Compare McAllen Electricity Rates and Providers

Since Texas has a deregulated energy market, there’s no shortage of energy plans and providers to pick between. Most energy plans vary in duration, cost per kilowatt-hour (kWh) and more. It’s important to shop around to find the plan that best fits your lifestyle. Unfortunately, navigating the variety of options can be overwhelming. We’re here to simplify the process of finding the best electricity plan for your McAllen home.

Today’s McAllen Electricity Rates

Finding the right electricity plan in McAllen means looking for options that provide consistent, transparent pricing. Our research shows that many advertised “low rates” come with confusing conditions that can lead to unexpected costs.

Our 2025 energy survey found that 60% of McAllen residents weren’t aware that providers use bill credits to make rates appear lower than they actually are. These plans only deliver their promised rates when your usage falls within specific ranges – typically around 1,000 kWh per month.

Here are some straightforward 12-month plans with consistent pricing across different usage levels:

The rates above are accurate as of 05/28/2025 at 05:01 AM for the ZIP code 78336. The rates are the same across all ZIP codes in the AEP Central service area. Rates shown are for 1,000 kWh usage.

Cheapest Electricity Rates in McAllen

You can find the cheapest electricity rates in McAllen below. Note, however, that these and many ultra-cheap energy plans use bill credits to advertise low prices.

Most bill credit plans have a minimum usage threshold, typically above 1,000 kWh. Others may include a maximum, perhaps 1,999 kWh. If your energy usage fluctuates and you don’t consistently meet the usage requirements, you won’t secure the account credit, and your energy rate can skyrocket.

We suggest checking the electricity facts label (EFL) before signing up for a bill credit plan to make sure your usage meets the credit requirements.

The rates above are accurate as of 05/28/2025 at 05:01 AM for the ZIP code 78336. The rates are the same across all ZIP codes in the AEP Central service area. Rates shown are for 1,000 kWh usage.

Average Electricity Rates in McAllen

McAllen residents receive their electricity through AEP Central’s utility infrastructure. Current electricity rates in this area average 14.8 cents per kWh, with available plans ranging from 11.4 to 18.9 cents. The average energy rate in McAllen aligns very closely with the Texas statewide average of 15.60 cents per kWh (according to the U.S. Energy Information Association). You may be able to find a rate lower than the state average by selecting a pattern that matches your usage pattern.

Most McAllen households spend between $100 and $200 monthly on electricity, with the typical family devoting about 9% of their income to power bills. These costs fluctuate seasonally, with summer months bringing higher consumption due to air conditioning needs.

Energy Companies in McAllen

McAllen residents have access to over 50 Texas electricity providers, giving you plenty of options when shopping for power. Our research shows Reliant Energy currently serves 25% of McAllen homes, while TXU Energy supplies 23% of the market.

Interestingly, Just Energy maintains a 10% share in McAllen, significantly higher than its 4% statewide presence. Direct Energy (5%) and Green Mountain Energy (3%) round out the top providers in the area.

While these companies have the largest customer bases, popularity doesn’t always indicate the best service or value. Our comprehensive provider ratings consider factors beyond market share.

Top McAllen Energy Providers

Based on our review of nearly 100 energy companies, we recommend Reliant Energy, Green Mountain Energy and TriEagle Energy if you’re looking for a new provider in McAllen, TX. All of these companies have high customer satisfaction, long business histories and a variety of plans available. On average, we found that the cheapest energy providers in McAllen are 4Change Energy, Frontier Utilities and Gexa Energy.

How To Choose an Electricity Plan in McAllen

Start the process of selecting an electricity plan by reviewing the reputation and service capabilities of your retail electric provider (REP). 

After you’ve found a reliable REP, think about more than just the advertised rate. The cost of electricity per kilowatt-hour is a major factor, but so are things like time of use clauses and bill credits. Remember, your electric company supplies your electricity, while the utility company, or TDSP, maintains the power lines, delivers electricity and handles outages. 

With all of that in mind, your first step should be assessing your usage.

Step 1: Identify Your Energy Usage Needs

To pick the right plan, you should find one that matches your usage needs. If you have a smart meter, you can get detailed consumption insights through Smart Meter Texas. You can also review your past bills to determine your average monthly consumption in kWh.

It’s a good idea to pull your usage history over an entire year to account for seasonal weather variations and how those changes impact your usage. 

Step 2: Review Plan Details and Rates

Use our comparison tool with your McAllen ZIP code to see available plans. Pay special attention to how rates change at different usage levels (500, 1000, and 2000 kWh).

Our survey found only 51% of McAllen residents believe they pay fair rates for electricity. This perception often stems from confusing plan structures rather than base rates themselves. The Electricity Facts Label (EFL) for each plan reveals its true pricing structure, helping you avoid unpleasant surprises.

Most McAllen families are price-sensitive – 51% of survey respondents said they would switch providers for $50 or less in monthly savings. At the same time, 51% reported they couldn’t absorb a $50 increase in their monthly bill, highlighting the importance of finding reliable, fairly-priced service.

Step 3: Switch To your New Light Company

Once you’ve picked the right energy plan for your needs, you can sign up on the phone or online right here. Signing up online is easy and lets you switch without any disruption to your service. After signing up, your new provider will handle the transition, and your electricity will continue as usual. Just be sure to check your current energy plan for cancellation fees before signing up.

Plan Types Available in McAllen

You may have dozens, if not hundreds, of plans to compare in McAllen. Before picking one, do your homework to understand the difference between the different plan types and what they cover. Below are the most common plan types in McAllen.

• Fixed-rate plans
• Bill credit plans
• Time-of-use plans
• Green energy plans
• No-deposit plans
• Variable-rate plans

What To Know About Electricity In McAllen

In any deregulated market, including McAllen, think about rates, contract length, discounts/promotions, rebates, and termination fees. 

• Rates: This refers to the cost you pay per kilowatt-hour, regardless of your usage. 
• Contract length: Pay attention to the duration of your contract. Shorter contracts may offer savings but will require you to shop more often. Meanwhile, long-term contracts offer stability for extended periods.
• Discounts and promotions: used to refer to things like like bill credits or sign-up bonuses. 
• Electric vehicle plans (EV) and solar buyback: Some plans offer discounts for EV charging hours, while others allow you to use solar panels to sell excess energy back to the grid.
• Early termination fees (ETFs): End a fixed-rate contract early, and you may owe an ETF.

In general, we recommend opting for fixed-rate plans with a 12-month term to ensure stable pricing and avoid the risk of fluctuating bills.

Understanding Electricity Facts Labels

Each electricity plan in the state of Texas comes with a standardized document called an electricity facts label (EFL). An EFL details the specific aspects of each electricity plan, including the rate, contract terms and any additional fees.

The EFL reveals whether a plan uses bill credits and clarifies how your rate changes based on consumption. This transparency helps you avoid plans with hidden costs or unfavorable terms. Read your EFL before settling on an energy plan for an in-depth understanding of your monthly charges, as well as any discounts and how to secure the savings offered.

Early Termination Fees

Most fixed-rate plans charge a fee if you cancel before your contract ends. These early termination fees (ETFs) typically range from $150 to $200, though some providers charge $20 per remaining month instead.

Before signing a contract, understand its termination conditions. Some providers offer exceptions for moving outside their service area or provide a grace period for cancellation without penalty.

Free Nights and Weekends Energy Plans

Some time-of-use plans offer free nights and weekends, which can sound incredibly appealing to the average person, but they are oftentimes a gimmick to lure customers in. Rates during peak hours are often much higher than normal to offset the “free” energy, which in turn can lead to higher monthly bills. Chances are you should avoid most time-of-use plans unless you’re certain you will use the largest share of your electricity during the free periods. For most Texans, that simply isn’t feasible.

Consider Value Beyond Just Price

Our survey reveals that 70% of McAllen residents would recommend their current provider to others, suggesting generally positive experiences with local electricity companies. However, 51% would still switch for $50 in monthly savings.

This balance between satisfaction and price sensitivity highlights the importance of considering both factors. The cheapest plan isn’t always the best value if it comes with poor customer service or confusing billing practices.

Look for providers offering transparent pricing, reliable customer support, and easy-to-use account management tools alongside competitive rates.

When To Switch or Shop

Try to switch or shop for a new electricity provider during the spring or fall. During these seasons, energy demand is typically at its lowest, bringing rates down. On the other hand, temperatures are at their most extreme during summer and winter, which can cause demand — and, therefore, prices — to skyrocket.

Ideally, you should start looking for a new plan one month before your contract ends. This way, you have enough time to research your options and make a decision without feeling overwhelmed or rushed.

How Does Deregulated Energy Work in McAllen?

McAllen joined Texas’s deregulated electricity market in 2002, giving residents the freedom to choose their energy provider. This market structure involves three key entities:

• Power Generators: Companies that operate power plants producing electricity
• AEP Central: The local utility company that owns and maintains power lines
• Retail Providers: Companies that purchase wholesale electricity and sell plans to consumers

AEP Central handles all infrastructure maintenance and outage response regardless of which retail provider you select. For outages or electrical emergencies, contact AEP Central directly, not your retail electricity provider.

This separation of roles means you can switch retail providers without any changes to your physical electricity delivery. Your power still travels through the same lines, and outage restoration is handled by the same utility crews.

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%)