Electricity Rates By Zip Code

You turn off the lights, set your thermostat to save energy, and still — your electricity bill keeps climbing month after month. Meanwhile, your sister that lives one hour away has her A/C on “24/7” at 68°F and she’s paying less.

The truth is, it’s not just about how much electricity you use. Your zip code plays a big role in the rate you pay. In Texas and other deregulated markets, electricity rates vary widely based on local utilities, market demand, and the plans available where you live.

So how can you tell if you’re overpaying — and more importantly, how do you find the cheapest and most reliable electricity plan in your area?

This guide will break down everything you need to know about electricity rates by zip code — from why prices differ to the types of plans you can choose, and how to make sure you’re getting the best value for your home.

Why Electricity Rates Vary by Zip Code

Electricity prices aren’t one-size-fits-all. They depend on where you live, when you use energy, and the type of plan you choose. In deregulated markets like Texas, your zip code determines which Retail Electric Providers (REPs) and plans are available.

Here are the five biggest factors that impact your local rates:

• Supply and Demand
  Electricity costs rise when more people are using power — like hot Texas summers when AC units run 24/7.
• Seasonality
  Winter lows and summer highs change how REPs price plans. That’s why bills can fluctuate from January to July, even on the same plan.
• Transmission and Distribution
  Transmission and Distribution Utility (TDUs) manage power lines and infrastructure. Their fees are built into your final bill, and they vary by region.
• Real-Time Market Pricing
  Wholesale energy costs can change every 15 minutes. While you won’t see these fluctuations directly, your REP factors them into the rate you pay.
• The Retail Electric Provider (REP)
  At the end, it is the REP who decides the final price of electricity (considering the factors above).

Bottom line: Two households in different Texas zip codes — even just a few miles apart — may pay very different rates.

Electricity Rates: Why “Cheap” Isn’t Always “Best”

It’s tempting to jump on the lowest advertised price, but the cheapest electricity rate may not actually save you money once your bill arrives.

Several factors influence what you really end up paying:

• Minimum usage requirements – Some plans advertise low electricity rates but you may not get the best rate if your electricity usage falls below a threshold.
• Home size and age – Older or larger homes may use more energy, changing how a “cheap” electricity rate plays out in real bills.
• Contract length – Short-term plans may look attractive upfront but leave you exposed to price spikes later.
• Hidden fees and penalties – Cancellation fees, service charges, or tiered rates can turn a low advertised cost into a higher monthly bill.
• Your Lifestyle – The best plan depends on when and how your household uses electricity, whether that’s heavy daytime use, late-night habits, or energy-conscious routines.
• Type of Plan – Fixed, variable, indexed, or prepaid plans each have different strengths, and choosing the wrong type can turn a “cheap” rate into an expensive mistake.
• Contract Terms – Contract length, early termination fees, and hidden charges can impact your true cost far more than the advertised kWh rate.

The takeaway: The lowest price per kWh isn’t always the best value. The right electricity plan is the one that fits your household’s unique usage patterns, budget, and long-term goals.

Why Are There So Many Electricity Rates and Plans to Choose From?

If you’ve ever searched for electricity rates by zip code and felt overwhelmed by the sheer number of options, you’re not alone. In Texas, it’s normal to see dozens — even hundreds — of plans available in a single area. But why?

The answer lies in electricity deregulation.

What Is Electricity Deregulation?

Deregulation of the Texas electricity market, which began in 2002, opened the doors for competition. Instead of being locked into a single electricity company, residents in deregulated zip codes can choose from a wide variety of Retail Electric Providers (REPs) and that has helped put downward pressure to electricity rates.

Today, over 85% of Texans live in deregulated areas, including major cities like Houston, Dallas, Austin, and Corpus Christi. This means consumers can compare and select plans based on:

• Price per kWh
• Contract length
• Renewable energy options
• Incentives like free nights or weekends

Deregulation has created a competitive marketplace where companies must constantly offer new rates and features to win your business.

What Is a Retail Electric Provider?

A Retail Electric Provider (REP) is the company that sells electricity plans directly to you. Here’s how it works:

• REPs buy wholesale electricity from power generation companies.
• They purchase transmission and delivery services from your local utility (known as a TDU).
• They package those costs into a plan and sell it to retail customers like you.

Because there are hundreds of REPs across Texas — each with multiple plan types — the number of available options in your zip code can quickly add up.

Types of Electricity Plans Available by Zip Code

When you shop for electricity rates, you’ll see different plan structures. Here’s what they mean:

• Fixed-Rate Plans – Your price per kWh stays the same for the length of your contract. Great for budgeting, but you can’t take advantage of market drops until your contract ends.
• Variable-Rate Plans – Rates change monthly based on market conditions. Flexible, but risky if prices spike.
• Prepaid Plans – Pay-as-you-go electricity, often with daily usage monitoring. Helpful for short-term flexibility.
• Free Nights & Weekends (Time-of-Use Plans) – Discounted or free electricity during off-peak hours. Best for households that can shift usage.
• Bill Credit Plans – These plans offer a credit once a certain electricity usage threshold is met; usually 1,000 or 2,000 kWh
• Solar Buyback Plans – These plans credit homeowners who have solar panels installed for the excess electricity their solar panels generate and send back to the grid

Also consider that some plans come with other perks like a “free” thermostat, “free” veterinarian services for your pet, or “free” EV charging. Each option can look attractive, but the right choice depends on your home’s size, lifestyle, and energy habits.

What’s a Good Price for Electricity in Texas?

As of Aug 2025, the average residential electricity rate in Texas is about 14¢ per kWh (up from ~11¢ a few years ago).

A “good” electricity rate depends on:

• Whether your plan is fixed, variable, green or comes with other perks
• Your zip code’s TDU charges
• Your usage pattern

If you’re paying less than your area’s average rate, you’re doing well — but with new offers popping up daily, you might still save more by switching.

Electricity Deregulation and Your Zip Code: Do You Have a Choice?

Texas is one of the largest deregulated electricity markets in the U.S., meaning most residents can choose their electricity provider. Over 85% of Texans live in deregulated areas, covering major cities like Houston, Dallas, Austin, and Corpus Christi.

However, not every zip code has the same options. Some areas may only have a handful of plans available, while others have hundreds.

That’s why comparing electricity rates by zip code is essential. Below you you’ll find two tables, one with the largest deregulated cities in Texas and another one with the zip codes of the 10 most populated cities:

Abilene	Addison	Allen	Alpine	Alvin
Andrews	Arlington	Baytown	Bedford	Bellaire
Belton	Benbrook	Big Spring	Brownsville	Burleson
Carrollton	Cedar Hill	Cedar Park	Cleburne	Conroe
Coppell	Copperas Cove	Corpus Christi	Cypress	Dallas
Del Rio	Denton	DeSoto	Dickinson	Duncanville
Edinburg	Euless	Farmers Branch	Flower Mound	Fort Worth
Friendswood	Frisco	Galena Park	Galveston	Garland
Gatesville	Georgetown	Grand Prairie	Grapevine	Haltom City
Harker Heights	Harlingen	Houston	Humble	Irving
Katy	Keller	Killeen	Kingsville	Kingwood
La Porte	Lancaster	Laredo	League City	Lubbock
Lufkin	Mansfield	McAllen	McKinney	Mesquite
Midland	Mission	Missouri City	Nacogdoches	North Richland Hills
Odessa	Paris	Pasadena	Pearland	Pflugerville
Pharr	Plano	Port Lavaca	Portland	Richardson
Rockport	Rosenberg	Round Rock	Rowlett	San Angelo
Seguin	Southlake	Spring	Stafford	Stephenville
Sugar Land	Temple	Texas City	Tomball	Tyler
Victoria	Waco	Webster	Weslaco	Wichita Falls
Wylie

Find a complete list of Texas deregulated cities here.

10 Most Populated Deregulated Cities in Texas	Zip Codes
Abilene	76902 – 79508 – 79510 – 79562 – 79601 – 79602 – 79603 – 79604 – 79605 – 79606 – 79607 – 79698
Anahuac	75862 – 75979 – 77031 – 77351 – 77415 – 77504 – 77514 – 77519 – 77547 – 77560 – 77561 – 77575 – 77582 – 77597 – 77614 – 77623 – 77629 – 77661 – 77665
Austin	77872 – 78653 – 78660 – 78680 – 78681 – 78717 – 78723 – 78725 – 78727 – 78728 – 78737 – 78746 – 78750 – 78758 – 78759
Beaumont	77613 – 77619 – 77627 – 77657 – 77665 – 77701 – 77702 – 77703 – 77704 – 77705 – 77706 – 77707 – 77708 – 77713 – 77720 – 77725 – 77726
Big Lake	76392 – 76932 – 79632 – 79702 – 79705 – 79706 – 79720 – 79732 – 79739 – 79755 – 79758 – 79778 – 79782
Big Spring	75098 – 76402 – 76720 – 76932 – 76982 – 79511 – 79520 – 79702 – 79706 – 79707 – 79708 – 79710 – 79713 – 79720 – 79721 – 79726 – 79739 – 79748 – 79749 – 79782
Corpus Christi	78347 – 78373 – 78380 – 78401 – 78402 – 78403 – 78404 – 78405 – 78406 – 78407 – 78408 – 78409 – 78410 – 78411 – 78412 – 78413 – 78414 – 78415 – 78416 – 78417 – 78418 – 78419 – 78426 – 78427 – 78460 – 78463 – 78465 – 78466 – 78467 – 78468 – 78469 – 78470 – 78471 – 78472 – 78473 – 78474 – 78475 – 78476 – 78477 – 78478 – 78480 – 78410
Dallas	72201 – 75007 – 75019 – 75051 – 75065 – 75115 – 75149 – 75150 – 75201 – 75202 – 75203 – 75204 – 75205 – 75206 – 75207 – 75208 – 75209 – 75210 – 75211 – 75212 – 75214 – 75215 – 75216 – 75217 – 75218 – 75219 – 75220 – 75223 – 75224 – 75225 – 75226 – 75227 – 75228 – 75229 – 75230 – 75231 – 75232 – 75233 – 75234 – 75235 – 75236 – 75237 – 75238 – 75239 – 75240 – 75241 – 75242 – 75243 – 75244 – 75246 – 75247 – 75248 – 75249 – 75251 – 75252 – 75253 – 75254 – 75270 – 75287 – 75398 – 76010 – 76016
Fort Worth	76008 – 76020 – 76028 – 76035 – 76036 – 76039 – 76040 – 76052 – 76053 – 76060 – 76071 – 76087 – 76088 – 76102 – 76103 – 76104 – 76105 – 76106 – 76107 – 76108 – 76109 – 76110 – 76111 – 76112 – 76113 – 76114 – 76115 – 76116 – 76117 – 76118 – 76119 – 76120 – 76123 – 76126 – 76127 – 76129 – 76131 – 76132 – 76133 – 76134 – 76135 – 76137 – 76140 – 76148 – 76155 – 76161 – 76164 – 76177 – 76179 – 76180 – 76196 – 76244 – 76247 – 76248 – 76262 – 76837
Houston	76837 – 77002 – 77003 – 77004 – 77005 – 77006 – 77007 – 77008 – 77009 – 77010 – 77011 – 77012 – 77013 – 77014 – 77015 – 77016 – 77017 – 77018 – 77019 – 77020 – 77021 – 77022 – 77023 – 77024 – 77025 – 77026 – 77027 – 77028 – 77029 – 77030 – 77031 – 77032 – 77033 – 77034 – 77035 – 77036 – 77037 – 77038 – 77039 – 77040 – 77041 – 77042 – 77043 – 77044 – 77045 – 77046 – 77047 – 77048 – 77049 – 77050 – 77051 – 77053 – 77054 – 77055 – 77056 – 77057 – 77058 – 77059 – 77060 – 77061 – 77062 – 77063 – 77064 – 77065 – 77066 – 77067 – 77068 – 77069 – 77070 – 77071 – 77072 – 77073 – 77074 – 77075 – 77076 – 77077 – 77078 – 77079 – 77080 – 77081 – 77082 – 77083 – 77084 – 77085 – 77086 – 77087 – 77088 – 77089 – 77090 – 77091 – 77092 – 77093 – 77094 – 77095 – 77096 – 77098 – 77099 – 77201 – 77229 – 77265 – 77267 – 77339 – 77345 – 77346 – 77373 – 77379 – 77380 – 77388 – 77396 – 77401 – 77423 – 77429 – 77447 – 77449 – 77450 – 77471 – 77477 – 77478 – 77479 – 77481 – 77501 – 77502 – 77504 – 77505 – 77506 – 77507 – 77530 – 77532 – 77536 – 77545 – 77546 – 77547 – 77551 – 77554 – 77566 – 77571 – 77581 – 77584 – 77587 – 77598

How to Compare Electricity Rates by Zip Code (Without Wasting Weeks)

Traditionally, there are two choices:

1. Manually visit each electricity company’s website – This can be time-consuming and overwhelming OR
2. Use an electricity comparison site like Power Wizard – Provides a wide range of companies and plans to fit your lifestyle

Here’s how Power Wizard makes it simple:

1. Enter your zip code.
2. Use filters to narrow down and sort plans based on your needs and preferences.
3. (Optional) use their tools to compare plans side by side
4. Enroll with a an electricity provider all within one platform

Frequently Asked Questions About Electricity Rates by Zip Code

Why do electricity rates vary by zip code?

Electricity rates depend on your local utility’s transmission charges, the number of Retail Electric Providers (REPs) competing in your area, and your region’s demand for power. Even within the same city, different zip codes may have different costs because of these factors.

How often do electricity rates change in Texas?

Electricity prices can change daily, based on multiple factor. Once you sign up for a plan this should not affect you. Fixed-rate plans stay the same through your contract, while variable-rate plans can change monthly. That’s why many Texans review their electricity plan once a year.

What is a good price per kWh in Texas right now?

As of August 2025, the average residential electricity rate in Texas is around 14¢ per kWh. A good price is typically below your area’s average, but your “best” rate also depends on your usage and whether you want a fixed, green energy, or time-of-use plan.

How can I find the cheapest electricity plan in my zip code?

You can manually compare REPs or use a third-party comparison site like Power Wizard.

Do all Texas zip codes have deregulated electricity?

No. While over 85% of Texans live in deregulated areas, some zip codes are still regulated and only allow one provider. If you’re in a deregulated zip code, you can choose your electricity provider.

How often should I switch electricity providers?

Most experts recommend reviewing your electricity plan once a year. Since rates and promotions change frequently, switching providers annually can help you avoid higher bills and take advantage of new offers.

Are free nights and weekends electricity plans worth it?

They can be — but only if you shift a significant amount of your energy usage to those discounted hours. If most of your household’s usage happens during the day, a free nights/weekends plan could end up costing more.