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 prices 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.
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:
Bottom line: Two households in different Texas zip codes — even just a few miles apart — may pay very different rates.
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:
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.
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 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).
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:
Deregulation has created a competitive marketplace where companies must constantly offer new rates and features to win your business.
A Retail Electric Provider (REP) is the company that sells electricity plans directly to you. Here’s how it works:
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.
When you shop for electricity rates, you’ll see different plan structures. Here’s what they mean:
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.
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” price depends on:
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.
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 |
Traditionally, there are two choices:
Here’s how Power Wizard makes it simple:
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.
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.
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.
You can manually compare REPs or use a third-party comparison site like Power Wizard.
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.
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.
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.
Imagine the gentle hum of the air conditioner running in the next room, the soft glow of a TV left on for company, and t...
Imagine trading your morning commute for a short walk to the kitchen table—sounds like a win, right? But while working...
Click on a section to skip directly to it: Let Power Wizard Research For You!What is the Difference Between Texas Energy...
