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Find the Best Electricity Rates in Houston

As a Texas resident, you have the benefit of a competitive energy market. In fact, Texas is one of the only states to allow its citizens to choose electric providers but not natural gas providers. But how do you pick the right provider and the best plan? Have confidence in your energy choices by relying on our energy professionals’ years of experience.

Price To Compare makes it easy for people to compare electricity rates in Houston, Texas and make the smartest choice for their homes. Own a business, too? You can get a free quote on commercial energy rates to lower your business’s electricity or natural gas bill.

Houston, TX Electricity Prices

Texas electricity rates are subject to market fluctuations, consumer demand, wholesale energy prices and even seasonal changes. With deregulation, Texas electricity suppliers must compete for consumers, driving down the average cost of electricity while promoting more customer-centric service plans.

Houston energy suppliers use all kinds of strategies to secure your business. Sorting through these complex plans, varying rates, contract lengths, energy sources, introductory rates, bill credits, minimum usage levels, cancellation fees, and more, can be overwhelming.

With our easy-to-use energy marketplace, you can quickly shop electricity plans in Houston, TX and switch electricity providers in less than 5 minutes! Search your Houston zip codes here.

Average price of residential electricity in Houston:

13.30 ¢ / kWh

Pro Tip: Have your current electric or natural gas bill handy to compare suppliers and rates.

(updated June, 2022 with most recent data available)

U.S. Energy Information Administration

Compare Top Green Energy Plans in Houston

Save on “green” while you go green! Local clean energy production is made cheaper every day due to increasing consumer demand, more innovative technology, and greater production of renewable energy. We’re here to help you find the best green energy prices on the market. Making great energy choices is a breeze!

Let’s look at Houston’s green energy initiatives. Houston’s Green Power Program strives to make green energy affordable for everyone living in the area. In 2017, the city of Houston used an estimated one billion kilowatt-hours of green power, representing nearly 90% of the city’s total energy consumption. For three years in a row Houston was named the number 1 municipal user of green energy in the nation by the EPA. Furthermore, Houston is seventh on the EPA’s overall Top 100 green power users. Price To Compare can connect you to highly competitive renewable energy plans for Houston.

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Lower Your Houston, TX Business’s Electricity Rates

Need a better commercial energy rate for your Houston, TX business? Price To Compare can help. With 40,000 businesses serviced nationwide, we can leverage our networks and negotiate a price that cuts your energy bill by as much as half the average commercial energy rate. You can plan with certainty that you have the best available fixed-rate plan on the market.

Researching energy companies, rates, and plans can be time-consuming and frustrating. Let our dedicated energy professionals handle the heavy lifting of sorting through the complex energy market so you can focus on your business.

Save on the bottom line of your business’s energy bill and get closer to your other business goals. Stop overpaying for electric or natural gas and find savings with us today!

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Suppliers and Utilities

Houston, TX Electric Providers

Around 130 Retail Electric Suppliers service Texas. Also called energy providers, they’re responsible for either generating or purchasing electricity before selling it to you. Here are some of the most popular ones:

Constellation

Constellation is a national supplier of electric power and natural gas. It is a subsidiary of Exelon that services approximately 2 million residential, public sector and business customers.

Headquarters: Baltimore, MD

Founded In: 1999

Contact: 1-855-797-5685

Direct Energy

Direct Energy supplies electric power and natural gas to four million customers across the U.S. and most of Canada. It was originally founded in Toronto, Canada, but is now headquartered in Houston, Texas.

Headquarters: Houston, TX

Founded In: 1986

Contact: 1-855-461-1926

Tomorrow Energy

Tomorrow Energy is a Houston-based retail provider of electricity and natural gas. It operates in Illinois, Maryland, Ohio, New Jersey, New York and Pennsylvania. It was originally founded in 2011 as Sperian Energy Corporation, but rebranded in 2018 to Tomorrow Energy.

Headquarters: Houston, TX

Founded In: 2011

Contact: 1-888-682-8082

Houston Utility Companies

In deregulated states, consumers are able to choose their own electric company, but what is the difference between the electric company and your utility company?

Your energy provider and utility company are actually two different things. Texas utility companies are responsible for managing and distributing the energy produced by suppliers.

For instance, the utility company must ensure the power reaches your home by installing and maintaining electricity and natural gas lines. They’re also in charge of responding to power outages.

There are major utility companies that service Texas. Which one services your home? (Hint: Your utility company is dictated by Houston, TX zip code, not choice.)

AEP Texas North/Central

Ameren Illinois is a subsidiary of Ameren Corporation. It delivers electricity to 1.2 million customers and natural gas to over 800,000 customers throughout the state of Illinois.

Headquarters: Columbus, OH

Founded In: 1997

Contact: 1-877-373-4858

Centerpoint Energy

Centerpoint energy is a Houston-based electric and natural gas delivery company that services around 2.2 million customers in the Houston area. It also services the states of Arkansas, Oklahoma, Ohio, Mississippi, Minnesota, Louisiana, and Indiana.

Headquarters: Houston, TX

Founded In: 1882

Contact: 1-800-334-7661

Oncor

Oncor is the largest transmission and distribution electric utility in the state of Texas. It delivers electricity to over 10 million citizens in 420 cities and 120 counties throughout the Lone Star state.

Headquarters: Dallas, TX

Founded In: 2007

Contact: 1-888-313-6862

Texas-New Mexico Power Company

Texas-New Mexico Power Company (TNMP) is an electric distribution company that delivers electricity to over 255,000 homes and businesses in North-Central, Gulf Coast and West Texas. While the company used to deliver electricity to New Mexico, as of 2006, it serves only the state of Texas.

Headquarters: Lewisville, TX

Founded In: 1925

Contact: 1-888-866-7456

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Deregulation

About Energy Deregulation in Houston

On January 1, 2002, the Texas State Legislature deregulated the electricity industry, meaning that residents could now choose which energy provider to go with. Energy deregulation increased competition between energy suppliers. The positive result of this is that consumers can choose between suppliers for the best price available. The current utility in each area of Texas is still responsible for any power outage. The current utility is also known as Transmission/Distribution Service Provider or TDSP.

The majority of Texas (85%) is deregulated with Houston being the largest city and also the biggest deregulated market in the state. It has over 2 million deregulated meters and nearly 800 regulated meters.

Pro Tip: Always call your utility company rather than your energy provider in a power emergency.

Shop Electricity Plans in Houston

6,603,000 residents live and work in Houston and deserve cheap, reliable electricity. Today, the average price of residential electricity in Texas is 13.3 cents/kWh. Energy costs change regularly, so let’s walk through the types of energy plans offered in Houston, TX and find the one that’s right for you.

  • Fixed-Rate Electricity Plans in Houston, TX: Fixed electric rates are locked in through a contract, keeping your rate consistent regardless of rate fluctuations. While the wholesale cost of electricity varies, these plans help keep your budget predictable and affordable, giving you the energy security you need.
  • Variable-Rate Electricity Plans in Houston, TX: These rates are determined by the current state of the energy market. You get a cheaper rate when energy is abundant but pay higher rates in times of high demand or low production. These plans offer the flexibility of no contract but are high in risk.

Pro Tip: Most often, residents prefer fixed rate plans. We can help you avoid nasty cancellation fees, rate hikes, minimum usage fees, and peak energy use times—basically being overcharged for turning the lights on. Every day, our energy experts consider all of these factors and more.

  • Pre-Paid Plans: Using a smart meter, you put money into an account. Then the provider adjusts the account as energy is used. When the balance runs low, you add additional funds to your online account and no contract is required.
  • Green Energy Plans: Don’t let another sunny day go by before you start saving! While you compare electricity rates in Houston, Texas, you’ve got inspiring energy choices. Wind, solar, biomass, geothermal, or hydroelectric, our powerful network connects you to the energy technology of your choice. Power your home while supporting eco-friendly electricity initiatives and local jobs in just a few clicks. Price To Compare can show you how!
    • Texas has a green electricity plan, with most areas within the state offering 100% renewable energy. They are also known by the names Green Electricity, Renewable Content Energy or Green Energy. There are three of these renewable energy electric companies situated in Houston: Gexa Energy, Shell Energy, and Rhythm. All of these companies ensure to purchase Renewable Energy Certificates (RECs), which also aids in peace of mind.

We’re here to help you find the best prices available for affordable alternative energy solutions. Price To Compare can match you with competitive renewable energy plans so you can power your home, help the environment, and support eco-friendly electric initiatives at the same time.

Pro Tip: Check your current energy bill to see what percentage of your power is currently renewable. Partial or 100% renewable plans can change the way you live in Houston.

Understanding Your Electric Fact Label (EFL)

Your EFL is a document you can use to help compare electricity rates in Houston and make the best decision for your home. It’s similar to a food label, offering a standard format for sharing energy information with consumers, like yourself.

While your EFL sheet might not seem like it’s worth a close read, the opposite in true. To avoid an alarming electricity bill after signing up, you want to make sure you thoroughly review your EFL before making a commitment. Here’s a breakdown of how to read it.

➤ Electricity Price: Reflects all prices billed to a customer, including generation, transmission, distribution, fuel and customer service. Cost is presented in cents per kilowatt-hour (kWh). Electrical usage levels shown represent average usage amounts for residential customers. Read your current electric bill to see your monthly usage.

➤ Contract: Shows the minimum term of the contract in months.

➤ Source of Generation: Identifies source of electricity offered by the REP. Columns compare the specific REP to statewide electric generation.

➤ Emissions: Shares type and percentage of emissions released during production. Columns compare the specific REP to average emissions statewide.

Pro Tip: Review all aspects of the EFL before signing up, with special attention to price per kilowatt-hour, early termination fees, % renewable energy sourcing, and other unexpected charges. Need more insights? Read the Public Utility Commission of Texas Electricity Fact Label Guide.

Which Rate is Right for You?

Take comfort knowing our dedicated energy experts have your back. We’ve been in this industry for over a decade and have one of the largest national networks of commercial energy suppliers. With over 50 years of combined executive experience, our team of energy professionals constantly monitor the current landscape for shifts that affect your energy costs. We believe keeping your home or business bright, comfortable, and functioning smoothly should be as easy as flipping a switch!

More Energy Questions as You Compare Electricity Rates in Houston, Texas?

➤ Read how to change energy suppliers in 5 simple steps. Find out how the process works. Don’t worry, you’ll never be without electricity.

➤ Check out our Houston FAQ for answers to all your energy questions.

➤ Looking outside Houston? Find the best home energy rates in Texas!

➤ Moving? Don’t worry, we’re here to lend a hand. Find our service areas.

➤ Read our blog to explore industry topics and home energy savings ideas.

➤ Subscribe to our monthly newsletter at the bottom of this page for the latest deals and energy saving ideas updates right to your inbox.

Not sure where to begin?

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energyteam@pricetocompare.com