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How to find the best electricity rates in Texas

You’re tired. You’re frustrated. You still haven’t found the best electricity rates in Texas. Time is money and you’re running out of both because you’re overpaying for electricity.

Researching Texas electricity rates near you is stressing you out. You want to quit looking. There’s so much involved in finding the best rates. The square footage of your home is one factor. You also need to account for your electricity usage, the age of your house, when your household uses the most energy – the list goes on.

Even if you’ve considered everything, you still have to spend time researching all the available Texas electricity rates in your city. You have to compare all the different rates and read over all the contracts and terms of services. 

What if you only find rates that aren’t cheaper than what you’re paying now?

You wasted your time and effort for nothing.

Let’s say you did find a less expensive rate. Did you know, and you probably do by now, that some companies make their electricity plans confusing on purpose. In some cases, they even insert hidden fees amid the puzzling terms.

All of those fees can raise that great rate to higher than what you pay now!

The struggle to find the actual best electricity rates in Texas is over!

Power Wizard will help you find the best Texas electricity prices within seconds. If you let Power Wizard manage the entire process, you can save time and money.

How can I tell how much I’ll save with my new electricity plan?

You’ve probably been asking yourself this for a while. You want more than an answer. You want a solution.

Power Wizard is an easy way to find out how much you’ll save with your new electricity plan. The first step is simple. Enter your 5-digit zip code into our hassle-free savings calculator. A few moments later, you’ll discover how much money you’re going to save.

Our smart technology searches & compares 100s of electricity plans in seconds. We can find you the best one that is based on your location, square footage, usage, and rate.

Why the best plan for you is not always the cheapest rate

Many people get confused when they search for the best electricity rates in Texas. They often look for the cheapest price per kilowatt/hour. This is a mistake that can cost you thousands of dollars.

You need to look at the type of plan that’s offered (fixed-rate, variable-rate, etc.), the terms of that plan, and whether those terms fit your lifestyle and electricity usage.

The rate in many plans is tied to the average monthly energy use. Ironically, some of these plans will charge you a higher rate if you use less electricity. If during a particular month your average energy use falls under the lower tier, your rates will increase and you’ll have to pay more than what you originally expected.

You should also be aware that if you’re moving to Texas, you need to consider that you’ll likely be using more electricity during the summer months. Texas can get extremely hot. You’ll have no choice but to use your AC.

Instead of losing thousands of dollars because of confusing rates, you can let Power Wizard do all the hard work for you. Not only will we find you the best electricity rate, but we’ll also handle everything from start to finish. From choosing the best plan to managing your enrollment & and renewal process, we take care of it all.

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What Is The Best Electricity Rate In Texas? This Guide Shares The Best Rates Based On Where You Live

We all want to save money – especially during these uncertain economic times. Having an affordable electricity plan can go a long way in helping us pinch pennies.

You might ask yourself, “What’s the best electricity rate for the zip code that I live in?”

Here’s what you want to know:

“What’s the best electricity rate for the zip code that I live in?”

You’ve probably done some research and discovered that the search is just as challenging as understanding a plan’s contract.

Finding the best electricity plan on your own – researching different plans, creating spreadsheets, and analyzing the data – is nearly impossible.

How Do I Find The Cheapest Energy Provider? (Specifically An Electricity Provider)

You should know the difference between electricity providers and energy providers.

• Electricity providers supply electricity.
• Energy providers supply different types of energy. They might supply natural gas, geothermal energy, or any of the other types of energy available to consumers in Texas.

This guide focuses on how you can find the best electricity plan for your home, apartment, or business.

Ask Yourself “Which Electricity Plan Is Best For Me?” Instead Of Trying To Find The Cheapest Rates

As you’re searching for electricity providers, you’ll realize that all of the plans are structured by price per kilowatt-hour. 

Naturally, you’ll want to gravitate towards the lowest price per kilowatt-hour plan that’s available on the market.

Instead of asking who has the cheapest electricity rates in Texas, you should ask, “Which electricity plan is best for me and my home?”

In the next section, we’ll explain how Retail Electric Providers (REPs) structure their pricing. The price that you see – the price per kilowatt-hour – is often not the final price that you’re paying.

There are hidden fees. There are certain “perks.” And other considerations might influence what you pay each month.

The Price Per Kilowatt-Hour Isn’t The Price You Pay…

As you search for the best electricity rates in Texas, you might notice that all the plans are listed as the price per kilowatt-hour (kWh). They’re often listed in numerical order with the lowest price per kWh at the top of the first page.

The price per kilowatt-hour is only one component of what you’ll pay.

Focusing only on the price per kWh is probably the biggest mistake that people make when buying an electricity plan.

Here’s a quick story that proves that the price per kilowatt-hour isn’t as important as you think it is:

Imagine there’s a man named Shawn, an assistant college football coach living in Oregon. He recently got a new position as a head coach in Texas.

He looks online and finds a beautiful two-bedroom home right outside Houston. His wife loves it.

Three weeks later, they pack up the car and drive over 2,500 miles to Texas.

When they arrive, Shawn realizes that they need to get an electricity plan for their home. Shawn’s a little confused about how it works. Texas has deregulated electricity and Shawn has never lived in a state with deregulation.

He starts shopping for electricity online, looking for who has the best energy rate in Texas.

He finds a couple of plans:

• One plan is 8.9¢ per kilowatt-hour for 1,000 kWh per month
• The second plan is 9.3¢ per kilowatt-hour for 2,000 kWh per month
• The last plan is 9.2¢ per kilowatt-hour for 1,000 kWh

Shawn, being a smart guy, looks at his historical usage for his 2 bedroom home that he used to rent in Oregon. On average, they used about 900 kWh per month.

Shawn decides on the “cheapest” plan of 8.9¢ per kilowatt-hour for 1,000 kWh per month.

Here’s where Shawn went wrong (and how it will cost him hundreds of dollars):

Shawn didn’t consider that people in Texas will probably use much more electricity than Oregon residents. Texas is hot! Where he lived in Oregon, the summers were mild and he rarely had to turn on the air conditioning.

Why will this cost Shawn so much money?

During his first month in Texas, he uses 1,421 kWh of electricity.

Remember that his plan stated “8.9¢ per kilowatt-hour for 1,000 kWh per month.”

After reading the fine print, Shawn finds that if he uses over 1,100 kWh per month then his rate will increase to 11.7¢ per kWh instead of 8.9¢ per kWh.

Why is this story so important?

Because it shows that the price per kWh might not be the final price that you pay. The final price that you pay is determined by a couple of different factors.

Discover the best electricity rates.

Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.

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Step 1: Figure Out Your Historical Usage

Many electricity plans in Texas are based on the amount of kWh that customers use each month. To figure out which plan is best for you, you must understand your home’s historical electricity usage.

If your historical usage is 1,200 kWh per month, it wouldn’t make sense to consider a plan with minimum usage of 2000 kWh per month.

How do you figure out your historical usage?

The easiest way to learn your historical electricity usage is to look at previous electricity bills. These bills will tell you exactly how much electricity you used.

Two important things to think about:

1. Look at your historical usage for the whole year. Your average usage in December is likely to be different from your historical usage in July when you’re cranking up the AC.
2. If you’re moving to Texas, ask your realtor, landlord, or apartment management staff what the average historical usage is. This is a little tricky because, if you misjudge your usage, you could end up overspending.

Step 2: Figure Out Your Home’s Size, Especially If You’re Moving To Texas

Your home’s size will likely impact which electricity plan is best for you.

This story explains why the size of your house or apartment is so important:

A woman named Sheila lives in Houston. She’s established in her career. After 15 years of hard work, she’s ready to buy his dream home. It’s a 3,500 square-foot, Craftsman-style home.

There’s another woman named Patricia who also lives in Houston. Patricia just graduated from college and is settling into a charming studio apartment near downtown Houston. It’s 550 square feet.

Do you think Sheila and Patricia are going to be using the same electricity plan?

Sheila’s 3,500 square-foot home is going to probably use way more electricity than Patricia’s 550 square-foot apartment.

Let’s say that Patricia decided to use the plan that’s best for Sheila. Patricia, since she has a smaller space, is probably going to overspend.

How do you figure out how big your home is?

• If you’re renting, your rental agreement should show the square footage.

If you have already purchased your home, you’ll have that information in your property records.

Step 3: Figure Out How Old Your Home Is

The age of your home might influence the plan you choose.

Why?

It has to do with your electricity usage.

A home built in the 1930s will most likely not be as energy-efficient as a home built in 2021. You should keep this in mind as you look for the best electricity rates in Texas.

You should also remember that if you have old appliances, then you’ll likely be using more electricity to power those appliances. Newer appliances are often more energy-efficient.

How do you figure out how old your home is?

• If you’re renting, your rental agreement should state your home’s age.
• If you have already purchased your home, you can find the date it was built in your property records.

The Best Rated Electricity Providers In Texas Might Be Different Than The Companies With The Cheapest Rates

Electricity rates and electricity company ratings are two separate things:

1. Electricity rates are usually represented in price per kWh. These are the prices that you’re going to pay.
2. The best-rated electricity providers have 4-star and higher online reviews. They also have thousands of reviews, sometimes over 2,000.

As an electricity consumer, you might be considering the ratings, customer reviews, and testimonials of different REPs.

How Important Is Customer Service and Customer Experience?

In addition to a fair rate, you should look for a REP that will treat you well. You want them to care about you.

Some common customer service desires of electricity consumers:

• Short phone waits.
• Short wait times for live online chats.
• Easy online portal access to pay bills or find information.
• Quick repair times.
• Knowledgeable and compassionate representatives.

Take a Look At Online Reviews

Online reviews matter. They exist for nearly every product and service. However, they might not tell the whole story. Reading several from different sources can give you a better look into how a company operates.

You can find online reviews for electricity providers on:

• The Public Utility Commission of Texas: This is the official government website for electricity companies in Texas.
• The Better Business Bureau: Another government-regulated website with trustworthy reviews.
• Google: Many people leave reviews on the popular search engine.
• Yelp: Yelp doesn’t have as many reviews as Google, but you can still find some reviews here.

Facebook: While there may be reviews on Facebook, these reviews probably aren’t as trustworthy as the PUCT or BBB.

Remember, People Are More Likely To Leave Negative Reviews Than Positive Reviews

This is simply another reminder:

It seems that many people are more likely to share their negative experiences than positive ones. While reviews are important, we can’t take them as complete truth. People may be sharing their side of the story or outright lying.

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Best Electricity Rates Based On Your Texas City

Each city in Texas has specific electricity plans. Many of the Retail Electric Providers don’t service every deregulated city in Texas. A REP might only service Houston. Another might exclusively service Corpus Christi.

Why is this important for electricity rates in your city?

Because electricity rates in your city will possibly differ from the rates from another city in the state.

We’ve made your life easier:

Below you’ll find the most up-to-date electricity rates for the major cities in Texas. These rates are updated daily.

If you spend too much time looking at the rates below, there’s a chance you’ll overspend:

If you’re planning on…

• Researching all the available electricity rates in your city
• Creating a spreadsheet comparing all the rates
• And spending hours reading contracts and the different terms of service for each REP

Then there’s a chance you’ll choose the wrong plan. There’s a lot of human error that can happen.

Instead of spending hours manually searching through all this information, spend less than 5 minutes using Power Wizards unbiased algorithm. It’ll do all the calculations for you based on your specific electricity needs.

But first, we’ll discuss a bit more about how to navigate an electricity rates chart.

Texas Electricity Rates Chart: What Is It?

A Texas electricity rates chart can compare electricity rates:

• Over time.
• From one company to another.
• From one type of plan to another.
• Or a combination of these ways.

An electricity rates chart can help you better understand when electricity rates increase and decrease. It also helps you determine whether the electricity rate you currently have or the one you’re considering is a good deal.

How To Read a Texas Electricity Rates Chart

Think about this:

You’re in the market for a new electricity plan, but you have no idea what the average rate is.

You look up one electricity provider and see they’re offering a rate of 9.6 cents per kWh. Another REP is offering a rate of 10.4 cents per kWh.

How can you know which electricity rate is average? Is one a premium rate? Is the cheaper one considered a discount and a good deal?

You’re in the market for a new electricity plan, but you have no idea what the average rate is.

You look up one electricity provider and see they offer a rate of 9.6 cents per kWh. Another REP is offering a rate of 10.4 cents per kWh.

How can you know which electricity rate is average? Is one a premium rate? Is the cheaper one considered a discount and a good deal?

A Texas electricity rates chart will show you the current electricity rates based on the wholesale electricity market. These rates change daily, but they can give you a baseline for what consumers are currently paying.

You can better understand rates when looking at detailed electricity plans. However, there is more to an energy bill than just the price per kWh.

The Texas electricity rate that’ll work best for you depends on:

• The type of plan (fixed-rate, variable-rate, prepaid, etc.).
• The terms of the plan.
• Whether those terms fit your lifestyle and electricity usage.

While finding a deal on a starting rate could initially save you money, be sure it can still save you money even if the rate goes up due to wholesale prices going up.

Why Do Electricity Rates Rise and Fall Throughout the Years in Texas?

Many factors influence the cost of retail electricity in Texas:

• Supply: We get our energy from sources such as coal, gas, nuclear, and renewable sources. The available supply of these sources directly affects the price of electricity. The going rates can change as often as every hour.
• Demand: The demand for light, heating, and other electrical processes varies depending on energy efficiency and economic measures. When higher usage is anticipated during extremely hot or cold times of the year, electricity rates will increase to meet peak demand.
• Weather: Weather events will affect short-term contracts and spot market prices. After the weather returns to seasonal averages, Texas electricity rates tend to level out.
• Transport of Energy: With constraints on electrical transmission and gas pipeline capacity, it’s difficult to transport the energy needed to meet demand. This causes a rise in electricity rates.
• Global Energy Markets: Changes in the global oil supply will always affect local electricity prices to a certain degree, including the Texas electricity market.

Some domestic energy suppliers can help keep prices reasonable. On the other hand, the import of energy sources can cause electricity rates to fluctuate.

Rates constantly change. Some electricity rates even change daily or even on an hourly basis.

How can you even try to maintain a similar electricity bill from one month to the next?

Think about it this way:

You’ve already spent 4 hours studying the Texas electricity rates chart from 2002 to the present year. You know the most common reasons for rate fluctuation, but you’re worried that the electricity rate you receive with your new electricity plan could cause you to overpay in the long run.

You know the most common reasons for rate fluctuation, but you’re worried that the electricity rate you receive with your new electricity plan could cause you to overpay in the long run.

We get it.

That’s why it’s important to take your unique energy usage into account before choosing an electricity rate and plan. Remember the common factors that can affect your bottom line on your electricity bill:

• Your home’s age
• Your home’s size
• Historical usage
• Your lifestyle
  • How often are you at home during the day?
  • Are you constantly running appliances?
  • Do you find ways to conserve energy?

While it can be helpful to research electricity rate trends, you might get more out of your time if you take your situation into account.

What Caused a Peak in Texas Electricity Rates in 2008?

From the start of deregulation in 2002 up until 2008, there was an increase in the Texas electricity rates chart. Prices during this time rose by approximately 77.5%.

Areas of Texas that are exempt from deregulation only experienced a minor increase of 32.2% over the same period.

Even though the price of natural gas fluctuated over the years, deregulation caused the price of electricity in deregulated areas to continually climb.

How Does The Average Texas Electricity Rate Chart Compare To Rate Charts In Other States?

How do Texas electricity rates compare to the rates of another deregulated state or a regulated state?

1. Deregulated State Comparison
   California, another deregulated state, is one of the most expensive places to live in the United States. From 2003 to 2008, California’s electricity rates increased.
   But that’s not all.
   In 2003, California’s average electricity rate was already at an inflated rate of 12.23 cents per kWh. In that same year, Texas had an average rate of 9.16 cents per kWh. Both states’ electricity rates have increased, but California’s has remained significantly higher on average each year.
2. Regulated vs Deregulated ComparisonNew Mexico is a regulated state. In 2003, the average electricity rate was 8.69 cents per kWh. That’s 0.47 cents less than Texas’ average in 2003.
   From 2003 to 2007, New Mexico’s electricity rates fluctuated up and down. By 2008, the average rate was 10.01 cents per kWh. That’s 3.03 cents less than Texas’ 2008 average of 13.04 cents.That’s 3.03 cents less than Texas’ average of 13.04 in 2008.
   That may not sound like much of a difference, but in terms of electricity it can add up quickly. For example, if you use 1500 kWh of electricity in a month at a rate of 10.01 cents per kWh, that’s $150.15.If you use 1500 kWh at the higher rate of 13.04 cents per kWh, that’s $195.60. That’s an extra $45.45 per month.When looking at average electricity rates across the United States, the rates of deregulated states like Texas are noticeably higher than the rates of regulated states.

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But keep in mind…

Electricity rates will even vary from one location to another within Texas. Even though the average electricity rate for the whole state is one value, you might be able to find a better deal in your area of Texas.

Best Electricity Rates in Houston

Click Here to find an up-to-date electricity rate in Houston. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in Dallas

Click Here to find an up-to-date electricity rate in Dallas. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in Austin

Click Here to find an up-to-date electricity rate in Austin. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in Plano

Click Here to find an up-to-date electricity rate in Plano. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in Fort Worth

Click Here to find an up-to-date electricity rate in Fort Worth. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in Corpus Christi

Click Here to find an up-to-date electricity rate in Corpus Christi. All we need is a zip code to find the best rate for you in your area .

Best Electricity Rates in McAllen

Click Here to find an up-to-date electricity rate in McAllen. All we need is a zip code to find the best rate for you in your area .

What Is The Cheapest Electricity Supplier In My Area (No Matter What Texan City I Live In)?

If you’re looking to find the best electricity plan for your city in Texas, no matter what deregulated city you live in, you can use our Free Savings Estimate calculator to find out.

Power Wizard’s completely unbiased algorithm takes less than 5 minutes to find you the best plan.

How does it work?

• Power Wizard considers different factors like your home’s age, size, historical electricity usage, and more.
• It objectively searches through the multitude of available electricity plans in your city.
• It computes a series of complex equations to determine which electricity plan is best for you.
• In less than 5 minutes, you’ll have the best electricity plan options to choose from.
• It makes signing up for plans easy.
• Power Wizard’s algorithm continues to monitor your plan and usage. If the algorithm finds another plan that’s better for you, it’ll let you know.

The best electricity rates in Texas are only a few moments away. Don’t waste any more of your time. Start saving now!

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