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While the deregulated energy market has many benefits for Texas residents, such as greater autonomy in their electric choice, it also comes with nuances. One notable feature is that where you live directly impacts your rate — consumers from different parts of the state experience different energy costs.
The energy data experts at Choose Texas Power dug into our marketplace data to explore this variation and discover which cities pay the most and the least for power. Find out where your city lands and what factors influence electricity costs near you. This data is based on purchase prices across our marketplace, including utility delivery fees.
North Richland Hills, a suburb of Fort Worth, ranks as the cheapest city for electricity in Texas. A common trait between these top affordable cities is close proximity to a large city like Houston, Dallas, and Waco. Here’s why our energy experts believe these cities enjoy cheaper electricity:
Didn’t find your city listed? Enter your ZIP code on our marketplace to compare current energy rates near you.
San Angelo and North Richland Hills display some key differences that may contribute to their electricity price divide. One factor that stands out is the average household income. North Richland Hills has an average household income of $93,434 per year, whereas San Angelo averages $64,146, according to the U.S. Census Bureau. San Angelo currently falls almost 16% below the median Texas income of $76,292.
Income inequality is a potential factor in electricity price variations across Texas, as higher-income communities often benefit from better access to advanced technologies and resources.
When comparing the most and least expensive cities, a common trend shows that rural communities pay more for electricity than urban communities in Texas. This discrepancy is influenced by several challenges rural communities face:
Our data also revealed the most and least expensive cities for energy change, depending on the usage tier. Texas energy plans are typically broken down into three usage tiers: 500 kilowatt-hours (kWh), 1,000 kWh, and 2,000 kWh. Explore how these Texas cities shifted according to usage level.
Here are the most and least expensive cities for the 500 kWh usage tier, according to our marketplace data.
Our data shows that low usage plans (in the 500 kWh tier) have the highest average price out of all usage tiers. One reason for this finding is that energy providers offer fewer incentives, such as bill credits, at the 500 kWh usage tier. In contrast, providers tend to offer more incentives for 1,000 kWh usage customers, causing 500 kWh plans to have a higher average cost per kWh.
The 500 kWh usage tier also contains several surprising changes from our overall average rankings. Lubbock is one of the most affordable cities for 500 kWh energy plans, despite being one of the most expensive overall cities in Texas for energy. The reason for this shift could be Lubbock’s younger population of college students at Texas Tech University — 21% of the city’s population is between the ages of 20–29. College students typically live in student housing or apartments and have simpler energy needs. This could place more Lubbock consumers in the 500 kWh bracket, creating more competition for energy providers.
Explore which cities rank the highest and lowest for purchase price in the 1,000 kWh consumption level.
The Energy Information Administration (EIA) calculates Texans use an average of 1,146 kWh of electricity per month, making this usage tier the most common. Unsurprisingly, this tier is also the most affordable, as these plans have the most competition. Energy providers offer more desirable rates for 1,000 kWh plans to attract customers and beat their competitors. Bill credit plans also contribute to this usage tier’s low average, since many reward this usage level. Rankings for this usage tier closely follow our overall data rankings.
Find out which cities are the most and least expensive in Texas for high usage plans above 2,000 kWh.
In terms of cost, the 2,000 kWh usage tier falls in the middle — it’s cheaper than 500 kWh plans but pricier than 1,000 kWh plans. The highest-paying cities remain mostly the same as our overall data findings, with the exception of Lewisville entering the ranks. The lowest-paying cities had the most changes from our overall data, indicating that these new cities could have significant competition for high-usage energy plans.
You might be surprised to learn that the lowest energy rate does not always lead to the best plan or cheapest power bill. The lowest rate may come with stipulations, like bill credit plans with usage requirements. Be sure to carefully read a plan’s Electricity Facts Label (EFL) and shop according to your typical usage level. If you’re unsure how much energy you use, check your past bills to learn your typical kWh consumption.
Still stuck? Call our energy specialists for help selecting the best plan for your home or business.
Price comparison tools, like Choose Texas Power, empower consumers to take control of their energy decisions. You can compare electricity rates on our marketplace to find the best deal for your needs. Regardless of how much energy your home uses, we can help you locate an affordable plan aligned with your needs. Simply enter your ZIP code to get started.
Our marketplace is also equipped with educational resources to help you win in Texas’ deregulated energy market. Check out these helpful guides as you shop for your next energy plan:
If you’re curious where your city ranks for electricity pricing, explore the purchase price of these deregulated cities across the Lone Star State.
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