Texas Electricity Rates

The average residential electricity rate in Texas is 16.18¢/kWh as of July 2026. However, shoppers in deregulated areas regularly find fixed-rate plans starting as low as 8.9¢/kWh by comparing providers. The rate you pay depends on your city, TDU territory, usage level, and the type of plan you choose. Texans who actively shop and compare can typically pay 15–30% less than the statewide average.

Cities in the Oncor TDU territory—including Dallas, Fort Worth, Irving, Plano, and Arlington—consistently have the lowest electricity rates in Texas, with plans starting around 8.9¢/kWh. Oncor’s lower delivery charges give these cities a structural pricing advantage over CenterPoint (Houston area, starting ~9.5¢) and AEP Texas (Corpus Christi area, starting ~10.2¢).

Texas deregulated its electricity market in 2002, separating power generation from delivery. You choose a Retail Electric Provider (REP) and plan. The REP handles billing and customer service. Your local TDU (CenterPoint, Oncor, AEP, or TNMP) owns the infrastructure and delivers electricity through the same poles and wires regardless of your REP. ERCOT manages the statewide grid. About 85% of Texas residents can choose their provider—exceptions include Austin, San Antonio, and electric cooperative areas.

TDU charges are delivery fees that cover maintaining the poles, wires, and infrastructure that carry electricity to your home. They’re regulated by the Public Utility Commission of Texas and are identical regardless of which retail provider you choose. The five Texas TDUs are CenterPoint (Houston), Oncor (DFW), AEP Texas (South Texas), TNMP (mid-Texas), and Sharyland (border region). TDU charges are already included in the advertised rates you see when comparing plans.

No. About 85% of Texans can choose their provider. Residents of Austin (Austin Energy), San Antonio (CPS Energy), and areas served by electric cooperatives or municipal utilities cannot switch. These areas have regulated rates set by local government. Enter your ZIP code on our site to instantly check whether your address is in a deregulated area.

The best windows are February through April and October through November. During these mild-weather months, wholesale electricity prices drop and providers offer their most competitive rates. Avoid shopping in June through August when summer demand drives wholesale costs up. If your contract expires during summer, try to renew or switch before May to lock in better pricing.

Texas law requires your provider to send a contract expiration notice 30–45 days before your plan ends. If you don’t renew or switch, you automatically roll onto a month-to-month variable rate—often 15–20+¢/kWh, significantly higher than fixed rates. Set a calendar reminder to shop for new rates 2–3 weeks before your contract expires. Proactive shoppers save hundreds of dollars per year by avoiding rollover rates.

Switching takes about 10 minutes and results in zero service interruption. Choose your new plan and sign up online or by phone. Your new provider coordinates the switch with your current provider and local TDU. The transfer completes in 1–3 business days. The same power flows through the same wires—only your billing provider changes. Check your current plan for early termination fees before switching.

The average Texas household uses about 1,200 kWh/month—20% more than the national average, primarily due to air conditioning. At the statewide average rate of 16.18¢/kWh, that translates to roughly $194/month. Summer bills can reach $300–$500 for larger homes with heavy AC usage. By shopping for competitive rates, most Texans can reduce their monthly bill by 15–30%.

Yes. Texas is the nation’s largest producer of wind energy and has rapidly growing solar capacity. Multiple providers offer 100% renewable plans, often at rates competitive with or lower than conventional plans. Green Mountain Energy, Gexa Energy, Chariot Energy, and Rhythm Energy are among providers with renewable options. For homeowners with solar panels, several providers offer solar buyback programs that credit you for excess generation.

Deposit requirements depend on your credit history. If you have good credit or a record of on-time utility payments, most Texas providers waive the deposit entirely. If a deposit is required, prepaid plans from providers like Payless Power require no credit check and no deposit. Some providers also accept a letter of guarantee from a previous utility as an alternative.

Contact your local TDU (not your retail provider). CenterPoint (Houston): 713-207-2222. Oncor (DFW): 888-313-4747. AEP Texas (South TX): 866-223-8508. TNMP: 888-866-7456. Your TDU owns the infrastructure and handles all outage restoration regardless of which retail provider you use for billing.