Texas Electricity Rates – Best and Cheapest Compared

Posted by: Frank Eakin | 05/03/2023

You are looking for the best electric company with the cheapest electricity rates in Texas for your zip code, but want to make sure the electricity plan you select is legitimate and trustworthy. You don’t want an ugly bill surprise.

Our free electricity comparison service vets each electricity plan from the best power companies, and we exclude Texas electricity rates which are filled with gimmicks and likely to cause a bill surprise.

Make side-by-side comparisons of electricity rates from the most trusted electric companies in Texas in the chart below. You’ll find that many plans have rates that are cheaper than the regular rates on electricity provider sites.

Speak with a Reliant Energy operator for expert help in choosing a plan that fits your home at 833-339-0416.

Call Reliant (833-339-0416)

Now that you’ve seen some of our vetted plans on the best electricity rate chart in Texas, here’s some pro tips to help you stay away from sources that offer plans filled with gimmick electricity plans, and also to help you understand the pros and cons of promotional plans, such as those offering free electricity, bill credits and prepaid electricity.

Who has the cheapest electric rates in Texas?

Various factors can influence the rates that electricity providers charge during any given period. You may find that your favorite provider has cheap electricity rates one month and high rates the next due to their buying patterns of the electricity commodity.

Thus, it’s smart to shop for competitive electricity rates using an electricity comparison site like Home Energy Club that includes quality brands, and offers you only vetted electricity plans that are not likely to cause a billing surprise. Also, check our Texas cities electricity page and Texas electric company reviews page.

A well-managed comparison site will display brands that are well established and financially stable, have professional billing systems, offer operators to assist you when needed, and enjoy a reputation for ethical business practices.

If you are surfing the web to compare electricity plans, keep in mind these recommendations when choosing companies:

Avoid “gimmick” electricity rates:

Providers of all sizes offer rate plans with enticing names that appear to offer a low rate, but the EFLs of such plans sometimes reveal they will actually cost more than the market average because they’re not a fit for your home’s electricity usage.

Also, beware of state government sites, such as Power to Choose Texas website, that display provider plans filled with tricky gimmick rates. To save time, you can find discount provider offers that have been professionally vetted on HomeEnergyClub.com.

Use an electricity promo code:

Home Energy Club uses its bargaining power to gain deep discount rates from providers to help you cut your bill. See our electricity promo code page with exclusive discount codes (also called referral codes), which provide an off-the-top discount on the provider’s regular prices to deliver your cheaper rates. Also, EnergyPromoCodes.com gives free promo codes to its followers to access discount rates from providers.

Sample of Exclusive Promo Codes: Gexa Energy offers deep discount green electricity plans that are lower than many fossil plans using our promo code GEXATX.

What electricity plan is best for you?

Your home’s monthly usage amount can have a huge effect on which electricity plan is best for you.  If your monthly usage is stable throughout the year, you might benefit from a tiered rate or bill credit plan that assigns a specific rate for a range of kWh usage (for example, the rate may be very cheap as long as you stay between 1000 and 2000 kWh in a month).

Tiered plans can provide meaningful savings as long as your usage stays within a certain range, but if your usage falls outside of the range, the rate can be expensive. Since most homes in Texas have a big swing between summer and winter usage, it’s important to consider your monthly usage amounts for each season when enrolling in a tiered plan.

What is the most popular electricity plan in Texas?

On Home Energy Club, you can compare the cheapest electricity plans over a variety of term lengths to find the best electricity plan for your home. The most common electricity plan in Texas is a 12-month fixed rate, giving the customer a fixed (locked) electricity rate for one year. However, longer term plans are becoming more and more popular because they allow customers to lock in today’s relatively cheap electricity rates for 2, 3, and 5-year terms.

You can conveniently review your monthly usage on the Smart Meter Texas website, rather than review months or years of paper bills to understand your usage patterns.

With long-term plans, you don’t have to worry about electricity rate increases for years.  Month-to-month plans are sometimes available, but these plans are often more expensive following an initial period of several months, and can cause significant bill surprises during the summer months when electricity usage his high.

Some providers advertise plans with free energy for overnight hours or weekends, and these plans can cut your bill if you have special usage patterns, but these plans can result in high average rates due to expensive pricing for non-free hours to offset the free periods.

For most homeowners, a one-year or longer plan with a simple no-gimmick rate is the easiest and surest way to save money on electricity without bill surprises. See our handy Texas Electricity Savvy Shopper Guide for more helpful info to find the best cheap electricity plan.

Do you want to buy electricity from non-polluting renewable sources?

Looking for renewable electricity plans at discount rates that are often cheaper than fossil-sourced plans? You’ll be surprised at the CO2 facts in relation to regular fossil-sourced electricity plans.

Renewable energy plans give customers an option to buy 100% renewable-sourced electricity. While these “green electricity” plans often have higher rates than traditional fossil-based plans, some reputable discount providers now offer renewable electricity rates that are about the same or even cheaper than traditional fossil-based rates.

Always read the Electricity Fact Label (EFL):

Once you know what kind of plan is best for you, you can shop around for the REP that has the cheapest electricity rate for that type.  This is where the EFL comes in.  When comparing plans from different REPs, always use the information in the EFL to get an apples-to-apples comparison of the plans offered.

Sometimes a plan may look like a good deal until you read the EFL. The EFL is a government-mandated sheet that will show you a true pricing for your usage, but you must read the details to estimate your monthly bill, based on your usage patterns. See our Electricity Fact Label guide to help you understand how to use this important fact sheet.

Top-rated Electric Companies in Texas