Compare Houston Electricity Rates and Plans

Best Houston Electricity Rates

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

Be cautious of super low-rate plans, as these often come with gimmicks and expensive energy bills. Understanding your energy usage and the plan’s terms can help you lower your electricity costs, even if the rate initially appears higher than others.

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

Rates in the above table are updated daily. Electricity rates for Centerpoint service areas are pulled for the zip code 77077. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Electricity Rates in Houston

Use the following table to compare the cheapest electricity rates in Houston. Remember, these plans may include bill credits or deceptive price structures. You may save money if you’re regularly able to qualify for the usage-based discounts. However, if your usage varies regularly and you don’t always qualify for the credit, your rates can skyrocket. Always review the plan’s electricity facts label (EFL) before signing up.

Rates in the above table are updated daily. Electricity rates for Centerpoint service areas are pulled for the zip code 77077. Monthly bill estimates are for 1,000 kWh usage.

Rates and energy plan availability vary depending on your location. Compare Houston electricity companies in your ZIP code to ensure you find the best rates for your neighborhood.

Bill Predictability Vs. Low-Rate Energy Plans in Houston

Plans with the lowest rates may include confusing cost structures, such as bill credits, that can compromise bill predictability. Consider straightforward plans for predictable bills so you know what to expect each month.

Bill credit plans offer account credits when your monthly energy usage stays within a set range of kWh. However, because most Texans experience changing energy needs based on seasonality, there’s a high likelihood that you won’t always qualify for the bill credit. In those months, your effective rate per kWh can spike, causing serious bill surprises.

In our July 2024 survey of more than 1,000 Texans, 45% of respondents reported unexpected charges or failure to qualify for credits. We also performed several customer interviews in July 2024. Many customers reported issues with bill surprises caused by their bill credit plans. “I can’t predict what I’ll pay each month. One month, I get the credit. The next month, I don’t, and my bill doubles,” one customer said.

For more predictable bills, we recommend choosing fixed-rate electricity plans with affordable and consistent rates across all usage levels, from 500 to 2,000 kWh.

Average Residential Rates in Houston

The average electricity rate across Texas is 14.96 cents per kWh, according to September 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 December 18th, the average rate in Houston is 14.0 cents per kWh, based on the rate of hundreds of plans at 1,000 kWh. The average electricity rate in Houston is quite a bit cheaper than the countrywide average of 16.93 cents, according to the EIA.

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 choosing a new plan or switching providers, consider its customer service quality, plan variety, costs and bill predictability.

Step 1: Identify Your Electricity Usage Needs

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.

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

You’ll find a wide range of energy plan types in Houston, so here’s a brief overview of 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

Top Energy Companies in Houston

Green Mountain Energy, Reliant Energy and TriEagle Energy earned the highest ratings in our reviews.

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 electric providers 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. The cheapest energy providers in Houston are Gexa Energy, 4Change Energy and Frontier Utilities, based on advertised cost.

Retail Energy Provider	Our Rating	PUCT Score	BBB Rating
Reliant Energy	4.7	5	NR
Green Mountain Energy	4.7	4	A+
TriEagle Energy	4.7	3	A+
Rhythm Energy	4.5	2	NR
TXU Energy	4.3	5	A+
Champion Energy	4.3	4	F
Direct Energy	4.3	4	F
Cirro Energy	4.2	2	A+

Our scores, BBB ratings and the PUCT complaint scorecard ratings are out of 5 stars. Ratings are current as of December 2024.

Moving To Houston

Aside from navigating the traffic on I-45 and dealing with the humidity, preparing for deregulated energy should factor into your consideration when relocating to Bayou City. Whether you’re newly moving to HTX or you’re simply trying to find a new energy provider, we can help you get your needs met.

First, 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.

In our July 2024 survey of more than 1,000 Texans, 40% of respondents who had participated in time-of-use plans expressed frustration with the confusing rate structures or challenges of shifting their energy usage to discounted times. One interviewee said, “I don’t want to worry about when I’m using electricity. I just want a predictable bill.”

“I had to change my whole routine. It’s not for everyone,” another customer noted.

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.

Current transmission and distribution utility companies in Texas

• AEP Texas Central: Corpus Christi, McAllen, Victoria, Laredo, Harlingen
• AEP Texas North: Abilene, San Angelo, Alpine, Vernon
• CenterPoint Energy: Houston, Katy, Beaumont
• Lubbock Power & Light (LP&L): Lubbock
• Oncor Electric Delivery: Dallas, Fort Worth, Irving, Waco, Arlington, Temple, Round Rock, Midland, Odessa
• Texas-New Mexico Power (TNMP): League City, Glen Rose, Pecos, Angleton

Which TDU 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.

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 Texans cut through the complexity and find the best electricity plan for their needs, whether they’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 cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:

• Plan features (33%)
• Customer satisfaction and brand trust (27%)
• Plan rates and pricing (20%)
• Energy bill predictability (20%)