While Houston households often pay less per kilowatt-hour than the national average, that doesn’t always translate to lower monthly bills. Because the city experiences long cooling seasons, homes typically consume more electricity, resulting in slightly higher overall costs despite cheaper rates.
Here is how Texas stacks up:
On average, residents in Houston, TX spend about $166.01 per month on electricity. That adds up to $1,992.06 per year. That’s about 1.10% higher than the national average electric bill of $2,013.94. The average electric rates in Houston, TX cost 15.50¢/kilowatt-hour (kWh) , so that means that the average electricity customer in Houston, TX is using 1,071 kWh of electricity per month, and 12,852 kWh over the course of the year.
Your electricity bill in Houston is shaped by three factors: how much energy you use, the type of plan you choose, and when you use electricity (for some plans). Even with a competitive rate, your home’s everyday energy habits have the greatest influence on your total monthly cost.
In Houston, cooling accounts for a significant portion of the electricity used year-round. Hot, humid summers keep air conditioners running for long stretches, and even short winter cold snaps can push electric heaters or heat pumps into high gear. Central systems typically use more power than window units, but both can run nonstop when temperatures swing.
Homes with older insulation, leaky windows, worn ductwork, or larger square footage often use more electricity because the HVAC system needs to work harder to stay comfortable. As a result, bills can jump during extreme heat or sudden freezes, even when your kWh rate never changes.
Some appliances create a steady baseline of energy use simply because they operate so often. Refrigerators and freezers cycle all day. Electric dryers, dishwashers, and water heaters create noticeable spikes during laundry and shower routines. Pool owners see additional demand from pumps that run several hours daily. More laundry loads, extra fridges in the garage, or longer pool pump schedules all increase your total kWh usage.
Most Houston homes have a growing number of electronics that stay plugged in around the clock. Devices like TVs, streaming boxes, WiFi routers, game consoles, smart speakers, and chargers draw small amounts of power even in standby mode. Each device uses only a little power, but together they can contribute to higher baseline usage, especially in tech-heavy households.
If you charge an EV at home, it becomes one of the largest contributors to your monthly electricity use. Depending on your driving habits, charging can add hundreds of kWh each month. Choosing a plan with time-of-use (TOU) or EV-friendly rates and scheduling your charging during low-cost hours can help keep your total bill manageable.
Cutting your electricity costs in Houston comes down to reducing the amount of power your home uses and making sure you are on a plan that charges a fair, stable rate. When you manage both, you see the strongest savings.
The right plan depends on your home’s size, your daily routines, and when you use the most energy. For many Houston households, a fixed-rate plan offers stability because it shields you from seasonal price swings, especially during the city’s long cooling season.
Some plans highlight perks such as free nights, free weekends, or usage credits. These can work well if your habits align with the plan’s rules, but costs can rise quickly if your usage falls outside the required ranges. Each plan’s Electricity Facts Label (EFL) explains its terms, rates, and structure, but comparing dozens of them on your own can be confusing and time-consuming. Power Wizard helps you sort through those rules to find a plan that matches your home and usage.
Most Houston electricity costs come from keeping your home cool, so small HVAC changes can have an outsized effect on your bill.
These simple habits reduce the daily load and lower the impact of seasonal spikes.
Houston electric rates are often lowest in spring and fall when temperatures are mild, and demand is lower. Shopping during these periods helps you lock in a more affordable rate before summer heat or winter cold drives prices up.
Keep an eye on your contract end date as well. Letting your plan roll over can push you onto a higher month-to-month rate. To avoid that, compare plans and select your next one at least 30 days before your contract ends.
Choosing a renewable or green electricity plan gives Houston residents an easy way to support clean energy without installing rooftop solar or changing their home electricity use. These plans simply change where your electricity is sourced, not how it reaches your house, so everything works just like it always has.
If sustainability is a priority, renewable plans offer a straightforward path to make an impact while keeping your costs predictable. Power Wizard’s comparison tool can be filtered to show you the green energy options in your area.
In Houston, your electricity service comes from two different companies. Your Transmission and Distribution Utility (TDU) delivers power to your home, and your retail electricity provider (REP) sells you the plan you use each month. Each plays a separate role in how your bill is structured and who you contact when the power goes out.
CenterPoint Energy is the TDU for the Houston area. They own and maintain the poles, wires, meters, and other infrastructure that keep electricity flowing. CenterPoint is responsible for outages, downed lines, repairs, and all grid maintenance. They also set the delivery charges (listed as TDU or TDSP fees) on your bill. These fees are regulated and apply to every Houston home, no matter which REP you choose.
Your REP sells you your electricity plan. They set your kWh rate, design the plan features, manage your contract, and issue your monthly bill. REPs compete on pricing and service, but they do not control delivery fees or grid operations.
Delivery charges in Houston are set by CenterPoint Energy, the local Transmission & Distribution Utility (TDU)—not by your Retail Electric Provider (REP). Because every household in the Houston area is served by the same TDU, these delivery fees are identical no matter which electricity provider you choose.
Switching REPs can change the energy rate portion of your bill, but the delivery charges stay the same across all plans.
If you lose power, notice flickering lights, or see a downed line, you should contact CenterPoint Energy. They manage the Houston-area grid and handle all outage restoration work. Your REP cannot repair outages, but the utility’s emergency phone number is typically listed on your electricity bill so you can reach them quickly when you need help.
Ready to lower your electricity bill in Houston? 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 in the Houston area. Start your search today and let Power Wizard help you lock in a rate that works for your home year-round.
The average Houston, TX household pays about $166.01 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 Houston home uses about 1,071 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 that usage even higher.
Summer bills in Houston 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 Houston apartments use fewer kWh than single-family homes because they are smaller and often share walls that reduce heat gain. 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 Houston. Your exact EV charging cost depends on your electricity rate, your vehicle’s energy efficiency, and how many miles you drive each month.
