Texas Electricity Rates (December 2022) test page

Written by Jason Thomas | Last updated December 12, 2022

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Texas electricity rates

• Current average residential electricity rate in Texas is 14.02¢/kWh
• Current range of electricity prices in Texas is 12.3¢ – 27.4¢/kWh
• Average monthly energy usage in Texas is 1,411 kWh
• Average monthly residential electricity bill in Texas is $141

Source: Vault Electricity. The average residential electricity rate is based on the current plan prices available averaged across all TDUs and all 3 standard usage comparison levels (500,1000, 2000 kWh). EIA data is outdated and not useful when you need to know what electricity will cost you today!

What’s on this page:

• How to get the cheapest electricity rate
• Lowest Texas electricity rates
• Types of Texas electric plans
• Historic Texas electricity rates
• Texas electricity prices 2022 forecast
• Frequently asked questions
• Methodology

Lock in the cheapest Texas electricity rates before they increase

Electricity rates in Texas are increasing with no end in sight. While the summer usually brings the highest prices each year, several factors are coming together to make 2022 an unusually expensive year for electricity.

The quicker you lock in a rate, the cheaper your electricity rate will be. Here’s how to easily compare electricity plans and get the best price.

Enter Zip Code To Instantly Compare Electricity Rates Near You

To find the cheapest electric company, simply enter your zip code above. You will then be taken to your city’s page. There you will find the electricity plans available in your area. The cheapest electricity rate will be listed first. You can scroll down to see all of the electric company offerings. Make sure you select the size of home you have.

If you have other criteria you are looking for in an electric company, you can filter for it. For example, if you want a 100% renewable energy plan, use the “GREEN ENERGY” button to filter out the non-green energy plans. If you want to see the plans available by term length, use the drop-down menu to select the length of time you want to see.

Lowest Texas electricity rates

Oncor Electric Service Area: Dallas, Forth Worth, Tyler, Waco, Wichita Falls, Sherman, Denison, Temple, Killeen, Round Rock, Midland, Odessa, and other cities in North Texas

These live rates for the Oncor Electric service area were updated on December 11, 2022 at 9:57 pm CST. The pricing shown is based on an exact usage of 1000 kWh, which is typical for a small home. Oncor service areas include Dallas, Forth Worth, Tyler, Waco, Wichita Falls, Sherman, Denison, Temple, Killeen, Round Rock, Midland, Odessa, and other cities in North Texas.

CenterPoint Energy Service Area: Houston and other areas of South-Southeast Texas

These live rates for the CenterPoint Energy service area were updated on December 11, 2022 at 9:57 pm CST. The pricing shown is based on an exact usage of 1000 kWh, which is typical for a small home. CenterPoint Energy service areas include Houston and other areas of South-Southeast Texas.

AEP Texas Central Service Area: Victoria, Corpus Christi, McAllen, Laredo, Harlingen, and other areas of South-Southwest Texas

These live rates for the AEP Texas Central service area were updated on December 11, 2022 at 9:57 pm CST. The pricing shown is based on an exact usage of 1000 kWh, which is typical for a small home. AEP Texas Central service areas include Victoria, Corpus Christi, McAllen, Laredo, Harlingen, and other areas of South-Southwest Texas.

AEP Texas North Service Area: Abilene, San Angelo, Alpine, Vernon, and other areas of North-Northwest Texas

These live rates for the AEP Texas North service area were updated on December 11, 2022 at 9:57 pm CST. The pricing shown is based on an exact usage of 1000 kWh, which is typical for a small home. AEP Texas Central service areas include Abilene, San Angelo, Alpine, Vernon, and other areas of North-Northwest Texas.

Texas New Mexico Power (TNMP) Service Area: North-Central Texas, Gulf Coat Texas, and West Texas

These live rates for the Texas New Mexico Power (TNMP) service area were updated on December 11, 2022 at 9:57 pm CST. The pricing shown is based on an exact usage of 1000 kWh, which is typical for a small home. TNMP service areas include North-Central Texas, Gulf Coat Texas, and West Texas.

Enter Zip Code To Instantly Compare Electricity Rates Near You

How we find the cheapest Texas electricity rates

When selecting the best companies, we take many factors into consideration. Obviously, some factors carry more weight than others. Below are the elements we believe are the most important. They are the first factors we research when determining whether or not an electric company meets our standard of excellence.

• Financial strength
• Customer service
• Ease of doing business
• Hidden fees
• Diversification of energy plans
• Best electricity rates

We also use the Retail Electric Provider (REP) Complaint Scorecard which is kept by the Texas Public Utilities Commission and is viewed as one measure of the customer service provided by REPs.

Types of Texas electric plans

Texas electric companies offer a wide variety of energy products designed to meet the diverse needs of Texas’ residential and commercial electricity users. Plans and rates are tailored to appeal to people with different energy usage levels and budgets.

Fixed-Rate Electricity Plans [RECOMMENDED]

The most recommended type of energy plan is one based on a fixed rate. Fixed-rate plans are designed to offer affordable power at a predictable cost. With a well-designed fixed-rate electricity plan, your monthly utility bill should be consistent.  Most electricity plans offered in Texas feature a fixed rate.

One caveat to choosing this plan is ensuring you don’t lock yourself into a long-term plan. Providers have expanded their plans to include 36 – 60 month plans. With rates at near all-time highs, it doesn’t make sense to lock yourself into such a long-term agreement.

Variable Rate Electricity Plans [STAY AWAY]

These plans aren’t recommended for everyone.  But there are certain situations when a variable rate electricity plan may be the best option to get the lights turned on.

Flat-Rate Plans 

A flat-rate plan charges a certain fixed dollar amount for electricity usage up to a certain level.  For example, a plan may be priced at a flat rate of $100 for any usage level up to 1000 kW.

No Deposit and Prepaid Energy Plans

In the past, having bad credit meant paying a large deposit to get the electricity turned on. Deposits were also held hostage until you moved or changed providers. There were no other options.

Luckily, times have changed, and there are now several no deposit electricity options.

Option 1: Choose A Traditional electricity plan from any electric provider.
Type your zip code into the search bar at the top of the page. Choose an electricity plan from the list that offers the best rate and attempt to enroll in it. This will take you less than 5 minutes. If you get accepted without having to pay a deposit, great! But if you are asked to pay a deposit, you can move on to Option 2.

Option 2: Traditional plan from a provider with lower credit requirements.
Try enrolling with an electricity provider that has lower credit requirements, such as TXU. Because TXU has such a huge base of customers, their overall customer credit risk is diminished, so they tend to accept lower credit scores.

Option 3: Prepaid electricity plan.
The third option is going with a prepaid “pay as you go” electricity plan. These plans work just like a debit card or a prepaid cell phone. There is no credit check and no deposit. You simply create an account and add money to it. You then use the money in that account to pay for your electricity in real-time, instead of paying at the end of the month.

Green Energy Plans

Green energy plans were once significantly more expensive than traditional plans. Now most electric companies offer green energy options with little or no extra cost. Some companies such as Gexa Energy offer only 100% renewable energy plans. Despite this, these companies often have the cheapest electricity rates available.

To search for a green energy plan on valutelecricity.com, simply apply the green energy filter when searching for an electricity plan in your zip code. IF you are unsure about the renewable content of the plan you are considering, you can look in the electricity facts label (EFL) of the plan. You will find a link to the EFL for each plan we list.

Business Energy Plans

The average electricity rate for small businesses in Texas is 9.45¢ per kWh (August 2022). The U.S. average for commercial electricity is 11.93 cents per kWh. Small business electricity rates in Texas vary from electricity company to electricity company. These rates also vary by electricity plan.

If you’re looking for a supplier for your business, keep in mind that not all REPs will provide commercial electricity. So you’ll need to search for the ones that do. Business energy plans may also be needed for industrial properties, schools, government buildings and churches.

Most business energy suppliers will offer variable or fixed-rate options. Electricity plans for businesses aren’t as standardized as plans for residential customers. Depending on the size of your business, you should be able to get a custom quote from multiple electricity providers. Contact us to today and we will take care of this process for you.

Free Nights And Weekends

TXU’s latest time-of-day pricing plan is TXU Energy Free Nights and Solar Days plan. Under this plan customers get free electricity from 8:00p.m to 5:00a.m. The idea with the Free Nights and Solar Days plan and similar plans offered by TXU and other electric companies is to shift consumption away from the 3pm to 7pm window that sees the most stress put on the state’s electric grid.

Other providers have since introduced similar plans. They all attempt to address a major challenge that the Texas electric grid deals with.

During the non-free hours, as defined by the plan, there is an energy charge of 33.019.8 cents per kWh* if you live in the ONCOR service area which includes most of Dallas / Fort Worth and other parts of the state. In addition to this there is a TDU passthrough charge.

Predicting your actual all-in rate can be tricky since much depends on how much electricity you use and what times of day you use it.

Some recommendations TXU makes for getting the most out of the plan’s free hours:
Using timers to control the start time of major appliances such as washing machines and dishwashers

• Making use of programmable thermostats
• Charging portable devices during free hours
• Running pool pumps during free hours

*Note: The rates mentioned in this piece are accurate as of August 17, 2022. Enter your zip code below to see up-to-the-minute electricity rates for this and other plans.

Enter Zip Code To Instantly Compare Electricity Rates Near You

Historic Texas electricity rates

Natural gas prices are the largest driver of electricity rates in Texas

Natural gas prices have tripled in the U.S. in the last 12 months. 

Natural gas exports will help prices in Europe but drive prices in the U.S. up even further.

Many providers have stopped offering new sign-ups altogether because they don’t know how high prices will go. 

Others are cutting back on the number of 12-month plans they offer and pushing new customers to 24-month plans.

Texans currently on fixed-rate contracts will not feel the increase until the current term of their contract expires.

2022 Texas Electricity Rate Outlook

Summer temperatures are forecast to be higher than normal. This will drive up wholesale electricity rates.

The hurricane season is forecasted to be busier than usual. This has the potential to produce power outages that will further drive up wholesale electricity rates.

Electricity providers are extremely cautious right now.

Electricity providers in Texas are pricing in the current high natural gas prices as well as the risk of an additional significant increase in prices.

Enter Zip Code To Instantly Compare Electricity Rates Near You

Lock in the lowest rate before prices go up.

Additional Resources:

• How to Switch Energy Providers In Texas
• When Is The Best Time To Renew Your Electricity Contract In Texas
• The Age Of Your Home Will Impact Your Electricity Bill

Frequently asked questions about Texas electricity rates

About the author: Jason Thomas is a native Texan and Co-Founder and Partner at Vault Energy Solutions, a Texas electricity brokerage firm. Vault Energy Solutions was founded in 2009 with a mission to help homeowners and businesses find the best deal on electricity.

Read more about Jason

Methodology
When selecting the best companies, we take many factors into consideration. Some factors carry more weight than others. Here are the elements we believe are the most important. They are the first questions we must answer when determining whether or not an electric company meets our standard of excellence.

• Financial strength
• Customer service
• Ease of doing business
• Hidden fees
• Diversification of energy plans
• Best electricity rates