Our free marketplace is a one-stop shop to connect Texans with top energy providers, cheap rates, and a convenient signup process. Explore some of the best Texas power plans on Choose Texas Power.

Our experts’ top picks for cheap electricity plans

Searching for an affordable energy solution? Here are our experts’ top picks for cheap electricity plans available on our marketplace. Rates shown are for an average monthly usage of 1,000 kilowatt-hours (kWh).

• Gexa Energy Eco Saver Plus 12: 8.8 cents per kWh
• 4Change Energy Maxx Saver Value 12: 8.8 cents per kWh
• TXU Energy Smart Edge 12: 13.5 cents per kWh

Enter your ZIP code to discover more affordable energy options near you or call our team for guidance.

Average electricity rates in Texas based on home size

Texas electricity rates vary widely based on numerous factors, such as home size, location, and time of year. To figure out if you’re paying too much for electricity, consider the average electricity rate for each usage level. According to our marketplace data, here are the current averages for common Texas households broken down into usage tiers:

• Apartments (500 kWh monthly usage): 20.87 cents per kWh
• Small homes (1000 kWh monthly usage): 13.26 cents per kWh
• Large homes (2000 kWh monthly usage): 16.14 cents per kWh

Texas electricity rates forecast for August 2025

Different areas of Texas experience varying weather patterns, with some areas having more intense microclimates. However, many cities across the state, like Dallas, Fort Worth, and Houston, will experience temperatures in the high 90s and low 100s this month. Our experts predict electricity demand to increase this month as high temperatures push residents to use more energy to stay cool. Regardless of the weather and electricity rates in your area, Choose Texas Power can help you find affordable energy solutions to get through the peak season.

Beat summer pricing with these expert tip

• Search for bill credit plans that reward higher electricity usage since your consumption will likely remain high this month.
• If prices are already elevated in your area, consider choosing a variable-rate plan or short-term contract that could allow you to switch plans once rates drop in the fall.
• Since you’re probably running the AC more often this month, consider investing in a smart thermostat to improve your home’s efficiency. This device will help reduce your electricity bill during high-usage months.

Texas energy deregulation explained

When Texas deregulated its electricity market in 2002, most residents and businesses across the state gained the power to choose their electric provider instead of defaulting to the local utility company. As a result, electricity providers in the Lone Star State offer competitive rates and plan terms to gain business.

Deregulation can make it confusing for customers to find the best provider and plan because of the wealth of options. Choose Texas Power is a free resource curated to help you find an energy provider and plan that fits your needs. Our guides can help explain the types of plans you’ll encounter, how to choose an electricity plan, and what to do if you want to switch to a different provider. You can also learn more about your electricity bill or commercial electricity solutions.

Factors to consider when comparing Texas electricity plans

Secure a cheap energy plan with a reliable Texas electricity company in your area. Before choosing a plan, consider several of the following major factors.

Plan types

When shopping for energy providers and plans, it’s helpful to understand the different plan types available. Here are the most popular types shoppers can choose from on our marketplace:

• Fixed-rate: A fixed-rate plan offers a steady electricity rate for a set term length. This plan type provides price stability and protection against market fluctuations. Note that you will likely pay an early termination fee (ETF) if you cancel a fixed-rate plan before the contract is up.
• Variable-rate: Variable-rate plans do not have a set electricity rate because they change with the energy market. Your bill may decrease during times of low demand but can rise during peak periods, such as the summer. This flexible option is best as a short-term solution because you do not need to commit to a contract and can cancel anytime without paying a fee.
• Prepaid: A prepaid plan requires customers to pay for electricity in advance, allowing for greater control over usage and budgeting without the need for an upfront deposit.

Contract lengths

When shopping for an energy plan, you’ll need to choose a contract length. Most electricity plans last 12, 24, or 36 months, but shorter options are available with certain providers. Long contracts allow homeowners to lock in affordable pricing and avoid increased annual renewal rates, whereas shorter options may be a better fit for renters. Review the contract length and any ETFs noted in the Electricity Facts Label (EFL). You can search by term length on our marketplace to find the best plans with your ideal time frame.

Usage patterns

Your usage habits are important when picking an energy plan because some plans cater better to certain usage patterns. For instance, bill credit plans are a great opportunity to save when they match your usage level, but could be more expensive if you do not meet the specified threshold. Similarly, free nights and weekends plans can complement those who mostly use energy at night, but may be costly for someone who works from home during the day. Consider your energy habits to determine if a plan with a unique usage feature would benefit you.

How to switch electricity providers in Texas

Switching your electricity plan is easy on Choose Texas Power. You may want to switch plans for various reasons, including moving, a cheaper rate, or a different contract length. Whatever your reason, our free marketplace simplifies the switching process. Learn how to change providers in minutes:

• Check your EFL: You may incur a penalty if you end your contract early. Before you start, you’ll want to review your plan’s Electricity Facts Label to learn about any potential fees.
• Enter your ZIP code: Your location determines which providers and plans are available to you. Search on our marketplace with your area code to browse your options. You can filter by contract length, rate type, renewable energy, and more.
• Pick a plan and sign up: Sign up directly on Choose Texas Power or call the number on your screen to navigate the process with the help of an energy advisor.

Need to switch providers same day?

Many Texas energy providers offer same-day electricity setup if you enroll before a certain deadline. Consult our same-day electricity guide to learn the cutoff times for Texas providers that offer this service.

Deregulated energy guide

As a deregulated customer in Texas, here are a few terms you should know to confidently navigate the market:

• Electricity Facts Label (EFL): The EFL contains essential details about your plan, such as the rate, the amount of renewable energy, contract length, and more. Read this document carefully to understand your payment structure.
• Kilowatt-hour (kWh): This is a unit of measurement used to determine how much electricity you consume. When you shop for plans on our marketplace, you’ll see rates listed in three specific tiers — typically 500 kWh, 1,000 kWh, or 2,000 kWh. Consult your past energy bills to learn which usage tier you normally fall into.
• Utility delivery fees: Your utility company charges a fee for delivering electricity to your home or business. These fees will appear on your bill as either Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP) charges.
• ERCOT: The Economic Reliability Council of Texas, often shortened to ERCOT, manages the safe and reliable electricity transmission across the power grid.
• PUCT: The Public Utility Commission of Texas (PUCT) regulates utilities, oversees energy providers, and addresses customer complaints.

Texas electricity FAQs

Why are Texas electricity rates so high?

According to our marketplace data, Texas’ average residential electricity rate is currently 16.76 cents per kWh. Rate increases are largely attributed to Texas’ population growth. As the Lone Star State’s population continues to climb, so does its electricity demand, which is typically very high in summer as customers battle the heat. Extreme weather, market changes, infrastructure investments, and other factors also play a role in increased rates.

Which provider has the best electricity rates in Texas?

The best rates depend on your energy patterns and needs. After entering your ZIP code on our marketplace, you can filter by feature, rate type, contract length, and more to find the most suitable rates. If you’re interested in a 100% renewable energy plan, explore options from Gexa Energy. If you’re searching for the lowest rates, consider 4Change Energy or Frontier Utilities. However, the cheapest rate may not always be the best plan for you. Keep an open mind when browsing plans and pick the one that best matches your needs.

Will Texas electricity rates go up?

Texas electricity rates tend to rise in the summer when energy demand is higher. Rates typically drop in fall and spring when demand decreases and the weather is mild. In winter, prices sometimes climb back up in response to storms and icy conditions. Check our marketplace often to stay on top of the latest prices in your area.

What’s the difference between an energy and utility company in Texas?

In deregulated areas, energy providers and utility companies have different roles. Providers sell and manage your energy plan, while utilities deliver the energy to your home, maintain power lines, and manage power outages. You choose your electricity provider and energy plan, but your utility company is assigned to you based on location.