Austin Electricity Rates

Austin is one of the few major Texas cities where you cannot choose your electricity provider. Austin Energy, a city-owned utility, serves 560,000+ customers at about 14.2¢/kWh under a four-tier rate that rises with usage — 25% below the national average.

Austin Energy
City-Owned Monopoly
14.2¢
Avg Rate / kWh
73%
Carbon-Free Generation
560K+
Customers Served
The Opt-Out City

Why Austin Doesn’t Have Electricity Choice

Texas deregulated in 2002, but cities with municipal utilities could opt out. Austin kept Austin Energy as a monopoly.

Austin Energy
Municipal Utility · City of Austin · Est. 1895
560K+
Electric customers
4,400 MW
Total generation capacity
512-322-9100
Outage hotline

Austin Energy is a City of Austin department, overseen by City Council rather than the PUCT. It owns 4,400+ MW of generation, including the South Texas Project nuclear plant, West Texas wind, and Sand Hill gas in Del Valle. Each year it transfers over $100 million to the city’s general fund — a transfer that shows up in every bill.

Tiered Conservation Pricing
Rates Increase With Usage — 4 Tiers
4.872¢
Tier 1: 0–300 kWh
5.395¢
Tier 2: 301–900 kWh
7.901¢
Tier 3: 901–2,000 kWh
11.428¢
Tier 4: 2,001+ kWh

Those are base energy charges only. A Power Supply Adjustment (3.912¢), Community Benefit Charges (1.28¢), and Regulatory Charge (1.34¢) apply to every kWh. At 860 kWh the all-in rate is about 14.2¢. Above 2,000 kWh in summer, the marginal rate can top 18¢ — more than typical fixed-rate plans in deregulated Round Rock or Pflugerville.

Bills & Grid Mix

What Austin Actually Pays

Austin Energy’s reference home uses 860 kWh/month. Central Texas summers push many homes past 1,500 kWh, where the upper tiers hit hardest.

Estimated monthly bill for a typical Austin home

$87
Jan
$82
Feb
$85
Mar
$99
Apr
$139
May
$169
Jun
$188
Jul
$191
Aug
$157
Sep
$106
Oct
$82
Nov
$79
Dec

At 860 kWh, a typical bill runs about $79 in Dec and $191 in Aug. Homes over 1,400 kWh in July and August often clear $200 as Tiers 3 and 4 kick in.

Austin Energy Generation Mix (FY2025)

31% Wind
26% Nuclear
17% Natural Gas
15% Solar
10% Coal
1% Biomass
47%
Renewable generation (wind, solar & biomass)
378 lb
CO₂ per month for a typical Austin home (~860 kWh)

Austin Energy is 73% carbon-free, led by 1,796 MW of wind and its South Texas Project nuclear share. The 2035 goal is 100% carbon-free; the Fayette coal plant (600 MW, co-owned with LCRA) is still running. Source: Austin Energy FY2025 Annual Report.

Regulated vs. Deregulated

Austin Rates vs. Deregulated Neighbors

Round Rock, Pflugerville, Cedar Park, and Georgetown are in the deregulated ERCOT market. High-usage homes there can often beat Austin Energy’s blended rate with a fixed plan.

In the deregulated zone?

Round Rock, Pflugerville, Cedar Park, Leander, and Hutto can shop. Fixed-rate plans there often start below 10¢/kWh. Compare Round Rock rates »

Just moved to Austin?

There’s no shopping in Austin. Call Austin Energy at 512-494-9400 or set up service at austinenergy.com. Most customers who pass a credit check pay no deposit.

GreenChoice & Value of Solar

GreenChoice locks in a 100% renewable rate. The Value of Solar tariff credits rooftop systems based on grid value, not traditional net metering.

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Austin Electricity FAQ

Rates, service, and the deregulation opt-out in Austin.

Can I choose my electricity provider in Austin?

No. Austin Energy is the only provider inside Austin city limits. Nearby Round Rock, Pflugerville, Cedar Park, and Leander are served by Oncor and can shop.

What is the average electricity rate in Austin?

About 14.2¢/kWh at 860 kWh/month, or roughly $117. That includes the tiered energy charge plus PSA, community benefit, and regulatory fees.

Why did Austin opt out of electricity deregulation?

City Council wanted control over energy policy, more stable rates, and a revenue stream. Austin Energy transfers over $100 million a year to the city’s general fund.

How does Austin Energy’s tiered pricing work?

Four base tiers: 4.872¢ (0–300 kWh), 5.395¢ (301–900), 7.901¢ (901–2,000), and 11.428¢ (2,001+). PSA, CBC, and regulatory charges apply on top.

How do I report a power outage in Austin?

Call Austin Energy at 512-322-9100, use the app, or check outagemap.austinenergy.com.

What percentage of Austin’s electricity is renewable?

About 47% renewable (31% wind, 15% solar, 1% biomass). Including nuclear, 73% is carbon-free. The 2035 target is 100% carbon-free.