Electricity Rates in Texas

By Abdel Beldy · Figures updated 2026-10-20 from official data

In July 2026, homes in Texas paid an average of 15.88¢ per kWh, the 22nd cheapest of the 50 states and DC and 13.3% below the U.S. average of 18.31¢.

That price is up 3.4% from a year earlier.

Over the past 12 months the average home in Texas used 1,103 kWh a month, for an average bill of $176 (U.S.: $157).

About electricity in Texas

Texas generates more electricity than any other state, mostly from natural gas and wind. Most of the state runs on its own grid, managed by ERCOT, which is largely separate from the rest of the country.

The Public Utility Commission of Texas is the state agency that regulates electric utilities in Texas.

What drives electricity prices in Texas

Natural gas sets the price of electricity in Texas for most of the year, with wind and a fast-growing amount of solar cutting costs when the weather cooperates. Because gas is produced in the state and power plants are close to the fields, Texas homes usually pay less per kWh than the national average.

Most of Texas is on its own grid, run by ERCOT, which pays generators only for the energy they sell rather than for standing by. Prices can therefore spike during heat waves and cold snaps, as they did in Winter Storm Uri. In most of the ERCOT area households pick a retail electricity provider, but cities such as Austin and San Antonio, electric cooperatives, and regions outside ERCOT keep a single local utility.

Bills are higher than the price suggests because Texas homes use a lot of electricity, mostly for air conditioning through long, hot summers.

Average electric bill in Texas

Over the last 12 months the average Texas home paid $176 a month for electricity, the 6th highest of the 50 states and DC. In July 2026 the average bill was $251 for 1,581 kWh.

Over the last 12 months, homes in Texas used the most electricity in July, when air conditioning drives usage up: an average of 1,581 kWh and a $251 bill. The lightest month was November, at 814 kWh and $130.

What would I pay?

Estimate your own bill

Cost of electricity in Texas by month

Businesses in Texas paid 8.47¢ per kWh in July 2026 (the 2nd cheapest for business power), and industrial users paid 7.07¢. See business electricity rates in Texas.

Electric companies in Texas

87 utilities deliver electricity to homes in Texas. The largest is Oncor Electric Delivery Company LLC, serving 3,545,814 homes. 5 utilities (Oncor Electric Delivery Company LLC, CenterPoint Energy, AEP Texas Central Company, …) only deliver power; their customers buy electricity from a retail supplier.

"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.

Can you choose your electricity supplier in Texas?

Yes. Households in Texas can buy electricity from a licensed retail supplier instead of their utility; the utility still delivers the power and handles outages. 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).

Largest retail suppliers in Texas by residential customers (2025):

1. Reliant Energy Retail Services (1,545,510 homes)
2. TXU Energy Retail Co, LLC (1,442,516 homes)
3. Just Energy (437,966 homes)
4. US Retailers, LLC (416,504 homes)
5. Ambit Energy Holdings, LLC (364,649 homes)

Listed by size only, as reported to EIA. This is not a recommendation.

Texas compared with neighboring states

Latest TX electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.