Compare the Best Texas Electricity Plans and Companies

• The cheapest Texas electricity rate on our marketplace is currently 8.9 ¢/kWh from APG&E.
• Our marketplace helps you find cheap electricity in Texas by comparing dozens of power plans and providers in minutes.
• Choose Energy’s experts can help you understand your energy options and sign up for the best fit for your home or business.

February is warming up in Texas after January’s icy winter storm. This month’s favorable weather could lead to better electricity prices as demand decreases. Take advantage of low rates and lock in one of these popular fixed-rate plans.

• APG&E SimpleSaver 18: If you’re searching for long-term stability, try out this bill credit plan from APG&E. With one of our lowest rates, you can save an extra $125 each month you use 1,000 kWh of electricity or more.
• Gexa Energy Eco Saver Plus 12: The plan is the best of both worlds — it’s affordable and sourced from 100% renewable energy. Its $125 bill credit can help you save this winter if you consistently use over 1,000 kWh of energy.
• TXU Energy Smart Edge 12: This TXU plan is great for apartments or small homes with lower energy usage. Earn a $50 bill credit when you use at least 800 kWh per month. If your energy consumption typically stays below 1,000 kWh, this plan could be a great fit.

Enter your ZIP code to learn more about these reliable energy plans and explore additional options.

Average electricity rate: February 2026

Our marketplace data shows that the current average Texas electricity rate is 16.28 cents per kWh. This rate was calculated using the average price for all usage tiers over the last 30 days.

Average Texas electricity bill by usage tier

Your electricity bill is influenced by multiple factors, including but not limited to location, home size, electricity rate, and occupancy. To help you estimate your potential monthly bill, we multiplied common household usage levels (based on home sizes) by the current average Texas rate of 16.28 cents/kWh. Here’s what you might expect to pay for electricity each month based on your home size and usage:

• Small households (500–999 kWh): $81–$163
• Medium households (1,000–1,999 kWh): $163–$325
• Large households (2,000–3,000): $326–$488

Use these ranges to determine if you are paying a good price for your electricity. If your monthly bill is more expensive than the highest estimate for your usage level, it might be time to shop around for a more favorable electricity price.

• For stability, consider a fixed-rate plan: Customers who value stability would benefit the most from a fixed-rate energy plan. This type of power plan has a set rate for electricity that remains the same for your entire contract. Fixed-rate plans typically last for one to three years. They include an early termination fee (ETF) if you end your contract early.
• For flexibility, spring for a variable-rate plan: Shoppers who want a flexible energy solution should consider a variable-rate plan. These plans are usually month-to-month, and the rates change with the energy market. They can be risky because you may be subject to high electricity rates during peak demand, but they allow you to switch with no penalty. Explore TXU Energy’s Flex Rewards plan for a variable-rate option.
• For low-credit shoppers, get a no-deposit plan: To avoid unnecessary fees based on your credit score, consider a no-deposit electricity plan. These plans allow you to skip the deposit by prepaying for your energy. If you need more electricity, you can top off your account with additional funds. Payless Power’s Prepaid 6 and Prepaid 12 plans are two popular no-deposit options.
• For environmentally conscious shoppers, opt for a green energy plan: All Texas energy plans include a percentage of renewable energy. However, some providers go the extra mile and specialize in 100% green energy plans. To make your home greener, consider Gexa Energy’s Eco Saver Plus 12 and Eco Saver Plus 24 on the Choose Energy marketplace.
• For additional savings, find a compatible bill credit plan: Bill credit plans offer an extra discount on your energy bill when you meet the usage requirements. The key to maximizing this plan type is to ensure you reach the usage threshold every month. Check your past energy bills to determine your average monthly consumption, then find a bill credit plan that matches. Consider this competitive bill credit plan from 4Change Energy: Maxx Saver Value 12.

As a Texas resident, you have countless options for your electric company. Consider your priorities to pick the best provider for your energy needs. The following table lists various electricity companies in Texas, their lowest rate, and what they are best known for.

These rates are accurate at the time of writing for the Houston area ZIP code 77005. Enter your exact ZIP code to find rates for your area.

Most of Texas has a deregulated energy market, giving residents and businesses the power to choose their electricity company. With deregulation, energy suppliers compete to offer you the best electric plans in Texas. You can compare rates, plans, and providers to find your ideal match. The term “power to choose” is common in deregulated markets. It is also the name of the official website of the Public Utility Commission of Texas (PUCT), the regulatory body overseeing the Texas electricity market.

Texas energy suppliers vs utility companies

Texas energy providers and utility companies play different roles in deregulated markets compared to regulated ones. Here’s how they differ in Texas:

Choose Energy is a free energy marketplace where you can compare electricity plans and providers in your area. We began operating in deregulated energy markets in 2008 and have since established partnerships with the best energy companies nationwide. Our goal is to simplify energy shopping, so we built a simple-to-use marketplace and a convenient sign-up process.

The Choose Energy marketplace lets you compare all-inclusive rates, plans, and light companies in your area. Once you find an option you like, you can sign up online or over the phone with one of our energy experts. We also create useful buying guides and energy resources to help you understand your options.

Choose Energy’s easy-to-use marketplace is designed to help you discover your energy options and sign up in minutes. Here’s how to use our website to find your next power plan:

• Enter your ZIP code: Compare plans and rates in your area on the free Choose Energy marketplace to find what works for you. Use the filters to find tailored results, such as specific rate types, term lengths, or green energy.
• Pick a plan: When you find one you like, sign up online in a few minutes. If you need help choosing, call the number on your screen for an agent.
• Enjoy your new plan: Your Texas energy supplier will handle the setup so you can relax without power interruption.

Energy plans are not one-size-fits-all. Some plans are better suited for certain households than others. When you are shopping for energy plans on our marketplace, ask yourself these questions to help guide you:

How many kWh of electricity do I normally use in a month?

Check several of your past electricity bills to determine how many kWh of energy you typically use. This information will help you find the cheapest electricity rate for your average usage.

Do I want a long-term or a short-term plan?

Long-term plans are best suited for someone who knows they can commit to a contract for one to three years. Otherwise, you may receive an ETF for canceling your plan early. If your living situation changes often or you need a quick solution, consider a month-to-month plan.

Should I wait until another time of year to sign up for a plan?

Check our marketplace to determine if today’s rates are cheaper than your current price. Early spring and late fall are normally the cheapest times to shop for electricity. Consider switching during those months to find a lower rate.

Do I want a fixed or variable rate?

Fixed rates give you a more predictable electricity bill. A variable-rate plan may be cheap momentarily, but can be unpredictable when market prices rise.

If you are moving to a deregulated area of Texas, you may be able to keep your current energy plan if your provider serves your new address. But if it does not serve your new location or if you want a new plan for other reasons, you can switch providers. You will not pay an ETF if you move to an address your current provider does not cover.

Shop Texas energy plans on Choose Energy’s marketplace up to 90 days before moving, and select your move-in date when you sign up. Your provider will handle the rest. Most Texas homes have smart meters, meaning you will not need to schedule a technician visit to begin electricity service. Instead, your new provider will activate your service remotely on your selected date.

Who has the cheapest electricity rate in Texas?

Our cheapest electricity rate right now is Invalid shortcode name from Invalid shortcode name. Shop this low rate today on our marketplace by entering your ZIP code.

Why does Choose Energy run a credit check?

Our partners require a soft credit check (which doesn’t affect your score) to determine if your credit meets their requirements. The provider may ask for a deposit to begin service if your credit score falls below that threshold. We’ll check your score with all providers on our marketplace at once, so you don’t have to repeat the process.

What utility companies operate in Texas?

There are five main utility companies in Texas: AEP Texas Central, AEP Texas North, CenterPoint Energy, Oncor Electric Delivery, and Texas-New Mexico Power.

How quickly will my new service start?

In some cases, you can activate your service within 24 hours. If you have a smart meter and enroll before a provider’s cutoff time, you may be able to get same-day service.

How can I lower my Texas electricity bill?

One way to lower your monthly electricity bill is to use less energy. Easy habit changes include turning off your lights, unplugging electronics when finished, and lowering your thermostat. You can also invest in energy-efficient appliances as a long-term strategy to lower your bills.