How to find the best electricity rate in Texas
In the competitive part of Texas, homes buy electricity from a retail electric provider (REP), and the regional transmission and distribution utility (TDU) delivers it; its delivery charges are passed through on the bill. Every REP must publish an Electricity Facts Label (EFL) for each plan, showing the total average price in cents per kWh at 500, 1,000 and 2,000 kWh a month, including recurring charges.[tx_efl] In 2024, 56% of Texas homes bought from REPs; the rest were served by municipal utilities, cooperatives and regulated utilities.[eia861] To find the best rate for you:
- Know your usage. Add up 12 months of kWh from your bills or your smart meter portal. The Texas average is 1,114 kWh a month, but summer months often run far higher: 1,670 kWh in August 2026.[eia861m]
- Open the EFL, not the ad. The EFL lists the energy charge, base charge, TDU delivery charges, contract term and early cancellation fee.
- Price the plan at your usage. Bill credits and minimum-usage fees make the 1,000 kWh price misleading for anyone who uses much more or less. Enter the EFL's per-kWh charges and fixed charges in the calculator above for your low, average and peak months.
- Check the term and fees. A variable-rate plan can change monthly; a fixed-rate plan holds its energy charge for the term, but TDU charges pass through.
Why the 1,000 kWh price can mislead
Fixed monthly charges are spread over all your kWh, so the same plan costs more per kWh at low usage. Take a plan with a $9.95 base charge, a 9.8¢ energy charge and TDU charges of $4.23 a month plus 5.6¢ per kWh (illustrative inputs, not a real offer):
- 500 kWh: 18.24¢ per kWh all-in
- 1,000 kWh: 16.82¢ per kWh
- 2,000 kWh: 16.11¢ per kWh
Plans with a bill credit at exactly 1,000 kWh push this the other way: they look cheap at 1,000 and expensive at 999 or 2,000. The quick buttons in the calculator run the same plan at 600 and 2,000 kWh.
Texas electricity rates by provider type
EIA's 2024 survey counts 6,963,807 Texas homes buying from retail electric providers, 56% of residential customers, at an average of 16.66¢ per kWh all-in. Homes outside the competitive market, served by municipal utilities (12.55¢), electric cooperatives (12.68¢) and regulated investor-owned utilities (13.33¢), paid less on average in 2024.[eia861] Averages hide wide differences between plans; they are not a verdict on any provider.
| Provider type | Customers | ¢/kWh | kWh/mo | Bill/mo |
|---|---|---|---|---|
| Retail electric providers (all combined) | 6,963,807 | 16.66¢ | 1,097 | $182.73 |
| Electric cooperatives | 2,461,060 | 12.68¢ | 1,198 | $151.90 |
| Municipal utilities | 1,842,200 | 12.55¢ | 1,010 | $126.80 |
| Utility full service (default supply) | 1,148,362 | 13.33¢ | 1,004 | $133.89 |
| Rooftop solar third-party owners | 25,338 | 17.38¢ | 857 | $148.88 |
Retail electric providers are combined into one row; we do not list or rank them. Cities such as San Antonio and Austin have municipal utilities and no retail choice.
| Utility | Service | Customers | ¢/kWh | kWh/mo | Bill/mo |
|---|---|---|---|---|---|
| City of San Antonio | Full service | 865,914 | 12.43¢ | 1,070 | $133.09 |
| Austin Energy | Full service | 507,291 | 12.58¢ | 834 | $104.85 |
| Entergy Texas Inc. | Full service | 457,369 | 13.66¢ | 1,210 | $165.32 |
| Pedernales Electric Coop, Inc | Full service | 405,587 | 12.22¢ | 1,191 | $145.55 |
| El Paso Electric Co | Full service | 312,576 | 13.46¢ | 710 | $95.53 |
| Denton County Elec Coop, Inc | Full service | 298,734 | 13.77¢ | 1,208 | $166.39 |
| Southwestern Public Service Co | Full service | 222,146 | 13.35¢ | 957 | $127.83 |
| Southwestern Electric Power Co | Full service | 156,271 | 12.03¢ | 1,058 | $127.24 |
Dallas electricity rates and the Texas trend
Dallas electricity rates are set by the REP plan you choose plus the local TDU's delivery charges, which the plan's EFL folds into its average prices.[tx_efl] EIA does not publish a city-level price, so the statewide figures are the best public benchmark: 15.98¢ per kWh over Sep 2025–Aug 2026, +4.8% from Sep 2024–Aug 2025, against 18.04¢ nationally.[eia861m]
Texas U.S. average
| Month | ¢/kWh | Year earlier | Change | kWh/home | Avg bill |
|---|---|---|---|---|---|
| August 2026 | 15.91¢ | 15.40¢ | +3.3% | 1,670 | $265.58 |
| July 2026 | 15.88¢ | 15.28¢ | +3.9% | 1,583 | $251.33 |
| June 2026 | 15.94¢ | 15.19¢ | +4.9% | 1,311 | $209.02 |
| May 2026 | 16.44¢ | 15.45¢ | +6.4% | 995 | $163.54 |
| April 2026 | 16.99¢ | 15.48¢ | +9.8% | 850 | $144.37 |
| March 2026 | 16.39¢ | 15.20¢ | +7.8% | 821 | $134.65 |
| February 2026 | 15.42¢ | 14.78¢ | +4.3% | 922 | $142.15 |
| January 2026 | 15.67¢ | 14.63¢ | +7.1% | 1,087 | $170.28 |
| December 2025 | 15.79¢ | 15.36¢ | +2.8% | 936 | $147.84 |
| November 2025 | 15.96¢ | 15.68¢ | +1.8% | 807 | $128.78 |
| October 2025 | 16.03¢ | 15.67¢ | +2.3% | 1,080 | $173.16 |
| September 2025 | 15.77¢ | 15.06¢ | +4.7% | 1,297 | $204.51 |
Texas ranks 25 of 51 for price (1 = most expensive). Compare every state on electricity rates by state; Texas homes' high usage is why their bills sit above many pricier states on the average electric bill ranking. For a single appliance's share, use the kWh calculator; to weigh a heat pump against gas heat, see heat pump vs furnace cost.
Frequently asked questions
What is the average electric bill in Texas?
$178.09 a month over Sep 2025–Aug 2026, for 1,114 kWh at 15.98¢ per kWh (EIA), above the U.S. average of $157.84 because Texas homes use more electricity for cooling.
What is a good electricity rate in Texas?
The Texas average was 15.98¢ per kWh all-in over Sep 2025–Aug 2026 (EIA). A plan that beats that at your own usage, including base and TDU charges, is below average.
What are Dallas electricity rates?
Your REP plan's energy and base charges plus the TDU's delivery charges; each plan's EFL shows the all-in average at 500, 1,000 and 2,000 kWh. The statewide average was 15.98¢ per kWh over Sep 2025–Aug 2026.
What is an Electricity Facts Label?
A standard disclosure every Texas retail plan must publish, with the average price at three usage levels, the charges, the contract term and fees.
Can everyone in Texas choose a provider?
No. In 2024 about 44% of Texas homes were served by municipal utilities, cooperatives or regulated utilities rather than REPs (EIA-861).
Sources
- 16 Tex. Admin. Code §25.475, Retail electric provider disclosures: Electricity Facts Label with total average price at 500, 1,000 and 2,000 kWh
- Monthly Electric Utility Sales and Revenue Data (Form EIA-861M), by state and sector, data through August 2026 (sales_revenue.xlsx)
- Annual Electric Power Industry Report (Form EIA-861), 2024 data: Sales to Ultimate Customers by utility, state and service type