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Texas Electricity Rates

Every deregulated Texas city, every plan we offer — priced at YOUR usage, starting from the real May 2026 average of 16.4¢/kWh.

Reviewed by Brad Gregory · Updated August 21, 2026

The number you came for

Texas average: 16.4¢ per kWh

Residential average · EIA · May 2026

16.4¢
The statewide average

down 3.2% vs last month

5.6¢
Where plans start on ComparePower

Lowest effective rate at 1,000 kWh, fees and delivery included · August 21, 2026

For scale: the U.S. average is 19.4¢/kWh — Texas runs 15% lower. Across the 682 licensed plans we price live, today’s average is 15.5¢. Even Idaho — the cheapest state in the country at 12.3¢ — sits above where Texas plans start.

That average is NOT your price. Your city’s delivery charges, your monthly usage, and each plan’s fee structure move the real number — which is why we price every plan we offer at your usage instead of quoting averages. Price my usage →

Fastest path

Know your ZIP? Skip the list.

At your usage level

Top plans by monthly usage

Pick the tab closest to your monthly usage — the ranking reorders because fees and bill credits bend each plan’s price curve differently.

Prices as of August 21, 2026 · price the full list at your usage →

Today’s standout

Best-value 12-month plan right now

Smart Choice - 12

Just Energy · Lubbock Power and Light

5.6¢

effective rate at 1,000 kWh

$56

est. monthly total

31%

renewable

The lowest effective rate at 1,000 kWh among 12-month fixed terms — the plan shape most Texas households pick. Your usage may crown a different winner.

Pricing basics

How Texas electricity pricing works

The advertised rate isn’t your rate

That 9.9¢ headline rate is real at exactly 1,000 kWh — and almost nobody uses exactly 1,000 kWh. Use 850 and the base fee looms larger; use 1,200 and you’ve left the bill-credit window. Every plan’s price curve bends differently, which is why we compute each one at YOUR usage instead of trusting the billboard.

See how the TRUE Method prices plans →

Two companies share your bill

A retail provider — the brand you pick — sells you the energy. A utility (Oncor, CenterPoint, AEP Texas, TNMP, or Lubbock Power & Light) owns the wires and delivers it. Delivery runs 30–40% of a typical bill and costs the same no matter which provider you choose. You can switch the brand; you can’t switch the wires.

Find your utility territory →

Plan types, decoded

Fixed-rate plans lock the energy charge for the whole contract — the closest thing to predictable. Variable plans can reprice every month; they’re how a mild autumn turns into an ugly January. Bill-credit plans pay you to stay inside a usage window and punish the month you miss it. Free nights buy the “free” with a higher daytime rate. None of this is hidden — it’s just priced for people who don’t do the math. We do the math.

Compare every plan we offer at your usage →

Where rates are heading

As of May 2026, the Texas residential average is 16.4¢ per kWh — down 3.2% vs last month. Rates typically peak with summer demand and soften in the spring and fall shopping windows, which is exactly when a contract renewal deserves ten minutes of your attention.

Residential average · EIA · May 2026

Buy now or wait?
Shop smarter

When and how to shop

Contract ending in summer? Shop it today

August bills are the year’s highest — Texas air conditioning pushes usage past 1,500 kWh in many homes — and holdover and variable rates are priced for exactly that panic. Don’t ride them out: compare the whole market now, then pick a 12- or 24-month term that ends in spring, so every future renewal lands in the cheap season. The expensive move is doing nothing.

Check your renewal date →

Who gets to choose

About 85% of Texans live in deregulated territory and pick their own provider. Austin (Austin Energy) and San Antonio (CPS Energy) don’t — those are municipal utilities, and no comparison site changes that. If your city is in the list below, you choose. If it isn’t, we’ll say so instead of pretending.

See if your city has choice →

How we rank plans

Enter a ZIP and we price every plan we offer in that territory at your usage — base fees, bill credits, and delivery included — then rank by the total, lowest first. Providers pay us the same flat referral fee whichever plan you pick, so we have no reason to bury the winner. The same plans cost the same here as going direct.

Rank the plans for my ZIP →
Timing

Should you buy now or wait?

15.5¢
This month last year
16.4¢
Now (May 2026)
6% higher
Change, year over year

Rates are 6% above this time last year — but waiting on a holdover or variable rate costs more than locking. If your contract is expiring, fix a term that ends in spring or fall; if you’re mid-contract, check the termination fee against the savings before you move.

The season matters more than the headline: Texas rates peak with summer demand and soften in the spring and fall shopping windows. Check your renewal against the market →

Contract length

What term length is right for you?

Today’s market pulse

Fixed-rate pulse by term length

avg 19.0¢

6-month plans

from 18.3¢

avg 15.4¢

12-month plans

from 5.6¢

avg 15.7¢

24-month plans

from 6.0¢

avg 16.3¢

36-month plans

from 9.7¢

Average and lowest effective rates at 1,000 kWh across every listed plan · August 21, 2026

6 months — flexibility, at a premium

For renters, movers, and anyone in a transitional stretch. Short terms carry higher rates and put your renewal at the market’s mercy — plan to re-shop before summer if you take one.

12 months — the sweet spot

The balance most Texas households land on: competitive rates, one renewal a year, and the deepest pool of plans to choose from. Shop it in spring or fall so the term ends outside the summer spike.

24 months — lock it and skip a renewal

Often priced slightly below 12-month plans, and you skip an entire renewal cycle. The right call for steady households that want predictability through two summers.

36 months — set it and forget it

Maximum protection from rate rises, usually at a small premium up front. Best if you’re staying put and never want to think about this page again.

Whatever the term: pick one that ENDS in spring or fall. Lock it today and your next renewal lands in the cheap season instead of an August heat wave.

Benchmarks

What Texans pay by home size

Energy charges at the May 2026 state average of 16.4¢ per kWh — delivery charges and plan fees land on top, which is why we price plans at YOUR usage.

Home size Square feet Monthly usage Energy charges
Small <1,000 500–1,000 kWh $82–$164
Medium 1,000–2,000 1,000–1,500 kWh $164–$247
Large 2,000–3,000 1,500–2,000 kWh $247–$329
X-Large >3,000 >2,000 kWh $329+
Live plans

The cheapest plans right now

Effective rate at each usage level — every fee and delivery charge included, in that plan’s territory. Prices move daily; your ZIP gets the real list.

Usage Plan Provider Territory Effective rate Order
500 kWh Rent Simple Saver 10 10-month term APGE Centerpoint Energy 11.5¢ Order now
1,000 kWh Smart Choice - 12 12-month term Just Energy Lubbock Power and Light 5.6¢ Order now
2,000 kWh Mega Saver - 12 12-month term Just Energy Centerpoint Energy 9.4¢ Order now

Prices as of August 21, 2026 · price the full list at your usage →

Your city

Find your city’s rates

Type to search all 894 deregulated cities — or jump straight in with your ZIP.

Browse all 894 cities A–Z

Don’t see your town? Enter your ZIP — we cover every deregulated address in Texas →

Who delivers your power

Texas utility territories

Your TDU owns the poles and wires and charges the same delivery fees no matter which provider you pick. Find yours:

Utility territory 500 kWh 1,000 kWh 2,000 kWh
Lubbock Power and Light 13.7¢ 5.6¢ 11.4¢
Centerpoint Energy 11.5¢ 5.9¢ 9.4¢
AEP North 12.3¢ 6.6¢ 10.5¢
Oncor 12.6¢ 6.8¢ 10.1¢
AEP Central 12.3¢ 7.0¢ 10.4¢
TNMP 14.0¢ 8.2¢ 11.4¢

Lowest listed effective rate by usage level · August 21, 2026

Straight answers

Straight answers on Texas rates

As of May 2026, Texas homes pay an average of 16.4¢ per kWh (EIA residential data) — 15% below the U.S. average of 19.4¢. Your real rate depends on your city’s utility territory, your monthly usage, and the plan you pick.

Multiply your usage by your effective rate: at the May 2026 state average of 16.4¢ per kWh, a 1,000-kWh month runs about $164 in energy charges — and Texas summer usage often tops 1,500 kWh. Your real bill depends on your plan’s fees and credits and your utility’s delivery charges, which is why we price plans at your usage instead of quoting averages.

Anything meaningfully below the May 2026 state average of 16.4¢ per kWh — measured at YOUR usage level with every fee included — is competitive. Judge plans by that effective rate, never the advertised teaser: the “cheapest” headline number is often the most expensive plan at real usage.

As of May 2026, the state residential average is down 3.2% vs last month (EIA data). Season matters more than the headline: prices peak with summer demand and soften in spring and fall — timing your contract to end outside summer is worth more than chasing a small monthly move.

Advertised rates are tuned to exactly 1,000 kWh — use 850 or 1,200 and the math changes completely. Base fees, bill credits that vanish at 999 kWh, and TDU delivery charges (30–40% of your bill) all land on top. That’s why we compute the cost of every plan we offer at YOUR usage instead.

Yes — if you’re on a holdover or variable rate, you’re paying the panic price right now, and switching takes minutes. If you’re mid-contract, weigh the early termination fee against the savings: at summer rates the switch often pays for itself, and we’ll show you the math either way.

Usage first — air conditioning is half a Texas summer bill. Then plan fit: a bill credit you keep missing, a free-nights plan with daytime-heavy usage, or a contract that quietly expired onto holdover rates. Upload your bill and Bill Detective will show you which one it is in about 60 seconds.

One of five utility companies (TDUs), depending on where you live: Oncor around Dallas–Fort Worth, CenterPoint around Houston, AEP in south and west Texas, TNMP in pockets across the state, and Lubbock Power & Light. You can’t choose your TDU — you choose the retail provider, and delivery charges are identical for every provider in your territory.

Enter your ZIP and we rank every plan we offer in your city by TRUE cost — your usage, with fees, credits, and delivery included. Sorting by the advertised rate is how Texans end up overpaying; the “cheapest” teaser rate is often the most expensive plan at real usage.

Yes. Providers pay us a referral fee when you enroll through us — plans cost the same here as going direct, and the ranking is by YOUR cost, never by who pays us more.

Our data

Sources & methodology

State averages refresh from the EIA series on every site build. Plan prices come live from our pricing engine, computed at your usage.