Texas Electricity Rates
The average Texas electricity rate is 16.99¢/kWh as of August 2026, but competitive fixed-rate plans start as low as 6.2¢/kWh. Texas has a fully deregulated market with 100+ retail providers—enter your ZIP code to compare rates and switch in minutes.
| Provider | Plan | Term | Rate |
|---|---|---|---|
| AP GAS & ELECTRIC (TX) LLC | SimpleSaver 12 - 6.20¢ | 12 mo | 6.2¢/kWh |
| Chariot Energy | GridPlus 12 - 6.30¢ | 12 mo | 6.3¢/kWh |
| Frontier Utilities | Frontier Saver Plus 12 | 12 mo | 6.5¢/kWh |
| Gexa Energy | Gexa Eco Saver Plus 12 | 12 mo | 6.5¢/kWh |
| Energy Texas | The Lone Saver Plus 12 - 6.60¢ | 12 mo | 6.6¢/kWh |
| Rhythm | Rhythm Max Saver 12 - 6.60¢ | 12 mo | 6.6¢/kWh |
| Atlantex Power | Radiance1000 | 12 mo | 7.1¢/kWh |
| Cirro Energy | Bill Bonus 25 - 7.20¢ | 25 mo | 7.2¢/kWh |
| Discount Power | Bill Credit Bundle 11 - 7.20¢ | 11 mo | 7.2¢/kWh |
| Amigo Energy | Power Perks - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
| Tara Energy | Value Choice - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
| Just Energy | Smart Choice - 12 - 8.50¢ | 12 mo | 8.5¢/kWh |
Rates at 1,000 kWh usage · Updated August 2026
How do electricity rates compare across Texas cities?
Rates vary because each city is served by a different TDU (Transmission and Distribution Utility) with different delivery charges. 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.
| City | TDU | Low Rate | Avg Rate | Plans |
|---|---|---|---|---|
| Houston | CenterPoint | 6.30¢ | 12.47¢ | 192 |
| Dallas | Oncor | 6.90¢ | 13.39¢ | 165 |
| Fort Worth | Oncor | 6.90¢ | 13.39¢ | 165 |
| Arlington | Oncor | 6.90¢ | 13.39¢ | 165 |
| Corpus Christi | AEP Texas | 6.20¢ | 13.19¢ | 181 |
| Plano | Oncor | 6.90¢ | 13.39¢ | 165 |
| Laredo | AEP Texas | 6.20¢ | 13.19¢ | 181 |
| Lubbock | Oncor | 8.30¢ | 14.85¢ | 115 |
| Irving | Oncor | 6.90¢ | 13.39¢ | 165 |
| Garland | Oncor | 6.90¢ | 13.39¢ | 165 |
| Frisco | Oncor | 6.90¢ | 13.39¢ | 165 |
| McKinney | Oncor | 6.90¢ | 13.39¢ | 165 |
Rates at 1,000 kWh usage · Last refreshed August 2026
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. 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 their TDU territory. Always compare rates using your actual ZIP code for accurate pricing.
What types of electricity plans are available in Texas?
Texas’s deregulated market offers more plan variety than any other state. Fixed-rate, variable, prepaid, free nights, renewable, and solar buyback plans are all available. Understanding the differences helps you match your contract to your lifestyle and budget.
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 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.
How do I set up electricity when moving to Texas?
Sign up with a retail provider 5+ business days before your move-in date. Texas is the top destination for domestic migration in the U.S., and the deregulated electricity market can seem unfamiliar if you’re coming from another state. Here’s how it works.
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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.
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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.
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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.
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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.
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 | 6.2¢ | SimpleSaver 12 - 6.20¢ | — | — | |
| Chariot Energy | 6.3¢ | GridPlus 12 - 6.30¢ | 100% Solar | ||
| Frontier Utilities | 6.5¢ | Frontier Saver Plus 12 | — | No Deposit | |
| Gexa Energy | 6.5¢ | Gexa Eco Saver Plus 12 | — | Flexible Terms | |
| Energy Texas | 6.6¢ | The Lone Saver Plus 12 - 6.60¢ | — | — | |
| Rhythm | 6.6¢ | Rhythm Max Saver 12 - 6.60¢ | — | Green Plans | |
| Atlantex Power | 7.1¢ | Radiance1000 | — | — | |
| Cirro Energy | 7.2¢ | Bill Bonus 25 - 7.20¢ | — | — | Low Cost |
| Discount Power | 7.2¢ | Bill Credit Bundle 11 - 7.20¢ | — | — | Budget Plans |
| Amigo Energy | 8.5¢ | Power Perks - 12 - 8.50¢ | — | — | |
| Tara Energy | 8.5¢ | Value Choice - 12 - 8.50¢ | — | — | |
| Just Energy | 8.5¢ | Smart Choice - 12 - 8.50¢ | — | — |
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 16.18¢/kWh.
Frequently Asked Questions
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 16.18¢/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 16.18¢/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%.