Quick Answer
The cheapest Texas electricity rates run 7-9¢/kWh for energy charges. Budget leaders like BKV Energy, Companion, and Frontier frequently top PowerToChoose. No comparison site has every provider—here's how to find your true cheapest rate.
Texas Electricity Rates in 2025
Texas has some of the most competitive electricity rates in the nation—if you know where to look.
As of late 2025, fixed rates in major Texas markets range from about 8¢ to 14¢ per kWh for the energy portion of your bill. Add TDU delivery charges (5-6¢/kWh), and total costs run 13-20¢/kWh for most households.
The average Texas residential rate is around 15.49¢/kWh total.[1] But "average" includes people overpaying on variable rates and expired contracts. Savvy shoppers consistently beat that by 20-30%.
The catch: there's no single "cheapest" provider. Rates change daily. They vary by TDU territory. And the best plan for you depends on your usage level. Someone using 500 kWh monthly needs a different plan than someone using 2,000 kWh.
How Texas Electricity Rates Work
Texas electricity pricing has layers. Understanding them helps you find true savings.
| Component | What It Is | Typical Cost |
|---|---|---|
| Energy Charge | What your REP charges for generation | 6-12¢/kWh |
| TDU Delivery | Grid delivery (Oncor, CenterPoint, etc.) | $4-8/mo + 5-6¢/kWh |
| Usage Credits | Bill credits at certain thresholds | $50-100 at 1000+ kWh |
| Base Charges | Monthly fees | $0-15/mo |
Key insight: TDU charges are the same no matter which REP you choose. You're only shopping the energy portion.
Watch out for: Usage credit traps. A $50 credit at 1000 kWh is great if you hit it—expensive if you use 999 kWh and get nothing.
Compare total cost, not just the headline rate.
Providers with Consistently Low Rates
Texas has over 140 electricity providers. Some are consistently cheaper than others. Here's an honest breakdown based on PowerToChoose data and community feedback:
Budget Leaders (Available on PowerToChoose.org):
According to Texas energy shoppers who track rates, providers like BKV Energy, Companion, and CleanSky frequently top the cheapest-rate lists on PowerToChoose.org. We don't have plans from these providers on ElectricRates.org, but you can find them directly on PowerToChoose.org.
Competitive Providers We Work With:
| Provider | Strength | Best For |
|---|---|---|
| Frontier Utilities | Consistently low rates, 90-day rate protection | Most usage levels |
| Gexa Energy | Traditional + TOU plans | Longer-term contracts |
| APG&E | Simple fixed-rate plans | Straightforward pricing |
| Rhythm Energy | 100% renewable, transparent pricing | Eco-conscious shoppers |
| Constellation | Strong service, national backing | Reliability priority |
Our honest take: We're a comparison site, and no comparison site has every provider. For the absolute lowest rate on any given day, check PowerToChoose.org—it's state-run with no acquisition fees, so rates tend to be the cheapest there. We offer convenience and smart meter integration, but we won't claim to always have the cheapest option.
How to Find the Cheapest Rate for You
Follow this process to find your best deal:
Step 1: Know Your Usage
Check your last 12 months of electricity bills. What's your average monthly usage?
| Usage Level | Monthly kWh | Plan Need |
|---|---|---|
| Low | Under 700 | No usage credits |
| Average | 800-1200 | Most options |
| High | 1500+ | Tiered plans work well |
Step 2: Check Prices at YOUR Usage Level
Don't trust the headline rate. A plan advertising 9¢/kWh might cost 14¢ at 500 kWh usage.
Step 3: Read the EFL
The Electricity Facts Label shows exactly how your rate is calculated:
- Hidden fees
- Usage credits
- Minimum use requirements
Step 4: Consider Contract Length
| Contract | Rate | Trade-off |
|---|---|---|
| 24-36 months | Lower rates | Locked in longer |
| 6-12 months | Slightly higher | More flexibility |
Best Rates by Usage Level
Different usage patterns need different plan structures:
| Usage Level | Monthly kWh | Best Plan Type | Watch Out For |
|---|---|---|---|
| Low Usage | Under 700 | No monthly fees, low base rate | Usage credits requiring 1000+ kWh |
| Average | 800-1200 | Most options—shop aggressively | Competition is fierce, deals plentiful |
| High Usage | 1500+ | Tiered pricing, usage credits | TOU plans if you can shift usage |
Low Usage (Under 700 kWh/month): Apartment dwellers and small households do better with straightforward pricing.
Average Usage (800-1200 kWh/month): You have the most options. Competition for average users is fierce.
High Usage (1500+ kWh/month): Some plans get cheaper per kWh at higher usage levels.
Cheapest Rates by Texas City
Rates vary by TDU territory. Here's what to expect:
| City/Region | TDU | Energy Rate | Total (incl. TDU) | Competition |
|---|---|---|---|---|
| Houston | CenterPoint | 8-11¢/kWh | 14-17¢/kWh | High |
| Dallas-Fort Worth | Oncor | 7-10¢/kWh | 13-16¢/kWh | Highest |
| Corpus Christi | AEP Texas Central | 9-12¢/kWh | 15-18¢/kWh | Medium |
| Lubbock/West Texas | AEP Texas North | 10-13¢/kWh | 16-19¢/kWh | Low |
Houston: Highly competitive. Lots of providers fight for Houston customers.
Dallas-Fort Worth: The largest TDU territory in Texas. Even more competition than Houston.
Corpus Christi: Fewer providers compete here.
West Texas: Smaller markets—fewer options means more variance in pricing.
Why PowerToChoose Usually Has Lower Rates
Here's something most comparison sites don't tell you: they charge providers for customer acquisitions.
How comparison sites work:
- Retail electric providers (REPs) pay comparison sites $70-150 per customer enrollment
- Some sites take flat fees plus residuals ($50 + 0.8¢ per kWh consumed)
- REPs build these acquisition costs into their energy charges
- Result: The same provider's plan costs more through a comparison site than through PowerToChoose.org
PowerToChoose.org is different: It's run by the Public Utility Commission of Texas. REPs pay nothing for customer acquisitions there. So plans on PowerToChoose tend to have the lowest base rates—though you still need to filter out gimmicky plans with usage credits and time-of-use structures.
Where we fit: ElectricRates.org adds value through smart meter integration that shows your personalized cost on each plan. That convenience has value—but for pure lowest-rate hunting, PowerToChoose.org is hard to beat. We're honest about that.
When to Shop for the Cheapest Rates
Timing matters. Texas electricity rates follow seasonal patterns:
| Month | Rating | Why |
|---|---|---|
| October | Best | Post-summer, demand drops, rates hit annual lows |
| November | Great | Tail end of fall dip |
| April | Good | Spring dip, but less reliable than fall |
| January | Worst | Post-holiday demand, often highest rates of the year |
Strategic contract lengths:
- Shopping in January? Get a 3-month plan to renew in April
- Shopping in April? Get a 6-month plan to renew in October
- Shopping in October? Lock in a 12-month plan at the year's lowest rates
Community tracking shows fall rates consistently beat spring. One analysis found fall 2024 lows at 6.4¢/kWh vs spring highs near 18¢.
Watch for TDU delivery increases: The PUCT approves annual TDU delivery charge adjustments every September 1. If you're shopping in late August, the rates you see may not include the September increase. Check EFLs carefully.
Rate Traps to Avoid
Some "cheap" plans aren't cheap at all. Watch for these traps:
| Trap | How It Works | Protection |
|---|---|---|
| Variable Rates | Start at 9¢, spike to 20¢ in summer | Choose fixed-rate plans |
| Teaser Rates | Low month-one rate, jumps after | Read for "introductory" language |
| Usage Credits | $100 credit at 2000 kWh—miss by 100 kWh, get $0 | Match usage to threshold |
| Auto-Rollover | Contract expires, renews at high variable rate | Set reminder 30 days before |
Variable Rate Plans: Sign up at 9¢, find yourself paying 20¢ during a hot summer. Fixed rates protect you.
Introductory Teaser Rates: Low rate for month one, then jumps significantly. Look for "introductory" language.
Usage Credit Traps: A $100 credit at 2000 kWh is worthless if you use 1900 kWh.
Contract Rollover:
Set a calendar reminder 30 days before expiration to shop for a new plan.
The EFL discloses everything. Read it before you sign anything.
Find Your True Cheapest Rate
"Cheapest" means something different for everyone. A plan that's cheapest at 1,000 kWh might cost you more at your actual 650 kWh or 1,500 kWh usage.
Stop guessing: Our Texas comparison tool connects directly to Smart Meter Texas, pulls your actual usage history, and calculates your exact cost for every plan.
Same plans. Personalized prices.
How it works:
1. Enter your ZIP code and click "See Your Personalized Rates"
2. We connect to your smart meter to pull your real usage—not estimates
3. Every plan is re-priced based on YOUR actual consumption pattern
4. See exactly what you'd pay, ranked from cheapest to most expensive
The cheapest plan for your neighbor might not be cheapest for you. See your personalized rates →
Frequently Asked Questions
What is the cheapest electricity rate in Texas right now?
Which electricity company is cheapest in Houston?
Why do electricity rates vary so much in Texas?
Is it better to get a fixed or variable rate in Texas?
How often should I shop for electricity in Texas?
Looking for more? Explore all our Texas Energy guides for more helpful resources.
About the author
Consumer Advocate
Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.
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Topics covered
Sources & References
- U.S. Energy Information Administration - Texas Profile (U.S. Energy Information Administration): "Texas average residential electricity rate is around 15.49 cents per kWh"Accessed Dec 2025
- Power to Choose (Public Utility Commission of Texas): "Power to Choose is the official PUC comparison website for Texas electricity"Accessed Dec 2025
Last updated: January 26, 2026
