Why Is My Texas Electric Bill So High? Troubleshooting 2026

Texas electricity bills are higher than you'd expect. The reasons aren't always obvious.

The average Texas household uses 1,096-1,176 kWh per month.^[1] That's about 25% more than the national average of 863 kWh. Why? Long, brutal summers where AC runs constantly. Larger-than-average homes (Texas averages 2,170 square feet). And in many areas, electric heating instead of natural gas.

At current rates around 15.49¢/kWh, the average monthly bill runs about $177. But summer bills can easily hit $300, $400, or more in a poorly-insulated home with an aging AC system.

Here's the thing: most high bills have fixable causes. Some you can solve today. Others take more effort but pay off for years. Let's diagnose what's driving your bill up.

The #1 reason for high Texas electric bills? People overpay for their rate plan.

Many Texans never shopped for electricity. They accepted whatever rate their provider offered when they moved in, or rolled onto a month-to-month variable rate after their contract expired.

Rate comparison:

Over a year, that's $720-$1,560 in potential savings.

Fix it:
- Check your current rate on your bill
- Compare against offers on Power to Choose or ElectricRates.org
- If you're paying more than 14¢/kWh, you're almost certainly overpaying

Air conditioning typically accounts for 50-70% of a Texas electric bill during summer.

When it's 100°F outside for weeks straight, your AC runs constantly. That's expensive.

AC cost breakdown:

SEER efficiency matters:

Fix it:
- Set thermostat to 78°F when home, higher when away
- Replace air filters monthly
- Consider a smart thermostat that learns your schedule
- If system is old, calculate whether a new unit pays for itself

About 40% of your Texas electric bill isn't from your REP at all. It's TDU delivery charges.

Your Transmission and Distribution Utility (Oncor, CenterPoint, AEP Texas, or TNMP) charges for delivering electricity through the grid. These charges are the same regardless of which provider you choose.

Current TDU charges:^[2]

That's $54-68 before you pay a dime for actual electricity.

Fix it:
- You can't change TDU charges
- When shopping, look at the "average price at 1000 kWh" (includes TDU)
- Don't compare just the energy rate—that's only part of the picture

Poor insulation and air leaks make your HVAC work harder. That shows up on your bill.

Many Texas homes, especially those built before 2000, have inadequate attic insulation. Hot Texas sun beats down on the roof, radiating heat into your living space. Your AC runs longer to compensate.

Energy efficiency impact:

Fix it (from free to bigger investment):

Some Texas utilities offer rebates for insulation improvements.

Devices use electricity even when you're not using them. It adds up faster than you'd think.

Common phantom load costs:

Multiply by a dozen always-on devices and phantom loads can account for 10-15% of your total usage.

The U.S. Department of Energy estimates phantom loads cost the average home $100+ per year.^[3]

Fix it:
- Use smart power strips that cut power when devices aren't in use
- Unplug phone chargers when not charging
- Enable power-saving modes on game consoles and computers
- That second garage refrigerator? It costs $8-15/month to run

Some Texas plans charge more during peak hours. If you run appliances at the wrong time, your bill suffers.

Time-of-use plans and some variable rate plans charge premium rates during hot summer afternoons when ERCOT demand is highest.

Typical TOU rate structure:

Running dishwasher, laundry, or pool pump during peak hours? You're paying premium rates for activities that could wait.

Fix it:
- Check your plan terms for time-based pricing
- Shift heavy usage to early morning or late evening
- Run dishwasher after 9pm
- Do laundry on weekends
- A programmable timer on your pool pump pays for itself quickly

Sometimes the problem isn't usage at all. It's a billing mistake.

Most Texas meters are smart meters now, but errors still happen.

Common billing errors:

If your bill suddenly spikes without a matching usage increase, or if the kWh shown doesn't match your smart meter data, investigate.

Fix it:
1. Register at SmartMeterTexas.com to track actual usage (15-minute intervals)
2. Compare your meter data against your bill
3. If they don't match, contact your provider first
4. If that fails, file a complaint with the PUC of Texas

Most Texas households can cut their electric bill 20-40% with the right combination of fixes.

Quick wins (do today):
- Shop for a better rate—saves $50-100/month
- Set AC to 78°F when home, 85°F when away
- Replace air filters
- Unplug unused devices

Medium effort (this month):
- Install a smart thermostat
- Seal air leaks around doors and windows
- Use smart power strips
- Shift heavy usage to off-peak hours

Bigger investments (big payoff):
- Add attic insulation
- Upgrade to a high-SEER AC unit
- Install energy-efficient windows
- Consider solar panels

Start with rate shopping. It's free, takes 10 minutes, and often delivers the biggest savings.