$266/mo
based on 1,670 kWh average monthly usage
Electricity Rates in Texas (August 2026)
The average residential rate is 15.91¢/kWh — that's about $266/month for a typical household.
Source: U.S. Energy Information Administration. Data as of August 2026.
#22
out of 51 states (1 = cheapest)
12.4%below
the national average of 18.16¢/kWh
2.9%up
over the past 12 months
Rates by Sector
| Sector | Rate (¢/kWh) | vs National | Avg Monthly Usage | Avg Monthly Bill |
|---|---|---|---|---|
| Residential | 15.91¢/kWh | -12.4% | 1,670 kWh | $266 |
| Commercial | 8.96¢/kWh | -38.1% | 11,940 kWh | $1,070 |
| Industrial | 7.21¢/kWh | -25.2% | 35,956 kWh | $2,592 |
| National Avg — Residential | 18.16¢/kWh | — | 1,152 kWh | $209 |
| National Avg — Commercial | 14.47¢/kWh | — | 7,661 kWh | $1,108 |
| National Avg — Industrial | 9.64¢/kWh | — | 81,834 kWh | $7,890 |
Electricity Providers in Texas
Utility data from EIA Form 861, 2024
How Deregulated Electricity Works in Texas
Texas deregulated its electricity market in 1999. The system operates with three components: power companies generate electricity (generation), utilities maintain high-voltage lines (transmission), and your local utility (Entergy Texas Inc., El Paso Electric Co, Southwestern Public Service Co, Southwestern Electric Power Co) delivers electricity to your home (distribution).
You can choose your electricity supplier from 136 competing providers. If you don't select a supplier, you automatically receive default service through your utility at a regulated rate.
How to Switch Electricity Companies in Texas
- 1Review your current contract terms and check for early termination fees
- 2Compare available rates from 136 suppliers serving your area
- 3Choose a plan and sign a Letter of Authorization
- 4Your new supplier handles the transfer with your utility (Entergy Texas Inc., El Paso Electric Co, Southwestern Public Service Co, Southwestern Electric Power Co) — your service is not interrupted
- 5Your new rate takes effect in the next billing cycle
When is the Best Time to Switch Energy Providers in Texas
The best times to switch providers in Texas typically include:
- Before peak seasons (summer) when you can lock in lower rates
- When your current contract is nearing expiration
- During off-peak months when providers offer competitive promotions
- After comparing rates during market downturns
Types of Electricity Plans in Texas
Fixed-rate plans
Consistent rates throughout your contract term, making budgeting easier. Early termination fees may apply.
Green energy plans
Power your home with 100% renewable sources while supporting clean energy goals.
Time-of-use plans
Different rates based on when you use electricity, with lower costs during off-peak hours.
Variable-rate / prepaid plans
Flexibility without long-term commitments, though rates may fluctuate monthly based on market conditions.
Power Outages in Texas
1,025 customers currently without power in Texas
Frequently Asked Questions
The average residential electricity rate in Texas is 15.91¢ per kWh. Commercial customers pay an average of 8.96¢ per kWh and industrial customers pay 7.21¢ per kWh.