver 1212 months$0.082 / kWh
4Change Energy - Maxx Saver Select 2424 months$0.089 / kWh
4Change Energy - Maxx Saver Bundled 1212 months$0.091 / kWh
4Change Energy - Maxx Saver Select 1212 months$0.095 / kWh
4Change Energy - Free Energy 1212 months$0.101 / kWh
TXU Energy - Smart Edge 1212 months$0.126 / kWh
Cirro - Smart Value 12 Online12 months$0.130 / kWh
Pulse Power - Texas Green 3636 months$0.132 / kWh
TXU Energy - Smart Edge 2424 months$0.136 / kWh
Pulse Power - Texas Green 1212 months$0.138 / kWh
Green Mountain - Pollution Free e-Plus 24 Preferred24 months$0.142 / kWh
Just Energy - Simple Rate Plus + $100 Gift Card12 months$0.145 / kWh
Cirro - Smart Lock 24 Online24 months$0.147 / kWh
Just Energy - Just 400 Advantage24 months$0.149 / kWh
Green Mountain - Pollution Free e-Plus 12 Preferred12 months$0.150 / kWh
Green Mountain - Go Local Solar 12 Preferred12 months$0.152 / kWh
TXU Energy - Flex Rewards1 month$0.164 / kWh
TXU Energy - Solar Saver 1212 months$0.174 / kWh
TXU Energy - Free Nights & Solar Days 12 (8 p.m.)12 months$0.175 / kWh
TXU Energy - Smart Deal 3636 months$0.187 / kWh

Types of Houston Electric Plans

Houston electricity rates are generally low, but that does not mean that Houston electricity cannot become expensive. Energy companies in the area offer a variety of plans suited to every customer out there. Understanding the difference between these types of plans is crucial, as otherwise, you may end up paying a way higher electricity bill than you should. 

Fixed-Rate Plans 

Fixed-rate plans offer the peace of mind of knowing that your electricity rate is locked and cannot change as the electricity prices in the wholesale market fluctuate. Fixed-rate electricity plans generally charge a bit more than variable-rate plans, but the pricing security is priceless on its own. This is the recommended type of Houston energy plan. 

Variable-Rate Plans 

Variable-rate plans can help you slash your energy bill in half. During autumn, winter, and early spring, the variable rates in Houston are at their lowest. During this period, you can make significant savings on your energy bill. However, as the electricity usage increases during the summer, so does the price you pay for electricity. You may receive an unpleasant surprise with your next energy bill for this type of energy plan. 

No-Deposit Plans

No-deposit plans are perfect for those who move a lot, such as students and seasonal workers. No-deposit plans do not offer the cheapest electricity rate in the market, but they also have no contract term length, no credit history check, and no early termination fees. Choose these plans if you do not want a long-term commitment with energy providers. 

Green Electricity Plans

Renewable energy plans are also available in Houston. To check which plans are available in your area, enter your ZIP code and check out the plans in front of you. You will be thrilled to find out that almost every energy provider has green energy plans in their offer and that this electricity can be yours at affordable electricity rates in Houston. Power for green energy plans comes mostly from Texas wind turbines and solar panels

Commercial Electricity Plans

Houston has very affordable commercial electricity. Every business working in Houston can enjoy commercial electricity rates much lower than in the rest of the U.S. This is because big players score big savings in a deregulated energy market. Some electricity companies may even offer a customized commercial energy plan for your business. Make sure to compare Houston electricity rates before making a decision. 

How To Choose the Best Electric Plan

Electricrate is here to help you choose the best energy plan for your needs. Just enter your ZIP code and browse the plans to find the one that works the best for you. Every electricity company working in your area has several electricity plans to offer, but choosing the right one should be an educated decision and not a guess. To choose the best energy plan for you and your family, you need to: 

Identify Your Energy Needs

All energy companies send monthly bills that contain a lot of information that can be useful for you. Besides your customer ID number and the amount owed, they also show the exact energy usage for the month. You need this information to understand what electricity plans are the best option. 

Energy providers generally offer energy plans based on your monthly usage: 

  • Up to 500 kWh per month – perfectly suited for apartments, 
  • Up to 1000 kWh a month – best for small households with an AC unit, and 
  • Up to 2000 kWh a month – best for larger families and households and those who have an electric vehicle (EV). 

In general, the more you spend, the cheaper your energy plan gets, so make sure to estimate your energy usage correctly to avoid overpaying for the power you use. 

Look For Unique and Beneficial Plans

Energy providers in Houston, Texas, work in a deregulated energy market. This means that they offer a variety of electricity plans and try to stand out in front of the competition. Simple green energy plans are not enough anymore, so many providers offer freebies, such as: 

  • Free nights;
  • Free weekends;
  • Free electricity past a certain threshold; and 
  • Free mornings and evenings.

It would help if you understood your energy habits to choose the best that Houston electric companies can offer to you. If you do your laundry on the weekends and like to invite friends over, choosing free weekends is the way to go. Likewise, choosing free nights is the best deal if you own an EV, especially if you charge it at night. 

Choose the Best Plan For You

Once you have all the information you need, it is time to compare Houston electricity plans offered by different energy providers. Make sure to consider mostly fixed-rate plans and green energy plans, as they are the most popular with Houston electric companies. Pay attention to the early termination fee and any surcharges you may have. Checking out the electricity facts label is usually enough to keep you informed. 

Factors That Influence Electricity Rates

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As hard as your electricity company may try to provide you with cheap electricity rates, they can do only so much. The price of electricity is determined long before it even reaches you, and it depends on several factors. Your Houston electricity provider is the middle man in the equation, the one that helps you power your home without dealing with all the technicalities of energy prices. 

Fuels

The fuels that are commonly used to generate electricity are coal, oil, and natural gas. As you know, these fuels do not come at a fixed price and depend on the world market, demand, and supply. The scarcer a commodity is, the more expensive it gets. This is one of the reasons behind the two infamous blackouts: the Texas blackout of winter 2020/2021 and the Northeast blackout of 2003. Having a good supply of fuels makes electricity prices stable and prevents power outages. 

Power Plant Prices

Energy is generated in power plants, but the cost of the fuels used to generate electricity is just a part of the story. Building power plants are very expensive, and operating and maintaining them. These costs are always included in the price of energy plans in Houston. 

Transmission and Distribution Area System

Transmission and distribution area systems or the electrical infrastructure also costs some money. The power lines delivering power to your home must be erected, maintained, and repaired after major storms and blackouts. All this is done by every utility company working in Texas: 

  • Texas-New Mexico Power (TNMP)
  • Oncor Electricity
  • CenterPoint Energy
  • AEP North
  • AEP Central

So, a part of your electricity bill is the electric utility bill. If you enter your ZIP code and check out the utility company in the Houston area, you will see that Oncor services Houston residents. 

Area Regulations

Your local area regulations also dictate your energy rates. Luckily, Houston energy companies work in a deregulated energy market, which means that Houston’s electric rates are low and reflect the state of demand and supply. Your monthly electricity bill can be several dozens of dollars lower than in the rest of the USA. 

Weather Conditions

Weather conditions pose a challenge to any electrical grid. Besides problems with fuel supply in infrastructure that has not been winterized, weather can also halt the production of green energy. Sadly, the worst weather events are usually the times of high average monthly usage, especially in states with low energy efficiency. 

Houston Electricity Providers

If you live in the Houston area, several dozen electric companies are servicing your area. However, not all Houston electric companies are created equal, so check out our table with the year different electricity providers were established and their Better Business Bureau (BBB) rating. In finding your dream electricity provider, you should seek a balance between new and innovative and old and proven-to-be-good. 

Company NameBBB RatingYear Founded
Reliant EnergyNR2000
TXU EnergyA+1996
Cirro EnergyA+2001
Green Mountain EnergyA+1997
Pulse PowerNR2018
AP Gas & Electric (APG&E)A+2004
Just EnergyNR1997
4Change EnergyA2012

Reliant Energy

Reliant Energy is an NRG subsidiary. This Texas-based electricity company offers a variety of plans and access to 100% renewable energy with their green energy plan options. They also offer options for a variable rate plan and fixed-rate plans. Reliant is one of the top Houston electricity providers and can boast some of the best and cheapest electricity plans in Houston. 

TXU Energy

TXU Energy is one of the electric companies servicing the Houston area. They offer both residential and commercial plans in Houston. If you want to shop for electricity plans, you should know that they offer green energy options and competitive online electricity services. TXU was established back in 1996 and has earned a BBB rating of A+. 

Cirro Energy

Cirro Energy is another NRG subsidiary on our list. They offer some of the cheapest Houston energy rate plans and energy purely green options. They offer online customer service and have earned an A+ BBB rating since 2001 when they were established. This electric company also boasts its multi-state business. 

Green Mountain Energy

Green Mountain Energy was established back in 1997 and earned an A+ Better Business Bureau rating. It is proud of its green energy plans, as 100% of its Houston energy plan options provide green energy. It offsets some of the best Houston electricity rates for green energy, and it helps their Houston residents and businesses reduce their carbon footprint. 

Pulse Power

Pulse Power is a new energy provider in the Lone Star State. It is one of the best electric companies we’ve reviewed. As a new company, they focus on the cheapest rates and great customer support. This is the best electric company for red tape reduction and the ease of joining their service. 

AP Gas & Electric (APG&E)

AP Gas & Electric is also one of the younger electric companies in the Houston ZIP code area. It was established back in 2004 and has since then expanded its service to New York, New Jersey, Ohio, Pennsylvania, and other states. This company boasts its low electric rates per kilowatt-hour and excellent BBB rating of A+. 

Just Energy

Just Energy is another one of the electric companies in Houston. This company was established in 1997. They focus on good customer support and are rare electricity providers that offer same-day electricity plan options. 

4Change Energy

Last but not least, 4Change Energy is the best electricity company when it comes to the charitable causes that they donate to. If you would like to switch providers and get a better electricity rate in Houston while at the same time helping Texas causes, this is the best service you can get. 4% of their profits go to different charitable causes in Texas every year. Since 2012, they’ve earned the A BBB rating. 

How To Change Houston Electricity Providers?

If you want to switch providers in Houston, you’re in luck. The Houston energy market is deregulated, which means that you have the power to choose your electricity plan and your power provider. Take your last electric bill and check out the exact usage in an average month. Then, head over to Electricrate to compare the Houston electricity rates of other electricity providers. 

Check out their freebies and other energy consumption-related incentives that can effectively lower your power bill. The plan’s electricity facts label should have enough information for you to choose the best plan for your home’s energy usage. Contact your desired power provider, and they’ll take care of the rest. The switch usually happens within a single billing cycle. 

What To Do During Power Outage in Houston?

If you experience a blackout in Houston, follow the next steps: 

  • Contact your utility company Oncor;
  • Stay inside;
  • If the weather is cold, place towels on window will and door cracks to prevent the cold draft from cooling your home;
  • Avoid opening the fridge and the freezer;
  • Use battery-powered light sources;
  • Use a power generator for the essential appliances, but never inside to avoid possible carbon monoxide poisoning; and
  • Stay informed 一 use your cell phone or radio to find information on when the power will come back. 

Energy Deregulation in Texas: What You Need To Know

Energy deregulation took place in Texas in 2002. At this point, the Texas senate brought the decision to deregulate the energy sector in the state to provide the 26 million Texans with the power to choose their energy provider and let private companies compete to offer the lowest Houston energy rates. Electric utilities were split from electricity providers, and the entire market saw a decline in energy prices. 

FAQs

How much is electricity for an apartment in Houston?

An average apartment in Houston can expect to pay around $82 for their electricity bill per month. The estimate holds for apartments smaller than 1000 square feet that use gas for heating. If your electric bill is significantly higher than this, you should check out the next best electricity rate in Houston, as you could be paying a lower electric rate. 

How do I get the best energy rates in Texas?

You have the power to choose in Texas, so check out the power providers operating in your Texas area. You can do this by visiting Electricrate, where you will also get a detailed breakdown of your area’s electric rate and electric providers. Beware that the lowest rates do not always mean the best rates, as your electric rate is just a part of the bill. Always check out the complete service before signing a contract. 

What is a good price for electricity per kWh in Houston?

The low electricity rate in Houston is something that the city can be proud of. Any price equal to or lower than this can be considered a good price for every kWh of electricity you use. Power companies in Houston compete in a deregulated market, which means that a long-term, fixed-rate plan is the best option for you. 

What is the average cost of electricity in Houston Texas?

The average cost of electricity in Houston is $0.1197. A price this low is partly thanks to the energy deregulation in Texas in 2002. Many different electric companies work hard to lower their prices further and stay competitive with the lowest rates possible. 

Conclusion

Houston electricity rates change all the time thanks to a flexible power market and many energy companies that work in the area. If you haven’t shopped for electricity in a long time, the odds are that your energy provider may be charging you more than you should be paying. Energy companies keep finding ways to decrease their operational expenses so that you may yet discover the cheapest electricity rates. Check out electricity rates in Houston and make sure that your switch is an educated decision. 

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