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Texas Electricity Rates: Compare Plans by City & Provider (2026)
Texas electricity rates averaged about 17.0¢/kWh in 2026 (U.S. Energy Information Administration, April 2026) — up from 15.5¢ in 2025 and 14.9¢ in 2024, roughly a 14% jump in two years. But most Texans don’t have to pay the average: in the deregulated market that covers most of the state, you choose your retail electricity provider (REP) and can lock a fixed-rate plan well below it. Your local wires company — Oncor, CenterPoint, AEP Texas, or TNMP — still delivers the power no matter who you pick. This guide breaks down what Texas electricity rates actually look like city by city, how deregulation works, and how to lock a low rate.
TL;DR
- State average: ~17.0¢/kWh in 2026, and climbing (EIA).
- You choose your provider in most of Texas — Austin, San Antonio, and El Paso are the big exceptions (municipal utilities, no choice).
- Delivery is fixed: your TDU (Oncor, CenterPoint, AEP Texas, TNMP) charges the same no matter your provider — it’s often half your bill.
- How to save: compare 12-month fixed plans by the price at your usage level on Power to Choose or here.
What are the average Texas electricity rates in 2026?
The statewide residential average is 17.0¢/kWh (EIA, April 2026), but that number blends regulated municipal cities with the competitive market — and it masks how much you can save by shopping. In deregulated metros, competitive 12-month fixed plans routinely price in the 9¢–15¢/kWh range depending on the city, your usage, and the plan. Texas electricity rates climb fastest in summer, when ERCOT demand hits record peaks, so locking a fixed plan before the heat is the simplest way to protect your bill. The gap between the average and a well-shopped plan is exactly what deregulation lets you capture.
Texas electricity rates by city
Rates and the local utility vary by metro, and so does whether you can shop at all. Here’s how the biggest Texas cities compare — tap a city for its full rate guide.
| City | Utility (TDU) | Deregulated? | Typical rate |
|---|---|---|---|
| Houston | CenterPoint Energy | Yes — you choose | ~14.1¢/kWh |
| Dallas | Oncor | Yes — you choose | ~8–16¢/kWh |
| Fort Worth | Oncor | Yes — you choose | ~8–16¢/kWh |
| Corpus Christi | AEP Texas | Yes — you choose | Shop competitive plans |
| Austin | Austin Energy | No — municipal | Set by the city utility |
| San Antonio | CPS Energy | No — municipal | Set by the city utility |
What’s actually in a Texas electricity bill?
Reading Texas electricity rates correctly means understanding that your bill has two parts. Here’s a worked example for a typical 1,000 kWh month on a competitive ~12¢/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 | ~$60 |
| TDU delivery | Base charge + per-kWh delivery — regulated, same for everyone on your grid | ~$55–65 |
| Total | All-in electricity bill | ~$115–125 (~12¢/kWh) |
The takeaway: at typical usage, delivery 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. Comparing plans on the advertised energy rate alone understates your true, all-in Texas electricity rates by 5–6¢/kWh, so always read the total on the plan’s Electricity Facts Label.
How Texas electricity deregulation works
In about 85% of the state — the ERCOT competitive area — the old monopoly was split in two. A Transmission and Distribution Utility (TDU) owns the poles and wires, restores outages, and reads your meter; it’s regulated and you can’t change it. A Retail Electric Provider (REP) sells you the energy and sets your rate; there are 100+ of them competing for your business. Deregulation is why Texas electricity rates can vary so widely — the same house can pay very different amounts depending on the plan.
The four TDUs are Oncor (Dallas–Fort Worth and North Texas), CenterPoint Energy (Houston), AEP Texas (South and West Texas), and TNMP (scattered areas). If your address is served by one of these, you can choose your provider. When the power goes out, you still call your TDU — not your retailer — because the retailer only sells the energy.
Where you can’t choose: municipal & co-op areas
Not all of Texas is deregulated. If you’re served by a municipal utility — Austin Energy in Austin, CPS Energy in San Antonio, or El Paso Electric — or by an electric cooperative, your rate is set by that utility and you can’t switch providers. These areas were carved out when Texas deregulated in 2002. Residents there can still lower their bills through efficiency, rebates, and time-of-use programs, but they won’t see the competitive Texas electricity rates that shoppers in Houston or Dallas do.
How to switch electricity providers in Texas
Switching takes about 10 minutes and there’s no fee to leave once your contract is up (watch for early-termination fees mid-contract). The process is entirely paperwork — nothing changes physically at your home.
- Grab a recent bill. Note your monthly kWh usage — it decides which plan is actually cheapest for you.
- Compare by the EFL price at your usage. Check the price per kWh at 1,000 or 2,000 kWh 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.
- Your new provider handles the switch. Your TDU keeps delivering power on the same lines — no interruption, no technician, no rewiring. See our full Texas switching guide.
Best electricity providers in Texas
More than 100 PUCT-licensed retailers compete across deregulated Texas metros. These established REPs serve most of the state — tap any for our full review.
| Provider | Plan style | Best for |
|---|---|---|
| TXU Energy | Fixed + free nights/weekends | Big-name reliability |
| Reliant | Fixed with add-ons | Bundles and guarantees |
| Gexa Energy | Low-cost fixed, green options | Value-focused fixed rates |
| Rhythm Energy | 100% renewable fixed | Green without a premium |
| Green Mountain | 100% renewable | Longest-running green provider |
| 4Change Energy | Low fixed rates + giving | Budget-minded households |
When is the best time to lock Texas 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 Texas 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. A calendar reminder 30 days before your contract expires is the simplest way to avoid an expensive default rate.
Common mistakes when shopping Texas electricity rates
Three traps cost Texas 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 and keeps your Texas electricity rates at the low end.
Compare Texas electricity plans
Enter your ZIP to see live rates in your Texas city and lock a low 12-month fixed plan in minutes.
Texas electricity rates: FAQ
What is the average electricity rate in Texas?
The Texas residential average was about 17.0¢/kWh in 2026 (EIA, April 2026), up from 15.5¢ in 2025. In deregulated metros, shopping a fixed-rate plan often lands you well below that average.
Is electricity deregulated in Texas?
In most of Texas, yes. About 85% of the state is in the ERCOT competitive market, where you choose your retail provider. Austin, San Antonio, El Paso, and co-op areas are the main exceptions — there you can’t switch.
Who has the cheapest electricity rates in Texas?
There’s no single cheapest provider — the lowest rate depends on your city and usage. Compare 12-month fixed plans by the price at your usage level on the Electricity Facts Label; that’s where the genuinely cheapest Texas electricity shows up.
How do I lower my Texas electricity bill?
Switch from a default or variable rate to a competitive 12-month fixed plan, size the plan to your actual usage, and lock before summer. Many households save $200–$500 a year by shopping their Texas electricity rates.
Who delivers my power in Texas?
Your TDU — Oncor, CenterPoint, AEP Texas, or TNMP depending on where you live. The TDU maintains the lines and restores outages no matter which retail provider you choose.
Why is delivery such a big part of my bill?
The regulated TDU charge covers the poles, wires, and meter reading, and at typical usage it runs about half of a Texas electricity bill. It’s identical for every provider on your grid, so the energy rate is the only part you can shop.
Will my power be shut off when I switch?
No. Switching retail providers is a paperwork change on the same TDU grid. Your electricity keeps flowing with no interruption, no new equipment, and no visit from a technician.
When are Texas 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 Texas electricity rates.
Keep going
- Houston · Dallas · Fort Worth electricity rates
- Austin · San Antonio electricity rates (municipal)
- Cheapest electricity in Texas: how to find it
- What is the average electric bill? By state & home size
- Green energy plans: how renewable electricity works
- No-deposit electricity in Texas: best light companies
- How to switch electricity providers in Texas
- Deregulated energy: which states let you choose
- Provider reviews: Gexa · Rhythm · TXU · Reliant
Reviewed by the Utility Search Marketplace team. Methodology: rate figures reflect typical shopped 12-month fixed plans on the ERCOT competitive grid; delivery charges are the TDUs’ published rates. Sources: U.S. Energy Information Administration and the PUCT’s Power to Choose marketplace. Last updated July 2026.
