Compare Houston Electricity Rates & Energy Suppliers

We analyze, rank, and recommend the best electricity plans from the highest rated providers in Houston.

cheapest Electricity rates and plans in  texas
Market Update: How long are Houston Electricity rates going to be high?

Rates Are Coming Down

Even though Houston electricity rates spike in the summer, they do tend to come down as the weather cools. The fall brings one of the year's shoulder seasons where wholesale power prices dip, and retail electric plans follow suit. But because of low natural gas prices, current rates are already lower than last year. So, now is a great time to shop for Texas electricity.

Once you find your new fixed rate power plan, there's no reason to fear summer prices. With this type of plan, you pay the same price for power all year long. The short-lived ups and downs of the wholesale market are your retail provider's roblem.(source 1) As a residential customer, you don't need to worry about the price of megawatt-hours. You just need to know the pricing on your electricity facts label. That's here you find how much you pay for electricity, and that pricing lasts for the entire length of your power contract.

Remember, you only pay for the power you consume. So if you don't have a fixed rate plan, shop and compare plans today!

Source 1: KERA News

Top Five 12 Month Best Electric Rates for Houston

Company Term Rate
Constellation 12/months 12.9¢/kWh
TXU Energy 12/months 14.9¢/kWh
BKV Energy 12/months 15.3¢/kWh
Rates as of Sep 22, 2023 at 05:25 PM

Five Cheapest 24 Month Electricity Prices in Houston

Company Term Rate
4Change Energy 24/months 12.1¢/kWh
Gexa Energy 24/months 12.1¢/kWh
Frontier Utilities 24/months 12.1¢/kWh
Champion Energy Services 24/months 16.2¢/kWh
Rates as of Sep 22, 2023 at 05:25 PM

Houston's Top 36 Month Fixed Rate Electric Plans

Company Term Rate
Veteran Energy 36/months 14.7¢/kWh
Rates as of Sep 22, 2023 at 05:25 PM

About Electricity Service in Houston

While CenterPoint Energy maintains the Houston area electricity infrastructure, dozens of retail electricity providers compete for your business. Retailers purchase wholesale electricity from power generators and sell it to residential and business customers. When you're a Texan living in the state's deregulated electricity market, you have the power to choose your electricity company.

Retail electricity providers offer plans to suit the various power consumption needs of customers. Each plan has pros and cons. Additionally, each one is perfect for some customers and dead wrong for others. The plan and the customer must fit each other.

Average Electricity Rates & Energy Usage in Houston

In November, the average electricity rate in Houston was 14.82¢ per kWh. The average households monthly electricity usage was 845 kWh, making the average bill around $125.

based on EIA Data as of August, 2023

Houston Energy Rates, Providers, and Plans FAQ

What is a cheap Constellation electricity rate in Houston?

12 Month Flat Tier Product is the cheapest rate from Constellation. It is a 12 month plan with a rate of 12.900 cents per kWh.

You can order the 12 Month Flat Tier Product plan here on TexasElectricityRatings without hassling with the state-run powertochoose.org website

TDSP's - Transmission and Distribution Utilities

Centerpoint Residental Tarriff Includes:
Transmission charge
.8439¢ per kWh
Distribution charge
1.6489¢ per kWh
Customer charge
$1.62 per month
Metering charge
$3.85 per month

CenterPoint Energy is the transmission and distribution service provider (TDSP) for Houston and the surrounding area. Like TDSPs in other parts of Texas, CenterPoint maintains the transmission lines, power poles, electricity meters, and other infrastructure that keeps electricity flowing from power plants to customers. Their responsibilities include sending out technicians when a storm causes power to go out.

You may not realize it, but you pay for TDSP services on your monthly electricity bill. CenterPoint Energy charges appear on your bill as a small charge for each kilowatt hour of electricity you use and a small base charge each month.

Electricity Plan Types in Houston

Now that we have explained TDSP rates, the second thing to consider is the type of electricity plans a customer can buy. Each plan will likely end up having different rate scales. There are three types of electricity plans you can choose from when selecting an energy plan that best fits your needs.

Fixed-Rate Electricity Plans in Houston

Lock in low energy rates for a period of months ranging from 9 to 36. Be aware that these contracts typically charge an early termination fee if you switch before your term ends.

Variable-Rate Electricity Plans Houston

Month to month contracts with rates that vary. You won't have to worry about deposits or early termination fees, but rates can decrease or increase from month to month.

Pre-Paid Electricity Plans Houston

You deposit money into an account that your energy company bills directly depending on your use. Keep in mind there are often daily charges with these plans. Rates typically change from month to month.

There are other kinds of plans, such as green plans, or plans that come bundled with things like Smart Thermostats, but for the most part, these three plans are the main three kinds of choices available.

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Frequently Asked Questions About Electricity Rates and Energy Companies in Houston, TX

How do I pick the best electricity company in Houston?

As discussed at the beginning, selecting the right electricity company is all about knowing your usage and finding the plan that best aligns with it. When you know your normal electricity consumption you can shop for plans that give you the best price.

The best way to figure out your normal usage is to look at your past electricity bills, either from last year or those from the past two months. If you're like most Houstonians, your electricity bill spikes in the hot summer months and bottoms out in the fall and spring. Take note of these extremes, and calculate your average kilowatt hours used per billing cycle.

Once you have these numbers, compare them to what you would pay on several electricity plans you're considering. Use a plan's electricity facts label (EFL) and terms of service to see exactly how each plan works. If you're looking at a plan offering a huge bill credit once you consume 2,000 kWh in a billing cycle but your usage never tops 1,500 kWh, that plan isn't the right one for you. On the flip side, a consumer whose usage is consistently above 2,000 kWh should strongly consider this plan.

Again, it all comes down to the fit between the customer and the plan. Generally speaking, there aren't bad plans, just ones that aren't right for you.

How can I switch electricity companies in Houston?

Texas laws and regulations make switching electricity companies in Houston easy. Once you've found the plan that best matches your needs, you can sign up for that plan right from Texas Electricity Ratings. To get started shopping, just input your zipcode in the box below and press "Shop for Rates."

After you agree to your new plan, your new electricity company tells your old company about the choice you've made. The Electricity Reliability Council of Texas (ERCOT) also sends you a notice confirming your switch. Your old company sends you a final bill to settle your account. After paying that bill, your obligation to the old company is done. Future bills will come from your new electricity company.

Who are Houston energy companies?

Even though you pay one bill each month for your Houston electricity, there are actually two companies that come together to power your home. One manages the utility infrastructure, and the other buys electricity that they then sell to you.

How can I switch electricity companies in Houston?

Even though you pay one bill each month for your Houston electricity, there are actually two companies that come together to power your home. One manages the utility infrastructure, and the other buys electricity that they then sell to you.

Who can I trust to have the best Houston Electricity Rates?

TexasElectricityRatings has over 10,000 Five Star reviews on Shopper Approved and Over 1400 Google Reviews, and has been featured on Channel 2 News in Houston, The Dallas Morning News, and the Houston Chronicle.

How much does electricity cost in Houston?

The average cost for Electricity in Houston is 7.5 cents per KwH for an average bill of $122.00 per month. Multiple factors can influence the rate and your electricity bill, including the term of your contract, your usage and your credit rating

Who provides electricity in Houston?

Electricity in Houston is provided and serviced by multiple retailers and delivered by Centerpoint Energy (The poles and wires company). Houston residents have the option to choose thier electrcity provider, and can choose the price, plan term; 3, 6, 12 or 24 Months, Plan Type; Fixed or Variable rate type; fixed or Variable and Green Energy content; 0% to 100%. Fixed-rate plans offer plenty of stability and security with a set rate and set contract term. Variable-rate plans, change on a monthly basis based on market forces. Green Energy content reflects the amount of green generation such as wind or solar used to generate your electricity

Who has the cheapest electricity rates in Houston Texas?

The cheapest electricity rate in Texas is currently around 5.7 cents per KwH, but only at specific usage levels. One of the benefits of living in Texas is a deregulated state. Energy deregulation is what gives residents the power to choose their energy plan and provider. It gives people the opportunity to find the best options and the lowest rates.

Other information about electric rates in Houston

Electricity Outages

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Cities Near

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Zip Codes

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About Houston Texas

Founding of Houston

In 1836, two brothers, John Kirby Allen and Augustus Chapman Allen, paid $5,000 in a land speculating deal for 2,214 acres near where the White Oak Bayou emptied into the Buffalo Bayou. The brothers soon began selling plots for their paper-platted town of Houston, Texas. Touting the town's location for affording passage to the San Jacinto River and Galveston Bay, the brothers pitched the town as a crossroads for trade. And in 1873, the steamship Laura was the first ship to visit Houston, which was then nothing more than twelve residents and one log cabin. But in four months, the town grew to 1,500 people and 100 houses. That year, the Texas Congress met for the first time in Houston and by summer the town was granted incorporation by the Texas legislature. But when Houston soon faced growing outbreaks of yellow fever, the legislature moved to Austin to start afresh. The city continued growing and by 1860 had become a major rail and shipping hub for exports.

Today, Houston is best known as the high-tech, energy capital of the U.S. and home to about 4,600 energy-related companies.

Houston Landmarks

  • Allen's Landing is the officially recognized birthplace of the city of Houston. Located in Downtown Houston between the Main Street and Fannin Street viaducts at the banks of Buffalo Bayou and White Oak Bayou, the original dock greeted the the steamer Laura as the first ship to anchor there in 1837.
  • Rice University Campus, Founded in 1911, Houston's oldest university is sited on a beautiful 300-acre campus and is adjacent to Hermann Park and the Texas Medical Center.
  • While the Magnolia Houston is currently a deluxe boutique hotel, the building once housed the Houston Post-Dispatch Newspaper. Built at the corner of Texas and Fannin for the paper's owner and publisher, Ross S. Sterling, this 22 story limestone skyscraper was the tallest building in Houston from 1926 to 1927. Sterling would go on to be elected governor of Texas.
  • Established in 1899, the SAM HOUSTON PARK is a short walk from City Hall, the 20 acre park is home to Several historic homes. Among the collection is an 1823 cabin. The Kellum-Noble House is the oldest extant building from Houston dating from 1847, Nichols-Rice-Cherry House was built circa 1850, and even an 1891 church built by German and Swiss immigrants.
  • San Jacinto Battlefield and Battleship Texas Historic Landmark. Located near the Houston Ship Channel in unincorporated Harris County to the east fo the City of Houston, the San Jacinto Battlefield commemorates the final battle of the Teas Revolution fought on April 21, 1836. Here Texas rebels led by General Samuel Houston engaged and defeated the Mexican Army led by General Antonio López de Santa Anna. The victory paving the way for the Republic of Texas to become an independent country. Not far to the north, the Battleship Texas is anchored in the Houston Ship Channel. Launched in 1912, the Texas served in both World War I and II and is now a permanent memorial museum.

Houston Culture

Houston is a thriving multicultural city. The city's ethnic roots include English, Irish, French, German, and Swiss immigrants as well as African Americans, Hispanic and Latin Americans. The 1910s and 1920s brought people from eastern Europe and Asia. With 2.2 million residents from all over the globe speaking over 145 languages, Houston is one of the richest culturally varied cities in the US.

As a result, Houston offers an amazingly diverse array of cuisines, art, music, dance, and theatre with over 30 regional and community performance companies, six performance halls --many that bring in Broadway shows. There's also venues for world-class ballet, orchestra, and opera. The Miller Outdoor Theatre is Houston's premier outdoor theater for the performing arts and is home to the Houston Shakespeare Festival. Houston is also home to annual festivals such as Viet Cultural Fest, Naija Beats Cultural Festival, AsiaFest, and the Houston Caribbean Festival. Houston’s global ties are all about celebrating music, food, and different cultures. Come celebrate Houston’s cultural diversity in all the multicultural festivals of the Bayou City!

Houston Tourist Attractions

There's plenty to see and do in Houston that will delight adults and children of all ages.

  • Guided Tours are a great way to see and learn about Houston. Check out boat tours on Houston's scenic and slow moving Buffalo Bayou that immerse you in everything from Houston history to nature tours, to endless margaritas. Learn about underground Houston's amazing network of tunnels 20 feet below the ground and over 7miles long. And if you're looking scare up some ghoulish fun, try one of Houston's Ghost Tours creepy spots known for paranormal activity.
  • What yells "Texas" more than a rodeo? If you're in town at the end of February and first week of March, be sure to lasso a seat for the Houston Livestock Show and Rodeo, the largest livestock exhibition and rodeo in the world that draws more than 2 million fans every year!
  • Located on the upper reaches of the Buffalo Bayou in the historic River Oaks neighborhood, the Bayou Bend Collection and Gardens showcases some of the finest American objects, designs, crafts and art dating from approximately 1620 to 1876. The collection is housed in the former residence of famed Houston philanthropist, Ima Hogg.
  • If you're looking to beat the Texas summer heat, jump in to Six Flags Hurricane Harbor Splashtown. Open seasonally during the summer, This water park is Houston's largest with the most diverse rides. Featuring 40-acres, the park has several slides, plunges, lazy river tubing, and a 500,000-gallon wave pool designed for families to soak in the fun all day long.