Quick Answer
The cheapest Texas electricity rates in 2025 run 7-9¢/kWh from providers like 4Change Energy, Frontier Utilities, Gexa Energy, and Constellation. With TDU charges, total costs are 13-15¢/kWh. Compare rates at your usage level on Power to Choose or ElectricRates.org.
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%.
Here's 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 Actually 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
Several Texas providers consistently offer competitive rates. No single company is always cheapest, but these regularly appear at the top:
| Provider | Strength | Best For |
|---|---|---|
| 4Change Energy | Low-rate fixed plans, minimal fees | Oncor/CenterPoint areas |
| Frontier Utilities | Moderate usage rates | 800-1200 kWh users |
| Gexa Energy | Traditional + TOU plans | Longer-term contracts |
| Constellation | Strong service ratings | National reliability |
| Chariot Energy | 100% renewable | Eco-conscious shoppers |
Remember: Today's cheapest provider might not be cheapest tomorrow. Check current rates when you're ready to switch.
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 actually 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.
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.
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.
Compare rates in your area
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: December 31, 2025
