Compare Houston Electricity Rates

Texas typically experiences very hot summers. During this year’s particularly intense summer, energy rates and demand experienced a sharp spike. However, temperatures in Texas are falling, leading to a gradual decline in market prices. It’s usually best to shop for energy rates in Houston and other Texas cities during milder seasons with lower demand, such as this fall or early winter.

Choose Energy makes it quick and easy to secure the most competitive rates near you at any time of the year. Our marketplace allows you to compare cheap energy rates from quality power companies in Houston and sign up for your plan all in one place. Find cheap electricity in Houston by entering your ZIP code today.

In Texas’s deregulated electricity market, utility companies and electricity providers perform different roles. Utilities are responsible for delivering power to homes, maintaining electrical lines, and responding to power outages and other emergencies. CenterPoint Energy is Houston’s utility company.

Energy providers, on the other hand, sell the electricity to residents through different rate plans and handle your account details, such as billing and usage. Popular power companies in Houston include 4Change Energy, Discount Power, Frontier Utilities, and TXU Energy. Use the Choose Energy marketplace to compare energy rates and plans from over a dozen top electric companies in Houston. You can filter for plans by rate type, term length, provider, and more.

Power outages in Houston

The Electric Reliability Council of Texas (ERCOT) recently released its Fall 2023 SARA report. In the report, ERCOT predicts Texas will have enough grid capacity to meet demand this fall. However, equipment emergencies or major weather events (like the Texas winter storm in 2021) can lead to unexpected outages.

If you do encounter a power outage or a downed power line, it’s important to follow safety procedures to avoid damage to yourself or your property. Visit our power outage safety resource to learn more about how you can prepare for a power outage in Houston.

If you lose power in Houston, contact CenterPoint Energy at 1-800-332-7143 or report an outage online. You can receive updates on when your service will resume. Do not contact your electricity provider — it is not responsible for restoring energy during a power outage.

In a deregulated electricity market, the power to choose offers more freedom and savings than in a traditional market where you can only buy electricity from the local utility. Thanks to deregulation, you can shop and compare Houston electricity rates from several providers in your area to find the one that fits your needs and budget.  

Choose Energy offers a simple and streamlined place to browse light companies in Houston and select a plan that meets your needs. You can find cheap electricity in Houston and sign up for your new plan quickly and easily by entering your ZIP code on our marketplace.

When shopping for electricity plans in Houston, you’ll likely encounter several different plan types. The most popular options include fixed-rate, variable-rate, and no-deposit electricity plans. Energy rates and plan types on the Choose Energy marketplace are all-inclusive, meaning the price factors in base fees and transmission and distribution (TDU) charges. However, the prices will not include tax, and rates will vary depending on your usage tier (i.e., how much energy you use each month). Filter by energy usage to make sure you’re comparing rates within your usage tier.

Discover more about the types of available energy plans in Houston with Choose Energy.

Contract term lengths

If you decide to go with a variable-rate or prepaid plan, you won’t have to worry about electricity contract term lengths. With fixed-rate plans, you will have a contract for a certain period of time, usually ranging from six to 36 months. Longer electricity contracts can often lead to more affordable electricity in Houston if you are able to commit to them. Shorter term lengths are a good option for renters or those who like to shop around.

Fixed-rate plans

Fixed-rate plans protect you from fluctuations in market prices and provide a more stable electricity rate than you get with other types of plans. Your rate will not change over the length of your term agreement, which usually lasts between 12 and 36 months. If you want to cancel your power contract before your term is complete, you may have to pay an early termination fee (ETF). However, your provider should waive this fee if you move out of its coverage area.

Variable-rate plans

Variable-rate plans come with some risk because the rate you pay every month changes based on the market cost of electricity. You can take advantage of cheaper rate trends when demand is lower, which usually occurs during seasons with milder temperatures (like spring and fall). However, the electricity rate you pay may increase during periods of high demand when temperatures are more extreme or weather events impact capacity. You don’t have to sign a contract for a variable-rate plan, meaning you can switch plans at any time.

Prepaid and no-deposit plans

Your provider might require a deposit before starting electricity service, depending on your credit score. If you want to bypass the credit check and deposit, consider light companies with no-deposit energy plans. A common no-deposit option is a prepaid electricity plan, which lets you pay for your power upfront. When the funds in your account begin to run low, your provider will send a reminder to add more money to your account.

Enter your ZIP code and filter for “all credit-approved” plans on the Choose Energy marketplace to find prepaid plans in your area.

Time-of-use plans

With a time-of-use plan, the time of day and season determines your rate. You will pay more when demand is high and less when it is lower. You can reduce your electricity bill with this type of plan by using energy during low-demand periods, such as later at night, early in the morning, or on weekends and holidays.

Houston green energy

Texas is a national leader in green energy, ranking first in wind energy production and second in solar power generation. Every Texas power plan includes a percentage of green energy. To find the exact amount in a plan, check the Electricity Facts Label (EFL).

Residents can choose from various green energy plans from several electricity companies in Houston. Energy companies in Houston offering 100% green energy plans include Gexa Energy and Green Mountain Energy.

Enter your ZIP code and filter for green energy plans offered near you.

Business electricity rates

Houston businesses can also use the Choose Energy marketplace to find affordable commercial electricity rates. Our energy experts can compare business electricity rates from the top Houston electricity providers and help you build a customized business electricity plan. Visit our commercial electricity page to request a quote for your Houston business or enter your ZIP code to compare rates near you.

The current average residential electric rate in Texas is 13.83 cents per kWh, which is about 2.4% higher than it was in 2022. The lowest available Houston rate on the SaveOnEnergy marketplace is 12 cents per kWh, which is 14% lower than the average Texas electricity rate.

Choosing a plan with Choose Energy allows you to compare rates from quality electricity providers and sign up for your plan all in one place. Access cheap energy in Houston by entering your ZIP code today.

When you compare energy rates in Houston, it’s important to search for plans in your ZIP code since prices can vary by location. The local utility company charges delivery and transmission fees, which can vary depending on where you live. Houston residents in one area may pay a different rate than those living in another area, even if they have the same plan.

The Choose Energy marketplace allows you to compare accurate energy rates and plans near you. Enter your ZIP code on this page to find the current electricity rates in your area.

Want to switch to a new light company? Choose Energy provides accurate, up-to-date information about the Houston energy plans and electricity companies near you. Follow these steps to sign up for a new plan today.

1. Compare energy providers and plans. Enter your ZIP code to compare the available energy rates and plans in your area. You can filter your search by provider, term length, rating, and more.
2. Review plan details. Be sure to review the details of your new plan prior to signing up. When you use the Choose Energy marketplace to explore plans, you can view each plan’s Electricity Facts Label (EFL), which will break down each part of your plan. Check for delivery fees, contract length, and more.
3. Begin your new plan. When you’re ready to sign up, Choose Energy makes the process simple. Click “Check Availability” on the plan card you choose and proceed through the following steps. Once you’ve signed up, your new provider will set up your electricity service with no interruption to your power.

Some providers on the Choose Energy marketplace offer more flexibility with same-day electricity. You can have your new energy plan power your home within 24 hours after your account is set up without interrupting your electricity service. Choose Energy can help you find providers offering same-day electricity options in Houston.

Finding a cheap Houston electricity rate is simple with the Choose Energy marketplace. To compare rates and plans near you, follow these easy steps:

• Enter your ZIP code. Explore a list of the best Houston power rates and plans currently available on our marketplace. You can filter for your preferences and compare your options.
• Sign up for a plan in minutes. Once you’ve found the best Houston electricity plan for your needs, we’ll walk you through the signup process in minutes.
• Enjoy your new electricity plan. Your new Houston electricity provider will coordinate with your utility company to set up your service. There should be no disruption to your service during the transition.

Houston is the most populated city in Texas, situated in the southeastern part of the state in proximity to Galveston Bay and the Gulf of Mexico. Its public parks, theater centers, museums, and Space Center make it a popular destination. 

If you’re planning to relocate to Houston, you’ll need to sign up for an energy plan from an available electric company. The Choose Energy marketplace is here to help. You can enter your ZIP code to explore your electricity options and sign up for a new plan today.

What is a good price for electricity per kWh in Houston?

Hot summer temperatures this year drove up demand and electricity prices in Houston. However, decreasing temperatures are beginning to bring down energy rates. The Choose Energy marketplace helps you compare energy plans by listing low to high prices, making it easy to identify the best rates in your area today. The best price available in Houston at the time of writing is 12.4 cents per kWh.

Who has the cheapest electricity rates in Houston?

The best Houston energy rate on the Choose Energy marketplace right now is offered by Gexa Energy and Frontier Utilities. However, Express Energy, Cirro Energy, and Discount Power also offer competitive rates currently. Energy rates can change daily, so enter your ZIP code to check your area’s current rates.

Why are electricity rates so high in Texas?

Houston area electricity rates can be high depending on the time of year, usually spiking in summer due to extreme temperatures, as well as external factors in the political and environmental atmosphere. You may be able to reduce your bill by switching to a plan with a lower rate or free usage periods. Lowering your energy usage is the most straightforward way to reduce electric costs. Check out our guide for reducing your electricity bill for more tips.

How much electricity does Houston use?

While city-specific usage is difficult to pinpoint, data from the EIA shows Texas has a high average residential energy usage. On a monthly basis, most Texas homes consume about 1,178 kWh, which is much higher than the U.S. average of 899 kWh per month. The high average usage is likely due to the hot summer months when residents rely more on air conditioning.