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.
Check electric rates in your area
| Provider | Plan | Term | Rate |
|---|---|---|---|
| AP GAS & ELECTRIC (TX) LLC | SimpleSaver 12 - 5.90¢ | 12 mo | 5.9¢/kWh |
| Gexa Energy | Gexa Eco Saver Plus 12 | 12 mo | 6.0¢/kWh |
| Frontier Utilities | Frontier Saver Plus 12 | 12 mo | 6.0¢/kWh |
| Atlantex Power | Radiance1000 | 12 mo | 7.2¢/kWh |
| Amigo Energy | Power Perks - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
| Just Energy | Smart Choice - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
| Tara Energy | Value Choice - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
| TXU | Smart 1000 Select 12 - 9.70¢ | 12 mo | 9.7¢/kWh |
| Energy Texas | No Bull 5 - 9.90¢ | 5 mo | 9.9¢/kWh |
| Rhythm | Digital Choice 5 - 9.90¢ | 5 mo | 9.9¢/kWh |
| Ranchero Power | Ranchero Cheapskate - 3 - 9.90¢ | 3 mo | 9.9¢/kWh |
| True Power | True Value 10 - 10.00¢ | 10 mo | 10.0¢/kWh |
Rates at 1,000 kWh · August 2026
Texas electricity rates by city
| City | TDU | Low Rate | Avg Rate | Plans |
|---|---|---|---|---|
| Houston | CenterPoint | 5.90¢ | 12.42¢ | 183 |
| Dallas | Oncor | 6.50¢ | 13.29¢ | 175 |
| Fort Worth | Oncor | 6.50¢ | 13.29¢ | 175 |
| Arlington | Oncor | 6.50¢ | 13.29¢ | 175 |
| Corpus Christi | AEP Texas | 6.70¢ | 12.88¢ | 175 |
| Plano | Oncor | 6.50¢ | 13.29¢ | 175 |
| Laredo | AEP Texas | 6.70¢ | 12.88¢ | 175 |
| Lubbock | Oncor | 8.80¢ | 14.46¢ | 111 |
| Irving | Oncor | 6.50¢ | 13.29¢ | 175 |
| Garland | Oncor | 6.50¢ | 13.29¢ | 175 |
| Frisco | Oncor | 6.50¢ | 13.29¢ | 175 |
| McKinney | Oncor | 6.50¢ | 13.29¢ | 175 |
What are TDU territories and how do they affect rates?
Your TDU (Transmission and Distribution Utility) determines the delivery charges on your bill. These charges are regulated by the Public Utility Commission of Texas and stay the same no matter which retail provider you choose.
Why TDU Territory Matters
Advertised electricity rates already include TDU delivery charges. That’s why the same provider offers different rates in Dallas (Oncor) versus Houston (CenterPoint)—two homes on the exact same plan pay different amounts based solely on their TDU. Always compare using your actual ZIP code.
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.
When is the best time to shop for Texas electricity?
February through April and October through November offer the lowest rates. Wholesale electricity prices follow predictable seasonal patterns driven by Texas weather and demand cycles, and retail rates track those same patterns.
Spring: Feb–Apr
Mild weather means low demand. Wholesale prices drop and providers offer aggressive rates to attract new customers. This is the single best window to lock in a low fixed rate before summer.
Summer: Jun–Aug
Triple-digit heat drives AC demand through the roof. Wholesale costs spike and retail rates follow. If your contract expires in summer, renew or switch before May to avoid the worst pricing window.
Fall: Oct–Nov
Cooling demand fades and wholesale prices retreat. Another excellent window to shop, especially if you missed the spring window or your summer contract is ending.
Pro Tip: Set a Contract Expiration Reminder
Mark your contract end date on your calendar with a reminder 45 days out. Texas providers must notify you 30–45 days before expiration, but proactive shoppers get the best rates. If your contract expires in June–August, try to switch in April or May before summer pricing kicks in.
Who are the top electricity providers in Texas?
Over 130 retail electric providers compete for customers across Texas. The table below ranks providers by their lowest available rate at 1,000 kWh usage, pulled from live plan data. All listed providers are licensed by the Public Utility Commission of Texas (PUCT).
| Provider | Lowest Rate | Plan | Renewable | Solar Buyback | Known For |
|---|---|---|---|---|---|
| AP GAS & ELECTRIC (TX) LLC | 5.9¢ | SimpleSaver 12 - 5.90¢ | — | — | |
| Gexa Energy | 6.0¢ | Gexa Eco Saver Plus 12 | — | Flexible Terms | |
| Frontier Utilities | 6.0¢ | Frontier Saver Plus 12 | — | No Deposit | |
| Atlantex Power | 7.2¢ | Radiance1000 | — | — | |
| Amigo Energy | 8.5¢ | Power Perks - 12 - 8.50¢ | — | — | |
| Just Energy | 8.5¢ | Smart Choice - 12 - 8.50¢ | — | — | |
| Tara Energy | 8.5¢ | Value Choice - 12 - 8.50¢ | — | — | |
| TXU | 9.7¢ | Smart 1000 Select 12 - 9.70¢ | — | Free Nights | |
| Energy Texas | 9.9¢ | No Bull 5 - 9.90¢ | — | — | |
| Rhythm | 9.9¢ | Digital Choice 5 - 9.90¢ | — | Green Plans | |
| Ranchero Power | 9.9¢ | Ranchero Cheapskate - 3 - 9.90¢ | — | — | |
| True Power | 10.0¢ | True Value 10 - 10.00¢ | — | — |
Provider Rates Vary by TDU Territory
The rates above reflect the lowest available plan statewide. Your actual rate depends on which TDU serves your address. Enter your ZIP code at the top of this page to see rates specific to your location. Providers may also offer different rates for different contract lengths, so compare at least 3–5 plans before choosing.
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.