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Looking for Cheap Electricity in Texas?

Shopping for the cheapest electric company in Texas can be a difficult experience. In fact, sometimes the process, which should be relatively straight-forward, can end up being quite complicated for customers to understand. Why is it hard to find cheapest electricity, you ask? Because the advertised price might not apply to you. This guide will help Texans shop for, and find, the lowest energy rates available.

How To Compare Electricity Rates

Shopping for the cheapest electricity company in Texas might seem easy, but that isn't always the case. Common sense would say it is like anything else, find the lowest rate listed and you win. But that isn't the case in Texas. For examples look below:

Texas Electricity Rates Chart

Plan Name
Company
/
Rating
Length
Price
Est Avg Bill
Earn Big Bill Credits
12 months
8.9¢ / kwh
at 1,000 kWh per bill
$109 est. avg. bill
Based on a yearly usage curve averaging 0 kWh per month
  • No Minimum Usage Charge!
  • Great Rates for Any Size Home!
  • Bill Credits at 1k and 2k usage!
  • Up & Coming Provider
    12 months
    6.9¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% Solar Energy
  • 12 Month Fixed Rate
  • Popular New Provider
  • 12 months
    7.9¢ / kwh
    at 1,000 kWh per bill
    $102 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    8.7¢ / kwh
    at 1,000 kWh per bill
    $123 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Plan features EZ Pay
  • No base charge, No hidden fees
  • 12 months
    7.0¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    7.6¢ / kwh
    at 1,000 kWh per bill
    $126 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Good for medium-sized homes
  • Rate Includes $85 in bill credits
  • NEW ENROLLMENTS ONLY!
  • 12 months
    7.5¢ / kwh
    at 1,000 kWh per bill
    $104 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    8.5¢ / kwh
    at 1,000 kWh per bill
    $103 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • $85 flat rate up to 1,000 kWh
  • 36 months
    10.7¢ / kwh
    at 1,000 kWh per bill
    $113 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.0¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    36 months
    10.7¢ / kwh
    at 1,000 kWh per bill
    $113 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Great for medium to large homes
  • 3 Year Fixed Rate
  • Straightforward pricing
  • 36 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    36 months
    10.7¢ / kwh
    at 1,000 kWh per bill
    $107 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Simple, straightforward pricing
  • Price Protection for 3 years
  • 24 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $108 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% Solar Energy
  • Reduce your Carbon footprint
  • No Bill Surprises
  • 36 months
    10.3¢ / kwh
    at 1,000 kWh per bill
    $103 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Simple, straightforward pricing
  • Price Protection for 3 years
  • 9 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $109 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% solar without the premium
  • No hidden fees
  • Best-in-class customer care
  • 18 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $109 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% Solar Energy
  • Reduce your Carbon footprint
  • No Bill Surprises
  • 12 months
    7.9¢ / kwh
    at 1,000 kWh per bill
    $128 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Best for medium size homes
  • No fees to switch to Gexa
  • NEW ENROLLMENTS ONLY!
  • 36 months
    11.0¢ / kwh
    at 1,000 kWh per bill
    $110 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% renewable
  • Includes FREE Energy Savings Kit!
  • Super low gree rate
  • 12 months
    10.6¢ / kwh
    at 1,000 kWh per bill
    $106 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    8.4¢ / kwh
    at 1,000 kWh per bill
    $139 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Best for medium size homes
  • NEW ENROLLMENTS ONLY!
  • 36 months
    11.1¢ / kwh
    at 1,000 kWh per bill
    $111 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Free Ecobee3 thermostat
  • Monthly Usage ScoreCard
  • 3 Year Price Protection
  • 12 months
    9.9¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    6 months
    11.9¢ / kwh
    at 1,000 kWh per bill
    $119 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • FREE Nest Thermostat
  • Helps you save - automatically!
  • 24 Month Price Protection
  • 12 months
    9.1¢ / kwh
    at 1,000 kWh per bill
    $129 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Great for high-usage months
  • Save money this summer
  • 24 months
    10.4¢ / kwh
    at 1,000 kWh per bill
    $124 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 2 years of A/C Protection!
  • Low Rate and and peace of mind!
  • 24 months
    10.4¢ / kwh
    at 1,000 kWh per bill
    $124 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    36 months
    14.2¢ / kwh
    at 1,000 kWh per bill
    $145 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.4¢ / kwh
    at 1,000 kWh per bill
    $134 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 24 month fixed rate plan
  • No base charge, no minimum usage fees
  • 24 months
    11.6¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $109 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Enjoy price security for 2 full years!
  • No minimum usage charges
  • 15 months
    11.3¢ / kwh
    at 1,000 kWh per bill
    $113 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    12.2¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Freedom from long-term contracts
  • No cancellation Fee
  • New Customers Only

  • Month-to-Month
    Pre-Paid Plan
    12.4¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
  • Prepaid - No Deposit EVER
  • 24 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% Renewable Energy
  • Enjoy price security for 2 full years!
  • 24 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $108 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Easy to understand pricing
  • No surprises on your bill
  • 12 months
    7.0¢ / kwh
    at 1,000 kWh per bill
    $125 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Great Plan for Medium Homes
  • $95 Bill Credit at 1k usage
  • 1 year of bill security
  • 15 months
    10.0¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    18 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $121 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    60 months
    11.0¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 5 Year Fixed Rate
  • Steady Rate - No Surprises
  • Maximum Price Protection
  • 12 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $108 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 6 time winner - J.D. Power Award
  • Simple, straightforward pricing
  • No Base Charge or Bill Credit gimmicks
  • 60 months
    11.0¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    9.9¢ / kwh
    at 1,000 kWh per bill
    $134 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Great for medium and large homes
  • Bill Credits at 1k and 2k usage!
  • 12 months
    8.9¢ / kwh
    at 1,000 kWh per bill
    $106 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    13.3¢ / kwh
    at 1,000 kWh per bill
    $136 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • No cancellation fee
  • No base charge, no minimum usage fee
  • 24 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Simple pricing, no bill credits or gimmicks

  • Month-to-Month
    Pre-Paid Plan
    13.5¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    24 months
    13.0¢ / kwh
    at 1,000 kWh per bill
    $130 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $120 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.7¢ / kwh
    at 1,000 kWh per bill
    $117 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    10.6¢ / kwh
    at 1,000 kWh per bill
    $126 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    10.6¢ / kwh
    at 1,000 kWh per bill
    $126 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    10.6¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    36 months
    8.0¢ / kwh
    at 1,000 kWh per bill
    $135 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.8¢ / kwh
    at 1,000 kWh per bill
    $123 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $109 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    18 months
    11.4¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • No Rate Gimmicks
  • Good for any size home
  • 36 months
    11.9¢ / kwh
    at 1,000 kWh per bill
    $119 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    36 months
    13.9¢ / kwh
    at 1,000 kWh per bill
    $139 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    3 Year Price Stability
    36 months
    11.4¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Fixed Energy Price
  • No hidden fees or base charges
  • 100% Texas Wind
  • 18 months
    11.4¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    Pre-Paid Plan
    14.9¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    36 months
    11.9¢ / kwh
    at 1,000 kWh per bill
    $119 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    12.1¢ / kwh
    at 1,000 kWh per bill
    $121 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    30 months
    9.5¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    15 months
    11.6¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    36 months
    12.8¢ / kwh
    at 1,000 kWh per bill
    $128 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    100% Clean Energy
    24 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • New Provider in Texas
  • No hidden fees or base charges
  • 100% Clean Energy
  • 12 months
    13.4¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
  • 100% clean, renewable energy
  • Requires Tree Free billing and Auto Pay
  • 6 months
    13.0¢ / kwh
    at 1,000 kWh per bill
    $130 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    Pre-Paid Plan
    12.5¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    12 months
    10.8¢ / kwh
    at 1,000 kWh per bill
    $108 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    12.2¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.3¢ / kwh
    at 1,000 kWh per bill
    $137 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Bill Credits cut your bill in summer months
  • Enjoy smaller bills in summer
  • 12 Month Price Protection
  • 12 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    10.9¢ / kwh
    at 1,000 kWh per bill
    $109 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Consistent Fixed Rate
  • Lock in for 2 years
  • No Monthly Base Charge!
  • 12 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Low Energy Rates
  • No Base Minimum Usage Charge
  • No Big Rate Jumps
  • 12 months
    12.3¢ / kwh
    at 1,000 kWh per bill
    $123 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 1 entire year of rate stability
  • It’s easy to budget when your rate never changes
  • 12 months
    11.8¢ / kwh
    at 1,000 kWh per bill
    $118 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    14.3¢ / kwh
    at 1,000 kWh per bill
    $143 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.6¢ / kwh
    at 1,000 kWh per bill
    $117 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • New Provider in Texas
  • No hidden fees or base charges
  • 100% Texas Green Energy
  • 12 months
    11.4¢ / kwh
    at 1,000 kWh per bill
    $114 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    14.1¢ / kwh
    at 1,000 kWh per bill
    $141 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.3¢ / kwh
    at 1,000 kWh per bill
    $113 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • No Monthly Charge
  • No Usage Restrictions
  • 24 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $121 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    6 months
    13.7¢ / kwh
    at 1,000 kWh per bill
    $137 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    12.9¢ / kwh
    at 1,000 kWh per bill
    $132 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $115 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    Pre-Paid Plan
    12.0¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    12 months
    11.2¢ / kwh
    at 1,000 kWh per bill
    $112 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month

    Month-to-Month
    15.6¢ / kwh
    at 1,000 kWh per bill
    $156 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • 100% clean, renewable energy
  • Requires Tree Free billing and Auto Pay
  • 6 months
    14.0¢ / kwh
    at 1,000 kWh per bill
    $140 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    12.0¢ / kwh
    at 1,000 kWh per bill
    $120 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    13.8¢ / kwh
    at 1,000 kWh per bill
    $138 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    14.8¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    12 months
    13.1¢ / kwh
    at 1,000 kWh per bill
    $131 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.6¢ / kwh
    at 1,000 kWh per bill
    $116 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Simple, Fixed rate plan
  • Easy Online Approval
  • 12 months
    13.1¢ / kwh
    at 1,000 kWh per bill
    $140 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    15.7¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL
    12 months
    12.0¢ / kwh
    at 1,000 kWh per bill
    $120 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    14.0¢ / kwh
    at 1,000 kWh per bill
    $143 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    24 months
    12.3¢ / kwh
    at 1,000 kWh per bill
    $163 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    36 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $121 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    6 months
    13.3¢ / kwh
    at 1,000 kWh per bill
    $133 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    6 months
    12.1¢ / kwh
    at 1,000 kWh per bill
    $127 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Beat the summer heat!
  • Stady, predictable rate
  • No Bill Surprises
  • 12 months
    11.5¢ / kwh
    at 1,000 kWh per bill
    $121 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    11.6¢ / kwh
    at 1,000 kWh per bill
    $122 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    12.4¢ / kwh
    at 1,000 kWh per bill
    $124 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • Get rewards with Plenti
  • 12 months
    11.7¢ / kwh
    at 1,000 kWh per bill
    $123 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    13.1¢ / kwh
    at 1,000 kWh per bill
    $132 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
  • NEW CUSTOMERS ONLY!
  • 12 months
    16.8¢ / kwh
    at 1,000 kWh per bill
    $168 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    13.5¢ / kwh
    at 1,000 kWh per bill
    $237 est. avg. bill
    Based on a yearly usage curve averaging 0 kWh per month
    12 months
    Pre-Paid Plan
    13.9¢ / kwh
    at 1,000 kWh per bill
    N/A check the EFL

    You can see a list of different electricity plans, and you can shop by the lowest rate, but there is no guarantee that will actually be the electric rate that you end up paying for electricity. Why is this? The answer is electricity usage. The short of it is that electricity companies are allowed to charge customers different rates for different usages even if customers are on the same plan. In addition, these plans only need to be advertised at one of the three possible rates! So two Texans on the same electric plan could be charged different rates depending on whether they live in an apartment versus a mansion. See how that can be confusing? So when a customer wants to find the cheapest electricity rate, and they want to compare electricity rates between companies, the most important thing they need to understand is their own usage.

    Usage Affects Low Energy Rates

    Sample Centerpoint EFL

    Look at the sample table above, and you will see three different electricity rates listed. Why is that? Because while people view electricity the same as other commodities, like say gasoline, that isn't how the pricing works. Instead of paying one rate for energy, the same way you would pay for a price per gallon of gas, electricity rates are determined by a customer's usage. So if a customer is a light user, they might fit in one pricing bucket. If they are a heavy user, with a huge home and a pool pump, they might qualify for a different rate based upon their usage. And the usages are illustrated in the chart above. So a big user might pay Z, while someone in an apartment might pay X. This is what people struggle to understand. For comparison sake, it would be if the gas station advertised one rate to customers, but in reality they offered a discounted rate for anyone who filled up a tank with more than 20 gallons. Or if they charged more.


    What is the solution? Well, read the fine print. In this case, the fine print is an EFL (Electronic Facts Label).

    How to Find the Cheapest Electricity

    Now that we understand the important aspects that go into determining your electricity rates, the real question on everyone's mind is how to find the cheapest electricity rates. Well, since we know cheap electricity is determined by your usage, step one is going to be looking at some past bills and understanding what your usage numbers actually look like. And this will be tricky, because usage will vary at different times of the year. For example, folks use more energy in August in Texas than they do in March. But having an idea of your usage, you are then armed with which Tier of usage you fit. Most websites where you shop for electricity have a usage you can display by (500, 1000, or 2000) for comparison. If this is the case, you can use that to filter by your usage level, and then look at the prices. Shopping for cheap energy rates takes some work. If you are on a webpage that doesn't have a toggle for usage, then you need to click on the EFL link and look at the rates at different usages listed for that plan. If you are speaking with someone on the phone, ask them directly what the different rates are at different usage levels.


    Knowing that a real electricity bill would be determined by the price of the commodity as determined by the usage rage multiplied by how much was used, we know HOW to shop. Or, to continue our gas analogy, it would be the cost of gas as determined by the size of your gas tank multiplied by how much gas you actually pump. But using your usage to shop by the rates listed will allow you to shop for the cheapest electricity plans.

    How to Find Low Rate Energy Companies

    It would be easy on electricity shoppers if they could find companies that generally offer low energy rates, the same way a car shopper might know that a Honda is cheaper than an Acura, or a Nissan is cheaper than an Infinity. But at the end of the day, that is not how it works in Texas electricity. Despite what commercials might tell you, there is not one, much less a few, companies that consistently have cheap prices in relation to the electricity market. The best a customer can do to shop is to search for electricity plan by plan, not company by company. One company might make some good decisions one year and have really cheap plans, but something else could change a few months later and the plans they are offering could be higher. That is why:
  • 1) It is important to lock into longer term contracts and
  • 2) Shop the marketplace for the best plans when your existing electricity contract expires.
  • Finding Cheap Electricity with No Deposit

    Another difficulty in finding cheap electricity in the Texas electric market is finding good plans without deposits. This is extremely difficult because it is impossible to know what a specific electricity company's credit thresholds are at any given time. What one company might charge a $300 deposit for, another company might sign up without asking for a deposit. And it is impossible to know this outcome until someone tries to order electricity, because all deposit situations are made on a person by person basis, by each company. One real way to find no deposit electricity, however, is with Pre-Paid electricity plans. Pre-Paid electricity, also known as Pay-As-You-Go electricity, are plans that work similarly to certain cell phone providers. Instead of paying a bill after a month of service, Pay As You Go electricity plans ask you to fill up an account with money in advance, and then use it to buy electricity from the provider. While this does not require a deposit, these electric companies generally require a minimum account balance from customers. But the good news is that shopping for these plans is the same as shopping for any other cheap electricity plan in Texas. Just look at the EFL and understand what your rate will be per your usage. And while you still have to put money down, at least that money goes directly to your electricity, not some deposit you will get back when your contract is up with a certain provider. Here are the current Pre-Paid electricity plans in the market:

    Company Rating Phone
    Payless Power
    (4.5/5)
    888-620-3978
    Pogo Energy
    (3.8/5)
    Acacia Energy
    (3.8/5)
    844-244-4513
    Hello Energy
    (3.6/5)
    833-415-7006
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