In July 2026, businesses in Texas paid an average of 8.47¢ per kWh, the 2nd cheapest of the 50 states and DC and 41.7% below the U.S. commercial average of 14.53¢.
That price is down 4.3% from a year earlier.
Over the past 12 months the average commercial customer in Texas used 9,768 kWh a month and paid $842 (U.S.: $896).
Average business electric bill in Texas
The average commercial customer in Texas paid $842 a month over the last 12 months, the 19th highest of the 50 states and DC. In July 2026 the average business bill was $987. These averages mix small shops with large offices and stores, so use the table below to estimate a bill for your own usage.
What would a business pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 5,000 kWh × 8.47¢ | $423.50 | $5,082 |
| 10,000 kWh × 8.47¢ | $847.00 | $10,164 |
| 50,000 kWh × 8.47¢ | $4,235.00 | $50,820 |
Commercial electricity rates in Texas by month
Business power in Texas cost 8.47¢ per kWh in July 2026, compared with 15.88¢ for homes and 7.07¢ for industrial users. See home electricity rates in Texas.
Utilities serving businesses in Texas
Oncor Electric Delivery Company LLC serves the most business customers in Texas, with 528,368 commercial accounts. It only delivers power: its business customers buy electricity from a retail supplier.
| Utility | Business customers | Avg. business rate |
|---|---|---|
| Oncor Electric Delivery Company LLC | 528,368 | — |
| CenterPoint Energy | 326,934 | — |
| AEP Texas Central Company | 128,625 | — |
| City of San Antonio | 97,661 | 10.09¢ |
| Southwestern Public Service Co | 58,996 | 9.67¢ |
| Entergy Texas Inc. | 56,739 | 9.86¢ |
| Austin Energy | 55,306 | 10.96¢ |
| Pedernales Electric Coop, Inc | 53,505 | 10.41¢ |
| Texas-New Mexico Power Co | 43,970 | — |
| El Paso Electric Co | 40,207 | 9.17¢ |
"Avg. business rate" is what each utility's full-service commercial customers paid on average in 2025 (revenue ÷ kWh sold), shown only for utilities with at least 100 business customers.
Can businesses choose an electricity supplier in Texas?
Yes. Businesses in Texas can buy electricity from a licensed retail supplier, and many sign fixed-price contracts to make costs predictable. The local utility still delivers the power. Choice is available only in the parts of Texas on the ERCOT grid that are open to competition. Areas served by city-owned utilities and most co-ops (such as Austin and San Antonio) and areas outside ERCOT (such as El Paso) do not have choice.
Compare current offers on the official state site: Power to Choose (PUCT).
How to lower your business electricity cost
- Check your rate schedule. Utilities put businesses on rate classes by size and usage. Ask your utility whether another schedule, such as a time-of-use rate, fits how you use power.
- Manage demand charges. If your bill has a demand charge, it is set by your highest short burst of usage in the month. Staggering when large equipment starts can lower it.
- Compare supply offers. Check the price per kWh, contract length, early-termination fees and what happens when the contract ends before you sign.
Business electricity rates in neighboring states
| State | Price per kWh |
|---|---|
| Texas | 8.47¢ |
| Oklahoma | 10.32¢ |
| Louisiana | 10.97¢ |
| Arkansas | 11.76¢ |
| New Mexico | 11.90¢ |
Texas business electricity FAQ
What is the average business electric bill in Texas?
Commercial customers in Texas paid an average of $842 a month over the last 12 months, using 9,768 kWh. This average covers every kind of business, from small shops to large offices, so a small business will usually pay much less.
What is the commercial electricity rate in Texas?
The average commercial rate was 8.47¢ per kWh in July 2026, 41.7% below the U.S. average of 14.53¢. Industrial customers paid 7.07¢ per kWh, and homes paid 15.88¢.
Can businesses choose their electricity supplier in Texas?
Yes. Businesses in Texas can buy electricity from a licensed retail supplier, while the local utility keeps delivering it. Official offers are listed on Power to Choose (PUCT).
What is a demand charge?
Many commercial rates include a demand charge based on the highest amount of power (kW) a business draws during a short interval, often 15 or 30 minutes, in the billing month. Starting large equipment at different times can lower it.
TX commercial and industrial electricity prices and bills: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.