Texas households usually pay a lower price per kWh than the national average, but that does not always mean lower monthly bills. Texas homes tend to use more electricity because of long cooling seasons, so total costs can end up slightly higher even with a cheaper rate.
Here is how Texas stacks up:
When you put those numbers together, the typical Texas bill comes out a bit higher than the national average. The lower rate helps, but higher usage can outweigh it.
If you want to save more on your monthly bill, the best approach is to pair smart home habits with a plan that matches your household’s usage. Power Wizard can show you real plan costs and help you find a rate that fits the way you use electricity.
Your electric bill comes down to three main factors: how much power you use, the type of plan you are on, and, depending on the plan, when you use electricity. Even with a good electricity rate, the way your home uses energy each day has the biggest impact on your total cost.
HVAC systems are usually the biggest piece of your electricity use. In Texas, cooling drives most of the load for much of the year, but electric heating can also cause bills to rise during winter cold snaps. Central AC and heat pump systems draw more power than window units or space heaters, yet all can run for long stretches when outdoor temperatures swing to either extreme.
Homes with poor insulation, leaky ductwork, drafty windows, or large square footage see even higher usage because the system has to work harder to maintain comfort. This is why bills can spike in both peak summer heat and sudden winter freezes, even when your rate per kWh stays the same.
Certain appliances are “always on” or run often enough to make a noticeable difference in monthly usage. Your refrigerator and freezer operate around the clock. Electric dryers and electric water heaters can add large spikes during regular laundry or shower routines. If you have a pool, the pump becomes another major load when it runs several hours each day. Multiple laundry days, spare fridges in the garage, or long pool pump cycles all add to the total kWh.
Many households also see steady usage from electronics that remain in standby mode. TVs, streaming boxes, routers, game consoles, smart speakers, and chargers all draw small amounts of power even when they are turned off. Each device may use only a little, but they can add up in tech-heavy homes. While this category is smaller than AC or major appliances, reducing unnecessary standby time can still trim your monthly usage.
An electric vehicle (EV) adds a new category of electricity use to your home. Depending on how much you drive, charging at home can add a few hundred kWh per month to your electricity bill. If your provider offers time-of-use (TOU) or EV-friendly plans, matching your charging schedule to those lower-rate periods can help keep your total monthly bill in check.
Lowering your bill comes down to two main levers. You can reduce the amount of electricity your home uses and ensure you are paying a fair rate for every kilowatt. When you focus on both, you get the biggest impact.
The best electricity plan depends on your home, lifestyle, and usage. For most households, however, a fixed-rate plan is the safer choice because it protects you from price swings.
Some plans advertise perks like free nights, free weekends, or bill credits. These can work if your usage lines up with the plan rules, but they can also cost more if you miss the required pattern. The details matter, and comparing all the fine print across dozens of offers is difficult to do on your own. Power Wizard helps you sort through those rules so you can avoid surprises and choose a plan that matches your home and usage.
Temperature control is where most Texas homes spend the most energy, so focusing your efforts here can yield the biggest results.
Rates tend to be lowest in spring and fall when demand is steady, and the weather is mild. Shopping during these times gives you a better chance to lock in a lower rate before summer or winter hits.
Staying aware of your contract end date is also important, as rolling over to a default plan or a month-to-month rate can increase your bill. Select a new electricity plan at least 30 days before your current one expires to avoid this.
In deregulated areas of Texas, electricity service comes from two separate companies. Your electric utility company (also known as the Transmission and Distribution Utility) delivers power to your home, and your retail electricity provider (REP) sells you the plan you use each month. Let’s take a closer look at each entity’s role and how it impacts your monthly bill.
Transmission and Distribution Utilities (TDU) own and maintain the poles, wires, and meters that bring power to your home. They handle repairs, fix outages, manage downed lines, and maintain the grid. They also set the delivery charges, listed as TDU fees, on your bill. These charges are regulated and apply no matter which REP you choose.
REPs sell you the electricity plan you enroll in. They set your rate per kWh, offer contract terms and plan perks, and send your monthly bill. They compete on pricing, customer service, and plan design, but they do not control delivery charges or grid maintenance.
Delivery charges come from your electric utility, not your provider. They are the same for every household inside that service area, and switching REPs does not change them. You can lower your bill by choosing a better energy rate or plan structure, but the delivery fee portion is fixed.
If your power goes out, lights flicker, or you see a downed line, your utility (Oncor Electric Delivery, CenterPoint Energy, AEP Texas North, AEP Texas Central, Texas-New Mexico Power, or Lubbock Power & Light) is the one to call. They manage the grid and are responsible for restoring service. Your provider cannot fix outages, but your provider’s bill usually lists the utility’s emergency number so you can reach them quickly.
The average Texas household pays about $178.02 per month for electricity, based on recent usage and rate data from the U.S. Energy Information Administration. Actual bills vary widely depending on home size, insulation quality, thermostat settings, and HVAC run time.
A typical Texas home uses about 1,105 kWh per month. This number is higher than the national average because long cooling seasons keep air conditioners running for many hours each day. Larger homes and older HVAC systems can push your usage even higher.
Summer bills rise due to heavy AC demand, long stretches of extreme heat, and higher humidity that makes cooling systems work harder. Some plans also charge more when you cross certain usage tiers, which can happen easily during June, July, and August. Locking in a competitive plan before summer and adjusting cooling habits can help reduce those spikes.
Most apartments use fewer kWh than single-family homes because they are smaller and often share walls that reduce heat gain. Some units include utilities in rent, which lowers the direct monthly bill. However, inefficient window units, electric heat, the wrong electricity plan, or poor insulation can still lead to higher-than-expected apartment bills.
Most EV drivers spend about $40 to $70 per month on home charging in Texas. Your exact cost depends on your local electricity rate, how efficiently your vehicle uses energy, and how many miles you drive each month.
Ready to lower your electricity bill? Power Wizard makes it easy to find a plan that fits your home, your usage, and your budget. Instead of guessing or sifting through fine print, you get a clear look at real plan costs. Start your search today and let Power Wizard help you lock in a rate that works for your home year-round.
