Texas Guide
Consumer Advocate · 7+ years in energy markets
Energy market veteran focused on making electricity shopping simple and transparent.
How We Ensure Accuracy
Since 2009, the team at ElectricRates.org has helped over 5 million energy consumers find better electricity rates. Supplier information comes from state regulators, company filings, and documented customer feedback. Read the editorial standards & see our methodology.
What Is a Fixed-Rate Electricity Plan?
A fixed-rate plan locks your per-kWh energy rate for the entire contract term—typically 6 to 36 months. Wholesale electricity prices can swing wildly in Texas (especially in summer), but your rate doesn't budge. You pay the same per-kWh charge in January as you do in August.
How your bill works on a fixed-rate plan:
The case for locking in:
Why Most Texans Choose Fixed-Rate Plans
Texas runs on ERCOT—an isolated grid where wholesale prices respond to supply and demand in real time. On a 100°F day in July when every air conditioner in the state is running full blast, wholesale prices can spike from 5¢ to over $5/kWh in minutes.
If you're on a variable-rate plan, that spike hits your bill. On a fixed-rate plan? You don't notice it. Your rate was set months ago when you signed up. The provider absorbs the risk, and you get a predictable bill.
That's the trade-off: you might pay slightly more than variable rates during mild months, but you're protected when it matters most—during the brutal Texas summer when bills can double or triple on variable plans.
Summer 2023 reality check:
Variable-rate customers saw bills hit $400-$600 during peak summer months. Fixed-rate customers on 11¢/kWh plans? Their 2,000 kWh months cost around $220—same as every other month. Budget certainty isn't exciting until you need it.
Today's Best Fixed-Rate Plans
Lowest fixed-rate plans from Texas providers, updated daily
What Is a Good Fixed Rate in Texas?
Rates change with market conditions, but here's a rough guide for 2026:
Lock this in immediately, especially for longer terms. These are often available in spring/fall.
Competitive rate, below the state average. Worth locking in for 12+ months.
Around the state average. Consider a shorter term and shop again when rates drop.
Above average. Keep shopping or consider a shorter-term plan until rates improve.
Important: Compare all-in rates, not just the energy charge
The advertised rate often excludes TDU delivery charges. Always compare using the "Average Price per kWh at 1,000 kWh" from the Electricity Facts Label (EFL). That number includes everything.
How to Choose the Right Contract Length
| Term | Typical Rate | ETF | Best For |
|---|---|---|---|
| 6 months | Higher (+1-2¢) | $50-$75 | Short-term leases, testing a provider |
| 12 months | Best value | $100-$150 | Most households (most popular choice) |
| 24 months | Slightly lower | $150-$200 | Homeowners who want to lock in low rates |
| 36 months | Lowest per-kWh | $150-$250 | Locking in during a rate dip |
Watch out for auto-renewal traps
Most providers roll you to an expensive month-to-month rate when your contract expires. Set a calendar reminder 30-45 days before your contract ends. In Texas, providers must send you a renewal notice—but don't count on noticing it.
Fixed vs. Variable Rate: Which Should You Choose?
Fixed Rate
- ✓ Predictable monthly bills
- ✓ Protected from summer price spikes
- ✓ No need to monitor wholesale market
- ✗ Early termination fee to cancel
- ✗ May pay more in mild months
Variable Rate
- ✓ No contract, cancel anytime
- ✓ Can be cheaper in spring/fall
- ✓ Good for short-term situations
- ✗ Summer bills can double or triple
- ✗ Unpredictable month to month
Bottom line
If you're staying put for 6+ months and want to set it and forget it, go fixed. If you're between apartments or leaving the state soon, variable gives you flexibility without an early termination fee. For most Texans, fixed is the smarter choice.
How to Find the Best Fixed Rate
1. Enter your ZIP code
Your TDU service area determines which plans are available. Rates vary by area—Oncor and CenterPoint typically have more competition and lower rates.
2. Compare at 1,000 kWh
The EFL shows pricing at 500, 1,000, and 2,000 kWh. The 1,000 kWh number is the most useful benchmark for an average Texas home. If your usage is higher, check the 2,000 kWh rate—some plans get cheaper at higher usage.
3. Check for minimum usage fees
Some plans charge $10-$15 extra if you use under 1,000 kWh. If you live alone or travel often, this can turn a "great rate" into a bad deal during low-usage months.
4. Read the EFL, not the ad
The Electricity Facts Label is the legal truth. The ad is marketing. Look for base charges, minimum usage fees, and whether the advertised rate includes TDU charges.
Reading the Electricity Facts Label (EFL)
Every Texas electricity plan comes with an EFL—a standardized disclosure document required by the PUCT. Here's what to look for on a fixed-rate plan:
Average Price per kWh
Shown at 500, 1,000, and 2,000 kWh. This is the all-in cost including TDU charges. Compare this number across plans.
Contract Term
Length in months. Longer terms often have lower per-kWh rates but higher early termination fees.
Early Termination Fee
The penalty for canceling early. Typically $100-$200 for 12-month plans. Factor this into your decision.
Renewable Content
Percentage of energy from renewable sources. Texas averages ~30% renewables, but some plans offer 100%.
Frequently Asked Questions
What is a fixed-rate electricity plan?
A fixed-rate electricity plan locks your per-kWh energy rate for the entire contract term—typically 6, 12, 24, or 36 months. Your rate stays the same regardless of wholesale market fluctuations or seasonal demand. TDU delivery charges still apply and may adjust, but the energy portion of your bill stays predictable.
What is a good fixed rate for electricity in Texas?
In 2026, a good fixed rate in Texas is under 12¢/kWh all-in (energy + TDU charges) for a 12-month contract. Under 10¢/kWh is excellent and worth locking in immediately. The EIA Texas residential average is around 15¢/kWh, so competitive fixed rates offer meaningful savings. Rates vary by TDU area—Oncor and CenterPoint tend to have more options.
How long should I lock in a fixed rate?
It depends on current market conditions. If rates are low (under 10¢/kWh), a longer term (24-36 months) locks in savings. If rates are average (11-13¢/kWh), a 12-month contract gives you flexibility to shop again next year. Avoid terms shorter than 6 months—you'll pay a premium for the flexibility and spend more time shopping.
What happens when my fixed-rate contract expires?
When your contract expires, most providers automatically switch you to a month-to-month variable rate—often 30-50% higher than your fixed rate. This "holdover rate" is how providers make money on customers who forget to renew. Set a calendar reminder 30-45 days before expiration to compare rates and lock in a new plan.
Is there a cancellation fee for fixed-rate plans?
Most fixed-rate plans have an early termination fee (ETF), typically $100-$200 for residential plans. Some shorter-term plans (6-month) have lower fees ($50-$75). A few providers offer no-ETF fixed-rate plans, but the rate is usually 1-2¢/kWh higher to compensate. Always check the Electricity Facts Label (EFL) for the exact fee before signing up.
Should I choose fixed or variable rate electricity?
Fixed rate is better for most Texas households. It protects you from summer price spikes when wholesale electricity can triple, and makes budgeting predictable. Variable rates can be cheaper in mild months (spring/fall) but carry real risk in summer—some variable plans hit 20-25¢/kWh in July and August. Choose variable only if you're on a short-term lease or actively monitor wholesale prices.
Do fixed-rate plans have hidden fees?
Not hidden, but often buried in the Electricity Facts Label. Watch for: minimum usage fees (charged if you use under 500 or 1,000 kWh), base charges ($5-$10/month flat fee), and TDU pass-through charges that aren't included in the advertised rate. Always look at the "Average Price per kWh" at 1,000 kWh in the EFL—that's the most accurate comparison number.
When is the best time to lock in a fixed rate in Texas?
The best time to shop for fixed rates is during mild weather months—March through May, and October through November. Providers compete more aggressively when demand is low, so you'll see the most competitive fixed rates in spring and fall. Avoid shopping in June through August when summer demand drives rates up across the board.
Lock in a rate that won't change
Compare Fixed-Rate Plans at Your Address
See real-time fixed-rate plans from dozens of Texas providers. Compare all-in pricing at your usage level.