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How does Texas energy stack up against neighbors?

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By Arthur Murray February 19th, 2020
3 min read
For business

And then there are monthly residential electricity bills. Remember, rates aren’t the only thing that determines bills – usage plays a huge factor as well. That usage turns Texas bills Texas-sized. They’re the highest in the region – about 15 percent higher than the national average.

When it comes to commercial electricity, Texans enjoy the sixth-lowest rates in the nation – 8.19 cents/kWh. And while that price is nearly 23 percent lower than the national average, one of Texas’ neighbors has a lower one:

For the record, that Oklahoma rate is the nation’s second-lowest commercial rate – behind only Idaho.

Most neighbors also are beating Texas when it comes to industrial electricity rates – even though the Lone Star State’s rates are more than 16 percent lower than the national average. Check out which neighbor fares best:

Natural gas prices in Texas and its neighbors

Despite being the nation’s largest producer (by far) of natural gas, Texas rates – expressed in dollars per thousand cubic feet (ccf) – exceed the national average by nearly 6 percent. As for the neighbors, three of the four beat Texas residential natural gas prices:

Commercial natural gas prices in Texas weren’t available for November, but they were nearly 8 percent lower than the national average the previous month. Historically, they’ve consistently been among the lowest in the region:

Again, Texas produces by far the most natural gas, and its industrial rate of $2.76/ccf is nearly 29 percent lower than the national average. But neighboring Oklahoma beats that rate handily. The full picture:

What about electricity production?

Here’s where Texas puts its neighbors to shame, producing the most electricity in the country – 36,418 thousand megawatthours. That’s five times as much as Louisiana and by far the largest amount in the country.

What does the region use to generate electricity? Natural gas, coal, and wind are the big three, though Arkansas and Louisiana lean heavily on nuclear plants, too. Here’s the breakdown in electricity generation in those states and how it compares with national generation:

Just as you have to break eggs to make an omelet, making electricity creates carbon dioxide emissions. According to the latest EIA numbers on emissions, Texas leads the region – and indeed the nation – in generating carbon dioxide.

In closing, Texas rates generally beat U.S. averages, but they don’t match up as well against their neighbors.

Arthur Murray directs’s newsroom. His articles have appeared on,,, and, among others. Reach out to us with any questions or concerns.