Houston Electricity Rates

In Houston’s deregulated market, you choose your retail electric provider (REP) from dozens of licensed options. REPs compete for your business with different rates, contract lengths, and plan features — everything from fixed-rate plans to free-nights and 100% renewable options. CenterPoint Energy owns the poles, wires, and meters and delivers power to your home regardless of which REP you choose. Your REP handles your bill and customer service. The Public Utility Commission of Texas (PUCT) oversees the market and licenses all providers, so every REP listed on this page is a regulated, legitimate option.

As of April 4, 2026 @ 3:36 PM CT, the cheapest Houston electricity rate is 7.6¢/kWh at 1,000 kWh usage, offered by Chariot Energy (GridPlus 12 - 7.60¢). The average rate across all 60 available plans is 14.6¢/kWh. Rates are updated multiple times daily.

At the current average rate of 14.6¢/kWh, a Houston home using 1,000 kWh/month would pay about $146/month. Houston homes average 1,300 kWh/month due to air conditioning needs. Summer bills can reach $250-400 for larger homes.

Shop in spring (February–April) or fall (October–November) for the lowest Houston rates. Wholesale electricity costs drop when air-conditioning load is light, and REPs pass those savings into lower fixed-rate offers. Avoid signing a new contract in June through August, when ERCOT grid demand peaks and retail rates can be 20–30% higher than spring. If your contract expires mid-summer, consider a short-term month-to-month plan until fall rates improve.

For most Houston residents, a fixed-rate plan is the safer bet. Houston’s extreme summer heat means you’ll consume the most electricity exactly when wholesale prices spike — so a variable plan can leave you exposed to $200–$300 summer bills on a home that costs $100 in spring. Fixed-rate plans lock your per-kWh energy charge for the full contract term (typically 12–36 months). The trade-off is an early-termination fee if you cancel before the term ends, usually $150–$200. Variable-rate plans make sense only if you’re staying short-term or closely monitor ERCOT wholesale prices.

Deposit requirements depend on your credit history and the provider’s policy. Most Houston REPs run a soft credit check and waive the deposit entirely if your score is above ~600. If a deposit is required, it’s typically $100–$200 and may be refundable after 12 months of on-time payments. Prepaid (pay-as-you-go) plans from providers like Payless Power skip the credit check and deposit altogether — you simply pre-load a balance and draw it down as you use electricity.

Pick your new plan and sign up online or by phone — the entire process takes about five minutes. Your new REP files a “switch request” with ERCOT and CenterPoint, and the changeover happens on your next meter-read date, typically within 1–3 business days. There is no service interruption: no one visits your home, no one touches your meter (unless you’re also starting new service), and the lights stay on the entire time. If you’re leaving a current contract early, remember to factor in any early-termination fee.

Contact CenterPoint Energy at 713-207-2222 or 800-332-7143. CenterPoint owns the infrastructure and handles all outage restoration. You can also report outages through CenterPoint’s outage tracker at centerpointenergy.com.

Texas law (PUCT Substantive Rule §25.475) requires your REP to send a written “Contract Expiration Notice” at least 30 days (and no more than 45 days) before your plan expires. If you do nothing, you’ll automatically roll onto a month-to-month variable rate that is almost always significantly higher — often 15–20+ ¢/kWh. Set a calendar reminder about six weeks before your contract end date, shop for new plans on this page, and lock in a new rate while your old plan is still active. You won’t pay an early-termination fee during the final 14 days of your contract.

Yes — and they’re often price-competitive with conventional plans. Green Mountain Energy, Gexa Energy, and Chariot Energy all offer 100% renewable Houston electricity plans backed by Texas wind and solar renewable energy credits (RECs). If you have rooftop solar panels, several REPs (including Chariot Energy, TXU, and Rhythm) offer solar buyback programs that credit you for excess generation exported to the grid. Texas’s abundant wind and solar capacity means green plans in Houston are not the premium they once were; in some months the cheapest plan on this page is a 100% renewable option.

Houston’s Gulf Coast climate combines 95°F+ heat with 80–90% humidity from June through September, forcing air-conditioning systems to run nearly around the clock. Most Houston homes see summer usage double or triple compared to spring and fall — a house that pulls 800 kWh in March can easily top 2,000 kWh in August. Air conditioning alone accounts for 50–70% of a typical Houston summer electricity bill. To keep costs down: set your thermostat to 78°F when you’re home, use ceiling fans to boost perceived cooling, seal gaps around doors and windows, and schedule an annual AC tune-up before May. Also, compare plans at your summer usage level (1,500–2,000 kWh), not just the standard 1,000 kWh benchmark.

Houston commercial electricity rates are custom-quoted based on your business’s usage profile, demand patterns, and contract terms. Unlike residential plans with published per-kWh rates, commercial pricing includes energy charges plus demand charges based on peak usage. Houston businesses typically save 15-30% by shopping providers. Compare real-time commercial rates in the CenterPoint territory on our Houston business electricity rates page, or request a free quote at electricchoice.com/business-electricity/.