What is a Good Price per kWh in Houston?
What you pay in Houston depends on your monthly usage and the season — the same plan can be the cheapest at 1,000 kWh and mid-pack at 2,000. The live table above prices every plan we offer with CenterPoint delivery included.
The lowest effective rate we price in the CenterPoint territory is 5.9¢/kWh at 1,000 kWh — often a bill-credit plan that only wins near that usage. The statewide residential average runs 16.4¢.
Whether you’re dealing with summer air conditioning bills or mild winter months, the right plan keeps you covered year-round.
How to Compare Houston Electricity Rates
- Connect Live Link™ —Get your actual usage straight from your current provider—no digging for bills.
- See personalized rates —View plans that match your actual energy consumption patterns across all seasons.
- Pick your plan —Enroll instantly online with complete transparency. Done in minutes.
We’ve used the same power company for many years and I wanted to see if we could save money. I used Compare Power to see what was available in my area. I was pleasantly surprised that I could save over $200 by switching. It was super easy and all it took was a few mintues to change over. I’d definitely recommend using this service to see if you’re getting the best price.
- Stacey (Houston, TX)
Common Electricity Plan Types in Houston
When choosing an electricity plan in Houston, it’s essential to consider more than just the price per kWh.
Here are some key plan types to help you find the best option for your needs:
Fixed-Rate Plans
A fixed-rate plan maintains a constant price per kWh throughout your contract, which typically lasts between 12 and 36 months.
This is the best choice for most Texas households. It offers stability and predictability in your monthly budget while protecting you from sudden price spikes.
Variable-Rate Plans
With a variable-rate plan, your price per kWh fluctuates depending on market conditions.
While you could save when electricity prices drop, you’re also exposed to potential rate increases.
This plan is ideal for individuals who actively monitor the market and are prepared to adjust their strategy when necessary.
Prepaid Plans
Prepaid electricity plans allow you to pay as you go without long-term contracts, credit checks, or deposits.
These plans are ideal for short-term living situations or those seeking to avoid credit checks, as they provide the flexibility to add funds as needed.
Flat Rate Electricity
If you’re looking for stability and predictability, flat-rate electricity plans in Houston offer close-to-even pricing across different usage levels (500, 1000, and 2000 kWh), with minimal fluctuation.
Green/Renewable Plans
Many Houston electricity providers offer green energy plans powered by wind and solar.
While they may sometimes be slightly more expensive, green energy plans allow you to reduce your carbon footprint and support clean energy initiatives, making them perfect for environmentally conscious consumers.
Understanding Houston Electricity Rates
Before comparing specific plans and prices, it’s essential to understand how electricity rates work in Houston.
Texas has a deregulated energy market, meaning you can choose from various retail electric providers.
The Public Utility Commission of Texas (PUCT) licenses these providers and enforces market rules — but competition, not the regulator, sets retail prices. That is why shopping matters.
Several factors influence the rates you pay in Houston:
- Electricity generation costs – The cost of running power plants and fuel expenses.
- Transmission and distribution costs – The infrastructure needed to deliver power to your home.
- Retailer profit margins – Built-in costs for electricity providers.
- Supply and demand – Changes in electricity usage affect pricing.
These factors can fluctuate frequently, resulting in varying rates over time.
Shopping around and comparing providers is essential to secure the lowest electricity rate available.
Average Electricity Rates in Houston
The average residential electricity rate in Texas is 16.4¢.
The good news is that Houston’s deregulated market allows you to access lower rates through competitive fixed-rate plans.
Don’t simply accept the baseline average rate. With some shopping, you can save big on your electric bills.
What Term Length is Right for You?
- 12-Month Plans: Offer a balance of price and flexibility. Popular among Houston residents.
- 24-Month Plans: Can provide longer-term price stability and potentially lower rates.
- 6-Month Plans: Good for short-term needs or if you anticipate moving soon.
Should You Buy Now or Wait?
If your contract is expiring, shop now to secure the most competitive rate.
Start Electricity Service in Houston
Moving to a new home in Houston can be a stressful experience. But starting electricity service doesn’t have to be.
To get started:
- Compare energy plans and rates in your area.
- Select your preferred plan, contract length, and features.
- Enroll online in minutes.
Schedule electricity before you move in and have power on when you arrive at your new home.
Switch Energy Companies in Houston
Switching electricity providers in Houston is simple with Live Link™.
Here’s how to make the switch:
- Shop early – Texas law lets you switch providers up to 14 days before your contract ends, giving you time to secure a better deal.
- Compare plans – Use Live Link™ to find personalized, real-time rates based on your energy usage.
- Sign up in minutes – Once you’ve found the right plan, enroll online quickly and easily.
Switch with Live Link™ today →
Houston Electricity Providers
Houston’s most recognized energy brands include TXU Energy, Reliant, Direct Energy, Green Mountain Energy, and more.
Houston Electric Utility Company
CenterPoint Energy provides electricity and natural gas services in the Houston area and its surrounding regions.
Key facts
- electric delivery utility for greater Houston
- Owns local transmission and distribution infrastructure
- Regulated by the Public Utility Commission of Texas
Electricity Services
- Check your kWh usage on Smart Meter Texas
- CenterPoint Energy customer service: 800-752-8036
Natural Gas
- Gas service provided by CenterPoint Energy - call 888-286-6700
Garbage/Recycling
- Included in the City of Houston water bill
Water Utility
- Houston Public Works - Customer service 713-371-1400
- Emergencies: Call 311
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