Compare Texas Electricity Rates and Companies

August 2026 Price Analysis

Video - What is The Best Texas Electricity Rate (Summer 2026)

Compare Texas Business Electricity Rates

When it comes to your Commercial and Small Business Electricity Rates in Texas, the power to choose is in your hands. The Texas Electricity Ratings commercial electricity marketplace is built exclusively for business customers who want to set up new commercial service or shop their current commercial electricity rates.

Business electricity rates in Texas rank among the lowest in the country, typically running 20-30% below residential rates. That means whether you're launching a new business in Texas or simply want to compare commercial electricity rates and see what else the market offers, locking in a lower rate could put thousands of dollars back in your pocket every year.

Commercial Electricity Rates in Texas

Term

12 Months

Lowest Rate

6.26 ^¢ kWh

Term

12 Months

Lowest Rate

6.32 ^¢ kWh

Term

12 Months

Lowest Rate

6.32 ^¢ kWh

Term

12 Months

Lowest Rate

6.55 ^¢ kWh

Term

12 Months

Lowest Rate

6.66 ^¢ kWh

Term

12 Months

Lowest Rate

6.69 ^¢ kWh

Term

12 Months

Lowest Rate

7.59 ^¢ kWh

Comparing and Shopping Texas Electricity

Texans have had the power to choose their electricity provider since 1999, so, you can compare, shop, and order your electricity service from any of the dozens of competitive providers in Texas. Providers supply your electricity and bill you, while utility companies like Oncor, Centerpoint and AEP maintain the poles and wires and ensure that your electricity service is seamless and trouble free. This guide will teach you how to compare and find the best electricity rate that fits your needs.

How To Get The Best Texas Electricity Rate

1. Understand Your Usage
2. Know Your Credit Score
3. Understand TDSP Fees
4. Understand Your Electricity Facts Label (EFL)
5. Shop and Switch Providers Online

Step 1: Understand Your Usage

The first step is to understand your usage. In other words, how much electricity did you use last month? Do you use double that amount during the summer? Do you use less during winter? Knowing your usage history will help you get the best rate and avoid common traps and tiered pans that look cheap but are sometimes double or triple the cost you expected. Some companies provide usage statistics on the bill or you can use our Bill Calculator to model out your usage for an entire year. So, no need to enter every month to figure out your usage for a year.

The Texas PUC created 3 usage levels (500, 1000 and 2000) to help customers understand their usage and the rates providers charge at those levels of usage. Over the years, these arbitrary numbers are often gamed by providers to appear to have the lowest prices on the Texas Power to Choose web site.

The rates you pay may be "flat" - meaning you pay 10 cents and 500 kWh and 10 cents at 2000 kWh. In the last few years we've seen the emergence of tiered rate plans. These plans are built to incentivise customers to monitor their usage and in some cases punish customers for usage greater than certain tiered amounts. For example: 10 cents from 500-1000 kWh, then 15 cents for every Kwh used over 1001 and 20 cents per kWh over 2000 kWh. These can be great plans, but you have to know your peak usage month. . . which is not something most people know off hand.

Now add Bill Credits, where Texas energy companies provide credits at usage levels. Bill credits are primarily used to drive down the price to appear to be the lowest cost on Texas Electricity Comparison websites. You should be wary of them.

So in our example Tiered Price with $50 Conditional Bill Credit at 1000-1500 kWh, you would pay 64% more than a flat rate plan, because the conditions of the credit were that you had to use "up to x". In this worse case scenario - you lose the bill credit because you went over the usage cap.

Step 2: Know Your Credit Score

Your credit score is the measure of your past ability to pay your bills on time. Your FICO score is the Fair Issac Corporation rating of your credit risk. It is based on your payment history for products that are reported back to credit rating agencies. FICO Scores range from 300-850.

Most Texas electricity companies require a credit check to provide service. A Social Security Number or driver's license is required. Texas Electricity Companies will often use the "TEC" score. The TEC (Telecommunications, Energy, and Cable) Score is based on a risk model developed specifically for telecom and energy accounts.

The TEC Score is a risk model from Experian. Transunion uses a "Vantage Score" and Equifax uses an "Exchange Risk Score", while some Texas electricity companies use the traditional FICO score.

Your Texas electricity service deposit may range from 0-$400 or more depending on your annual usage. The Texas PUC has rules and protections that specify the maximum amount that deposits may be. The maximum is 16% of the annual usage, or basically 2 months usage. (Rules Link)

Many utilities and electricity suppliers do not provide payment histories to credit reporting agencies. So while you may have a 620+ FICO score, you may have a 400 Utility Score (because your previous Utility/Gas/Electricity Company did not report your good standing) and have to pay a deposit. Many Texas Electricity Companies provide alternative ways to show previous utility credit. Most often this will be a letter from your previous electricity provider stating that your account has been in good standing. You can learn more at Texas PUCT Deposit Rules.

Alternatively you can sign up for "no-deposit" or "pre-paid" Texas Electricity service.

Step 3: Understand Utility / TDSP Charges

TDSP fees account for up to 1/3rd of your Texas Electricity Bill. You know your TDSP (Transmission and Distribution service providers) by its brand name, such as Oncor, Centerpoint, AEP or TNMP. They are the "poles and Wires" companies that maintain the wires, meters and transmission infrastructure to get power to you home. They are the guys who get the power turned back on when there's a blackout due to a storm, or disruption.

To maintain the infrastructure, they charge 3.2 cents to 4.1 cents per kilowatt hour plus a monthly base charge that ranges from $5.00 to $9.00. Most Texas Electricity Suppliers "Bundle" these costs into their rate, So a 10 cent rate includes the base charge, and the per KwH TDSP fee.

Step 4: Understand the Electricity Facts Label (EFL)

Next, you need to understand an EFL - the Energy Facts Label. This is the key to understanding the rate you pay. The EFL is Divided into 2 areas. The Electricity price and the Disclosures.

The Electricity price section displays the rate you'll pay for your electricity at 500, 1000 and 2000 kWh, It also provides a breakout of charges, such as Energy Charges, Minimum Usage Fees, TDU Delivery Charges, TDU monthly fees, and any usage credits.

The Disclosures Chart lays out The type of plan, contract term, termination fees, renewable energy content or "fuel mix" and any other disclosures that may affect your rate. Check out our Texas EFL guide to learn more.

Step 5: Shop and Switch your provider online

Now you're fully prepared to make a powerful choice as an informed consumer. Enter your zip code in the box below and find a plan that is just right for you!

The Best Electricity Companies in Texas 2026

Our exclusive ranking of the top Electricity Companies in Texas for 2026

Rank	Provider		Stars	Award
#1		APG&E
#2		Constellation
#3		Chariot Energy
#4		Champion Energy Services
#5		Gexa Energy

Cheapest Texas Electricity Rates by City