What is a Good Electricity Rate in Texas?

The EIA Texas state average is 15.2¢/kWh, but that includes people on default utility rates, expired contracts, and variable plans who don't actively shop. Competitive shoppers can find all-in rates of 9-12¢/kWh—25-40% below the state average. Under 10¢/kWh is excellent—lock it in. 10-12¢/kWh is good. 12-14¢/kWh is average for shoppers. Over 14¢/kWh means better options exist. Always compare all-in rates including TDU delivery fees.

A good electricity rate in Houston (CenterPoint Energy territory) is under 11¢/kWh all-in for competitive shoppers. Excellent rates are under 10¢/kWh. Houston has slightly higher TDU delivery fees (around 4.5-5.0¢/kWh) compared to Dallas. The EIA state average is 15.2¢/kWh, so competitive shoppers save significantly. Always look at the EFL price at 1000 kWh, not just the advertised energy rate.

A good electricity rate in Dallas (Oncor territory) is under 10.5¢/kWh all-in for competitive shoppers. Excellent rates are under 9.5¢/kWh. Dallas and Fort Worth have lower TDU delivery fees (around 3.5-4.0¢/kWh) than Houston, resulting in lower total rates. The Oncor service area often has the most competitive rates in Texas due to high provider competition.

A good fixed rate for electricity in Texas is under 12¢/kWh all-in for a 12-month contract. The EIA Texas average is 15.2¢/kWh, so competitive fixed rates offer significant savings. Fixed rates protect against summer price spikes when wholesale electricity can triple. Under 10¢/kWh is excellent and worth locking in immediately. Longer-term contracts (24-36 months) may offer slightly lower rates but have higher early termination fees.

The energy rate is just the supply charge from your REP (Retail Electric Provider) - typically 5-8¢/kWh. The all-in rate includes both the energy charge AND TDU delivery fees (3-5¢/kWh), which is what you actually pay. Always compare all-in rates, found on the EFL (Electricity Facts Label), not advertised energy rates. A plan advertising 6¢/kWh energy rate actually costs 10-11¢/kWh all-in.

Electricity rates vary by Texas city primarily due to different TDU (Transmission and Distribution Utility) charges. Each area has a designated TDU that owns the poles and wires. CenterPoint (Houston) charges more than Oncor (Dallas/Fort Worth), while AEP Texas (South/West Texas) falls in between. Municipal utilities like Austin Energy and CPS Energy (San Antonio) set their own rates with limited competition.

You're overpaying if your all-in rate is above the EIA Texas state average of 15.2¢/kWh. For competitive shoppers, paying over 14¢/kWh means better options exist. Check your bill for the 'average price per kWh' calculation, or divide your total bill by kWh used. Competitive market rates are typically 9-12¢/kWh—if you're paying significantly more, switching providers can save hundreds per year.

A good rate per kWh in Texas for competitive shoppers is under 12¢ all-in (including TDU delivery fees). The EIA Texas state average is 15.2¢/kWh. Here's a guide: Under 10¢/kWh is excellent—lock it in immediately. 10-12¢/kWh is good—competitive with the market. 12-14¢/kWh is average for shoppers. Over 16¢/kWh means you're at or above the state average—definitely shop around. Always compare the EFL price at 1000 kWh.

Texas electricity rates fluctuate based on natural gas prices, grid conditions, and seasonal demand. Rates typically peak in summer (June-August) when A/C demand is highest and drop in spring and fall. For 2026, rates remain relatively stable. The best strategy is to lock in a fixed rate during mild months (March-April or October-November) when rates are typically lowest.

For most Texas households, a fixed rate is the better choice. Fixed rates protect you from summer price spikes when wholesale electricity can triple. Variable rates may seem cheaper in mild months but often spike 50-100% in summer. Only consider variable if: you actively monitor rates weekly, can switch providers quickly, or are signing up during a temporary price dip. A good fixed rate under 12¢/kWh (compared to the 15.2¢ state average) provides peace of mind and budget predictability.