The Most and Least Expensive Cities for Electricity in Texas

Texas electricity costs: our main takeaways

• Conroe, Deer Park, Pearland, Hewitt, and Tomball were the top five cheapest cities in Texas for electricity in 2025.
• Pecos, Lewisville, Texas City, Lubbock, and Abilene were the top five most expensive cities in Texas for electricity in 2025.
• The average price of electricity varies by usage level. The 1,000-kilowatt-hour (kWh) tier is the cheapest, while the 500 kWh tier is the most expensive.

Top five least expensive deregulated cities

Conroe, a suburb of Houston, had the cheapest Texas electricity rate in 2025 on our marketplace. A common trait among four of the cheapest cities is their proximity to the Houston metropolitan area. Here’s why our energy experts believe these cities enjoy cheaper electricity:

• Greater competition: Metropolitan areas have a larger population than smaller cities, leading to greater competition between energy providers for your business. Increased competition may drive down the average electricity rates in these areas as providers strive to win customers.
• Modern infrastructure: High-income cities usually have more resources to modernize their infrastructure, making it more affordable to transport electricity to homes and businesses. A more modern system also requires fewer repairs, alleviating consumer bills.

Didn’t find your city listed? Enter your ZIP code on our marketplace to compare current energy rates near you.

Top five most expensive deregulated cities

Based on our marketplace data, Pecos was the most expensive city in Texas for electricity.

A variety of factors influence electricity prices in Texas’ deregulated market. Here’s what may have driven up costs for these cities in 2025:

• Pecos, Lubbock, and Abilene are all located in West Texas, which often experiences congested transmission lines due to the large amount of wind energy being exported from this area. Communities in these areas may face higher energy costs due to the strain on the local power grid.
• Most of these cities are located in regions with severe weather patterns, which can raise energy costs due to damaged infrastructure and power disruptions.

Who pays more: urban or rural residents?

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:

• Aging electrical infrastructure: Due to low population density, rural communities often struggle with outdated infrastructure that requires frequent repairs. These repairs can result in higher costs for residents through fees and taxes on their bills.
• Transmission and delivery fees: Rural communities can experience higher transmission and delivery fees because they are more spread out compared to urban communities.
• Fewer options: Rural communities may have fewer providers competing for their business. Less competition could lead to higher prices since providers face less pressure to undercut other energy companies.

Energy prices shift by usage level

Our data also reveals that the cheapest cities 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.

Low usage, high cost: the 500 kWh usage tier

Brownsville is the least expensive Texas city for electricity in the 500 kWh usage tier.

Our data shows that low-usage plans have the highest average price among all usage tiers. A few factors may be driving this high cost:

• Electricity providers tend to offer fewer incentives (like bill credits) for low-usage plans.
• Base monthly fees charged by your provider or utility company are divided among fewer units, raising the average price per kWh.

The best deal on electricity: the 1,000 kWh usage tier

Conroe is the cheapest city in Texas for the 1,000 kWh usage tier.

Rankings for this usage tier closely follow our overall data rankings. Here’s what may be causing this category’s affordability and similarity to our overall rankings:

• The Energy Information Administration (EIA) calculates Texans use an average of 1,096 kWh of electricity per month, making this usage tier the most common.
• Energy providers offer lower rates and a wider selection of plans for the 1,000 kWh tier to attract customers and beat the competition.
• Bill credit plans also contribute to this usage tier’s low average, since many offer rewards at the 1,000 kWh usage level.

Buying in bulk: 2,000 kWh usage plans

Deer Park residents enjoy the least expensive electricity in Texas for 2,000 kWh energy plans.

Our experts’ main takeaways from this data include:

• In terms of cost, the 2,000 kWh usage tier falls in the middle — it’s cheaper than the 500 kWh tier but pricier than the 1,000 kWh level.
• The ranking for the 2,000 kWh tier overlaps with our overall findings, showing that a large pool of customers falls into this category.

• This mid-range position indicates greater plan variety than the 500 kWh tier, but shoppers in the 1,000 kWh category can find better deals.

Is the cheapest electricity rate the best option?

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.

Leverage our price comparison tool

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 tailored to 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:

• Best energy companies for apartments
• Most popular energy providers in Texas
• Best energy plans for high-usage households
• How to reduce your energy bill
• How to choose an energy provider

Average electricity rate by city in 2026

Curious where your city ranks so far in 2026? To find the latest energy rates in your area, enter your ZIP code on Choose Texas Power today.
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