Your power to choose electricity in Houston

Due to Texas’s deregulated energy market, residents and businesses in Houston 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 entering your ZIP code to explore light companies in Houston.

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

Average residential rate in Houston, Texas

In Houston, the average rate on the Choose Texas Power marketplace for 500 kWh in 2024 is 20.17 cents per kilowatt-hour (kWh), marking a 4.4% decrease from 2023. The rates for the 1,000 kWh and 2,000 kWh usage levels are 15.35 cents and 16.96 cents, respectively, which are 2.81% and 3.65% higher compared to the average rates in 2023.

According to the latest Energy Information Administration (EIA) data, the average Texas electricity rate is 14.83 cents per kilowatt-hour (kWh). Based on the typical energy usage, the average electricity bill in Texas is approximately $169.95 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 27% lower than the average Texas energy rate. You can secure the lowest energy prices today from 4Change Energy, 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 — that’s why Choose Texas Power is here to help.

Enter your ZIP code to find the best electricity providers in your area. You can narrow down options using filters like plan type or length. You can use the following table to compare electricity companies and find the cheapest energy rates in Houston.

Houston’s utility company

While you can choose your electricity provider in a deregulated market, you cannot choose your utility company. Your service address determines which utility company you have. Utilities deliver electricity to homes and businesses, maintain power lines, and restore electricity service during power outages. In a power outage, you will need to contact your utility.

The main utility in Houston 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 searching 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 — switch electric plans in Houston 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 the daytime and on weekdays.
• Renewable energy plans: Each Texas electricity plan uses a percentage of green 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 the best energy rates in Houston, including taxes and fees.

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, we’re here to help.

Moving to a new address

If you are moving to Texas or within Houston, enter your ZIP code to find the best energy plans in your area if you’re relocating outside your current provider’s service area. If you’re staying within the current service area, you can choose to transfer your current service.

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 choose the best energy plan in Houston

Here are some tips to help you find the best electric plan for you:

• 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 benefits 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

Which energy provider has the cheapest electricity rates in Houston, Texas?

The lowest energy rate in Houston on our marketplace is 10.8 cents per kWh from 4Change Energy. Electric rates in Houston vary based on your ZIP code and the time of year. Electricity rates tend to be lower during milder seasons like spring and fall.

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. Regularly compare rates and plans and understand your energy usage to find cost-effective options. Enter your ZIP code to find cheap electric companies in Texas and take advantage of low rates.

What is the best energy provider in Houston, Texas?

Top-rated energy suppliers in Houston include TXU Energy and TriEagle Energy. While these providers may not have the lowest rates, you may have a higher quality customer experience and more variety of plan options. The best energy provider in Houston will depend on your energy needs and budget. Compare electricity companies in Houston by your preferred features, such as low rates, green energy, or specific electric rate types and term lengths.