Compare Houston Electricity Rates and Providers (May 2025)

Today’s Houston Electricity Rates

Based on our research, the best electricity plans in Houston combine competitive Texas electricity rates with predictable monthly energy costs.

Be wary of electricity plans advertising very low rates – they often use bill credits that can lead to unpredictable costs. Our 2025 survey found that 50% of Houston respondents didn’t know energy providers use bill credits and rebates to show a lower rate than the one they will actually pay if they don’t qualify for the credit. Bills can spike dramatically when usage falls outside the credit-qualifying range, which is common due to seasonal variations.

Choose straightforward fixed-rate plans with consistent pricing across all usage levels (500-2,000 kWh) for more predictable costs. While their advertised rates may appear higher, they often lower total costs without the risk of bill surprises.

Here’s a list of gimmick-free, straightforward 12-month energy plans in Houston with competitive rates.

The rates above are accurate as of 05/08/2025 at 05:51 AM for the ZIP code 77077. The rates are the same across all ZIP codes in the CenterPoint service area. Rates shown are for 1000 kWh usage.

Cheapest Electricity Rates in Houston

Cheap energy rates typically include bill credit plans, which have rates that vary depending on your energy usage. If you’re looking for cheap electricity in Houston, it’s important to understand how these plans work before choosing one. Below, you’ll find our table of the cheapest available rates:

The rates above are accurate as of 05/08/2025 at 05:51 AM for the ZIP code 77077. The rates are the same across all ZIP codes in the CenterPoint service area. Rates shown are for 1000 kWh usage.

Average Residential Rates in Houston

The average electricity rate across Texas is 15.6 cents per kWh, according to the most recent data from the U.S. Energy Information Administration (EIA). Because CenterPoint charges the second lowest rates in the state (Oncor is typically the cheapest utility service area), Houston’s average electricity rate is a bit lower than the state average. As of February 2025, the average electricity rate in Houston is 14.0 cents per kWh, based on the rate of hundreds of plans at 1,000 kWh.

Electricity Companies in Houston

According to our February 2025 consumer survey, Houston residents reporting higher overall satisfaction (7.9 out of 10) with their electricity providers compared to the Texas average (7.7). Reliant Energy leads the Houston market with 24.1% market share, and Houston customers particularly appreciate its online experience and customer service, rating these aspects 8.1 and 7.8 out of 10 respectively.

Best Houston Energy Providers

Green Mountain Energy, Reliant Energy and TriEagle Energy are the top light companies in Houston, according to our ratings.

We rated dozens of Houston electricity companies based on plan variety, customer satisfaction, bill predictability and cost. Companies with higher scores, like TXU Energy, are typically more well-rounded across each category.

However, some Houston light companies specialize in specific offerings. For example, Payless Power solely offers prepaid plans, which reduces its score across plan features and results in a lower total rating. Despite that, it’s our top pick for no-deposit plans in Houston.

However, the best electricity company for you depends on the contract terms and plan length you prefer. Start by checking which Houston electricity providers are available in your area, then choose from top-rated options or compare based on rates.

Our scores, BBB ratings and the PUCT complaint scorecard ratings are out of 5 stars. Ratings are current as of February 2025.

How To Choose an Electricity Plan in Houston

With energy deregulation in Houston, you can choose your retail electricity provider (REP), but your location determines your utility company. Your REP sells electricity plans and manages billing while the transmission and distribution utility (TDU) responds to outages and maintains electric infrastructure.

When switching electricity providers, consider the provider’s customer service quality, plan variety, costs and bill predictability.

Step 1: Identify Your Electricity Usage

Before comparing energy plans, find out your home’s typical monthly usage. You’ll find your historic energy consumption on past energy bills, and you can also use Smart Meter Texas. Review your monthly usage over an entire year to account for seasonal variations in your energy consumption.

Step 2: Review Plan Details and Rates

Enter your ZIP code below to compare electricity rates and plans in your Houston neighborhood. Common types of plans include fixed-rate plans, renewable energy plans, bill credit plans, time-of-use plans and no-deposit plans. For the most predictable energy costs, we generally recommend straightforward fixed-rate plans without bill credits or time of use. However, the best plan for you depends on your usage habits and preferences.

Our survey found that 52.5% of your fellow Houston residents believe they’re paying a fair rate for electricity, compared to just 48.0% statewide. This higher satisfaction is likely connected to the slightly lower average bills in Houston ($195.96 compared to the state average of $202.45) and better customer service ratings. When comparing rates, remember that the lowest advertised rate may not provide the best overall value or satisfaction for your household.

Step 3: Make the Switch To Your New Provider

We can help you switch to your new energy provider in five minutes or less. We’ll just need your info and service address, and we’ll get you enrolled in your new energy plan. Your new provider will have your lights turned on, and you won’t need to do a thing.

Plan Types Available in Houston

Houston has a wide range of energy plan types; here are the main options.

• Fixed-rate plans: Lock in your electricity rate for your contract term, providing price stability regardless of market fluctuations.
• Variable-rate plans: These plans adjust your electricity rate monthly based on market conditions, potentially offering savings when energy prices drop but risking higher bills when they rise.
• Bill credit plans: Bill credits reward customers with statement credits when their electricity usage reaches specified thresholds during the billing cycle.
• Time-of-use plans: TOU plans charge different rates depending on when you use electricity throughout the day, offering lower rates during off-peak hours and higher rates during peak demand periods.
• Green energy plans: Renewable energy plans source electricity from renewable resources like wind, solar, or hydroelectric power, allowing environmentally conscious consumers to reduce their carbon footprint.
• No-deposit plans: These plans waive the typical security deposit requirement for customers who meet specific credit criteria, making it easier to establish new electrical services. Some no-deposit plans come as a prepaid plan, which requires you to load your account with money to pay for electricity.

Moving To Houston

Moving to the Bayou city involves some transitions: navigating the traffic on I-45, dealing with the humidity, and choosing an energy plan. Whether you’re newly moving to HTX or simply trying to find a new energy provider, you’ve come to the right place.

We recommend starting your search for your new energy provider at least 30 days before your move. This will give you time to research your energy needs and the pros and cons of the many electricity companies in Houston. Plus, you can schedule your start date a few weeks in advance, which should help ensure that the lights are on when you move into your new home.

If you already live in the Houston area and you’re moving to a new address, you may be able to transfer your current energy plan to your new home. If they don’t offer service at your new location, you can cancel your plan without incurring a cancellation fee.

Some Houston suburbs are regulated, meaning you won’t be able to choose your energy provider. Instead, you’ll have to work with a single utility provider for your energy. Regulated suburbs in the Houston area include Conroe and The Woodlands.

Tips for Shopping for Energy in Houston

We’ve gathered some of our top tips for comparing energy plans, providers and rates in Houston. Whether you’re new to deregulation or a veteran of the Lone Star State’s energy market, you should start by determining your energy usage needs and reviewing the EFL.

Read Electricity Facts Labels

The electricity facts label (EFL) details everything you need to know about an energy plan, including the energy charge, base charge and utility delivery fees. It also provides an average rate at different kWh levels, which may include potential discounts. The EFL also includes any cancellation fees. Use the EFL and your energy usage to assess which energy plan suits your needs.

Beware of Early Termination Fees

An early termination fee (ETF) is a charge from energy providers when you cancel your contract before its end date. The fee varies by plan and provider. Some electric companies charge between $150 and $395, while others charge $20 per remaining month on the contract. You can find the ETF listed on your plan’s EFL.

Avoid Free Nights and Weekends Energy Plans

Free nights and weekends are time-of-use energy plans where you pay a set rate during the day or weekdays and receive free electricity at night or on weekends. These plans work best for those with flexible schedules who can shift their usage to off-peak hours. We don’t typically recommend these plans because they often have higher rates during paid times. Before enrolling in a free nights or weekends plan, evaluate your usage habits and weigh potential savings against the costs.

Consider Value Beyond Just Price

Our 2025 survey shows that Houston residents place significant value on customer service and digital experience. In fact, people in your city rated these aspects 0.2 points higher than the state average.

While securing a competitive rate is important, consider these quality factors alongside price when selecting your provider. The cheapest plan may not deliver the best overall experience and value for your household.

Know When It Is the Right Time to Change Your Plan or Provider

Spring and fall are historically the best seasons to buy energy plans in Houston. Mild temperatures mean reduced demand, helping you lock in a lower rate. Seasons with high demand, like summer, often have the most expensive rates. By securing a 12-month fixed-rate plan in the spring or fall, you can enjoy stable rates throughout the year and expect low costs when you renew at the same time the following year.

How Does Deregulated Energy Work in Houston?

Since 2002, Houston residents have had the power to choose an electricity provider. Unlike regulated areas, which rely on a single utility, deregulation breaks up the monopolies to encourage competition among providers.

Three entities help operate Houston’s electricity: generators, TDUs and REPs. The PUCT and Electric Reliability Council of Texas (ERCOT) oversee these entities to ensure fair pricing and responsible grid management. In this deregulated electricity market, energy providers purchase electricity from generators in wholesale auctions. Utility companies then deliver that power to your home.

During a power outage, contact your utility company. Utilities manage the local grid, which includes power outage repairs.

Which Utility Company Serves Houston?

CenterPoint Energy services the power grid in the Greater Houston Area. You’ll find the specific delivery fees in your plans’ EFL or on the utility’s website. CenterPoint usually charges a flat fee per billing cycle and a fee per kWh. The EFL lists the average electricity prices, which include TDU fees.

Frequently Asked Questions

How We Rate and Review Texas Electricity Companies

With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.

We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on results from our 2025 energy survey of 1,600 Texans, scoring providers on customer satisfaction, experience and retention. Here’s how these core factors weighed into our ratings:

• Customer satisfaction (30%)
• Customer retention (30%)
• Online experience (20%)
• Customer experience (20%)