Compare Alamo Electricity Rates and Providers

Living in Alamo means you have the power to choose your electricity provider thanks to Texas deregulation. Finding the best electricity rates in Alamo requires understanding the available plans and your specific energy needs.

Today’s Alamo Electricity Rates and Plans

You can find our picks for the best energy rates in Alamo in the table below. Our research indicates that the best Alamo electricity rates combine competitive pricing with straightforward billing structures that help you avoid unexpected costs. 

Many providers advertise extremely low rates that rely on bill credits, which can lead to dramatic price increases when your usage falls outside qualifying thresholds. This is especially problematic in Alamo, where seasonal cooling needs fluctuate drastically.

For more predictability, we suggest fixed-rate plans with consistent pricing across all usage levels, allowing for consistent energy costs throughout the year. While these plans advertise slightly higher rates than a bill credit plan, they typically deliver better value by reducing the risk of bill surprises.

The rates above are accurate as of 05/27/2025 at 05:07 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 Alamo

The cheapest advertised electricity rates in Alamo typically include bill credits that offer beneficial pricing when your monthly usage hits specific targets, often 1,000 kWh or 2,000 kWh. 

These plans can provide substantial savings for residents with predictable energy consumption patterns that regularly meet or exceed the usage threshold needed for the discount.

When your usage meets or exceeds the required level, you’ll unlock a discount, usually ranging from $30 to $125, depending on your energy plan. However, if your usage dips below the threshold for the discount, you won’t earn the credit, and your effective energy rate can more than double. 

While these plans display attractive rates, they can lead to significantly higher bills during months when your usage fluctuates outside the credit-eligible range. This is especially relevant for Alamo residents dealing with weather extremes in the Rio Grande Valley region.

The rates above are accurate as of 05/27/2025 at 05:07 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.

What Is a Good Energy Rate in Alamo?

A “good energy rate” will vary based on your energy needs, as well as the plan type you’re considering. For example, if you’re passionate about green energy, you may be willing to pay a premium rate for renewable energy plans. On the other hand, many customers who prioritize customer service are willing to accept the higher price tag from top providers, such as TXU Energy or Reliant Energy.

That said, our research indicates that a good energy rate is within a few cents of the statewide average, which is 14.89 cents per kWh, according to February 2025 data from the U.S. Energy Information Administration (EIA). That means if you’re paying between 14 and 17 cents per kWh, you can consider it a good rate.

In Alamo, several factors influence energy rates, including the region’s extreme temperature variations that drive seasonal cooling demands. According to the Public Utility Commission of Texas (PUCT), ongoing grid reliability improvements following winter storm Uri continue to impact electricity costs throughout the state. And the global fossil fuel market can actually impact your Alamo energy rates, as well, because natural gas prices fuel many Texas generation plants, according to the Railroad Commission of Texas.

Electricity Companies in Alamo

With 140-plus retail electric providers operating in Texas, according to the PUCT, Alamo residents have numerous options for their electricity needs. These providers differ in pricing structures, customer service quality, renewable energy offerings and specialized plan types, so it’s understandable if you’re overwhelmed.

Our February 2025 energy survey of 1,600 Texans in deregulated areas indicates that TXU Energy, Reliant Energy, and Gexa Energy maintain the largest market shares in Texas. Each provider offers distinct advantages, from TXU’s exceptional customer service to Gexa’s competitive rates.

Top Energy Providers in Alamo

According to our comprehensive review standards, Green Mountain Energy, Reliant Energy and TriEagle Energy rank as our top-rated electricity providers serving Alamo residents. These companies consistently demonstrate superior customer satisfaction, plan transparency and overall value compared to their competitors.

For Alamo residents primarily concerned with securing the lowest possible rates, our analysis shows that Gexa Energy, 4Change Energy and Frontier Utilities typically offer the most competitive plans in the AEP Central service area. 

Specialized providers like Payless Power excel in prepaid energy solutions for those seeking no-deposit options, while Green Mountain Energy focuses exclusively on renewable energy plans for environmentally conscious consumers.

Which Utility Company Serves Alamo?

AEP Texas Central (AEP Central) serves as the transmission and distribution utility (TDU) for Alamo and most of the Rio Grande Valley region. This utility maintains the power lines, poles and electrical infrastructure that deliver electricity to your home, regardless of which retail provider you select. If you’re dealing with a power outage or a downed line, contact AEP Central rather than your energy provider.

AEP Central’s current delivery charges include a monthly base fee of $3.21 plus 5.2411 cents per kWh used, which significantly impacts your total electricity bill. While you can freely choose your retail electricity provider in Alamo, AEP Central remains your designated utility company responsible for power outages, meter issues and infrastructure maintenance.

How To Choose an Electricity Plan in Alamo

When choosing an energy plan for your Alamo home, we encourage you to look beyond the advertised rate. Important considerations include contract length, energy source and bill predictability. Check out the tips below to find the best plan for your home in the Rio Grande Valley.

• Analyze your historical usage patterns: Review your past electric bills or pull your usage data from Smart Meter Texas to identify your typical monthly consumption and seasonal trends. Plans are marketed at three key usage levels: 500 kWh, 1,000 kWh and 2,000 kWh. Knowing how much energy you use and when you use it can help you more accurately compare rates and plan types.
• Compare plan types carefully: You’ll find a wide range of plan types, each with pros and cons. Fixed-rate plans offer stability and prevent rate increases, making them our top pick. But variable rates have no contract, which some Texans may want, but they expose you to rampant market fluctuations. Compare plan types against your usage before signing up for any option.
• Don’t skip the fine print: The electricity facts label (EFL) details everything you need to know about a plan, from exact rates at different usage levels to energy charge and delivery fees. It even includes relevant discounted rate structures to help you fully grasp a plan’s effective energy rate. By reading the EFL, you can avoid plans with confusing billing structures that may seem attractive initially but cost more over time.
• Consider contract duration and early termination fees (ETFs): Short contracts may have discounted rates, but may cost you when you have to re-up and pay full price. Meanwhile, long-term contracts can protect you from price increases but have hefty cancellation charges.
• Look into renewable energy options: Many providers serving Alamo offer partial or 100% renewable energy plans, allowing you to reduce your environmental impact and potentially qualify for special promotions or incentives.

Plan Types Available in Alamo

Alamo offers various electricity plan types to meet different household needs and preferences. By learning about the pros and cons of energy plan types, you can arm yourself with the knowledge you need to pick the best plan for how your home consumes electricity.

• Fixed-rate plans: Lock in your electricity rate for the duration of your contract, typically six to 36 months, protecting you from market fluctuations and providing consistent billing.
• Variable-rate plans: These month-to-month plans adjust rates based on market conditions, potentially offering savings when energy prices drop but risking higher bills during peak demand periods.
• Bill credit plans: Receive statement credits when your monthly usage hits specific thresholds, potentially lowering your effective rate but often leading to significantly higher bills when usage falls outside credit-qualifying ranges.
• Time-of-use plans: Leverage different rates throughout the day with lower costs during off-peak hours and higher rates during peak demand periods, allowing strategic consumers to shift energy-intensive activities to save money.
• Green energy plans: Power your home with renewable sources like wind and solar, supporting clean energy development.
• No-deposit plans: Access electricity service without paying a security deposit through prepaid options that require you to maintain a positive balance on your account, rather than billing you after usage.

What To Know About Electricity in Alamo

Whether you’re a long-time Alamo resident or new to the Rio Grande Valley, it pays to learn a bit more about navigating the deregulated energy market. The tips below can help you sift through gimmicky plans to find the best offering for your needs.

Start with the EFL

Mandated by the state, the EFL serves as your comprehensive guide to a plan’s complete pricing structure, detailing energy charges, base fees and AEP Central delivery charges. This document also specifies the average rate at different usage levels, helping you determine which plan truly offers the best value based on your specific consumption patterns. Always review the EFL carefully before signing up for an electricity plan to avoid unexpected charges or confusing billing practices.

When reviewing the EFL, keep an eye out for ETFs. These charges, which apply if you end a fixed-rate plan before the contract is up, range from $150 to $395, depending on your provider and contract length. Some providers calculate ETFs at $20 per remaining month on your contract, which can add up quickly if you need to switch providers early.

Avoiding Trendy Free Electricity Gimmicks

Free nights and weekends plans promise complimentary electricity during specific hours, but typically compensate by charging significantly higher rates during paid periods. While these time-of-use plans might seem appealing, they rarely benefit Alamo residents unless you can shift at least 60% of your electricity usage to the free periods. Most households with standard usage patterns end up paying more with these plans than straightforward fixed-rate options, making them a risky choice for budget-conscious consumers.

Exploring Green Energy in Alamo

Alamo’s position in sunny South Texas makes it an ideal location for solar-powered electricity plans. Several providers, including Green Mountain Energy and Chariot Energy, offer 100% renewable energy options at competitive rates. These plans typically have competitive rates with traditionally-sourced energy plans, making green energy an increasingly affordable choice for environmentally conscious Alamo residents.

Switching Providers or Moving to Alamo

Switching electricity providers in Alamo requires minimal effort. Simply select your preferred plan and sign up with the new provider, and they’ll handle the rest, including contacting your current company to end service. 

Before switching, verify whether your current contract includes an ETF by checking your early termination fee (ETF) or contacting customer service.

Rates tend to drop in spring and fall when moderate weather means folks don’t have to run their AC units nonstop, leading to reduced demand. Due to this weather change, you may be able to lock in a low rate during the shoulder seasons. Begin comparing electricity rates at least one month before your current contract ends to prevent automatically getting placed in a holdover, variable-rate energy plan.

If you’re moving to Alamo, begin researching electricity providers about 30 days before your move. Most companies allow you to schedule service activation up to 90 days in advance, ensuring your new home has power on your arrival date. When moving to Alamo from outside Texas, familiarize yourself with the concept of a deregulated market. Choosing your provider differs significantly from regulated markets, where a single utility handles all aspects of electricity service.

Frequently Asked Questions About Alamo Energy Rates

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%)