Texas Electricity Rates
- The average Texas residential electricity rate is 16.99¢/kWh as of August 2026.
- Texas is mostly deregulated with 100+ providers including TXU, Reliant, Gexa, and more.
- The average Texas household pays ~$163/month — your bill depends on plan and usage.
Today’s Cheapest Texas Electricity Plans
Sorted by price at 1,000 kWh. Plans with bill credits can cost more at other usage levels — check the EFL for the full breakdown.
| Provider | Plan Name & Term | Rate per kWh | Sign Up |
|---|---|---|---|
 |
AP GAS & ELECTRIC (TX) LLC
SimpleSaver 12 - 5.90¢
12 months
Cheapest
|
5.90¢
per kWh at 1,000 kWh
|
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Gexa Energy
Gexa Eco Saver Plus 12
12 months
Low Rate
|
6.00¢
per kWh at 1,000 kWh
|
Continue |
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Frontier Utilities
Frontier Saver Plus 12
12 months
Low Rate
|
6.00¢
per kWh at 1,000 kWh
|
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 |
Atlantex Power
Radiance1000
12 months
Fixed Rate
|
7.06¢
per kWh at 1,000 kWh
|
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Amigo Energy
Power Perks - 12 - 8.50¢
12 months
Fixed Rate
|
8.50¢
per kWh at 1,000 kWh
|
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Just Energy
Smart Choice - 12 - 8.50¢
12 months
Fixed Rate
|
8.50¢
per kWh at 1,000 kWh
|
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Tara Energy
Value Choice - 12 - 8.50¢
12 months
Fixed Rate
|
8.50¢
per kWh at 1,000 kWh
|
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TXU
Smart 1000 Select 12 - 9.70¢
12 months
Fixed Rate
|
9.70¢
per kWh at 1,000 kWh
|
Continue |
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Energy Texas
No Bull 5 - 9.90¢
5 months
Fixed Rate
|
9.90¢
per kWh at 1,000 kWh
|
Continue |
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Rhythm
Digital Choice 5 - 9.90¢
5 months
Fixed Rate
|
9.90¢
per kWh at 1,000 kWh
|
Continue |
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Ranchero Power
Ranchero Cheapskate - 3 - 9.90¢
3 months
Fixed Rate
|
9.90¢
per kWh at 1,000 kWh
|
Continue |
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True Power
True Value 10 - 10.00¢
10 months
Fixed Rate
|
10.00¢
per kWh at 1,000 kWh
|
Continue |
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Companion Energy
Companion + Perks 9 - 10.00¢
9 months
Fixed Rate
|
10.00¢
per kWh at 1,000 kWh
|
Continue |
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Octopus Energy
Octo Simple 5 - 10.10¢
5 months
Fixed Rate
|
10.10¢
per kWh at 1,000 kWh
|
Continue |
 |
CONSTELLATION NEWENERGY INC
Simple Switch 4 - 10.20¢
4 months
Fixed Rate
|
10.20¢
per kWh at 1,000 kWh
|
Continue |
 |
Budget Power
No Gimmicks 11 - 10.30¢
11 months
Fixed Rate
|
10.30¢
per kWh at 1,000 kWh
|
Continue |
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Chariot Energy
Bright Nights 10 - 10.40¢
10 months
Fixed Rate
|
10.40¢
per kWh at 1,000 kWh
|
Continue |
 |
Heritage Power
Bright Start 3 - 10.40¢
3 months
Fixed Rate
|
10.40¢
per kWh at 1,000 kWh
|
Continue |
Rates at 1,000 kWh · Updated August 28, 2026
Texas Electricity Providers
Over 130 retail electric providers compete for customers across Texas. Every provider listed below is licensed by the Public Utility Commission of Texas (PUCT) and offers plans you can sign up for today. Your REP handles billing and customer service; your local TDU delivers the power regardless of which provider you choose, so switching never affects reliability.
Texas electricity rates by city
| City | TDU | Low Rate | Avg Rate | Plans |
|---|---|---|---|---|
| Houston | CenterPoint | 5.90¢ | 12.43¢ | 184 |
| Dallas | Oncor | 6.50¢ | 13.33¢ | 177 |
| Fort Worth | Oncor | 6.50¢ | 13.33¢ | 177 |
| Arlington | Oncor | 6.50¢ | 13.33¢ | 177 |
| Corpus Christi | AEP Texas | 6.70¢ | 12.89¢ | 176 |
| Plano | Oncor | 6.50¢ | 13.33¢ | 177 |
| Laredo | AEP Texas | 6.70¢ | 12.89¢ | 176 |
| Lubbock | Oncor | 8.80¢ | 14.50¢ | 112 |
| Irving | Oncor | 6.50¢ | 13.33¢ | 177 |
| Garland | Oncor | 6.50¢ | 13.33¢ | 177 |
| Frisco | Oncor | 6.50¢ | 13.33¢ | 177 |
| McKinney | Oncor | 6.50¢ | 13.33¢ | 177 |
Texas TDU territories — how they shape your rate
Every Texas address sits inside one of five TDU (Transmission & Distribution Utility) territories. Your TDU determines the fixed delivery charges bundled into every plan’s advertised rate—so two identical plans cost different amounts depending on where you live.
Oncor
Dallas–Fort Worth, Waco, Lubbock, Abilene, Tyler
Lowest delivery charges in Texas—structural pricing advantage for DFW residents.
CenterPoint
Houston, Conroe, Galveston, Beaumont, The Woodlands
Slightly higher delivery fees vs Oncor, but more plan competition in Houston metro.
AEP Texas
Corpus Christi, McAllen, Laredo, Victoria, Brownsville
Covers South & West TX. Higher delivery charges but competitive energy pricing.
TNMP
Temple, parts of Wichita Falls & the mid-Texas corridor
Smallest deregulated TDU. Fewer plans available but competitive rates.
What this means for you
A household on the exact same plan pays ~$8–15/month more in AEP territory versus Oncor territory, purely due to delivery charges. You can’t change your TDU, but you can offset higher delivery fees by choosing a plan with a lower energy charge. Always compare plans using your actual ZIP code—rates shown on this page already include TDU delivery charges.
What types of electricity plans are available in Texas?
Texas offers six main plan types. Most shoppers choose fixed-rate for predictability or variable for flexibility.
| Plan Type | Rate Range | Contract | Best For |
|---|---|---|---|
| Fixed-Rate | 8.9–18¢ | 12–36 mo | Homeowners wanting predictable bills |
| Variable | 9–25¢ | Month-to-month | Renters or short-term stays |
| Prepaid | 11–20¢ | None | No credit check needed |
| Free Nights | 12–18¢ | 12–24 mo | Night-owl usage (40%+ off-peak) |
| 100% Renewable | 9–16¢ | 12–36 mo | Wind/solar preference, same reliability |
| Solar Buyback | 10–15¢ | 12–36 mo | Homes with rooftop solar panels |
How much do Texas businesses pay for electricity?
Texas commercial electricity rates average 9.12¢/kWh statewide—44% lower than residential rates. Businesses get custom-quoted rates based on usage profile, demand patterns, and contract terms.
Restaurants & Retail
Small commercial operations benefit from fixed-rate plans that protect against summer spikes. Multiple Texas cities have thriving retail corridors.
Office Buildings
Corporate tenants in Dallas, Houston, and Austin metros can negotiate multi-year rates with demand response options for significant savings.
Industrial & Manufacturing
Texas is the nation’s top manufacturing state. Industrial-grade pricing with demand charges structured for heavy, consistent usage across the ERCOT grid.
How have Texas electricity rates changed over time?
Texas residential electricity rates have risen 47% since 2015. Key drivers include:
- Rising natural gas prices
- Grid reliability investments after Winter Storm Uri
- Growing demand from population growth and data centers
Understanding the trend helps you evaluate whether today’s rates represent a good deal.
Shale Gas Boom
Record natural gas production pushed Texas electricity rates to decade lows, averaging 11.0¢/kWh.
Winter Storm Uri
Historic cold snap caused grid failure with wholesale prices hitting the $9,000/MWh cap. Aftermath drove $16B in costs and long-term rate increases.
Post-Uri Recovery & Growth
ERCOT reliability upgrades, transmission infrastructure investment, and rapid population growth have pushed average rates to 16.44¢/kWh.
Frequently Asked Questions
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 16.44¢/kWh as of August 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.
Which Texas city has the cheapest electricity?
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¢).
How does Texas electricity deregulation work?
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.
What are TDU charges and why do they matter?
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.
When is the best time to shop for Texas electricity?
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.
What is the average Texas electricity bill?
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 16.44¢/kWh, that translates to roughly $163/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%.
How do I set up electricity when moving to Texas?
Enter your new ZIP code to confirm it’s in a deregulated area, then sign up with a retail provider at least 5 business days before your move-in date. You’ll need your new address, move-in date, and SSN or driver’s license. Your provider coordinates with the local TDU to activate service remotely via smart meter—most signups take under 10 minutes online.