Compare Waco Electricity Rates and Providers

The deregulated energy market in Waco allows you to compare low-rate electricity plans and select the best rate for your needs. Whether you’re looking for a top electricity plan or want to avoid hidden costs with no-surprise plans in Waco, you can use our guide to simplify your decision-making process and help you make informed choices.

Today’s Waco Electricity Rates and Plans

According to our 2025 energy survey, only 47% of Waco energy customers think they are paying a fair rate for electricity. We recommend Waco residents choose a straightforward energy plan in order to have predictable electricity bills.

Straightforward fixed-rate plans are highly predictable, as you pay a set amount per kilowatt-hour of energy used, so market fluctuations or seasonal changes shouldn’t affect your rate.

Compare the plans with the best electricity rates in Waco:

The rates above are accurate as of 05/08/2025 at 02:54 AM for the ZIP code 75001. The rates are the same across all ZIP codes in the Oncor service area. Rates shown are for 1000 kWh usage.

Cheapest Electricity Rates in Waco

Low-rate electricity plans in Waco often use tiered pricing or bill credits that can lead to unpredictable bills when your energy usage varies. Though these plans advertise the cheapest rates, you may face steep costs if your consumption doesn’t meet their specific thresholds.

Before choosing a plan based on advertised rates alone, understand how the pricing structure works. Plans without complicated tiers or credit requirements typically provide more consistent monthly bills, even if their upfront rates appear slightly higher. The cheapest advertised rate rarely equals the most economical option for Waco households.

The rates above are accurate as of 05/08/2025 at 02:54 AM for the ZIP code 75001. The rates are the same across all ZIP codes in the Oncor service area. Rates shown are for 1000 kWh usage.

Average Residential Rates in Waco

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 Oncor charges the lowest rates in the state, Waco’s average electricity rate is slightly lower than the state average. As of March 2025, the average electricity rate in Waco is 14 cents per kWh, based on the rate of hundreds of plans at 1,000 kWh.

Electricity Companies in Waco

Reliant Energy, Green Mountain Energy and TriEagle Energy earned the top three spots in our review of Waco energy providers. According to our 2025 energy survey, TXU Energy and Reliant are the most popular energy companies in Waco.

When comparing electricity companies, we recommend looking past the price to assess the quality of service, bill predictability, and plan features and options to determine if it’s the right fit for you. However, if price is top of mind, we found that Gexa Energy, 4Change Energy and Frontier Utilities offer the lowest advertised rates in Waco.

Note: Ratings by our team and the Public Utilities Commission of Texas (PUC)  are out of 5 stars. Data is accurate as of February 2025.

How To Choose an Electricity Plan in Waco

With energy deregulation in Waco, 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 Needs

Determining your energy needs can help you find the best plan for your household. You can review your past utility bills to determine your average monthly consumption. We recommend reviewing energy bills for an entire year to account for seasonal demand changes. Also, consider factors such as the size of your home, the number of occupants and the types of appliances you use, all of which can impact your energy needs.

Step 2: Review Plan Details and Rates

Next, compare energy plans, rates and providers in your area. Simply punch in your ZIP code to shop for the best plans and cheapest rates in your neighborhood. In addition to ensuring your chosen plan is available in your area, ensure it aligns with your usage patterns and budget. 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 only 47% of Waco residents believe they’re paying a fair rate for electricity, compared to 48.0% statewide. Additionally, 70% of Waco survey respondents said they didn’t know energy providers use bill credits and rebates to show a lower rate than the one they will actually pay. 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

Once you identify the provider and plan that best suits your needs, we can help you enroll online or over the phone in just five minutes. Before enrolling, always review a plan’s terms and conditions to ensure everything aligns with your expectations. Check your current energy plan for early termination fees (ETFs) fees before canceling your contract.

Plan Types Available in Waco

You’ll find a wide range of energy plan types in Waco, so here’s the main options.

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

What To Know About the Energy Market in Waco When Moving

When moving to Waco, note that the electricity market offers a variety of rates, contract lengths, discounts and promotions, and types of electricity plans, all of which can impact your overall energy costs. As a Waco resident, also watch out for ETFs if you decide to switch providers before your current contract ends.

Electricity Facts Label

You’ll find key plan details — including charges, delivery fees, base charges and any applicable discounts — in the electricity facts label (EFL), a state-mandated document.

It also advertises average prices at key usage levels: 500, 1,000 and 2,000 kWh. These average rates can be misleading because they often include assumed discounts, such as bill credits or times of use. To make the best use of the EFL, compare the average rate per kilowatt-hour against the energy charge to see what the plan really charges. The EFL also includes the contract term, whether the plan is fixed-rate or variable-rate, ETFs and the percentage of renewable energy included.

When shopping for an electricity plan, read the EFL carefully to ensure you understand all costs and conditions. Familiarity with the EFL can help you make an informed choice and secure the best possible deal.

Early Termination Fees

Cancellation fees, often called ETFs, are charges imposed by electricity providers for ending your contract before it’s complete. In Texas, ETFs can range from $150 to $395, depending on the contract length. However, some providers charge a flat fee for each month remaining in your contract at the time of cancellation, usually around $20.

You can avoid paying ETFs if you face financial hardship, move permanently, experience a death in the family or if the provider doesn’t meet the contract terms. Also, there’s often no ETF if you switch providers within the last 14 days of your contract.

Rate Ranges and Tiered Rates

Review the EFL to determine how much the rates range from the highest usage level to the lowest usage level so you can avoid unexpected costs. A typical tiered or bill credit plan will have a low rate for a specific usage amount, such as 1,000 kWh per month, but higher rates for 500 kWh. In contrast, more straightforward plans usually feature consistent pricing across all usage levels.

The larger a plan’s rate range across usage levels, the more likely it will lead to unpredictable energy bills. Meanwhile, a plan with a smaller rate range — from 13 cents to 16 cents per kWh, for example — will yield more predictable monthly energy costs.

Tiered-rate plans offer discounted rates when your usage meets or exceeds specific usage levels. Much like bill credits, tiered rates can cause bill surprise issues.

Variable Rates vs. Fixed Rates

Variable-rate plans charge prices that fluctuate based on market conditions, such as changes in supply and demand or shifts in energy prices. Your rate per kilowatt-hour can go up or down with no notice, typically causing significant bill increases. While you have the flexibility to change providers at any time, you’ll be subject to market prices at the time you switch.

In contrast, fixed-rate plans offer a stable price per kilowatt-hour for the duration of your contract, which means predictable monthly energy costs and simplified budgeting. This stability can help protect you from market volatility, as your rate remains constant — even if energy prices rise. However, you won’t be able to take advantage of low rates if market prices fall. We don’t typically recommend variable-rate plans because of the likelihood of unpredictable rate fluctuations.

Renewable Energy Plans

Renewable energy plans, or green energy plans, provide electricity service from the following types of energy sources:

• Wind power uses wind turbines to generate electricity efficiently.
• Solar power converts sunlight into electricity using solar panels.
• Hydropower generates electricity from flowing water, such as rivers or dams.
• Biomass produces energy from organic materials, such as wood and agricultural residues.
• Geothermal energy harnesses heat from the Earth’s core to generate power.

Green energy plans can benefit Texans who want to secure competitive energy rates while reducing their home’s environmental impact. Top renewable energy providers include Green Mountain Energy, Rhythm Energy, Gexa Energy and Chariot Energy.

How Deregulated Energy Works in Waco

Texas created a deregulated energy market in 2002, breaking up local utility monopolies. Before that time, a single utility managed the generation, transmission and retail sales of electricity. Now, separate entities manage all phases of the process: generators, transmission and distribution utilities (TDUs) and retail energy providers (REPs).

In a deregulated electricity market, generators create electricity and sell it in wholesale auctions overseen by the PUCT and the Electric Reliability Council of Texas (ERCOT). Electricity companies purchase that energy and then sell it to businesses and homeowners across the state. Utility companies then deliver that power to you. The utility company manages the local grid and repairs power outages.

Why Electricity Rates Fluctuate in Waco

Deregulation has yielded competitive rates but also opens up the energy sector to the whims of a free market. Electricity rates in Waco fluctuate due to supply and demand, shifting fuel prices, extreme weather events, wholesale energy prices and adjustments in regulatory policies.

For instance, rates increase as demand for energy increases. Similarly, if energy production dips, energy rates come at a premium. Winter Storm Uri in 2021 is a recent example of an extreme weather event causing energy rates to skyrocket. As demand increased, various generation sources failed, causing record-breaking energy rates. The storm caused the largest loss of power in the state, according to the Texas Comptroller.

When To Buy Electricity in Waco

Buying electricity during fall or spring in Waco can help you secure better rates. The mild weather during these seasons leads to low demand and low energy rates as a result. Start shopping for energy early if your contract ends within a few months. You can often schedule a future service start date, letting you lock in low prices before your contract ends. Failing to enroll in a new energy plan before your contract expires may result in you getting automatically enrolled in a holdover energy plan, which typically charges steep variable rates.

Frequently Asked Questions About Waco Electricity 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%)