Check electric rates in your area
All-in rate includes energy + estimated TDU delivery.
Your TDU (Transmission and Distribution Utility) determines the delivery charges on your bill. Texas has five TDU territories — Oncor, CenterPoint, AEP Texas Central, AEP Texas North, and TNMP — each with different delivery fees that affect your total rate.
| TDU Territory | Major Cities Served | Lowest Rate (¢/kWh) | Avg Rate (¢/kWh) | Plans Available |
|---|---|---|---|---|
| Oncor | Dallas-Fort Worth, Waco, Midland, Tyler | 4.79¢ | 6.40¢ | 65 |
| AEP Texas Central | Corpus Christi, Victoria, McAllen | 4.92¢ | 6.61¢ | 66 |
| CenterPoint | Houston, Galveston, Coastal TX | 5.00¢ | 6.64¢ | 65 |
| TNMP | Various regions statewide | 5.00¢ | 6.64¢ | 65 |
| AEP Texas North | Abilene, San Angelo | 5.26¢ | 7.00¢ | 65 |
| Statewide | 9 providers · All deregulated areas | 4.79¢ | 5.78¢ | — |
This table compares the lowest and average commercial electricity rates across all five Texas TDU territories. The cheapest rates are in the Oncor territory, starting at 4.79¢/kWh.
Which TDU serves your business? This map shows the five deregulated TDU territories by county. Hover over any county to see which utility delivers power there. Gray counties are served by municipal utilities or co-ops and are not deregulated.
Texas commercial electricity rates have risen steadily since 2020, driven by Winter Storm Uri recovery costs, rising natural gas prices, ERCOT reliability upgrades, and increased data center demand. Despite increases, Texas remains well below the national average every year.
| Year | Texas (¢/kWh) | National Avg (¢/kWh) |
|---|---|---|
| 2020 | 7.05 | 10.59 |
| 2021 | 7.53 | 11.22 |
| 2022 | 8.88 | 12.41 |
| 2023 | 8.75 | 12.59 |
| 2024 | 8.51 | 12.75 |
| 2025 | 9.12 | 13.46 |
| 2026 | 9.50 | 14.12 |
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As of August 2026, commercial electricity rates from competitive retail providers in Texas average 5.78¢/kWh, with the cheapest plans starting at 4.79¢/kWh. Your total cost depends on your TDU territory, usage volume, contract length, and load profile.
Texas benefits from several factors: abundant, low-cost natural gas (the state produces ~30% of U.S. supply), a deregulated market with 100+ competing providers driving prices down, massive wind and solar capacity reducing wholesale energy costs, no state income tax subsidies embedded in utility rates, and a relatively modern grid with lower legacy infrastructure costs. Competition alone drives commercial rates 15–30% lower than regulated markets.
Demand charges are based on your peak demand — the highest amount of electricity your business consumes at any single point during a billing cycle, measured in kilowatts (kW) over 15- or 30-minute intervals. Your TDU charges this fee to ensure the grid can meet your maximum power needs at any moment. Demand charges can represent 30–70% of a commercial electricity bill, making peak management a critical cost-control strategy for businesses.
Load factor measures how consistently your business uses electricity (total consumption ÷ peak demand × hours in period). A high load factor (steady, predictable usage — like data centers or 24/7 manufacturing) is more efficient and often results in a lower per-kWh rate. A low load factor (sporadic, high-peak usage — like seasonal retail) typically means higher rates because you require more grid capacity relative to total consumption.
Your provider will notify you before your contract ends. If you take no action, they will move your account to a variable “holdover” or month-to-month rate, which is almost always significantly higher than your fixed contract rate — sometimes 2–3x higher. It’s critical to start shopping for a new plan 60–90 days before your current contract expires to ensure uninterrupted savings and avoid costly rollover rates.
The best times to shop are during the “shoulder months” of spring (March–May) and fall (September–November). Energy demand is lower during these mild-weather periods, which leads to more competitive wholesale prices and lower contract rates. Avoid signing new contracts during peak summer months (June–August) when Texas heat drives electricity demand — and prices — to their highest levels.