In today’s deregulated energy market, Texans have the power to choose their electricity supplier. As of this writing, residential Texas electricity rates generally range from 15¢ to 17¢ per kilowatt-hour (kWh). Rates under 16¢/kWh are considered excellent value, especially when found in fixed-rate plans that protect against market fluctuations.
When evaluating Texas electricity plans, compare offers from multiple retail electric providers and Texas electricity companies to find the best electricity plan for your electricity usage. Pay attention to how the average price is calculated, some plans include a bill credit once your monthly energy usage exceeds a certain threshold, lowering your monthly bill and overall electricity costs.
For both residential and commercial electricity rates, prices in Texas have been on the rise for several years. This trend is unlikely to reverse soon due to rising electricity usage and limited increases in supply. Population growth, hotter summers, and the expansion of industries like data centers have all pushed up demand in the electricity market.
While deregulation was designed to promote competition and lower prices over time, market forces, such as infrastructure costs, weather risks, and generation constraints, still affect electricity costs. The PUCT (Public Utility Commission of Texas) oversees market operations, but Texans must remain proactive to find the best electricity rates available.
Even in a deregulated energy market, you can control part of your electric bill with smart habits:
- Run major appliances like washing machines and EV chargers during off-peak hours.
- Install smart thermostats and adjust settings during peak demand.
- Explore plan types such as time-of-use or “free nights/weekends” Texas electricity plans.
- Choose green energy energy plans to align with sustainability goals while potentially reducing long-term electricity costs.
- Upgrade insulation, maintain HVAC systems, and replace old appliances with energy-efficient models.
These strategies help reduce electricity usage, shrink your carbon footprint, and cut your monthly bill.
Commercial electricity rates vary based on usage, location, and contract length. Businesses with higher consumption can often negotiate the best electricity rates with energy providers. If you operate in areas served by Oncor or other TDUs (Transmission and Distribution Utilities), your electricity service delivery fees will be set by the utility, but supply rates are open to competition among retail electric providers.
Working with a trusted broker like 5Digital Energy or an electricity provider can help secure the best electricity plan for your operations, whether that’s a fixed-rate plan for budget stability or a flexible product to take advantage of market dips. Many large organizations also incorporate green energy through power purchase agreements or renewable credits. The table below shows rates in various cities across Texas, including: Dallas, Fort Worth, Houston, Lubbock, and Corpus Christi. Note these rates assume service will start in August 2025.
| Term | Engie | APG&E | NRG | Gexa |
|---|---|---|---|---|
| 12 Months | 7.13¢ per kWh | 7.24¢ per kWh | 7.06¢ per kWh | 7.06¢ per kWh |
| 24 Months | 7.49¢ per kWh | 7.53¢ per kWh | 7.49¢ per kWh | 7.49¢ per kWh |
| 36 Months | 7.6¢ per kWh | 7.58¢ per kWh | 7.62¢ per kWh | 7.62¢ per kWh |
| 48 Months | 7.62¢ per kWh | 7.65¢ per kWh | 7.66¢ per kWh | 7.66¢ per kWh |
| Term | Engie | APG&E | NRG | Gexa |
|---|---|---|---|---|
| 12 Months | 7.02¢ per kWh | 7.55¢ per kWh | 7.55¢ per kWh | 7.64¢ per kWh |
| 24 Months | 7.34¢ per kWh | 7.77¢ per kWh | 7.79¢ per kWh | 8.14¢ per kWh |
| 36 Months | 7.45¢ per kWh | 7.77¢ per kWh | 7.83¢ per kWh | 8.28¢ per kWh |
| 48 Months | 7.49¢ per kWh | 7.82¢ per kWh | 7.83¢ per kWh | 8.33¢ per kWh |
| Term | Engie | APG&E | NRG | Gexa |
|---|---|---|---|---|
| 12 Months | 6.64¢ per kWh | 7.43¢ per kWh | 7.16¢ per kWh | 7.39¢ per kWh |
| 24 Months | 6.97¢ per kWh | 7.7¢ per kWh | 7.55¢ per kWh | 7.8¢ per kWh |
| 36 Months | 7.07¢ per kWh | 7.72¢ per kWh | 7.65¢ per kWh | 7.91¢ per kWh |
| 48 Months | 7.08¢ per kWh | 7.77¢ per kWh | 7.68¢ per kWh | 7.95¢ per kWh |
| Term | Engie | APG&E | NRG | Gexa |
|---|---|---|---|---|
| 12 Months | 7.13¢ per kWh | 7.24¢ per kWh | 7.06¢ per kWh | 7.25¢ per kWh |
| 24 Months | 7.49¢ per kWh | 7.53¢ per kWh | 7.49¢ per kWh | 7.76¢ per kWh |
| 36 Months | 7.6¢ per kWh | 7.58¢ per kWh | 7.62¢ per kWh | 7.91¢ per kWh |
| 48 Months | 7.62¢ per kWh | 7.65¢ per kWh | 7.66¢ per kWh | 7.97¢ per kWh |
Switching electricity service is easy in Texas:
- Compare Texas electricity plans – Review offers from multiple Texas electricity companies and retail electric providers. Look beyond teaser rates to avoid gimmicks that can drive up your monthly bill.
- Select your plan type – Decide on the term, average price, start date, and whether you want green energy or traditional supply.
- Check your contract – Confirm your current PUCT-registered agreement’s end date to avoid early termination fees.
- Enroll – Sign with your chosen provider, who will coordinate with your local utility company or TDU like Oncor to start service on your selected date.
- Enjoy seamless electricity service – Your lights stay on throughout the switch since the TDU continues delivering your power.
The electricity market in Texas offers choice, but also complexity. The key to saving money is to actively shop for the cheapest electricity rates and avoid gimmicks that mask higher long-term electricity costs.
For homeowners, finding the best electricity plan means balancing average electricity rates, incentives like bill credits, and plan types that match your lifestyle. For businesses, competitive commercial electricity rates and tailored energy plans—including green energy options—can reduce costs while supporting sustainability goals.
By understanding how the deregulated energy market works, monitoring Texas electricity rates, and working with reputable energy providers, Texans can secure competitive electricity service and keep energy bills under control.