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!

Best Electricity Rates in Houston – How to Find the Best Rate for You

Have you ever looked for a recipe online? You click on an appetizing photo that’s calling your name, but instead of getting the quick and easy steps to making a ground beef taco, you end up knowing far too much about someone’s grandma. 

Electricity industry ads are like those wordy autobiographies. They look fun and exciting at first, but when you scroll through all the fine print you’re left wondering if it’s even worth the click.

We can’t make food bloggers put their recipe cards at the top of each post, but we can make sure you never have to read an electricity industry ad again.

Let Power Wizard find the best plan for you!

It’s quicker and easier than scrolling through that food blog looking for the recipe from the title. Power Wizard’s algorithm can match you to your perfect plan in minutes so you can stop searching and get back to living (or making tacos).

Save with the Shopping Tool now!

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Houston Electricity Rates

When the Texas electricity market became deregulated in 2002, many Houston residents like you were allowed to choose their electricity provider.

You no longer have to rely on your local utility to provide you with electricity.

Most Texans in deregulated areas can choose from a variety of competitive providers.

Deregulation of the electricity market allows you to shop around for the best electricity rates for your home and lifestyle.

Since the electricity market opened, more and more electricity and energy providers have entered the market.

With the amount of electricity and energy providers that are now available, comes an outrageous number of rates and plans.

Deregulation of Electricity Rates in Houston

Electricity deregulation in Houston was approved by the Texas Senate Bill 7 on January 1, 2002.

This bill called for the creation of the Electric Utility Restructuring Legislative Oversight Committee to oversee the implementation of the bill.

According to this law, deregulation would be phased in over several years.

85% of Texas power consumers, meaning those served by a company not owned by a municipality or a utility cooperative, can choose their electricity service.

Texans can now choose from a variety of retail electric providers (REPs), including your current utility provider.

It is important to note that your current utility in the area still owns and maintains the local power lines.

In the event of a power outage, you should call them.

Ownership and maintenance of the local power lines are not subject to deregulation.

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Why Is Deregulation Important to Electricity Rates in Houston?

One desired effect of the competition between electricity providers or REPs is lower electricity rates in Houston.

The Texas electric industry is changing the way it delivers electricity to millions of households and businesses.

The billion-dollar industry, which has been referred to as the last great government-sanctioned monopoly, is steadily being deregulated.

This has created an overwhelming sense of competition in the Houston electricity market.

This ultimately gives you, the consumer, the power to choose your electricity provider in much the same way in which you would choose your telephone carrier.

The best way to choose the best electricity rate for you and your family is to shop around.

Types of Electricity Rates Available In Houston

electricity rates Houston

There are many factors that you should consider when comparing electricity rates in Houston.

What does a manual search for electricity rates in Houston look like?

It looks a little something like this:

  • You know that you can find a better rate and plan, saving your family hundreds of dollars a month, with this one decision.
  • You are aware of the terms of your current contract.
  • Do you want a fixed-rate, indexed-rate, or variable-rate, plan?
  • You dive deep inside hundreds of provider websites.
  • Now comes the time to compare plans.
  • You must always refer to your personal information such as:
    • square footage
    • age of your home
    • your electricity usage
  • You finally have chosen the one you think fits your needs best.
  • You now need to study the ins and outs of your new contract.
  • You realize that because electricity rates change every 15 minutes, you may have to do this all over again much sooner than you think.

Power Wizard can make your search much smoother with little effort on your end.

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


Power Wizard uses a one-of-a-kind magical algorithm that searches through thousands of REPs, rates, and plans to match you with the best plan.

Just by becoming a Power Wizard member and providing us with your personalized information regarding your home and family needs, we will do the comparison shopping for you.

Let Power Wizard find the best electricity rates in Houston, for you.

Prepaid Electricity Rates in Houston

Prepaid service may be provided as either a fixed, variable, or indexed plan.

These plans offer no surprises.

You make your electricity service purchase in advance.

You don’t have to worry about your rate going up suddenly.

How A Prepaid Plan Works

When you prepay for your electricity, you will not receive a monthly bill.

Instead, you purchase a certain number of kilowatt-hours upfront.

When your “balance” of kilowatt-hours drops below a certain low-balance amount, you can then purchase more.

Advantages Of A Prepaid Plan

You don’t have to worry about having a bill that is higher than you expected at the end of the month.

Once you pre-pay, you know that your electricity service is taken care of for a while.

When you finally get into the routine of pre-paying, you will be able to track the amount of electricity you typically use.

This will allow you to predict how often you should purchase more kWhs.

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Disadvantages Of A Prepaid Plan

With a prepaid plan, you may have to make an electricity payment upfront before electrical services can be provided.

You can be notified in as little as three days before your service is to be disconnected, once your account reaches a certain low-balance threshold.

Fixed-Rate Electricity Rates in Houston

If you choose a fixed-rate plan in Houston, your price per kWh will not change during your contract period.

One type of fixed-rate electricity plan is a prepaid plan.

How A Fixed-Rate Plan Works

If your contract period is 12 months, you will pay the same amount for 12 billing cycles.

Make sure that you’re aware of your contract terms and length.

Advantages Of A Fixed-Rate Plan

This may help your household budgeting.

It’s easy to calculate your monthly expenditure when at least one of your utility bills is the same every month.

If your family’s usage goes up and down depending on the day, then a fixed-rate plan may be best for you.

Disadvantages Of A Fixed-Rate Plan

If market prices fall, you will have to wait until your contract ends to take advantage of new lower prices.

Unless you make changes before your contract expiration date, your provider may switch you to a variable rate plan.

Variable Electricity Rates in Houston

A variable electricity plan in Houston is exactly as its name states.

The amount that you pay will vary from month to month.

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With a variable-rate plan, any month-to-month changes regarding your plan are at the discretion of your REP.

How A Variable Electricity Plan Works

The rate you pay per kilowatt-hour (kWh) can vary from month to month.

Your rate can go up or down based on market prices and the inclination of your current REP.

Advantages Of A Variable Plan

A variable-rate plan allows you to benefit from falling market prices.

Many variable-rate plans may have no cancellation fee or monthly contract.

Disadvantages Of A Variable Plan

Variable-rate plans have an increased risk for higher rates if electricity prices spike due to:

  • Hot summers
  • Adverse market conditions
  • Natural disasters

Month-To-Month Electricity Rates in Houston

A month-to-month electricity plan is a plan that does not require that you sign a contract.

Most REPs offer no-contract electricity plans.

Price is typically a major factor when searching for electricity rates in Houston.

The prices on no-contract plans vary from month to month.

How A Month-To-Month Electricity Plan Works

With a month-to-month plan, your monthly electric bill can change from month to month.

There is little to no predictability when it comes to your monthly charges.

Often month to month plans is a convenient short-term solution.

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Advantages Of A Month-To-Month Plan

When market prices fall, you may benefit from paying a lower monthly rate.

You can purchase electricity on a month-to-month basis.

There are no lengthy contracts or early termination fees.

If you become dissatisfied with your current retail electricity provider, you can immediately switch to another.

Disadvantages Of A Month-To-Month Plan

They can be difficult to find among all the contract plans your REP provides.

Typically a provider will want to lock you in as a customer. This can be hard to do without a signed contract.

It can make things difficult if you are a family who plans things out and budgets your monthly income.

When market prices increase, you will be subject to pay at a higher rate.

The Factors For Choosing The Best Electricity Rates in Houston For Your Family

There are several factors that you must consider when choosing the best electricity plan in Houston for your family:

  • Size of your home
  • Electricity usage
  • Age of your home
  • Location

Factor 1: Size Of Your Home

The size of your home can greatly impact your electricity rates in Houston.

If you compare a home for a family of five that’s 4,000 square feet to a one-bedroom studio apartment that’s less than 1,000 square feet, there’s going to be a substantial difference in your monthly electricity bills.

You must locate and know the size or square footage of your home when looking for the best electricity rate for you.

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Factor 2: Electricity Usage

How much and when your family uses electricity is your monthly usage.

You must consider your average monthly usage when choosing a plan that is the best for you.

If you have a house in Houston that you live in during the week but then on the weekends you travel to visit your parents, you wouldn’t benefit from a plan that offers free weekends.

The weather in Houston can get hot during the summer.

If you are going to live in your home during the summer instead of vacationing on an island, then you may want to consider a fixed-rate plan over a variable rate plan.

Factor 3: Age Of Your Home

The age of your home is yet another factor in choosing the best electricity rate for you.

Older homes in Houston may be less efficient than newer homes.

This means that your electricity usage must be factored into the calculation of your electricity rate when comparing rates for a home built in 1940 vs. a home built in 2000.

The newer home, of course, is built to be more energy-efficient, and thus higher usage won’t always mean an outrageous electricity bill.

Factor 4: Location

Some electricity companies and even some electricity plans are only available in certain zip codes.

Power Wizard can make shopping for electricity rates in Houston a breeze.

Once you enter your zip code into our Shopping Tool, our unbiased algorithm can search the hundreds of providers and thousands of plans available in your area.

We will then match you with the best plan for you based on your needs and the needs of your family.

It only takes 5 minutes.

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


Who Has The Best Electricity Rates In Houston, TX?

electricity rates Houston

Most electric rates in Houston are based on your usage per kWh.

Typically you think of the lowest kilowatt per hour rate being the best rate.

The cheapest rate in Houston may not mean that it is the best rate for you.

You must consider other costs before choosing the best rate for you.

For the average person trying to determine the best rate can be a daunting task.

Factors To Consider When Choosing An Electricity Plan in Houston

There are various factors that you must consider before you determine the best electricity rate in Houston:

  • Hidden fees
  • Length of commitment/contract
  • Cancellation/ early termination fees

Factor 1: Hidden Fees

Different types of fees can be associated with your electricity bill:

  • Disconnection notice fees up to $20.
  • Regular disconnection fees up to $75.
  • Standard reconnection fees up to $50.

REPs don’t always do their best to make these fees clear to you, so you must know the terms of your service contract.

Factor 2: Length of Commitment/Contract

If you choose an electricity plan in Houston that requires that you sign a contract, it’s up to you to know the details.

Most importantly you must know the length of your contract.

Knowing when your contract expires can prevent you from having to pay a hidden fee or having your plan changed without your consent because you’re no longer tied to the contract that you remember signing.

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Factor 3: Cancellation/Early Termination Fees

Cancellation/early termination fees are a huge factor in choosing the best electricity rate and plan for you.

What if electric rates go down, but you’re stuck in a contract?

What if you find another electricity plan from another better provider?

This is when it’s of the utmost importance that you know if your current contract terms include cancellation or early termination fees.

Early termination fees can range from $0 to $275. You don’t want to be on the higher end of that cost range.

Some providers can waive the fee if you speak with them directly, and some may charge you a flat rate based on the number of months left in your contract.

This is only one aspect that makes it extremely difficult trying to compare electricity plans in Houston on your own.

Save Time, Irritation, And Confusion By Using Power Wizard

electricity rates Houston

There are two ways that you can compare electricity rates in Houston.

You can manually search as we outlined previously, or you can save time and money by using Power Wizard:

  • Step 1: Spend less than 5 minutes using Power Wizard’s Shopping Tool
  • Step 2: We will use our unbiased algorithm along with your 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.
  • Step 3: It takes just a few minutes to set everything up. From there, we take care of the rest.
  • Step 4: Power Wizard will continue to monitor your plan and your electricity usage 24 hours per day:
    • If your plan’s rate increases, then we will help you find another plan that will save you money.
    • We will notify you when your contract is about to expire, especially if your rate will increase after you renew it.
    • If there’s a new plan that enters the market that’s a better fit for your home and usage, then we will help you switch.

Determine the best electricity rates in Houston for you by using Power Wizard’s Shopping Tool.

Discover the best electricity rates.

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Houston Neighborhoods Electricity Rates:

Houston Zip Codes Electricity Rates

 
Power Wizard
20455 State Highway 249, Suite 200, Houston, TX 77070, Houston, TX, 77070
(713) 322-8533

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