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Houston Electricity Rates

Written by Caitlin Ritchie/

Edited by Jamie Cesanek

Last updated 10/26/2022

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Houston Electricity Rates

You can use® to find current electricity rates in Houston. Like much of Texas, Houston has a deregulated energy market, giving consumers the power to choose their energy provider from various options. Houston electricity rates typically rise and fall because of seasonality and energy demand. SaveOnEnergy makes it easy to find and compare up-to-date Houston electricity rates and sign up for a plan.

Learn more about Houston electricity prices by the kilowatt-hour (kWh) and the most popular providers and energy plans in Houston.

Find the best electricity rates in Houston

Electricity rates in Texas vary depending on where you live, mainly due to transmission and distribution fees that local utility companies charge to deliver power to your home. The SaveOnEnergy marketplace is free and can help you find the best electricity rates in Houston. Compare electricity rates from the top energy providers in your area and sign up for a plan. Here’s how the SaveOnEnergy marketplace works:

  • Enter your ZIP code. Once you enter your ZIP code, we’ll provide you with a list of available rates and plans from various Houston electricity companies. You can also take advantage of the filtering tools on our marketplace to narrow your search by term length, specific providers, and more.
  • Sign up today. Once you find an electricity plan you like, sign up online in minutes. You can also call the number on your screen to speak directly to one of our energy experts. They can help you set up an energy plan that matches your needs and budget.
  • Enjoy your energy savings. Your Houston energy provider handles the rest of the setup without interrupting your service.

Cheap energy prices in Houston

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 Houston and Dallas from August 2020 to now.

Energy providers and utility companies in Houston

In Texas, 85% of the electricity market is deregulated, including Houston. Retail electric providers (REPs) compete for your business in a deregulated electricity market by offering lower electric rates and better service.

Energy providers and utility companies have different responsibilities in deregulated markets. Energy providers sell electricity to consumers, offer different plans, and handle billing. The local utility company delivers electricity to your home and maintains power lines and electrical infrastructure. You can choose your energy provider, but you cannot choose your utility, which depends on your location.

  • Energy providers: Some of the most popular Houston energy providers include TXU Energy, Gexa Energy, 4Change Energy, and Frontier Utilities. There are many other Houston energy companies featured on the SaveOnEnergy marketplace.
  • Utility companies: CenterPoint Energy is the utility company that services Houston. The utility depends on location. So, unlike your provider, you have no option to switch your utility.

Power outages in Houston

Utility companies in Texas maintain power lines and respond to outages. If you experience a power outage in Houston, contact CenterPoint, not your energy provider. You can report an electrical outage on the CenterPoint website or call CenterPoint at 1-800-332-7143.

Electricity rates in my area

Comparing rates across multiple sites can be confusing, overwhelming, and time-consuming. SaveOnEnergy can help you find current Houston electric rates without all the hassle. Enter your Houston ZIP code to find the most accurate rates near you. Then you can browse the electricity plans and prices available in your area.

Energy companies can sometimes offer different rates for the same plan depending on where you live. The rate difference is usually due to transmission charges to deliver electricity from the power-generating facility to your home. The SaveOnEnergy marketplace will show you accurate rates in your area when you enter your ZIP code.

Current energy trends in Houston

Texas experienced record energy demand this summer, which resulted in higher electricity rates. It is normal for demand to increase during the summer as consumers rely more heavily on air conditioning.

If you don’t want to rely as heavily on the ebb and flow of the traditional electricity grid, you should consider installing solar. SaveOnEnergy can help you understand the process and connect with a solar installer in your area. Read through our solar guides or fill out this form to begin your solar journey.

How weather affects Houston electricity rates

Houston typically experiences hot summers and mild winters. The average temperature is 91 degrees in July and August and 60 degrees in January. Power consumption and demand vary during the year depending on the temperature — as do Houston’s energy rates.

You can find cheap electricity in Houston by signing up for a plan when demand is low, normally during the spring and fall months. Use the SaveOnEnergy marketplace to secure an energy rate with a fixed-rate plan during off-peak seasons. If you need to sign up for a plan during the summer when demand is higher, you may want to consider a fixed-rate plan to protect yourself from future price spikes.

Types of plans in Houston

Some of the best energy companies operate in Houston and offer many energy plan options. The most common types of energy plans include fixed-rate, variable-rate, and no-deposit plans. Our energy plan resources will help you navigate the available options. If you have questions, contact our energy experts today by calling the number on your screen.

Fixed-rate energy plans in Houston

A fixed-rate plan allows you to lock in the same rate for electricity throughout your contract, which typically lasts 12 to 36 months. You won’t have to worry about rate fluctuations based on the energy market. However, you may need to pay an early termination fee if you cancel before the term ends.

Variable-rate plans in Houston

A variable-rate plan could give you a lower rate. With a variable-rate plan, you don’t have to sign a contract, but your electric rate may change monthly based on the wholesale price of electricity. You may pay more for electricity service when demand spikes in Houston.

No-deposit plans in Houston

Energy providers may require a deposit before they will begin service. However, some electricity companies in Houston offer no-deposit plans for customers who don’t want to pay a deposit or sign a contract. Prepaid plans, like the ones offered by Payless Power, allow you to avoid the deposit and pay for your electricity ahead of time.

Green electricity plans in Houston

Texas is a leader in solar energy and wind power generation, which means there are plenty of green energy options in Houston. Every Texas energy plan includes a percentage of renewable energy. You can check for the exact amount on your plan’s Electricity Facts Label (EFL). Some providers sell only 100% green energy plans, including Gexa Energy. Enter your ZIP code and filter for green energy options to find renewable plans in your area.

Business energy plans in Houston

Deregulation also gives business owners the power to choose their providers from the electric companies in Houston. With the SaveOnEnergy marketplace, businesses can compare electricity rates in Houston and lock in cheap commercial electricity prices. Find the best energy rates for your business, or call the number on your screen to speak with a business energy expert.

Calculate your energy usage in Houston

Your monthly energy consumption directly impacts your energy bills, so you should choose an energy plan that works for your consumption level. Calculating your electricity consumption can help you narrow down the right energy option. Our energy usage calculator allows you to determine your monthly energy consumption and explains how that translates into your average bill.

SaveOnEnergy’s tips for easy electricity service setup

  • Before signing up, don’t forget to read your plan’s Electricity Facts Label. It contains important information including:
    • Price per kWh based on usage
    • Percentage of renewable energy sourcing
    • Early termination fees
  • Enjoy hassle-free supplier setup. Once your order has been confirmed, your new supplier will set up service with your utility or transmission and distribution service provider (TDSP). But don’t worry, your power should remain on during the switch.
  • Understanding your electricity bill. Your local TDSP will still deliver your electricity and maintain electric infrastructure, including meters and power lines. Your utility fees will appear as TDU or TDSP charges on your monthly bill. They are independent of your supplier rate.

Houston energy FAQs

  • At the time of writing, Frontier Utilities offers the cheapest Houston electric rate on the SaveOnEnergy marketplace. Remember that energy prices change often, so you should enter your ZIP code and check for current rates from these providers today.

  • The best plan for you will depend on your energy needs. Do you prefer variable-rate or fixed-rate billing? Do you want a green energy plan? Answering these questions will help you narrow your options and find the right energy plan. Gexa Energy is known for its green energy plans, while Frontier Utilities typically offers some of the lowest rates on our marketplace. Enter your ZIP code, filter for what matters most to you, and locate the best provider in Houston that fits your needs.

  • Finding a green energy plan in Houston is simple. Enter your ZIP code above and filter to show only green energy plans to start your search. Then you can browse and compare the green energy plans in Houston.

  • The most straightforward option is to lower your home’s energy use. You can do this by adopting energy-saving habits like turning off the lights in unused rooms, using power strips, unplugging electronics when not in use, or switching to energy-efficient appliances. Use our energy usage calculator to better understand your home’s electricity consumption. You can also switch to an energy plan with a lower rate, which may help you reduce your energy bills.

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