Dallas Electricity Rates 2026: What to Pay Per kWh

Picture two neighbors on the same block in Garland, both using about 1,000 kWh a month. One locked in a plan two years ago and never looked again. The other spent twenty minutes on powertochoose.org last spring. Their bills can differ by more than the cost of a decent dinner, every single month.

As of July 2026, the lowest all-in advertised rate available to Oncor-territory customers at 1,000 kWh is roughly 7.3 cents per kWh, spread across 132 active plans. The median all-in rate sits at 16.6 cents per kWh. That spread is not a rounding error. It reflects the structure of a fully deregulated market, where Retail Electric Providers (REPs) compete aggressively on price and terms, but only reward customers who actually shop.

Understanding why that gap exists, and how to land on the right side of it, is what this guide covers.

Texas runs a fully competitive retail electricity market, overseen by the Public Utility Commission of Texas (PUCT). In the Dallas area, the wires and poles belong to Oncor Electric Delivery, one of four Transmission and Distribution Utilities (TDUs) operating in deregulated Texas. Oncor owns and maintains the physical infrastructure. It does not sell electricity.

Instead, dozens of licensed Retail Electric Providers (REPs) buy power on the wholesale market and sell it to you under contracts, ranging from month-to-month variable plans to fixed-rate terms of one, two, or three years. You choose the REP. Oncor still delivers the electricity and responds to outages, no matter which REP you pick.

Every plan sold to a Dallas residential customer must come with an Electricity Facts Label (EFL), a standardized disclosure required by the PUCT. The EFL lists the all-in price at three usage tiers: 500, 1,000, and 2,000 kWh. Always compare at the tier closest to your actual monthly usage, the number at 500 kWh can look very different from the number at 1,000 kWh, because of how base charges and bill credits interact.

One reason Dallas rates can feel confusing is that part of your bill is set by Oncor, not your REP. The Oncor delivery charge is a pass-through fee that covers the cost of maintaining the grid, reading your meter, and restoring power after storms. Every customer in Oncor's territory pays it, regardless of which REP they choose.

The delivery charge has two components: a fixed monthly customer charge and a variable charge based on the kWh you consume. Because it is fixed infrastructure cost, a customer who uses 500 kWh in a month pays a higher delivery cost per kWh than a customer who uses 2,000 kWh. This is the main reason rates on the EFL look higher at low usage tiers.

REPs do not control the Oncor delivery charge. When you see an all-in rate on an EFL, that number already includes the estimated pass-through delivery fee. The PUCT sets and approves Oncor's delivery rates through a formal regulatory process. For the current Oncor delivery tariff, check the Oncor website or the PUCT's filing database directly.

The two benchmark numbers to keep in mind for Oncor-territory customers in July 2026:

Lowest available all-in rate: approximately 7.3 cents per kWh (at 1,000 kWh, across 132 active plans).
Median all-in rate: approximately 16.6 cents per kWh.

Those figures apply at the 1,000 kWh usage tier, which is a reasonable baseline for a mid-size Dallas home running central air in a mild month. A Texas summer, with the AC running hard, can push usage toward 1,500 or 2,000 kWh. At higher usage, the per-kWh rate on many plans actually drops, because fixed base charges are spread across more kilowatt-hours.

Rates also shift with wholesale natural gas prices, seasonal demand, and competition among REPs. The numbers above reflect a live snapshot; visit our Texas electricity rates page or powertochoose.org for current pricing before you sign anything.

One practical note: rates in other TDU territories (CenterPoint in Houston, AEP Texas in West Texas and the coast, TNMP in parts of North Texas) will differ from Oncor numbers. A plan that looks cheap in Houston may not be the same plan available in Dallas, and vice versa.

Texas REPs are allowed to structure plans so that a bill credit kicks in only when you hit a certain usage threshold, typically 1,000 kWh or 2,000 kWh. When the EFL shows a rate of, say, 9 cents at 1,000 kWh, that rate assumes you qualify for the credit. Use 950 kWh and you miss the credit, making your effective rate noticeably higher.

This is not hidden, but it is easy to overlook. The EFL is required to show rates at 500, 1,000, and 2,000 kWh precisely so shoppers can see this effect. If your usage fluctuates month to month, look at the EFL numbers across all three tiers and think about which tier you typically land in. A plan with a slightly higher headline rate but no usage-threshold credit may cost less over a full year.

When comparing plans on powertochoose.org, use the "average monthly use" filter that matches your actual consumption. The site allows sorting by price at each tier, which is the most direct way to find the lowest rate for your specific situation.

The PUCT operates powertochoose.org as the official, neutral shopping platform for Texas electricity customers. Enter your zip code, select Oncor as the TDU, and set your estimated monthly usage. The site displays all available plans with their EFL-based all-in rates.

A few practical steps that help:

1. Pull a recent bill. Find your average monthly kWh over the last 12 months. Many REPs also offer free access to your usage history through smart meter data at SmartMeterTexas.com.

2. Compare contract lengths. Fixed-rate plans lock in the energy charge for the term. Variable-rate plans can shift monthly. In a market where wholesale prices swing with summer heat and natural gas costs, most residential customers benefit from a fixed term during high-demand seasons.

3. Read the early termination fee. Most fixed plans charge a fee if you cancel before the contract ends. That fee is disclosed on the EFL. Factor it in if there is any chance you might move.

4. Check the REP's reputation. The PUCT maintains a record of customer complaints by REP. A few minutes reviewing that data can help you avoid providers with a pattern of billing problems.

For a side-by-side view of current Oncor-area plans, ElectricRates.org's Texas page pulls live EFL data and lets you sort by rate at your usage tier.

Switching REPs in Dallas is simpler than most people expect. Oncor handles the meter, so there is no physical work required and no interruption to your service. The switch is a billing and data change on the back end.

Once you enroll with a new REP, the switch typically takes effect on your next meter read date, usually within a few weeks. Your old REP will send a final bill covering your usage through the switch date. There is no gap in service.

If you are still under contract with your current REP, check your EFL for the early termination fee before switching. In some cases, the savings on a better plan outweigh the fee, particularly if you have many months left on a plan that is well above the current median rate.

The PUCT also requires REPs to provide a "Your Rights as a Customer" document (YRAC) along with the EFL. Reading both before you enroll gives you the full picture on what the provider is and is not obligated to do.

Dallas summers are hard on the grid and on electricity bills. ERCOT, the grid operator for most of Texas, manages supply during peak demand periods, and tight supply can push wholesale prices higher. REPs absorb that risk on fixed-rate plans; customers absorb it on variable-rate plans.

If your current plan is a variable-rate or month-to-month contract, July through September is historically the period where costs can spike. Locking in a fixed rate before peak season, or checking whether your current fixed rate is competitive against what new customers are being offered, is worth the time it takes.

Rates as of July 2026 reflect current market conditions, but the market moves. Bookmark ElectricRates.org's Texas page and check back if your contract is up for renewal, or if your bill has been climbing without an obvious explanation.