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Houston Electricity Rates: Compare Plans, Providers & Switch (2026)
Houston electricity rates averaged about 14.1¢/kWh in 2026 — below the Texas statewide average of 17.0¢/kWh (EIA, April 2026) — but most Houston homes don’t have to pay even that. Because Houston is a deregulated market, you choose your retail electricity provider (REP), and a shopped 12-month fixed plan can land near 10¢/kWh all-in. CenterPoint Energy delivers the power and maintains the lines no matter who you pick, so the only thing you’re really shopping is the energy rate your provider sets. This guide breaks down what you actually pay, who the best providers are, and how to lock a low rate.
TL;DR
- Average rate: ~14.1¢/kWh in Houston, vs. 17.0¢/kWh statewide (EIA, April 2026).
- Shopped fixed plans: land near 10¢/kWh all-in at typical usage.
- Who delivers it: CenterPoint Energy — the wires company — regardless of your provider.
- Delivery is ~half your bill: CenterPoint charges $4.90/mo + 4.9993¢/kWh on top of your energy rate.
- How to save: compare 12-month fixed plans by the price at your usage, then switch online in about 10 minutes.
How much are Houston electricity rates in 2026?
The average Houston residential rate was roughly 14.1¢/kWh in 2026. But Houston electricity rates aren’t one number — what you pay depends heavily on how much you use, because plans are priced at set usage tiers. Typical plans priced around 10.4¢/kWh at 1,000 kWh a month and about 13.7¢/kWh at 2,000 kWh. That’s why the single most important figure when you shop is the price on the plan’s Electricity Facts Label (EFL) at the usage closest to yours — not the big headline teaser rate.
Houston sits below the Texas statewide average of 17.0¢/kWh (U.S. Energy Information Administration, April 2026), which has climbed from 15.5¢ in 2025 and 14.9¢ in 2024 — roughly a 14% jump in two years. Rates rise fastest in summer, when Gulf Coast heat pushes ERCOT demand to record peaks, so locking a fixed plan before June is the simplest protection against the next spike.
What’s actually in your Houston electricity bill?
Your bill has two parts, and understanding the split is the key to reading Houston electricity rates correctly. Here’s a worked example for a typical 1,000 kWh month on a competitive ~10.4¢/kWh all-in plan:
| Line item | What it is | ~Monthly cost (1,000 kWh) |
|---|---|---|
| Energy charge | Set by your Retail Electric Provider — the part you shop | ~$49 |
| CenterPoint delivery | $4.90 base + 4.9993¢/kWh — regulated, same for everyone | ~$55 |
| Total | All-in electricity bill | ~$104 (10.4¢/kWh) |
The takeaway: at typical usage, CenterPoint’s delivery charge is roughly half your bill — and it’s the same no matter which provider you choose. That means the only lever you control is the energy rate, which is exactly why shopping the right plan matters. It also means comparing plans purely on the advertised energy rate understates your true cost by about 5¢/kWh.
Who delivers electricity in Houston?
CenterPoint Energy is Houston’s Transmission and Distribution Utility (TDU) — the regulated wires company that owns the poles and lines, restores outages, and reads your meter. You cannot shop for a different TDU, and CenterPoint charges every home the same delivery cost: a $4.90 monthly base charge plus 4.9993¢/kWh. When the power goes out, you call CenterPoint, not your retailer. What you do shop for is the energy portion — the rate your Retail Electric Provider sets and competes on.
Best electricity providers in Houston
More than 100 PUCT-licensed retail providers compete for Houston customers on the CenterPoint grid — one of the most competitive electricity markets in the country. That competition is good for Houston electricity rates, but it also makes shopping noisy. Here’s how the most established names line up; tap any provider for our full review.
| Provider | Plan style | Typical contract | Best for |
|---|---|---|---|
| TXU Energy | Fixed-rate + free nights/weekends options | 12–36 mo | Big-name reliability, bill-credit plans |
| Reliant | Fixed with flexible add-ons | 12–24 mo | Bundles and satisfaction guarantees |
| Gexa Energy | Low-cost fixed, 100% green options | 12–24 mo | Value-focused fixed rates |
| Rhythm Energy | 100% renewable fixed plans | 12–24 mo | Green energy without a premium |
| Green Mountain | 100% renewable | 12–36 mo | Texas’s longest-running green provider |
| 4Change Energy | Low fixed rates + charitable giving | 12–24 mo | Budget-minded households |
| Champion Energy | Straightforward fixed rates | 12–24 mo | Top-rated customer service |
| Frontier Utilities | Competitive fixed rates | 12–36 mo | Lowest advertised rates |
How to switch electricity providers in Houston
Switching takes about 10 minutes and there’s no fee to leave once your contract is up (watch for early-termination fees if you switch mid-contract). The process is entirely paperwork — nothing changes physically at your home.
- Grab a recent bill. Note your monthly kWh usage — it’s the number that decides which plan is actually cheapest for you.
- Compare by the EFL price at your usage. Look at the price per kWh at 1,000 or 2,000 kWh, whichever matches your home, on Power to Choose or here.
- Pick a fixed-rate plan and enroll online. A 12-month fixed rate protects you from summer spikes; many plans need no deposit if you qualify.
- Let your new provider handle the switch. CenterPoint keeps delivering power on the same lines — no interruption, no technician, no rewiring. See our full Texas switching guide for details.
When is the best time to lock Houston electricity rates?
Timing matters. Wholesale power prices in ERCOT climb through late spring and peak in summer, and retail fixed-rate offers tend to follow. The cheapest Houston electricity rates usually appear in the fall and winter shoulder months, when demand is low. If your contract ends in summer, it’s often worth locking a new 12-month fixed plan a few weeks early rather than rolling onto a month-to-month variable rate during peak season — variable rates can jump sharply with no cap. Setting a calendar reminder 30 days before your contract expires is the simplest way to avoid an expensive default rate.
Moving to Houston? Setting up electricity
New Houston residents set up power by choosing a Retail Electric Provider and giving them the service address and a start date — there’s no separate step with CenterPoint. Order service a few days before move-in so it’s live when you arrive. If you’re establishing credit or want to skip an upfront deposit, a prepaid or no-deposit plan can start same-day. And because internet is deregulated everywhere, it’s worth comparing Houston internet providers at the same time you set up power.
Common mistakes when shopping Houston electricity rates
Three traps cost Houston shoppers the most. First, comparing the teaser rate instead of the EFL price at your usage — a plan that’s cheap at 2,000 kWh can be expensive at 800. Second, bill-credit plans: a $100 credit that only applies at exactly 1,000 kWh isn’t a deal if you use 700. Third, rolling onto a variable rate when a contract ends — those rates can climb with no ceiling. Reading the EFL and locking a fixed term sidesteps all three.
Compare Houston electricity plans
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Houston electricity rates: FAQ
Is Houston electricity deregulated?
Yes. Houston is part of the ERCOT deregulated market, so you choose your retail electricity provider and plan. CenterPoint Energy still delivers the power on regulated lines — deregulation only affects who sells you the energy, not who maintains the grid.
What is the average electricity rate in Houston?
The average Houston residential rate was about 14.1¢/kWh in 2026, below the Texas statewide average of 17.0¢/kWh (EIA, April 2026). Shopping a 12-month fixed plan can bring your Houston electricity rates below the local average, near 10¢/kWh all-in.
Who has the cheapest electricity in Houston?
There’s no single cheapest provider — the lowest rate depends on your usage. Retailers like Frontier, Gexa, and 4Change often post the lowest fixed rates, but the genuinely cheapest plan for you is the one with the lowest EFL price at your usage level.
Who delivers electricity in Houston?
CenterPoint Energy is the Transmission and Distribution Utility for Houston. It owns the poles and wires, restores outages, and reads your meter regardless of which retail provider you sign up with.
How much is the CenterPoint delivery charge?
CenterPoint charges a $4.90 monthly base charge plus 4.9993¢/kWh for delivery. At 1,000 kWh that’s about $55 — roughly half a typical Houston electricity bill — and it’s the same no matter which retail provider you choose.
How do I switch electricity providers in Houston?
Compare plans by the price at your usage level, pick a fixed-rate plan, and enroll online. Your new provider notifies CenterPoint and schedules the switch, usually on your next meter read. See our step-by-step Texas switching guide.
Will my power be shut off when I switch?
No. Switching retail providers is a paperwork change on the same CenterPoint grid. Your electricity keeps flowing with no interruption, no new equipment, and no visit from a technician.
When are Houston electricity rates cheapest?
Usually in the fall and winter shoulder months, when demand and wholesale prices are lowest. Locking a 12-month fixed plan then, rather than during the summer peak, tends to secure the best Houston electricity rates.
Keep going
- Texas electricity rates: compare by city & provider
- Cheapest electricity in Texas: how to find it
- Dallas · Fort Worth · Austin electricity rates
- No-deposit electricity in Texas: best light companies
- How to switch electricity providers in Texas
- Deregulated energy: which states let you choose
- Best internet providers in Houston
- Provider reviews: Gexa · Rhythm · TXU · Reliant
Reviewed by the Utility Search Marketplace team. Methodology: rate figures reflect residential averages and typical shopped 12-month fixed plans on the CenterPoint grid; delivery charges are CenterPoint’s published TDU rates. Sources: U.S. Energy Information Administration and the PUCT’s Power to Choose marketplace. Last updated July 2026.
