Texas Electricity Rates
Texas operates the largest deregulated electricity market in the United States. With 130+ retail providers competing across the ERCOT grid, roughly 85% of Texans can choose their electricity provider—and shoppers who compare plans typically save 15–30% versus default utility rates. Below you’ll find rates for every major Texas city, a breakdown of how deregulation works, and everything you need to find the best plan.
Key Takeaways
Texas Electricity Rates by City
Electricity rates vary across Texas because each city is served by a different TDU (Transmission and Distribution Utility), and TDU delivery charges differ. Cities in Oncor territory tend to have the lowest total rates, while AEP Texas territory cities run slightly higher. Click any city to see live plan comparisons.
How Texas Electricity Deregulation Works
Texas deregulated its electricity market in 2002 under Senate Bill 7, separating power generation from delivery. Instead of a single monopoly utility, three distinct entities work together to power your home. Understanding this structure is key to shopping smart.
You Choose a Provider
Browse 130+ licensed Retail Electric Providers (REPs) and pick a plan based on rate, term, and features.
Your REP Bills You
Your chosen provider handles pricing, billing, and customer service. They buy wholesale power on your behalf.
Your TDU Delivers Power
Your local TDU (CenterPoint, Oncor, etc.) owns the poles and wires and delivers electricity to your home.
ERCOT Manages the Grid
The Electric Reliability Council of Texas balances supply and demand across the statewide grid 24/7.
Not All of Texas Is Deregulated
About 15% of Texans live in areas served by municipal utilities or electric cooperatives where you cannot choose your provider. Notable exceptions include Austin (Austin Energy), San Antonio (CPS Energy), and parts of Lubbock (Lubbock Power & Light). If you’re unsure whether your address is in a deregulated area, enter your ZIP code above to check instantly.
Texas TDU Service Territory Map
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 are the same no matter which retail provider you choose. Hover over any county to see which TDU delivers electricity in that area.
DFW & Central Texas · 10M+ customers
Greater Houston · 2.6M customers
South & West Texas
Mid-Texas Corridor
Border & Rural Areas
Oncor Electric Delivery
The largest TDU in Texas, serving 10+ million customers across North, Central, and West Texas. Generally offers the lowest total delivered rates due to efficient infrastructure and high customer density.
CenterPoint Energy
Serves the Houston metropolitan area and surrounding suburbs. Slightly higher delivery charges than Oncor, but fierce provider competition keeps total rates competitive. Covers 2.6 million metered customers.
AEP Texas
Serves the Corpus Christi area, Rio Grande Valley, and parts of West Texas. Higher delivery charges result in slightly higher total rates, but competition still delivers savings versus default utility pricing.
Texas-New Mexico Power (TNMP)
Serves parts of Central and East Texas including areas near Temple and surrounding communities. Smaller service territory with competitive delivery charges between Oncor and CenterPoint levels.
Sharyland Utilities
Serves select areas along the Texas-Mexico border and parts of Central Texas. Smallest of the five TDUs with limited but growing service territory.
Why TDU Territory Matters
When you see an electricity rate advertised, it already includes TDU delivery charges. That’s why the same provider can offer different rates in Dallas (Oncor) versus Houston (CenterPoint). Two homes on the exact same plan will pay different amounts based solely on which TDU territory they’re in. Always compare rates using your actual ZIP code for accurate pricing.
Types of Texas Electricity Plans
Texas’s deregulated market offers more plan variety than any other state. Understanding the plan types helps you match your electricity contract to your lifestyle, budget, and risk tolerance.
Fixed-Rate Plans
Your rate per kWh stays locked for the entire contract (typically 12–36 months). Best for homeowners who want predictable bills and protection from Texas summer price spikes.
- Rate locked regardless of market swings
- Best protection against summer heat waves
- Early termination fee applies ($50–$200)
- Current Texas fixed rates: 8.9¢–18¢/kWh
Variable-Rate Plans
Your rate fluctuates monthly based on wholesale electricity costs. Best for Texas renters or those planning to move and wanting no long-term commitment.
- No contract or cancellation fee
- Rates can drop during mild weather
- Rates can spike 50–100% in summer
- Higher risk during Texas’s extreme summers
Prepaid Plans
Pay for electricity before you use it, similar to a prepaid phone. Best for Texans with credit challenges or anyone who wants complete spending control.
- No deposit or credit check required
- Daily usage alerts help manage costs
- Slightly higher rates than fixed plans
- Service disconnects if balance runs out
Free Nights & Weekends
Get free electricity during specific hours (usually 9 PM–6 AM). Best for night owls or families who can shift laundry, dishwashing, and EV charging to off-peak times.
- Free power during designated hours
- Higher rates during peak daytime
- Best if 40%+ of usage is off-peak
- TXU Energy and Reliant offer these plans
100% Renewable Plans
Electricity sourced from Texas wind and solar farms. Texas produces more wind energy than any other state, making green plans surprisingly affordable.
- Support Texas wind and solar farms
- Often priced competitively with conventional
- Green Mountain, Gexa, Chariot, Rhythm
- Same reliability as conventional plans
Solar Buyback Plans
Earn credits for excess solar energy your panels generate. Texas’s abundant sunshine makes rooftop solar increasingly popular, especially in the DFW and Houston metros.
- Credits for power you export to the grid
- Buyback rates vary by provider
- Chariot, Green Mountain, Rhythm
- Offsets high summer AC costs
How to Choose a Texas Electricity Plan
With hundreds of plans available, narrowing down the right one can feel overwhelming. Follow these four steps to find a plan that fits your home and budget.
Know Your Usage
Check your past bills. Texas homes average 1,200 kWh/month. Apartments use 500–800 kWh; large homes with pools use 2,000+. Your usage level dramatically affects which plan is cheapest.
Compare at Multiple Usage Levels
Many plans include bill credits at specific usage tiers. A plan that’s cheapest at 1,000 kWh might be expensive at 500 kWh. Always check rates at your actual usage and at one tier above for summer months.
Read the EFL
The Electricity Facts Label is a standardized disclosure required by Texas law. It shows the true all-in rate at 500, 1,000, and 2,000 kWh, plus fees, contract terms, and renewable content. Never skip it.
Lock In Your Rate
Once you find the right plan, sign up quickly. Texas electricity rates change daily based on wholesale markets. A great rate today may be gone tomorrow. The signup process takes under 10 minutes.
Watch Out for Bill Credit Traps
Some Texas plans advertise extremely low rates that depend on hitting an exact usage threshold (e.g., a $50 credit at exactly 1,000 kWh). If your usage falls above or below that target, your effective rate skyrockets. A study found real rates can deviate from advertised rates by up to 45%. Always calculate your total monthly cost, not just the per-kWh rate.
Texas Business Electricity Rates
Texas’s deregulated market extends to commercial and industrial customers. Businesses benefit from custom-quoted rates based on usage profile, demand patterns, and contract terms. Commercial rates average 9.12¢/kWh statewide—44% lower than residential rates.
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.
Best Time to Shop for Texas Electricity
Timing matters in the ERCOT market. Wholesale electricity prices—and therefore the retail rates providers offer—follow predictable seasonal patterns driven by Texas weather and demand cycles.
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.
Moving to Texas? Start Your Electric Service
Texas is the top destination for domestic migration in the U.S. If you’re relocating from another state, the deregulated electricity market can seem unfamiliar. Here’s how to get power at your new Texas home.
Check if Your Area Is Deregulated
Enter your new Texas ZIP code to confirm you can choose a provider. Most of the DFW metroplex, Houston, and Corpus Christi areas are deregulated. Austin and San Antonio are not.
Compare Plans at Your Usage
Estimate your monthly kWh based on home size and AC needs. Texas homes use 20% more electricity than the national average due to summer cooling. Compare plans at 1,000 and 2,000 kWh.
Sign Up 5+ Days Before Move-In
Give your chosen provider at least 5 business days to activate service. You’ll need your new address, move-in date, SSN or driver’s license, and contact info. Most signups take under 10 minutes.
Your TDU Activates Service
Your provider coordinates with the local TDU to connect power. Most activations are remote (smart meter). Arrive to a powered, air-conditioned home—critical if you’re moving during a Texas summer.
Frequently Asked Questions About Texas Electricity
Everything you need to know about shopping for electricity in Texas, answered in plain language.
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 16.18¢/kWh as of February 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.
Can everyone in Texas choose their electricity provider?
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.
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 happens when my electricity contract expires?
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.
How do I switch Texas electricity providers?
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.
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 16.18¢/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%.
Are renewable energy plans available in Texas?
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.
Do I need a deposit for Texas electricity?
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.
Who do I call for power outages in Texas?
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.
About this Data
Rate data is sourced from the ElectricChoice.com electric rate and plan marketplace and the U.S. Energy Information Administration. The inclusion, exclusion, ranking, or naming of any rate, plan, or provider on this page does not constitute an endorsement or recommendation. Listed rates may or may not account for all plan features, fees, or usage-based credits. You should review each plan’s Electricity Facts Label (EFL) and terms of service before enrolling. Last data refresh: February 27, 2026.