How Are Energy Rates Set in Texas?
Learn about the factors impacting your electricity rate.Written by Dominique Sabins
Edited by Jamie Cesanek
Last updated February 5, 2025
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Key Points
- Retail electric providers (REP) set the cost of electricity for plans in their service area.
- Multiple factors influence the cost of electricity, including weather, utility fees, power grid infrastructure, and more.
- Your electricity rate includes the cost of electricity as well as transmission charges.