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Are you tired of feeling lost in the maze of Texas electricity prices? You’re not alone.
With the state’s unique deregulated electricity market, it can feel like you need a degree in economics to understand your electricity bill.
But here’s the good news: you’ve just stumbled upon your ultimate guide to navigating Texas electricity prices.
TL;DR: Texas electricity prices are generally lower than the national average but can change due to various reasons, including demand and weather. However, we expect prices to remain relatively stable after rising in 2022.
Texas Electricity Prices (Updated Daily)
Find the most affordable electricity rates today for different residential energy usage patterns.
| City | 500 kWh | 1000 kWh | 2000 kWh |
|---|---|---|---|
| Houston | 14.80¢ | 12.30¢ | 12.90¢ |
| Dallas | 14.00¢ | 12.30¢ | 12.10¢ |
| Arlington | 14.00¢ | 12.30¢ | 12.10¢ |
| Corpus Christi | 14.40¢ | 12.90¢ | 12.70¢ |
| Plano | 14.00¢ | 12.30¢ | 12.10¢ |
| Laredo | 14.40¢ | 12.90¢ | 12.70¢ |
| Garland | 14.00¢ | 12.30¢ | 12.10¢ |
| Irving | 14.00¢ | 12.30¢ | 12.10¢ |
| Katy | 14.80¢ | 12.30¢ | 12.90¢ |
| Grand Prairie | 14.00¢ | 12.30¢ | 12.10¢ |
What is a good price per kWh in Texas?
The lowest fixed-rate electricity plan today starts at 12.30¢/kWh.
That’s significantly lower than the average Texas residential electricity rate, which stands at 14.71 ¢/kWh.
Will Texas electricity prices go down in 2023?
According to industry reports and predictions, wholesale power prices are expected to decline this year due to the drop in natural gas prices and the expansion of cheap renewable electricity.
While Texas is predicted to have the largest drop in energy prices, it is important to note that savings may not be passed onto consumers until later due to the lag between wholesale and retail pricing.
2023 Texas Electricity Prices Forecast
The Texas electricity price forecast for 2023 suggests rates may fluctuate due to weather and demand, but the market should continue offering a range of pricing options for consumers.
EIA Short-Term Energy Outlook
In its latest Short-term Energy Outlook report for April 2023, the U.S. Energy Information Administration (EIA) reports a decline in electricity demand during spring months, which allows power plants to undergo maintenance.
Coal-fired power plants are expected to generate significantly less electricity this spring, while nuclear generation remains stable.
The growth in renewable energy, particularly solar, is noteworthy and expected to lower wholesale power prices in 2023.
Lower natural gas costs are a significant factor in the EIA’s forecast for reduced wholesale power prices in 2023.
The on-peak wholesale price at the North hub in Texas’s ERCOT power market is expected to average about $35 per megawatt-hour (MWh) this year, compared to nearly $80/MWh in 2022.
The EIA forecasts a 17% decrease in U.S. coal-fired generation this spring compared to the same period in 2022, primarily due to coal plant retirements and lower natural gas prices.
However, nuclear generation is expected to remain stable, with a slight 1% increase compared to last spring.
Declining Electricity Demand
In the spring, electricity demand in the U.S. usually declines due to the reduced need for air conditioning and heating.
This period allows power plant operators to perform maintenance on their generating units, especially for thermal plants and nuclear generators.
Meanwhile, the output from renewable energy sources, especially wind, typically increases due to stronger winds.
The Rise of Renewable Energy
Coal’s contribution to U.S. electricity generation is predicted to decrease from 20% in 2022 to 17% in 2023, while natural gas remains constant at 39%.
The nuclear share of generation will rise slightly from 19% in 2022 to 20% in 2023.
Most notably, the generation from renewable energy sources is expected to increase from 22% last year to 24% this year, mainly due to a 38% increase in new solar capacity.
Impact on Wholesale Power Prices
Lower natural gas costs are a significant factor in the EIA’s forecast for reduced wholesale power prices in 2023.
The on-peak wholesale price at the North hub in Texas’s ERCOT power market is expected to average about $35 per megawatt-hour (MWh) this year, compared to nearly $80/MWh in 2022.
Why Choose ComparePower?
Navigating the electricity market can be overwhelming with so many providers and plans. We simplify the process, allowing you to compare rates and plan details in one place.
Without ComparePower, you risk paying more than you need to for electricity and could end up with a plan that doesn’t fit your energy usage.
Your Next Steps
Now that you’re armed with knowledge about Texas electricity prices, it’s time to take action.
Explore the available plans in your area, compare Texas electric rates, and choose the right plan for you. Remember, you’re not just looking for the lowest rate.
You’re looking for the best plan for your energy usage and lifestyle. And if you have any questions, we’re here to help.
Welcome to a better way to shop for electricity in Texas.
Next: Compare Texas Electricity Rates
Compare electric rates near you and find an affordable energy plan in minutes:
Texas Electricity Rates
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Texas Electricity Prices FAQs
Here are the most common questions we are asked about Texas Electricity Prices:
The average residential electricity price in Texas is 14.71 ¢/kWh, or 9% less than the United States average.
Updated January 2024
Source:U.S. Energy Information Administration (EIA)
Electricity prices in Texas are influenced by several factors, including the cost of generating electricity, transmission, and distribution infrastructure expenses, weather conditions, fuel prices (such as natural gas), and regulatory policies. Additionally, the Texas electricity market is deregulated, allowing consumers to choose their electricity providers, which leads to competitive pricing among retail electricity providers. Seasonal fluctuations, such as high demand during hot summer months, can cause electricity prices to rise.
The average commercial electricity price in Texas is 9.10 ¢/kWh, 29%% lower than the United States average.
Updated January 2024
Source: U.S. Energy Information Administration (EIA)
In the state of Texas, there are over 60 retail electric companies, each with dozens of energy plans available to consumers. However, the best electricity price for your home depends on your kWh usage, not the company.
Using ComparePower, you can explore energy plans that align with your home’s usage history to quickly find the one that best fits your kWh usage profile, regardless of the provider.
Utility companies are responsible for maintaining and operating the energy grid.
In a power outage, you can depend on them to restore and maintain the power lines and other equipment that delivers energy to your home or business.
Utility companies serving Texas include Oncor Electric Delivery, Centerpoint Energy, AEP Texas, and
ERCOT manages most of Texas’ grid, providing power to over 26 million Texans, and is a nonprofit organization. The Texas Legislature and the Public Utility Commission have regulatory oversight over ERCOT’s operations.
Texas heavily relies on natural gas for generating electricity, with over half of the state’s power being sourced from natural gas.
Unfortunately, economic uncertainty has caused natural gas prices to soar to all-time highs, leading to a steady increase in electricity prices throughout the year.
Retail electricity providers (REPs) purchase electricity in advance based on their demand predictions. As electricity becomes more expensive, REPs raise prices to ensure that they can maintain their profit margins.
If your electricity contract has expired, you may be paying a holdover rate that varies each month and is significantly more expensive than a fixed-rate contract.
Take control of your electricity costs by using ComparePower. Shop with your zip code to discover the best plans for your home and avoid high energy bills.
Look beyond just the price per kilowatt-hour. Some plans may have hidden fees or require you to meet specific usage requirements to qualify for the advertised rate.
The easiest way to find the best electricity price for your home is to compare energy plans and prices with your home’s kWh usage history.
Enter your kilowatt-hour (kWh) usage on ComparePower, and we’ll instantly find you the lowest price in our marketplace. Add Image
Electricity rates in Texas vary due to fuel costs, seasonal changes in demand, transmission and distribution charges, and the provider’s operational costs. Additionally, Texas has a deregulated energy market, meaning consumers can choose from numerous providers and plans, leading to a wide range of rates.
Electricity rates in Texas can fluctuate based on market conditions, fuel costs, and other factors. However, as per the U.S. Energy Information Administration’s forecast for 2023, wholesale power prices are expected to decrease due to factors such as lower natural gas costs and increased renewable energy generation.
To find the cheapest electricity rate in Texas, visit websites like ComparePower.com, which allow you to compare different plans and providers based on rate, contract length, and renewable energy content to choose the plan that best fits your energy usage habits and budget.
Yes, Texas has a deregulated energy market, meaning consumers can choose their electricity provider from several options. You can compare different providers and plans to find the best one for your needs.
The best time to lock in electricity rates depends on market conditions and individual preferences. Generally, locking in a rate when prices are low can protect you from future price increases. Seasonal fluctuations and market trends can impact electricity prices, so monitoring the market and making an informed decision based on your energy usage habits and budget is essential.
Renewable energy plans in Texas can sometimes be slightly more expensive than traditional plans due to the costs associated with generating and transmitting electricity from renewable sources. However, as renewable energy production and technology advance, the price difference between renewable and traditional plans decreases. Renewable energy plans can sometimes be as competitive or cheaper than traditional options.
To switch electricity providers in Texas, visit a comparison website like ComparePower.com to find a suitable plan based on your needs and preferences. Once you have selected a plan, you can sign up with the new provider, who will handle the switch from your current provider. In most cases, the transition is seamless and involves no service interruption. Remember to check if there are any early termination fees associated with your current plan before switching providers.
Support You Can Count On
Questions? Our local experts can help you navigate options and find the best electricity plan. Reach out to us.
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