Texas Electricity Rates July 2026

A Dallas homeowner who last shopped for electricity in 2023 might open a bill this month and feel a jolt that has nothing to do with the July heat. The market has moved, and not everyone moved with it.

As of July 2026, the lowest all-in advertised rate in the Oncor service territory (Dallas-Fort Worth) is roughly 7.3 cents per kWh, based on the standard 1,000 kWh benchmark used across 132 active plans. The median all-in rate for that same usage level is about 16.6 cents per kWh. That gap, more than 9 cents per kilowatt-hour, is the spread between a shopper who compared plans recently and one who did not.

Those figures come from Electricity Facts Labels (EFLs) filed with the Public Utility Commission of Texas (PUCT), which requires every Retail Electric Provider (REP) to publish a standardized EFL for every plan. The EFL is the only apples-to-apples document in Texas electricity shopping; it shows the all-in price at 500, 1,000, and 2,000 kWh so consumers can see exactly how a plan prices across usage tiers. For live, updated comparisons across all TDU territories, visit ElectricRates.org's Texas electricity page or the PUCT's official shopping portal at powertochoose.org.

Summer is structurally the most expensive season in the ERCOT grid. Air conditioning load peaks in July and August, wholesale prices spike during afternoon demand surges, and REPs building new fixed-rate plans in late spring price in a risk premium to cover those peaks. That premium shows up in the contracts shoppers sign today.

Several other cost layers also shift month to month. Fuel costs for the natural gas plants that set the marginal price on ERCOT during peak hours fluctuate with Henry Hub spot prices. Capacity additions, particularly new solar and wind, have grown substantially in recent years and put downward pressure on off-peak wholesale prices, though midday solar saturation can actually increase ramp costs for dispatchable resources.

On the retail side, REPs adjust their offered rates continuously based on their hedging positions and competitive pressure. A plan that looked expensive in March may have been repriced by July, and vice versa. This is why rate comparisons done even three months ago can be stale. The EFL on powertochoose.org carries a publication date for exactly this reason.

Texas has four major Transmission and Distribution Utilities (TDUs): Oncor (Dallas-Fort Worth and surrounding areas), CenterPoint Energy (Houston area), AEP Texas (West and South Texas), and Texas New Mexico Power, or TNMP (select markets including parts of the Gulf Coast and West Texas).

No matter which REP or plan a customer chooses, the TDU for their address delivers the electricity and adds pass-through delivery charges directly to the bill. These charges include a monthly customer fee and a per-kWh distribution charge. They are regulated by the PUCT, not set by the REP, and they are identical for every customer in a given TDU territory regardless of which REP they pick.

This matters for rate comparisons because a plan that looks cheap in raw energy cost may still carry a higher all-in number due to how delivery fees are bundled or displayed. The EFL requires the all-in average price at 500, 1,000, and 2,000 kWh, which is the most reliable way to compare total cost. A plan's all-in rate at 1,000 kWh in the Oncor territory will differ from the same plan's rate in the CenterPoint territory because the underlying delivery fees differ. Always confirm which TDU serves your address before trusting a rate quote.

One of the most misunderstood features of Texas retail electricity plans is tiered pricing, sometimes called bill credits. Some plans include a bill credit, often $50 to $100, that only applies when monthly usage falls within a specific range, such as 1,000 to 2,000 kWh. Use less, or more, and the credit disappears, and the effective per-kWh price jumps sharply.

The PUCT's EFL format is designed to expose this. Because it shows average prices at 500, 1,000, and 2,000 kWh, a plan with a narrow usage-band credit will show a suspiciously low price at 1,000 kWh and a much higher price at 500 or 2,000 kWh. Shoppers who only look at the 1,000 kWh figure, which is the number most prominently advertised, can end up paying significantly more if their actual usage differs from that sweet spot.

The practical fix is simple: pull up the EFL, find the usage tier closest to your actual average monthly kWh (visible on any recent bill), and use that number for comparison. During Texas summers, usage above 1,500 kWh per month is common in larger homes, so the 2,000 kWh column may be more relevant than the 1,000 kWh column for those households.

In a month when ERCOT wholesale prices can swing dramatically based on heat events, the choice between a fixed-rate and variable-rate plan carries real financial weight.

Fixed-rate plans lock in an energy price for a contract term, typically 6, 12, or 24 months. The REP absorbs wholesale volatility during that period. In July, when peak wholesale prices can spike on hot afternoons, a fixed-rate plan is a hedge against bill surprises. Most plans available on powertochoose.org and on ElectricRates.org's Texas section are fixed-rate.

Variable-rate plans float month to month based on the REP's cost to procure power. They carry no early termination fee, which offers flexibility, but the monthly rate can increase without a cap. During summer peak months, variable plans have historically delivered higher bills than equivalent fixed plans for average-usage households.

Indexed plans are a middle category that ties the energy charge to a published index, such as ERCOT real-time or day-ahead prices. These plans can benefit customers who shift significant load to off-peak hours, but they require active engagement and can produce large bills during grid stress events. They are not suitable for customers who want predictable monthly costs.

Switching electric providers in Texas is straightforward. There is no service interruption; the TDU continues delivering power without interruption while the billing relationship moves to the new REP. For most customers, a switch takes effect within one to two billing cycles.

Here is a practical process for July 2026:

1. Know your usage. Pull the last 12 months of kWh usage from your current bills or your TDU's online portal. Use your actual summer average, not just the most recent bill, to find the EFL tier that reflects your real consumption.

2. Confirm your TDU. Your TDU name appears on your current bill. Make sure any plan you compare is for your TDU territory.

3. Read the EFL, not just the advertised rate. The EFL is a PDF or link on every plan's listing on powertochoose.org. Look at all three usage tiers and check for base charges, bill credits, and early termination fees.

4. Check the contract term and ETF. If there is an early termination fee, factor in how long you plan to stay at your current address.

5. Compare on a neutral platform. The PUCT's powertochoose.org lists every certified REP and plan. For a curated view with plain-English EFL summaries, use ElectricRates.org's Texas rate comparison tool.

Texas does not have a traditional default utility supply rate the way some other states do. If a customer's REP contract ends and no new plan is selected, service does not immediately cut off. Instead, the customer may be moved to a Provider of Last Resort (POLR), a designation the PUCT assigns to certain REPs in each TDU territory as a safeguard.

POLR rates are generally not designed to be competitive. They function as a safety net, not a pricing option, and customers on POLR service are encouraged to shop and enroll in a market-rate plan as quickly as possible. If you receive a notice that you are being moved to POLR service, treat it as a strong prompt to compare plans immediately on powertochoose.org or ElectricRates.org.

Texas gives electricity customers more shopping options than almost any other state, and the July 2026 market reflects that. The spread between the lowest available rate (around 7.3 cents per kWh) and the median rate (around 16.6 cents per kWh) in the Oncor territory means the stakes for shopping, or not shopping, are unusually high this summer.

The tools to make a good decision are freely available. The PUCT mandates the EFL so every plan shows its full cost at real usage levels. The state provides powertochoose.org as a free, neutral comparison portal. And sites like ElectricRates.org pull current plan data to help customers find the lowest rate for their specific TDU territory and usage profile.

The one thing the market cannot do is shop for you. Rates as of July 2026 reward customers who take an hour to compare.