Texas electricity rates
The market's real numbers, with their source and their date. No teaser rates and no "today's cheapest plan": live prices belong in the comparison, which computes them at your actual usage.
EIA averages, data through 04/2026. Market context, not your bill and not any plan's price.
What "all-in" means
The average above is total revenue divided by kWh sold: energy, TDU delivery, and fees together. That's how the EIA measures, and that's how your bill feels. Advertised rates are usually something else: energy only, at one exact usage level.
That's why every Texas plan publishes an Electricity Facts Label (EFL) with the average price at 500, 1000, and 2000 kWh. The three numbers differ on almost every plan, because fixed charges and credits change the math at each level. The right question is never "what's the rate?" but "what does this plan cost at MY usage?"
How Texas deregulation works
The Retail Electric Provider sells you the energy and sends the bill. It is the only thing you choose when you switch plans.
The transmission and distribution utility owns the wires and meters. It charges regulated delivery rates, identical for everyone in your area.
The Texas grid operator. It keeps the system balanced. You never buy anything from it directly.
Switching providers never changes the wires, the meter, or the crew that responds to outages. That belongs to the TDU no matter which plan you pick. Switching only changes who bills you for the energy and at what price.
Who delivers your electricity (TDU territories)
The main TDUs of the deregulated market: Oncor, CenterPoint Energy, AEP Texas North, AEP Texas Central, and Texas-New Mexico Power, plus Lubbock Power & Light since Lubbock joined retail choice in 2024. Major cities by territory:
| TDU (delivery) | Major cities |
|---|---|
| Oncor Electric Delivery | Dallas, Fort Worth, Plano, Round Rock, Pflugerville, Waco, Tyler, Midland, Odessa |
| CenterPoint Energy | Houston, Katy, Sugar Land, Pasadena, Baytown |
| AEP Texas Central | Corpus Christi, Laredo, McAllen, Harlingen, Victoria |
| AEP Texas North | Abilene, San Angelo, Vernon |
| Texas-New Mexico Power (TNMP) | Texas City, League City, Lewisville, Alvin |
| Lubbock Power & Light | Lubbock (in retail choice since 2024) |
Austin and San Antonio sit outside the choice market: municipal utilities (Austin Energy and CPS Energy) serve them and you cannot switch providers there. The same goes for El Paso, the Panhandle, and most rural co-ops.
Why your summer bill spikes
Texas usage is air-conditioning dominant: summer months run far above the annual average and winter months below it. That matters when picking a plan, because bill-credit thresholds and minimum-usage fees behave differently in August than in April. A plan that wins at your average month can lose at your extreme months.
Our comparison models your full year rather than a single month for exactly this reason.
The traps we check every plan for
Full definitions in the glossary.
Most fixed plans charge a fee if you leave before the end date. Texas PUCT rules let you leave without a penalty in the final 14 days of the contract.
A bill credit that only applies if you use, say, 1000 kWh or more. One month under the threshold and the cheap plan turns expensive.
A penalty that triggers when you use LESS than a set level. It punishes mild months and small homes.
The big advertised number is usually energy-only, at one exact usage level. Your real cost adds TDU delivery, base charges, and credits you may not earn.
Frequently asked questions
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 16.99 cents per kWh all-in, per EIA data through 04/2026. That includes energy, delivery, and fees, and compares to a US average of 18.83 cents. It is market context, not any specific plan's price: what you actually pay depends on your plan and your usage.
Why is my rate higher than the Texas average?
Averages blend every home and every plan. Your effective rate depends on your usage level (fixed charges weigh more at low usage), whether a bill credit threshold was hit, TDU delivery charges in your area, and whether your fixed contract expired and rolled onto a month-to-month holdover plan. Comparing plans at your actual usage is the only honest way to see your number.
What are TDU delivery charges?
The TDU (transmission and distribution utility) owns the poles, wires, and meters in your area and charges every customer the same regulated delivery rates regardless of which retail provider you pick. In deregulated Texas the main TDUs are Oncor, CenterPoint Energy, AEP Texas North, AEP Texas Central, and Texas-New Mexico Power. Delivery charges appear on your bill on top of the energy charge, which is why an advertised energy-only rate understates your real cost.
Does switching providers change my wires or reliability?
No. The TDU keeps delivering your power and responding to outages no matter which retail provider you choose. Switching changes who bills you for the energy and at what price. It never changes the wires, the meter, or the crew that restores your power.
What is an EFL and why do the 500/1000/2000 kWh prices differ?
The Electricity Facts Label is the standardized disclosure every Texas plan must publish. It shows the average all-in price at exactly 500, 1000, and 2000 kWh per month. The three numbers differ because fixed charges, tiered rates, and bill credits change the math at each usage level. A plan that looks cheap at 1000 kWh can be expensive at your actual usage, which is why we rank plans at your number, not the label's.
How does Voltcheckr make money?
Voltcheckr LLC is an independent energy broker registered with the Public Utility Commission of Texas (Broker Registration BR260102). Suppliers pay us a referral fee when a customer enrolls through our comparison. The comparison is free to the customer, and the ranking is by all-in cost at your usage.
Sources: averages derived from U.S. Energy Information Administration data (through 04/2026); TDU territories and market structure per the Public Utility Commission of Texas. Voltcheckr LLC is an independent energy broker (PUCT Broker Registration BR260102) and is paid supplier referral commissions; the comparison is free to the customer.
So what's your number?
Averages are context. The comparison computes every live plan at your actual usage, ranked by honest all-in cost.