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Texas

Compare the Best Texas Electricity Plans and Companies

Written by Dominique Coury

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Edited by Jamie Cesanek

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Last Updated:

Explore today's low rates and compare energy plans.

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At Choose Energy, we empower you with energy information. While our partners are mentioned, they do not influence our editorial content.

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Energy insights for March 2026

  • The cheapest Texas electricity rate on our marketplace is currently 7.5 cents per kWh from APG&E.
  • Our free marketplace helps you find cheap power in minutes by comparing dozens of plans and providers in your area.
  • April is usually a good month to lock in a cheap electricity plan, thanks to milder spring weather.
  • Choose Energy’s experts can help you understand your energy options and sign up for the best fit for your home or business.

Today’s cheapest electricity rates in Texas

The following table lists our best electricity rates from cheap power companies in Texas. These rates are for the 1,000-kilowatt-hour (kWh) usage tier.

Please note: All rates above are accurate as of 4/03/2026, 12:33:59 AM CDT for ZIP Code 77003. Rates may have changed since this date/time. For the most up to date rates in your area, please enter your zip code above.

*All pricing shown in cents per kWh

Our energy experts' favorite plans for April

Spring’s mild weather and affordable energy rates make it a great time to explore electricity deals in your area. Here are some of our top plan picks for spring:

  • Frontier Saver Plus 14: Enjoy one of spring’s best deals from Frontier Utilities. This 14-month, fixed-rate plan offers a $125 monthly bill credit if you use 1,000 kWh or more.
  • Gexa Eco Saver Plus 12: This Gexa Energy plan is the best of both worlds — it’s affordable and sourced from 100% renewable energy. Score extra savings with a $125 monthly bill credit when you use at least 1,000 kWh of 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 Texas electricity rate: April 2026

Our marketplace data indicates that the current average Texas electricity rate is 15.76 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

Multiple factors, such as location, home size, electricity rate, and number of residents, influence your electricity bill. 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 15.76 cents/kWh. Here’s what you might expect to pay for electricity each month:

  • Small households (500–999 kWh): $79–$157
  • Medium households (1,000–1,999 kWh): $157–$315
  • Large households (2,000–3,000): $315–$473

Use these ranges to determine if you’re getting 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 cheaper rate.

Types of energy plans

As a deregulated energy shopper, you have multiple types of energy plans available to you. The following are the most common types you’ll come across:

Fixed-rate plans: Best for stability

Shoppers who want affordable, predictable energy bills tend to choose fixed-rate plans. Here are a few key details:

  • Contains a set electricity rate for your entire contract
  • Contracts typically range from one to three years
  • Includes an early termination fee (ETF) if you cancel before your contract ends
  • Popular option: Simple Choice 24 from APG&E

Variable-rate plans: Best for flexibility

If you need short-term electricity, variable-rate plans are a flexible option. Key characteristics include:

  • Variable energy rate that changes month-to-month
  • No contract
  • No cancellation fees
  • Popular option: The Flex Rewards plan from TXU Energy

No-deposit plans: Best for low-credit shoppers

Most energy providers require a deposit if your credit score falls below a certain threshold. Luckily, no-deposit plans help you skip this step. Here’s what you need to know:

Green energy: Best for environmentally conscious shoppers

Renewable energy plans are widely available in Texas, thanks to the state’s abundance of solar power and wind energy. This type of plan is suitable for many shoppers, but especially those who want to lower their carbon footprint. With a green energy plan, you can enjoy:

  • Partial or 100% renewable energy
  • Affordable fixed rates
  • Contracts ranging from 12 to 36 months
  • Popular option: Rhythm Saver 15 from Rhythm Energy

Bill credit plans: Best for savvy shoppers

Bill credit plans offer a monthly discount on your energy bill when you meet the usage requirements. The key to maximizing the benefits of this plan is to ensure your consumption aligns with the usage minimum to claim the credit each month. Here’s how to get the most value out of this plan:

Compare cheap light companies in Texas

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.

Provider Lowest Available RateBest for
4Change logo7.7 ¢/kWhCommunity involvement
APG&E logo7.5 ¢/kWhStraightforward energy plans
4Change logo11.2 ¢/kWhCommitment to quality plans and service
Cirro energy logo7.6 ¢/kWhElectrical protection plans
Constellation energy logo12.4 ¢/kWhProtection plans for A/C and HVAC systems
Direct energy logo14.9 ¢/kWhA variety of term lengths and perks
Discount power logo7.6 ¢/kWhVariety of plan types
Express Energy logo7.7 ¢/kWhDeferred payment plans
frontier logo7.6 ¢/kWhVariety of competitively priced plans
gexa logo7.6 ¢/kWhGreen energy plans
Green Mountain logo16.9 ¢/kWh100% renewable energy
18.4 ¢/kWhPrepaid electricity plans
reliant logo11.9 ¢/kWhMoving assistance
8 ¢/kWhCustomer-centric approach
13.9 ¢/kWhEnergy monitoring and bill credit reward programs
TXU logo13.5 ¢/kWhOverall experience
TXU logo13.4 ¢/kWhPartners with veteran support organizations

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.

Understanding deregulation in Texas

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 Public Utility Commission of Texas (PUCT) regulates Texas’ electricity market to ensure fair pricing and the smooth operation of the power grid.

Chooseenergy.com is not affiliated with Power to Choose, powertochoose.org, or the PUCT.

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:

Retail energy provider (REP) Utility company
Sells energy plans to customers Delivers electricity to homes and businesses
Manages your energy bill and account Manages the local electric infrastructure
Responds to customer service issues Responds to electrical emergencies like power outages and downed power lines

What is Choose Energy?

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 signup process.

Once you find an option you like on our marketplace, you can sign up online or over the phone with one of our energy experts quickly and easily. We also offer useful buying guides and energy resources to help you understand your options.

How to use our marketplace

Our marketplace is designed to help you discover your energy options and sign up in minutes. Here’s how to use Choose Energy 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.
  • Enroll in minutes: Once you find a plan you like, you can enroll online in minutes. If you’d like help picking the best option, call the number on your screen to chat with an expert.
  • Enjoy your new plan: Your Texas energy supplier will activate your service without interruption to your electricity.

Questions to ask yourself to find the best energy plan

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 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 shorter option, like a month-to-month or six-month plan.

Do I want a fixed or variable rate?

Consider whether you need stability or flexibility. A fixed-rate plan leads to predictable electricity bills, but you’re locked into a contract. A variable-rate plan gives you flexibility to switch at any time, but your rate can change monthly. The right choice depends on which rate benefits you the most.

Moving to Texas?

If you are moving to a city in Texas’ deregulated market, you may be able to keep your current energy plan if your provider serves your new address. If it doesn’t, you’ll have to shop for a new provider. Luckily, you won’t incur 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.

Want to switch energy providers?

You have the power to switch energy providers in Texas if you’re unhappy with your service or simply want a better deal. Just keep in mind that you may incur an ETF if you cancel your contract early. Otherwise, you’re free to shop new providers and plans to find a better match for your needs.

Texas electricity rates FAQs

Who has the cheapest electricity rate in Texas?

Our cheapest electricity rate right now is 7.5 cents per kWh from APG&E. 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. We’ll run your score across all providers on our marketplace, so you only have to do the process once.

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?

When you enroll on our marketplace, you can select your start date up to 90 days in advance. If you need electricity fast, same-day service is available with certain providers if you have a smart meter and enroll by the cutoff time.

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.

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