The "Best" Electricity Rates In Texas Might Not Be The Best Rates For You

Picking the right electric company in Texas can feel like playing a game at the carnival. Even if you feel like you’ve won, there’s always a hint of the feeling that you’ve been taken advantage of (or maybe more than a hint).

Electric rates change over time so, even if you do all the research and pick the best provider, there’s no telling if they still are the right choice for you. You can win at the game of choosing the right provider the same way you can win at games in the carnival: knowledge!

These games may have a fault you can exploit, they may be completely fair and played straight and strategically, or they may never allow anyone to win. 

Uncover the Truth with Power Wizard!

Power Wizard evaluates all of the options in your area and instantly lets you know which ones are best for you. You don’t have to keep guessing about whether or not the game you’re playing is fair! The Shopping Tool will let you know for a fact!

 

If you’re interested in taking the slower route and figuring everything out for yourself, keep reading and we’ll gladly show you how!

How Many Texas Electricity Plans Are There?

This is a harder question to answer than you’d think. This article was published in December of 2019. By the time you’re reading this, there will either be more or fewer plans in the market than there are today. It’s highly unlikely that the number of electricity plans in Texas remains constant.

We’ll explain why electricity plans in Texas are constantly changing below.

What you need to know is that currently there are hundreds, if not thousands, of electricity plans available.

Trying to decipher which plan is the best for you is not easy when there are hundreds of plans. That’s why we share exactly how to approach electricity rates in Texas to find the best one for you.

Electricity Plans Are Constantly Changing

The number of electricity plans in Texas is never constant. Here’s why:

• Current REPs are adding new plans for potential consumers to buy
• Current REPs are getting rid of old plans that they no longer want to sell
• New Retail Electric Providers are entering the market and adding plans
• Some Retail Electric Providers are exiting the market and are no longer in business

Don’t underestimate how important this is!

You might be thinking, “Who cares? I just care about the current energy rates in texas so that I can buy the cheapest electricity right now.”

If you don’t take into account changing electricity rates, then you’re likely to end up overspending.

We’ll explain how important changing electricity rates is through a story:

Let’s say that you’re moving to Texas and you want to know how to find cheap electricity.

You shop around and find a plan for 8.9¢ per kWh. It seems cheap for your usage and your zip code, so you buy it. You connect your credit card and automatically pay each month.

You’re proud of yourself and go about your life. You immediately forget about electricity.

Twelve months later, your contract is up. But, your Retail Electric Provider doesn’t have to notify you. You didn’t read the fine print, so you wouldn’t know that.

You also wouldn’t know that your REP has increased your rate from 8.9¢ per kWh to 11.8¢ per kWh after your contract expired. That’s a 33% increase in your electricity rate.

You start to notice that your bill is higher, but you don’t know why.

Months later, you finally realize that your REP raised your rate. And it has cost you hundreds of dollars.

But, there’s one last piece to this story that’s important:

During your contract, REPs in Texas changed their rates. Some REPs created new plans that would’ve been a perfect fit for your home and usage.

Unfortunately, 12 months ago you thought you found an amazing plan and you forgot about electricity. You didn’t monitor all the new plans in the market, one of which could’ve saved you hundreds of dollars.

That’s why changing electricity rates is important:

Changing rates means that your current rate could go up. It also means that there may be new plans that are a better fit for you and your family than your current plan.

At Power Wizard, our unbiased algorithm constantly monitors your plan and compares it to all the other plans in the market. You can forget about electricity after you buy it and we’ll always have your back.

Our algorithm will run 24/7, always on the hunt for new plans and always monitoring your usage to find you the best electricity plan.

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The Number of Texas Electricity Rate Plans Depends On Your Zip Code

The number of available electricity plans will depend on where you live. If you’re looking for the best Houston electricity rates, then you’ll have a different number of available plans than someone looking for an electricity plan in Corpus Christi.

Why are there different electricity plans depending on what zip code you live in?

Some Retail Electric Providers don’t serve every deregulated city in Texas. Some REPs only service certain areas.

For example, an REP might only service the greater Dallas area and the greater Houston area. But, they might not service Corpus Christie.

As a result, there will be a different number of REPs per zip code.

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Are Electric Prices In Texas High Or Low Compared To The Rest Of The Country?

Are Business Electricity Rates in Texas Different Than Residential Rates?

According to the U.S Energy Information Administration, commercial properties in Texas paid an average of 8.46¢ per kWh. This is data from September of 2019.

How does this compare to the rest of the United States? What about the most expensive state for commercial electricity rates? How does it compare to the least expensive state in the country for commercial rates?

The least expensive state for commercial electricity is Idaho. The average commercial property in Idaho pays 7.57¢ per kWh.

The most expensive state for commercial electricity the United States is Hawaii. The average commercial property in Hawaii pays 28.89¢ per kWh.

So, how does Texas compare to the rest of the country?

As of September 2019, the average commercial property in the United States pays 10.97¢ per kWh.

Commercial properties in Texas pay 29.67% lower than the average commercial property in America.

How Many Texas Electricity Plans Are There?

We already shared this information in a different section titled “Electricity Plans Are Constantly Changing.”

In that section, we explained that there are hundreds, if not thousands, of electricity plans currently in the Texas market.

The number of electricity plans in Texas regularly changes:

• Retail Electric Providers are regularly adding new plans
• Retail Electric Providers are regularly phasing out old plans
• New REPs are coming to Texas
• Some REPs might be leaving the market and closing their doors

What Is A Good Price For Electricity Rates In Texas?

You probably don’t just want a “good” electricity rate.

You’re probably thinking: “What is the best electricity rate in Texas?”

Naturally, you want to pay the lowest possible rate to save the most money.

There’s an issue with figuring out a good electricity rate in Texas, though:

The lowest rate per kWh doesn’t necessarily mean it’s the best plan that’ll save you the most money.

There are other factors that you’ll need to consider when choosing an electricity plan in Texas:

• Does the plan offer “free nights?”
• Will your rate increase after your contract expires?
• Is there a large cancellation fee?
• If you don’t meet the minimum energy requirement, will they charge you a fee?
• And many other factors – if you read the fine print, you’ll see how many hidden fees are in each plan.

Hypothetically, if you were interested in just finding a good rate per kWh, then you could determine what a good rate would be by comparing it to what the average Texan is paying.

The average Texas household pays 11.85¢ per kWh.

If you were to find an electricity rate lower than 11.85¢ per kilowatt-hour, then you’d be finding a “good” electricity rate compared to the average. But, remember, your electricity rate per kWh doesn’t tell the whole story.

If you’re a business, then a “good” rate would be lower than what the average commercial property pays in Texas.

The average Texas commercial property pays 8.46¢ per kWh.

If you were to find an electricity rate lower than 8.46¢ per kilowatt-hour, then you’d be lower than the average rate. Hypothetically, this would be a “good” rate compared to the average.

As we mentioned above, finding the cheapest electricity rate per kWh might not be the best plan for your business.

Why does the age of your office space and your usage influence your electricity plan?

Your business location might be in an old building with less energy efficiency. Because of this, your electricity usage each month will likely be higher than if you were in a new building.

Or you might operate a medical clinic – the medical technology you use likely requires a lot of electricity. Your usage will likely be much higher than a realtor’s office that simply uses some computers and a printer.

If you want to find the best electricity plan for you, use Power Wizard’s Savings Estimate tool that’ll run its unbiased algorithm to find the best plan for you.

Who Has The Cheapest Electricity Rates In Texas?

The cheapest electricity rates in Texas are constantly changing.

Also, the cheapest electricity rate in all of Texas might not be available for your zip code. The cheapest electricity rate per kWh might only be available in certain cities or specific zip codes.

Below, we share the most up-to-date information on the cheapest electricity rate in the state of Texas.

Plan NamePlan LengthPlan Rate

CONSTELLATION – MONTH RESIDENTIAL FIXED RATE	6 months	11.6 ¢ / kWh
INFUSE – Essential Infusion Plan	6 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
DIRECT – Green Texas – Fixed	12 months	13.0 ¢ / kWh
YEP – YEP Saver Fixed Autopay E-Plan	6 months	12.8 ¢ / kWh
SOUTHWEST – Texas Saver Fixed Rate Autopay E-Plan	6 months	12.8 ¢ / kWh
DISCOUNT – Saver	12 months	12.7 ¢ / kWh
VETERAN – Basic	12 months	12.8 ¢ / kWh
SPARK – Choose	15 months	12.8 ¢ / kWh

The cheapest electricity rate in Texas is currently [price] by [energy company].

One more important reminder that could save you hundreds of dollars:

This rate might not be available in your zip code and might not actually be the best plan for your home’s size, your home’s age, and your usage.

To find the best plan for your home’s size, age, and usage, use Power Wizard’s Savings Estimate tool. Our unbiased algorithm takes your information and analyzes every single available plan in the market to find the best plan for you.

Texas Energy Rates Are Different Than Texas Electricity Rates

Energy rates in Texas are different than electricity rates in Texas.

Energy rates can be referencing one or more of the following forms of energy:

• Natural gas
• Solar
• Other alternative forms of energy

While you may also be looking for a natural gas plan or solar installment on your roof, it’s important to understand that electricity rates are different than energy rates.

Compare Electricity Rates In Texas With This Up-To-Date List of Rates:

As you look at the current electricity rates in Texas, remember to consider a couple of things:

• Some of these plans might not be available in your zip code
• Each plan has different terms of service
• Some have “free nights and weekends”
• Some have high cancellation fees and others don’t have cancellation fees at all
• The cheapest price per kWh might not be the best plan for you
• Your home’s size will influence which plan is best for you
• Your home’s usage will influence which plan is best for you
• Some plans have hidden fees that aren’t represented in the price per kWh
• For example, if you have a 1,000 kWh plan but only use 998 kWh, you might get charged a hefty “minimum usage” fee since you didn’t meet the minimum usage

Below, check out the Texas electricity comparison chart:

Instead of spending hours searching through hundreds of Texas electricity rates, you can make your life easier:

Power Wizard’s unbiased algorithm considers your home’s age, size, and usage, as well as your previous electricity bills, to help you find the best plan for you. This process takes less than 2 minutes.

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Shop Electricity Rates in Texas With Power Wizard – Our Unbiased Algorithm Helps You Get The Best Plan

Here’s how you probably currently shop for electricity in Texas:

1. You go to an energy company’s website or 3rd party website and sort all the electricity plans in Texas based on zip code and rate.
2. Next, you look at the rates based on price per kilowatt-hour.
3. You spend hours searching through all of the available rates for your zip code, confused by the terms of service, marketing ploys, and fine print.
4. By this point, you’re really stressed and unsure of what to do, so you choose a plan that you think is best for you and your family.
5. After you connect your credit card and set up automatic payments, you forget about electricity.
6. Once your contract expires, you automatically renew it even though there might be cheaper plans out there. You do this because shopping for an electricity plan was so frustrating the first time.

Here’s how you can probably save hundreds of dollars and hours of your life each year by using Power Wizard

1. You spend less than 3 minutes using Power Wizard’s Savings Estimate tool below.
2. Power Wizard’s unbiased algorithm uses personalized information like your home’s age, square footage, and your historical usage based on previous electricity bills to find the best plan for you.
3. Power Wizard makes purchasing your plan easy. It only takes a few minutes to set everything up. From there, we take care of the rest.
4. Power Wizard continues to monitor your plan and your electricity usage 24 hours per day.
   1. If your plan’s rate increases, then we let you know and help you find another plan that will save you money.
   2. We notify you when your contract is about to expire, especially if your rate will increase after you renew it.
   3. If a new plan enters the market that’s a better fit for your home and usage, then we help you switch.

Learn exactly how much money you can be saving each month by using Power Wizard’s Savings Estimate below.

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