Your power to choose electricity in Houston

Due to Texas’s deregulated energy market, Houston residents and businesses have the power to choose an electricity provider. With numerous options, Choose Texas Power simplifies the process so you can compare available plans in your area. Get started by calling our energy expert, who can help you find the best plan.

ChooseTexasPower.org is not affiliated with Power to Choose, powertochoose.org, or the PUCT.

Average residential rate in Houston, Texas

In 2024, the average electricity rate in Houston on Choose Texas Power’s marketplace was 19.83 cents per 500 kilowatt-hour (kWh), a 6% decrease from 2023. The latest rates for the 1,000 kWh and 2,000 kWh usage levels are 15.15 cents and 16.72 cents, respectively, which are 1.5% and 2.2% higher than the average rates in 2023.

According to the latest Energy Information Administration (EIA) data, the average Texas electricity rate is 14.96 cents per kilowatt-hour (kWh). Based on the typical energy usage, the average electricity bill in Texas is approximately $171.44 per month.

You can compare today’s best electricity rates in Houston on the Choose Texas Power marketplace, starting with the lowest rate. Our marketplace’s cheapest Houston electricity rate is 10.8 cents per kWh, about 28% lower than the average Texas energy rate. You can secure the lowest energy prices today from 4Change Energy, Discount Power, Frontier Utilities, Express Energy, and Gexa Energy.

Compare Houston electricity companies

Houston electricity providers compete for your business in deregulated markets by offering lower electric rates and better terms and conditions. Comparing all the Texas power options in your area can feel overwhelming — luckily, Choose Texas Power aims to simplify this process.

Enter your ZIP code or call the number on your screen to find the best electricity providers in your area. You can narrow down your results by filtering for plan type or length. The following table compares the top Houston electricity providers, their lowest rates, and customer reviews.

Houston’s utility company

While you can choose your electricity provider in a deregulated market, you cannot choose your utility company. The address of your home or business determines your utility company. Utilities deliver electricity, maintain power lines, and restore electricity during power outages.

Houston’s main utility is CenterPoint Energy. You can report or check the status of a power outage on CenterPoint’s outage center.

Types of Houston electric plans

When comparing available plans in your area, you’ll find multiple plan types, such as:

• Fixed-rate plans: Under this plan type, you pay a fixed rate for every kWh of power you use throughout your electricity contract. Contracts typically last from one to three years. However, if you cancel your plan before your contract ends, you may have to pay an early termination fee (ETF). The benefit of fixed-rate plans is that your price remains constant, providing stability and protection from spikes in the energy market.
• Variable-rate plans: With variable-rate plans, your monthly electricity rate varies based on wholesale electric prices. No contract is required for this plan type, meaning you can switch electric plans at your convenience. Note that variable-rate plans may lead to higher electricity rates during peak demand periods because high demand raises the wholesale cost of electricity.
• No-deposit electricity plans: Some Houston electricity providers require a deposit before servicing a home or business. If you prefer to avoid a deposit, look for light companies offering no-deposit electricity plans in Texas, such as a prepaid plan. Prepaid plans allow you to pay for your electricity in advance and reload your account as needed.
• Time-of-use plans: Customers enrolled in time-of-use plans will experience fluctuating rates based on their electricity usage timing. Taking advantage of off-peak times, such as late nights, weekends, and holidays, can lead to lower rates. However, you may pay higher rates if you use a lot of energy during peak hours.
• Renewable energy plans: Each Texas electricity plan uses a percentage of green energy, such as wind and solar energy. The amount varies depending on the provider and plan. Some electricity providers, like Gexa Energy and Green Mountain Energy, exclusively offer green energy plans.
• Indexed rate plans: These plans are typically more complicated than others. Like variable-rate and time-of-use plans, indexed rates fluctuate. However, the rate is linked to an energy commodity index, a metric tracking the prices of commodities in the energy market like coal and oil. It’s a good idea to research and understand how indexed rate plans work before signing up.

Understanding Houston electric rates

Energy rates vary based on location, utility provider, energy usage, and other factors. Taxes and utility delivery fees change depending on where you live, so you may have a different rate than someone on the same plan nearby. Enter your ZIP code to compare cheap energy rates in Houston. You can also call the number on your screen to speak with our energy experts.

Houston commercial energy

Businesses in Houston also have the power to choose their electricity plans. Choose Texas Power can help business owners in Houston develop a customized commercial electricity plan with an affordable energy rate. Get started by filling out our business energy form, or call the number on your screen to learn more about commercial electricity in Houston.

Green energy plans in Houston

Texas leads the nation in renewable energy generation, ranking first for wind energy and second for solar energy production. The abundance of renewable energy means Houston residents have many renewable energy choices. All Texas electricity plans include a percentage of renewable energy, and many electricity providers in Houston offer competitive renewable energy rates. For details about the amount of green energy in your Houston power plan, check your plan’s Electricity Facts Label (EFL).

You can also select an energy provider in Houston offering 100% green energy plans, such as Gexa Energy and Green Mountain Energy.

Moving or switching providers in Houston

Want to make a stress-free move or switch your electricity provider in Houston to get lower rates? Choose Texas Power offers a seamless marketplace for both scenarios. Whether you’re moving to a new location or looking to switch providers, our marketplace can help.

Moving to a new address

Moving is a stressful process, and the last thing you want to worry about is your electricity service. If you’re moving within the same service area or your existing provider serves your new area, you can likely keep your current plan. Contact your electricity company for more information and to provide your new address. If you are moving outside of your current provider’s service area, you can switch providers with no penalty. Enter your ZIP code to browse options available at your new location.

Switching energy providers

You can choose to switch electricity companies or plans for a better rate in Houston. Enter your ZIP code and use the filters to refine your results. Select a plan and review the EFL for specific details. Sign up quickly on Choose Texas Power, confirm the switch, and follow the instructions to activate your new plan. Your Houston provider will seamlessly transition your service without interruptions.

How to find cheap energy plans in Houston

Here are some tips to make sure you find the best electricity plan for your budget and energy needs:

• Understand your usage patterns: Review your past electricity bills to understand your consumption patterns to determine if your usage is consistent or fluctuates seasonally.
• Compare plans and providers: Research different electricity providers and plans in Houston and consider factors like pricing and contract terms.
• Read the fine print: Review electric plan terms before signing up. Consider contract length, renewal terms, and potential limitations or restrictions.
• Check for promotions: Look for discounts or special offers to maximize savings. For example, some plans offer free nights or weekends, which may benefit customers with low daytime electricity usage.
• Read customer reviews: Research customer reviews, focusing on feedback related to billing, customer support, and reliability. Look for reputable electric companies in Houston known for their responsiveness and prompt resolution of customer issues.
• Seek recommendations: Ask friends, family, or neighbors about their experiences with different electric providers. Their recommendations can help you make an informed decision.

Houston energy FAQs

What is the cheapest electricity rate in Houston?

Today’s lowest rate on our marketplace is 10.8 cents per kWh, which you can find from 4Change Energy, Gexa Energy, Discount Power, Frontier Utilities, and Express Energy. Keep in mind that energy rates can fluctuate by location and time of year. To check today’s cheapest rates in your area, enter your ZIP code or call our energy team.

How does weather affect energy prices in Houston?

Texas often experiences hot summers and cool winters, resulting in increased use of heating and air systems. Higher demand for electricity to operate these systems leads to higher rates. It’s best to shop for affordable electricity in Texas during cooler seasons like spring and fall when demand is lower. You can regularly compare rates and plans on Choose Texas Power to find cost-effective options at any time of year.

What is the best energy provider in Houston, Texas?

TXU Energy and TriEagle Energy are two top providers in Houston known for high-quality customer service and a variety of plan options. However, energy plans and providers are not one-size-fits-all. The best provider will closely match your energy budget and needs. Consider the factors most important to you, such as price, plan type, contract length, or renewable energy.

What type of energy plan is best?

Fixed-rate plans are the most popular type of energy plan in deregulated areas because they offer predictable pricing. A fixed-rate plan also protects consumers from fluctuations in the energy market that typically increase electricity rates. However, fixed-rate plans require a contract and include cancellation fees if you end your contract early. For this reason, some customers prefer variable-rate or prepaid plans for short-term energy solutions.

How can I lower my electricity bill?

Reducing energy consumption is the best way to lower your electricity bill. How much energy you use directly impacts your bill. Start by turning off your lights and unplugging unused electronics throughout your house. You can also set your thermostat between 68 to 70 degrees Fahrenheit, which is considered the most efficient temperature. These habits can go a long way in helping lower your energy usage.