Texas commercial electricity is a different game
ERCOT's deregulated market means real competition—but also real complexity. Hundreds of suppliers, volatile wholesale prices, and rate structures that can make or break your energy costs.
The Texas commercial electricity market
Texas runs its own power grid—ERCOT—separate from the rest of the country. For businesses, this means access to one of the most competitive electricity markets in the world. Over 100 retail electric providers compete for your business.
But competition doesn't mean simplicity. Commercial rates in Texas vary wildly based on your load profile, peak demand patterns, and contract timing. Get it right and you're paying less than almost anywhere else. Get it wrong and you're overpaying by 20-30%.
We've been navigating ERCOT for years. We know which suppliers are hungry for your business type, when to lock in rates, and which contract terms matter.
What makes Texas commercial rates tricky
- 1Demand charges hit different here
Texas commercial accounts often see demand charges that represent 40-60% of the total bill. One A/C compressor spike on a hot August afternoon can cost you hundreds extra—every month.
- 2Summer pricing is brutal
ERCOT wholesale prices can spike 10-50x during heat waves. If you're on a pass-through or indexed rate without proper caps, July and August bills can be devastating.
- 3TDU charges vary by territory
Your delivery charges depend on which transmission/distribution utility serves your area. Oncor, CenterPoint, AEP Texas, and TNMP all have different rate structures.
- 4Contract terms are negotiable
Unlike residential plans with fixed terms, commercial contracts are often negotiated. Early termination fees, renewal clauses, and pricing mechanisms are all on the table.
Texas utility territories we serve
We work with businesses across all major Texas TDU service areas:
Oncor
Dallas-Fort Worth, Waco, Midland-Odessa
~400,000 commercial accounts
CenterPoint
Houston metro area
~250,000 commercial accounts
AEP Texas
Corpus Christi, Laredo, South Texas
~100,000 commercial accounts
TNMP
Mid-Cities, parts of East Texas
~50,000 commercial accounts
Texas businesses we help
Not in Texas? We also serve businesses in Ohio, Pennsylvania, Massachusetts, and other deregulated states.
Get a Custom Quote
Free consultation, no obligation. We'll analyze your usage and find savings opportunities.
Texas commercial electricity questions
What's the average commercial electricity rate in Texas?
Commercial rates in Texas typically range from 6-12¢/kWh for the supply portion, plus TDU delivery charges of 3-5¢/kWh. But "average" is misleading—your actual rate depends heavily on your load factor, demand charges, and contract terms. A restaurant pays very differently than an office building.
Should I get a fixed or variable rate for my Texas business?
For most Texas businesses, we recommend fixed rates—especially given ERCOT's price volatility. Variable or indexed rates can be attractive when wholesale prices are low, but a single heat wave can wipe out months of savings. If you do want wholesale exposure, consider a hybrid with price caps.
How far in advance should I shop for a new contract?
Start shopping 60-90 days before your contract expires. This gives you time to get competitive quotes, negotiate terms, and complete the switching process. Wait until the last minute and you lose negotiating leverage—or worse, roll onto a default rate that's 30-50% higher.
What's the difference between my TDU and my supplier?
Your TDU (Oncor, CenterPoint, etc.) owns the poles and wires—they deliver electricity to your building. You can't choose your TDU; it's based on location. Your supplier (the retail electric provider) sells you the commodity electricity itself. That's the part you can shop and negotiate.