Texas Electricity Rates & Companies

Shop for energy plans from Texas’ top electricity providers. Rates as low as 8.8¢.

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Explore today’s cheapest energy rates in Texas

Discount Power - Bill Credit Bundle 12 12 months $0.094 / kWh
Cirro - Bill Bonus 12 12 months $0.094 / kWh
APG&E - SimpleSaver 18 18 months $0.094 / kWh
4Change Energy - Maxx Saver Value 12 12 months $0.095 / kWh
Rhythm Energy - Rhythm Saver 18 18 months $0.095 / kWh
Express Energy - Flash Value 12 12 months $0.095 / kWh
Gexa Energy - Gexa Eco Saver Plus 12 12 months $0.098 / kWh
Frontier Utilities - Frontier Saver Plus 12 12 months $0.098 / kWh
Atlantex Power - Radiance1000 12 12 months $0.133 / kWh
Constellation - 12 Month Usage Bill Credit 12 months $0.137 / kWh
Veteran Energy - Valor 12 12 months $0.144 / kWh
TXU Energy - Smart Edge 12 12 months $0.145 / kWh
Reliant - Reliant Power Savings 12 plan 12 months $0.147 / kWh
TriEagle Energy - Real Deal 24 24 months $0.149 / kWh
Direct Energy - Live Brighter Lite 12 12 months $0.155 / kWh
Green Mountain - Pollution Free Conserve 12 Preferred 12 months $0.179 / kWh
Payless Power - 6 Month - prepaid 6 months $0.184 / kWh

Please note: All rates above are accurate as of 1/28/2026, 9:14:30 PM CST for ZIP Code 77494. Rates may have changed since this date/time. For the most up to date rates in your area, please enter your zip code above.

Our experts’ top picks for affordable 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).

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

Average Texas electricity rates based on home size

The size of your home influences how much you pay for electricity, because bigger homes typically consume more energy than smaller homes. Texas energy rates are broken down into three kilowatt-hour (kWh) usage tiers: 500 kWh, 1,000 kWh, or 2,000 kWh. To make it easier for you, we’ve grouped home sizes by usage level. This will help ensure you find a plan tailored to your average energy usage. According to our marketplace data, here’s how much different types of households pay for electricity on average:

  • Apartments (500 kWh monthly usage): 20.8 cents per kWh
  • Small homes (1,000 kWh monthly usage): 12.9 cents per kWh
  • Large homes (2,000 kWh monthly usage): 16.0 cents per kWh
  • Average across all home sizes: 16.6 cents per kWh

Our marketplace lets you filter according to home size, so you can review plans and rates designed to fit your needs. Enter your ZIP code and select the “home size” filter to start shopping based on your needs.

Our Texas price analysis for January 2026

January’s electricity rates are slightly lower compared to this time last year (-3.85%). If you’re seeking cheaper energy bills in 2026, now could be a great time to take advantage of more affordable rates. Choose Texas Power makes it easy to find the right plan for your budget on our free marketplace.

The cheapest Texas energy rate today is 8.8 cents per kWh from APG&E. Rates may vary depending on utility area.

Energy-saving tips for winter

Winter weather often introduces new energy needs, such as increased lighting and heating. Here are a few ways to keep your winter energy costs manageable:

  • Switch to LED lights. You may use more lighting in winter since the days are shorter. Consider switching to LED light bulbs, which use about 75% less energy than incandescent ones and also have a longer lifespan.
  • Regulate your thermostat. When the temperature drops, it’s tempting to crank the heat. Instead of sacrificing comfort, use a smart thermostat to efficiently automate your heating schedule.
  • Seal air leaks and add insulation. Energy is wasted when air escapes your home through drafty windows or inadequate insulation. Seal cracks around doors and windows and have your insulation checked if you suspect it needs reinforcement.

Discover our best energy providers

With so many energy companies to choose from, you may be wondering which one is the best. To help, we’ve highlighted some of our most popular providers and what they are best known for.

Provider

Best known for

Our rating

TXU Energy Offering a diverse selection of plans 5/5
Gexa Energy 100% green energy plans at an affordable cost 4.9/5
4Change Energy Donating 4% of its annual profits to Texas charities 5/5
Express Energy Attentive customer service 5/5
TriEagle Energy Transparent, fixed-rate plans 4.9/5
Frontier Utilities Low-cost, straightforward power plans 4.8/5
Veteran Energy Its mission is to help veterans and their families 5/5

Shop these and numerous other energy providers by entering your ZIP code on our marketplace today.

Texas energy deregulation explained

When Texas deregulated its electricity market in 2002, most residents and businesses 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 win customers.

Choose Texas Power is a free marketplace that helps shoppers explore their options and sign up for a compatible plan. We also provide expert-crafted guides to simplify Texas’ deregulated energy market. Explore some of our helpful energy-shopping resources:

Call the number on your screen for more guidance on energy plans and find the best match.

Factors to consider when comparing Texas electricity plans

Achieving affordable energy costs requires more than simply selecting the cheapest plan. In addition to finding a low rate, it’s important to choose a plan that matches your top priorities. Here are some of the most important considerations.

Plan types

There are a few different energy plan types available in Texas’ deregulated market. Here are the most common:

  • Fixed-rate: A fixed-rate plan offers a steady electricity rate for a set term length. This 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 ends.
  • Variable-rate: Variable-rate plans do not have a set electricity rate because they change with the market. Your bill may fall during low-demand periods but rise during peak times. Variable plans are best for short-term use since you can cancel anytime without a fee.
  • Prepaid: A prepaid plan requires customers to pay for electricity in advance, allowing greater control over usage and budgeting without an upfront deposit.

Contract length

When shopping for an energy plan, you’ll need to choose a contract length. Most electricity plans last 12–36 months, but shorter options such as month-to-month are available with some providers. Long contracts let homeowners lock in affordable pricing and avoid renewal rate increases, while shorter terms provide greater flexibility. Review contract length and any ETFs noted in each plan’s Electricity Facts Label (EFL).

Usage patterns

Your usage habits matter when picking an energy plan because some plans work better for certain patterns. For example, bill credit plans are great when they match your usage level but can be more expensive if you do not meet thresholds. Likewise, free nights and weekends plans benefit those who use energy mostly at night but may cost more for daytime users. Consider your habits to determine whether a plan’s unique features will help you save.

How to switch electricity providers in Texas

Choose Texas Power makes it easy to switch electricity providers. You may want to switch for many reasons — moving, finding a cheaper rate, or wanting a different contract length. 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. Review your plan’s EFL to learn about any potential fees before you start.
  • Enter your ZIP code: Your location determines which providers and plans are available. Search the marketplace by ZIP code and 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 provider’s cutoff time. Consult our same-day electricity guide to learn the cutoff times for providers that offer this service.

Common deregulated energy terms

Here are some terms you need to know to confidently navigate Texas’ energy 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 it on our marketplace before you sign up.
  • Utility delivery fees: Your utility company charges fees for delivering electricity to your home or business. These appear on your bill as Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP) charges.
  • ERCOT: The Electric Reliability Council of Texas manages the safe and reliable transmission of electricity across the Texas power grid.
  • PUCT: The Public Utility Commission of Texas regulates utilities, oversees energy providers, and addresses customer complaints.

Texas electricity FAQs

Why are Texas electricity rates so high?

Texas electricity rates have increased in recent years due to population growth and extreme weather conditions. Both factors increase electricity demand, place strain on the grid, and push up prices.

Which provider has the best electricity rate in Texas?

Our cheapest electricity rates often come from APG&E, Gexa Energy, or 4Change Energy. However, rates change frequently by location and time of year — enter your ZIP code to get the most accurate rate information.

Will Texas electricity rates go up?

Texas electricity rates tend to rise in summer and winter because weather drives higher electricity use. Prices typically fall in spring and fall when demand eases. Use our marketplace to find competitive rates year-round.

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

Energy providers sell and manage your energy plan, whereas utility companies deliver electricity to your home, maintain power lines, and respond to outages. In Texas’ deregulated areas, you choose your provider but not your utility.

Deregulated energy made easy

Let us put the power in your hands with a new electricity plan.

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