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While deregulated energy has many benefits, it can also be confusing — and many Texans share the frustration of an unexpectedly high energy bill. Multiple factors could be responsible for a spike in your energy bill, such as seasonality, faulty appliances, and increased usage. Choose Texas Power can help you understand bill components, factors impacting your costs, and strategies to lower your bill.
Many consumers forget to consider delivery fees and taxes when budgeting for their electricity bills. These charges may lead to higher costs than anticipated. Here is an explanation of all the charges on your Texas energy bill:
There may be several reasons why your electricity bill is changing. From macro conditions in the energy market to small changes in your home, here are a few likely culprits for increased energy costs.
If you have a variable-rate plan, you may experience a sudden spike in your electricity rate during extreme weather. Since this type of plan is tied to the energy market, your electricity rate fluctuates with the market cost of energy. Variable-rate plans can be great for flexibility, but could lead to high costs when demand peaks.
Weather changes in Texas have a major impact on energy costs. Summer and winter tend to cause high electricity consumption as Texans rely heavily on AC and heating. When your electricity usage increases, so does your total bill. For customers who need a new provider or plan, these seasons are less ideal times to shop for a new energy contract because market prices spike.
Curious which months are the cheapest to shop? Read our guide on the best times to shop for energy in Texas.
Texas is known for unpredictable storms, such as hurricanes, cold snaps, and heat waves. If a storm damages electrical equipment in your area, such as poles and wires, the cost to fix it might show up on your electricity bill over time. Utility companies are responsible for fixing local infrastructure and often pass this cost to consumers through additional monthly fees.
Inefficient appliances and lighting could be driving up your electricity bill. Heating and cooling account for over 30% of residential electricity usage. If your HVAC system is old or faulty, it might be wasting electricity. Schedule routine maintenance to ensure your climate control is performing at peak efficiency. A smart thermostat can also help keep your home’s temperature comfortable and efficient.
Lighting is one of the next highest consumers in your house, accounting for over 10% of residential electricity usage. Consider switching to LED lighting to save up to 75% more electricity than incandescent bulbs.
Extra guests during holidays or family events can increase your household energy consumption and lead to a higher energy bill. Those additional showers, loads of laundry, and cooking may seem small, but they add up. This additional usage may be the culprit if your bill increased and you had more residents than usual.
In some instances, the culprit of steep bills is an incompatible energy plan. Since plans often have different prices for each usage tier, it’s crucial to pick a plan that complements your usage patterns. For example, many shoppers make the mistake of picking a bill credit plan with a usage requirement that only lines up with their highest summer consumption levels. You should qualify for the bill credit every month — not just during peak season — otherwise this type of plan can be surprisingly expensive.
Our marketplace can help you shop according to your average usage. To start, enter your ZIP code and select the “home size” filter to browse plans tailored to your needs. Want to do some research first? Review our guides on the best plan for different household sizes:
The good news is that there are plenty of ways to reduce your energy bill. Follow these steps to ensure you aren’t paying more for your electricity than you should be.
If your energy bills are consistently too high for your budget, it may be time to search for a new plan. Find a competitive deal today by exploring some of our cheapest electricity rates available in Texas. The following plans are based on the 1,000 kWh usage tier.
| APG&E - SimpleSaver 15 | 15 months | $0.083 / kWh |
| Discount Power - Bill Credit Bundle 12 | 12 months | $0.084 / kWh |
| Cirro - Bill Bonus 12 | 12 months | $0.084 / kWh |
| 4Change Energy - Maxx Saver Value 12 | 12 months | $0.084 / kWh |
| Express Energy - Flash Value 12 | 12 months | $0.084 / kWh |
| Rhythm Energy - Rhythm Saver 15 | 15 months | $0.086 / kWh |
| Frontier Utilities - Frontier Saver Plus 12 | 12 months | $0.086 / kWh |
| Gexa Energy - Gexa Eco Saver Plus 12 | 12 months | $0.086 / kWh |
| Atlantex Power - Radiance1000 12 | 12 months | $0.117 / kWh |
| Reliant - Reliant Power Savings 12 plan | 12 months | $0.129 / kWh |
| Veteran Energy - Valor 12 | 12 months | $0.136 / kWh |
| Constellation - 12 Month Usage Bill Credit | 12 months | $0.136 / kWh |
| TXU Energy - Smart Edge 12 | 12 months | $0.139 / kWh |
| TriEagle Energy - Real Deal 24 | 24 months | $0.145 / kWh |
| Direct Energy - Live Brighter Lite 12 | 12 months | $0.155 / kWh |
| Green Mountain - Pollution Free Conserve 12 Preferred | 12 months | $0.175 / kWh |
| Payless Power - 6 Month - prepaid | 6 months | $0.182 / kWh |
Please note: All rates above are accurate as of 3/15/2026, 5:31:56 PM CDT for ZIP Code 75001. Rates may have changed since this date/time. For the most up to date rates in your area, please enter your zip code above.
We dug into our marketplace data to learn how much Texans paid for electricity in 2025. Texas electricity rates are divided by kWh usage tier, and the average price varies for each level.
Texas usage tier |
Average electricity rate |
|---|---|
| 500 kWh | 20.3 cents/kWh |
| 1,000 kWh | 12.1 cents/kWh |
| 2,000 kWh | 15.1 cents/kWh |
| Overall average | 15.83 cents/kWh |
Based on our marketplace data, the average Texas electricity bill in 2025 was $181.17, assuming an average monthly consumption of 1,096 kWh.
Our experts recommend selecting a rate that falls somewhere between the lowest available in your area and the average for your usage tier. Keep our average electricity rates in mind as you compare plans and prices.
No, everyone in Texas’ deregulated market must pay delivery fees to their local utility company. These charges ensure electricity is transported and delivered safely across the power grid to homes and businesses.
Consider which appliances you use the most. For many households, this would be your HVAC unit, laundry machines, water heater, or dishwasher. Once you determine which appliance you run the most, try to decrease how often you use it.
If you have a variable-rate plan, then it is likely because the energy market is experiencing increased demand. Otherwise, if your bill suddenly goes up, you may be using a certain appliance more, such as air conditioning in summer or heat in winter.
In some scenarios, yes. If you browse plans on our marketplace and notice that electricity rates in your area are lower than what you are currently paying, it might be worth switching. Call our team for guidance today.
Let us put the power in your hands with a new electricity plan.
