Are you ready to save hundreds on your electricity bill?

Discover how to get the best electricity rates in Texas - within seconds!

Are you ready to save hundreds on your electricity bill?

Discover how to get the best electricity rates in Texas - within seconds!

Cheap Electricity Texas - Rates, Plans, Companies, and More

Do you need to find cheap electricity in Texas right now?

The easiest, fastest way is to use Power Wizard’s Shopping Tool

You can look into each company by yourself, but that takes too much time – time you could spend having fun and relaxing.

Power Wizard can save you time and money by doing all that work for you.

Read on if you insist on researching cheap electricity providers in Texas by yourself.

Let us find you the best plan in seconds and start saving.


How To Find Cheap Electricity in Texas?

Finding cheap electricity online is no joke

Before we jump into how to find cheap electricity in Texas, we’ll share what you won’t have to do during this process:

Before proceeding, it’s important to understand how Texas’s electricity market operates differently than the rest of the country.

How Does Electricity Work in Texas?

Buying electricity in many Texas cities is much different than buying electricity in most other states.

Why is Texas so different?

In 2002, Texas deregulated electricity.

Texas Has Deregulated Electricity

Here’s how regulated electricity works:

In other states with regulated electricity, you often only have the option to use one government-owned or government-regulated electric utility company. You don’t get a choice.

Regulation means you don’t have any say in the electricity rates you pay. There is an inability to go searching for other cheap electricity companies.

Here’s how deregulated electricity works in Texas:

In certain Texas cities, electricity is deregulated. In those cities, private companies are allowed to sell electricity directly to the consumer.

As a result, there are dozens of Retail Electric Providers (REPs) that are competing to sell you electricity.

You aren’t forced to use a specific REP. You can choose which one you want to work with.

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Is deregulated electricity a good thing or a bad thing?

Deregulated electricity allows for private companies to have more control. Often, private companies can become more efficient, effective, and cheaper than the government. If electricity companies can become more efficient and effective, then you’re likely to get less expensive electricity.

Deregulated electricity also creates competition. Since many REPs are competing for your business, they’re going to try to make their rates as low as possible. This is a good thing for you.

Deregulated electricity does not mean that it’s the Wild Wild West. Although Texas electricity is deregulated, there are still many rules that REPs have to follow. These rules are in place so that consumers like you don’t get taken advantage of.

Deregulated electricity in Texas does not mean that every single city in Texas has deregulated electricity.

Cities like San Antonio still have regulated electricity. To find out if your city has deregulated electricity or not, you can go to the Public Utility Commission of Texas’s website.

Why Does Texas Have Deregulated Electricity?

In 2002, Texas passed Bill 7. This Bill is what propelled Texas into its current deregulated state.

But, why did Texas do this?

In the 1970s, electricity rates in Texas began to rise. The legislature in Texas started thinking about ways to reduce those rates and make electricity cheaper.

In 1995, Texas passed Bill 373. This was the first version of deregulated electricity.

Texas did this because they were trying to make electricity rates cheaper for people who lived in Texas. But are rates actually cheaper due to deregulated electricity?

Does Deregulated Electricity Mean Cheap Rates?

In theory, yes.

The more competition the electricity industry has, the lower the price will be.

In order for Electricity Company A to outperform Electricity Company B, they’ll need to sell more electricity. It seems simple enough, right?

Well, in order for Electricity Company A to sell more electricity than Electricity Company B, they’ll probably want to have lower rates. If they sell electricity for 14.5¢ per kWh and the other company sells it for 9.1¢ per kWh, then people won’t want to buy from them.

Sometimes the REPs aren’t as in control of the prices as they’d like to be.

What causes electricity rates to fluctuate?

The main determinant of electricity rates is the supply compared to the demand.

Texas saw a very hot summer in 2019. As a result, people blasted their air conditioners and used much more energy than normal.

What did that mean for the electricity companies?

It meant that there was a shortage of electricity.

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Here was the situation:

People in Texas were using a lot of electricity (demand was high). Electricity companies didn’t have a lot of electricity to sell (supply was low). And, as a result, the price shot up.

So, are electricity rates in Texas cheaper because of deregulation?

It’s hard to know if deregulated electricity has made electricity rates cheaper. According to the Energy Information Administration in the US, Texas households pay 11.14% lower than the average American.

According to the same administration, commercial properties in Texas (businesses) pay 29.67% lower than the average commercial property (business) in America.

To Find Cheap Electricity, You Need To Factor In Details About Your Home and Usage

Finding Cheap Electricity for your new home?

You can find cheap Texas electricity one of two ways:

  1. Manually search through dozens (if not hundreds) of plans and create complicated spreadsheets that try to compare electricity rates. Then spend hours reading through contracts and Terms of Service full of technical jargon. And then, after all that work, you can try to choose the best plan.
  2. You can use Power Wizard’s Shopping Tool. It’ll do all the work for you by matching up your home and usage to the best plan in the area based on your needs. It will also help you quickly sign up and get electricity to your home, apartment, or business
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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Square Footage Of Your Home

The size of your home or apartment will influence which plan is the cheapest for you.

Electricity plans in Texas are often based on the number of kilowatt-hours you use each month. Common kilowatt-hours per month include 1000 kWh per month, 1500 kWh per month, and 2000 kWh per month.

Why does your square footage matter?

A home that is 6,000 square feet is likely to use much more electricity than an apartment that’s 900 square feet.

By determining the size of your home, you can choose a plan that is geared more towards your electricity usage.

Age Of Your Home

Most people don’t think about their home’s age when looking for electricity plans. It makes sense why your home’s age matters. 

Do you think an old home that was built in the 1950s will have the same energy efficiency as a new home built in 2018?

The older the home, the less energy efficient it is likely to be. Therefore, you’ll likely use more electricity than someone with a new home that’s the same size.

Expected Electricity Usage In Your Home

Most electricity plans are pre-determined based on your expected usage. In your area, there might be 11 electricity plans for 1,000 kWh per month and 17 electricity plans for 2000 kWh per month. You need to look at your historical electric bills to figure out exactly how much electricity you use.

If you miscalculate your electricity usage, there’s a chance that you’ll have to pay a fee. If you buy a “cheap” electricity plan but don’t use enough electricity each month, you might actually pay a higher rate due to fees.

Zip Code Of Your Home

A person living in Corpus Christi might not have access to the same electricity plans as a person living in Houston.

Retail Electric Providers can choose which cities they want to serve. Some REPs might choose to serve Houston, but not Corpus Christi. Other REPs might choose to serve Corpus Christi, but not Houston.

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The Cheapest Rates In Texas Might Not Be The Best Rates For You

Here’s a quick story that’ll make you think twice about buying the “cheapest” electricity plan in Texas.

Micah lives in a large, 3,800 square foot home outside of Dallas. Micah also loves gadgets. He’s got a bunch of cool technology – technology that requires a lot of electricity to charge and use.

Micah needs electricity for his home. He looks online and sees that the “cheapest” rate in his area is 8.9¢ per kWh. It’s the “cheapest,” so he buys it.

Micah goes about his life. He uses 2,100 kWh during the first month of his contract.

When he looks at his bill, he sees that he was charged 12.3¢ per kWh. But he signed up for a rate of 8.9¢ per kWh. He’s confused and upset. His electric bill is very expensive.

He immediately calls his electricity company.

They inform him that the contract states that if he uses over 2,000 kWh per month, then his rate would increase. Since Micah didn’t look at his historical electricity usage or read the contract, he’s stuck paying a much higher rate.

“Cheap Electricity No Deposit” – Don’t Get Fooled By Marketing Tactics

With so much competition, each REP is trying to do everything it can to get consumers to choose it over other REPs.

Each electricity company will have different marketing strategies to try to get you to sign up.

They might:

How can you know if these marketing ploys are actually beneficial or not?

Not only do you have to worry about the electricity rates and all the hidden fees for each plan, but you also need to consider this information.

What Is The Cheapest Electricity Company In Texas?

The cheapest electricity company in Texas depends on the electricity consumer.

You might save the most money by using Electricity Company A. However, your co-worker who lives down the road might save the most money by using Electricity Company B.

Since every person has a different home and different usage, there’s no such thing as a one-size-fits-all.

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

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Cheap Electricity Houston:

Do you live in Houston or are you moving there? Do you want to find the cheapest electricity rates in Houston?

 

These are some of the most recent electricity rates in the Houston area:

Before you choose one of these plans:

Remember that the “cheapest rate” in terms of price per kilowatt-hour might not be the best plan for your home and your usage.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate – months 9.9 ¢ / kWh
JUST – Sustainable Living Bundle – months 9.6 ¢ / kWh
AMIGO – Sustainable Lifestyle – months 9.7 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed – months 10.0 ¢ / kWh
FRONTIER – Frontier Power months 9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE months 11.6 ¢ / kWh
INFUSE – Essential Infusion Plan months 12.0 ¢ / kWh
FIRST_CHOICE – You Got This™ – Fixed 12 months 12.7 ¢ / kWh
ENERGY_TEXAS – Come & Take It 12 months 12.7 ¢ / kWh
SUMMER – Months Texas Summer Savings Product months 12.7 ¢ / kWh

Cheap Electricity Dallas:

These are some recent electricity rates in the Dallas area.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate – months 9.9 ¢ / kWh
JUST – Sustainable Living Bundle – months 9.6 ¢ / kWh
AMIGO – Sustainable Lifestyle – months 9.7 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed – months 10.0 ¢ / kWh
FRONTIER – Frontier Power months 9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE months 11.6 ¢ / kWh
INFUSE – Essential Infusion Plan months 12.0 ¢ / kWh
FIRST_CHOICE – You Got This™ – Fixed 12 months 12.7 ¢ / kWh
ENERGY_TEXAS – Come & Take It 12 months 12.7 ¢ / kWh
SUMMER – Months Texas Summer Savings Product months 12.7 ¢ / kWh

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Cheap Electricity Corpus Christi:

These are some Corpus Christi electricity plans:

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate – months 9.9 ¢ / kWh
JUST – Sustainable Living Bundle – months 9.6 ¢ / kWh
AMIGO – Sustainable Lifestyle – months 9.7 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed – months 10.0 ¢ / kWh
FRONTIER – Frontier Power months 9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE months 11.6 ¢ / kWh
INFUSE – Essential Infusion Plan months 12.0 ¢ / kWh
FIRST_CHOICE – You Got This™ – Fixed 12 months 12.7 ¢ / kWh
ENERGY_TEXAS – Come & Take It 12 months 12.7 ¢ / kWh
SUMMER – Months Texas Summer Savings Product months 12.7 ¢ / kWh

Cheap Electricity Waco:

These are some sample rates and plans for the Waco area.

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate – months 9.9 ¢ / kWh
JUST – Sustainable Living Bundle – months 9.6 ¢ / kWh
AMIGO – Sustainable Lifestyle – months 9.7 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed – months 10.0 ¢ / kWh
FRONTIER – Frontier Power months 9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE months 11.6 ¢ / kWh
INFUSE – Essential Infusion Plan months 12.0 ¢ / kWh
FIRST_CHOICE – You Got This™ – Fixed 12 months 12.7 ¢ / kWh
ENERGY_TEXAS – Come & Take It 12 months 12.7 ¢ / kWh
SUMMER – Months Texas Summer Savings Product months 12.7 ¢ / kWh

Cheap Electricity Fort Worth:

These are some electricity plans for Fort Worth residents:

Plan NamePlan LengthPlan Rate

SOUTHERN_FEDERAL – SoFed Better Rate – months 9.9 ¢ / kWh
JUST – Sustainable Living Bundle – months 9.6 ¢ / kWh
AMIGO – Sustainable Lifestyle – months 9.7 ¢ / kWh
RANCHERO – Ranchero Smart & Fixed – months 10.0 ¢ / kWh
FRONTIER – Frontier Power months 9.2 ¢ / kWh
CONSTELLATION – MONTH RESIDENTIAL FIXED RATE months 11.6 ¢ / kWh
INFUSE – Essential Infusion Plan months 12.0 ¢ / kWh
FIRST_CHOICE – You Got This™ – Fixed 12 months 12.7 ¢ / kWh
ENERGY_TEXAS – Come & Take It 12 months 12.7 ¢ / kWh
SUMMER – Months Texas Summer Savings Product months 12.7 ¢ / kWh

Instead of wasting your time reading about electricity plans, you can use Power Wizard’s Shopping Tool to start saving now!

Discover the best electricity rates.

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

Learn More in Under 2 Mins