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Compare Texas Electricity Rates

Written by Caitlin Ritchie/

Edited by Hannah Whatley

Last updated 11/18/2022

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Texas electricity rates and plans

Texas electricity rates have risen in recent months due to seasonality, high energy demand, and increasing energy costs. The good news is that the majority of Texas has a deregulated energy market, meaning you can choose from a pool of available energy companies who are competing to provide you with the best electricity rates in Texas. 

Texas energy rates can frequently change based on the demand for electricity and the wholesale cost of electricity. Deregulation gives Texans the freedom to shop for new electricity plans and compare options from a range of energy companies. You can find and compare electric rates in Texas with the SaveOnEnergy.com® marketplace.

Average Texas electricity rates

SaveOnEnergy makes it easy to find the best electricity rates in your area. The following graph from the U.S. Bureau of Labor Statistics compares the average electricity rates in Texas from August 2020 to now.

Current Texas energy market in 2022

Texas electricity rates have increased in recent months because of high summer temperatures, rising energy demand, and increased natural gas prices, among other factors. The Electric Reliability Council of Texas (ERCOT) has released several energy conservation requests since May as the state experienced record-breaking electricity demand. Experts predict that electricity prices will likely remain high for the foreseeable future.

Texas energy rates typically are highest between the summer months of June and September, so the best time to shop for the cheapest electricity in Texas is usually during spring and fall. For Texans who need to buy an energy plan now, consider signing up for a fixed-rate plan with a shorter contract length. Fixed-rate plans will protect you in the event that electricity rates go up even more, but a shorter contract will provide more flexibility for you to shop for another plan if rates decrease.

Find the best electricity rates in Texas

Texas electricity rates fluctuate throughout the year depending on seasonality, location, weather, and supply and demand. With SaveOnEnergy’s independent marketplace, you can find and compare available energy rates and plans from the top Texas energy companies. Here’s how to get started.

  • Enter your ZIP code. Use our online marketplace to browse trusted energy companies in your area and find the best electricity rates in Texas. Narrow your search by using the filtering tools to compare energy rates and plans that fit your needs.
  • Sign up in minutes. If you’re not sure which plan to pick or have questions about a plan’s details, call the number above to speak with one of our energy experts. You can also sign up online. Either way, the process is quick and easy.
  • Enjoy your new energy plan. Once you’ve signed up for a plan, your new energy provider will work with the utility company to handle the switch. All you have to do is sit back, relax, and enjoy your new electricity plan.

Texas electric companies

In Texas, energy providers and utility companies are responsible for different tasks. You can choose your electric company from a pool of qualified energy providers. Your provider manages your electricity consumption and handles billing.

However, you cannot choose your utility company, which is determined by your location. The utility company is responsible for distributing power, maintaining electrical infrastructure, and dealing with power outages.

Contact your Texas utility company

Is there a power outage in your area? Contact your Texas utility company to report the outage or receive updates about when your service will be restored. 

New electricity plans in Texas

If you are moving to a deregulated area of Texas for the first time, you have the power to choose an electricity provider for your new home. SaveOnEnergy helps you sort through all of the available energy companies and sign up for a plan. You can delay the start of service at your new address for up to 90 days. If you are moving within Texas, you can switch to another energy company or plan before your contract ends without paying an early termination fee. Just provide proof of your change in address to your provider.

Texas residents who want to switch to a new energy plan or renew their existing plan can also use the SaveOnEnergy marketplace. If you change your mind, you can cancel without paying a fee within three days of receiving your Terms of Service agreement. There is also no early termination fee if you switch providers within 14 days of your current contract ending.

How to pick a Texas energy plan

Because Texas is deregulated, you have the power to choose an energy plan that works for you. Your lifestyle, energy needs, and average monthly electricity consumption can help you find the best energy plan near you. Instead of searching for the “best electric company near me,” use these resources to guide you through the shopping process and help you pick a Texas energy plan.

Not sure what kind of energy plan will work for your home?

SaveOnEnergy offers informational resources to help you choose the right electricity plan for your home. We have deep dives into no-deposit plans, solar energy, how to save energy at home, and many other topics. 

The SaveOnEnergy usage calculator estimates the amount of electricity you use in your home and helps you find the right energy plan to match your consumption level. And if you have questions, you can always call the number on this page and one of our energy experts will talk you through your options.

What to know when picking an energy plan

Finding the best energy rates in Texas requires you to consider a few factors that can impact your monthly electricity bill. Some important considerations when shopping for a Texas energy plan are:

  • Your Electricity Facts Label. A plan’s Electricity Facts Label (EFL) contains important information about the details of the plan, including the rate you will be charged, the percentage of power that comes from renewable energy, your contract length, additional fees, and more. It is one of the most important documents to understand before signing up for an energy plan.
  • Your energy usage. The amount of electricity you consume in your home each month may impact the rate you pay. Most energy companies offer plans with a tiered rate structure. Under a tiered-structure plan, you will pay different rates depending on which tier your usage level falls into — 500 kWh, 1,000 kWh, or 2,000 kWh. The rates shown on SaveOnEnergy are for the 1,000 kWh tier. You can check the rates for each tier in the plan’s EFL.
  • Your location. Where you live can influence the energy rate you pay for electricity. Your local utility company charges transmission and delivery fees (often called TDU or TDSP charges), which can vary by location.
  • Your contract length. Providers will sometimes offer lower rates if you commit to a longer contract term. But longer contracts could also come with early termination fees if you cancel your service before the contract ends. Read the EFL thoroughly before signing up for a plan to ensure you understand the details of the contract.

Texas energy FAQs

  • At the time of writing, Frontier Utilities offers the cheapest energy rate in Texas. Remember that Texas energy rates change frequently due to shifts in the energy market  and can also differ based on your location.

    To be sure you are checking the most accurate rates in your area, enter your ZIP code above or call the number on your screen to speak with an energy expert. Either way is simple, hassle-free, and will help you find a plan with a low electricity rate.

  • Texas electricity rates have increased recently because summer temperatures have driven up electricity demand. Experts believe Texas energy rates will remain high for the foreseeable future. Historically, electricity prices increase in the summer and decrease in the spring and winter. If you are able to wait until temperatures cool back down, you might be able to secure a cheaper energy rate in Texas.

  • Texas electricity bills are higher now because energy prices have increased and residents are relying more on their air conditioning to stay cool during higher temperatures. This means energy usage is up across the state, in addition to the average energy rate. The most recent data from the EIA shows Texans paid an average of $148 in energy bills in May 2022, which is 11.7% higher than the national average.

  • According to ERCOT, the Texas power grid will not fail this summer. ERCOT released its Seasonal Assessment of Resource Adequacy (SARA) report for this summer in May 2022. In the SARA report, ERCOT predicted there would be enough electricity supply to meet demand. While ERCOT has released multiple conservation requests since May, the power grid has not experienced serious issues with supply this summer.

  • Sorting through all the available energy companies, rates, and plans in Texas can be time consuming and overwhelming. With the SaveOnEnergy marketplace, you can enter your ZIP code to browse the Texas electricity rates and plans in your area. You can filter for green energy options, free usage periods, specific providers, and more to find the right energy plan to fit your needs. 

    If you have questions along the way or would like to go over a plan’s details, call the number on your screen. Our energy experts can help you choose an energy plan and walk you through the signup process in a matter of minutes.

  • If you live in Texas, there are dozens of top-tier electricity providers near you. We can help you sort through your options and choose the best energy company for your home or business.

    SaveOnEnergy only works with the trusted Texas electricity companies. This means you can rest assured that the providers and plans you find on our marketplace are the best options available.

    Some of the most popular Texas energy providers you will find on our marketplace are TXU Energy, Reliant Energy, Gexa Energy, TriEagle Energy, and more. Enter your ZIP code above to explore available rates and plans from Texas energy companies near you.

  • No, Texas cannot buy or sell energy across state lines. The power grid in Texas has been independent from the rest of the country since 1935. While other states can transfer electricity across state lines, Texas power companies only operate within the Texas Interconnected System, which was created in 1941. 

  • There are many ways you can lower your monthly electricity bill in Texas. Cutting back on the amount of electricity you use each month is the most straightforward way to lower your energy bill. Also consider turning on ceiling fans during warmer months, investing in energy-efficient appliances, and running your appliances during cooler times of the day instead of “peak hours” when your AC is blasting.

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