Texas has one of the largest competitive electricity markets in the United States, allowing households in deregulated areas to choose among multiple retail electricity providers and plans. Prices can vary considerably based on location, contract length, electricity usage, delivery charges, and plan structure.
The cheapest plan depends partly on the local transmission and distribution utility, or TDU. Major service territories include:
For example, current fixed-rate comparisons show some Houston-area CenterPoint plans around 11.7¢ per kWh, while Fort Worth-area Oncor plans start around 12.3¢ per kWh for straightforward fixed-rate offers at 1,000 kWh usage.
A plan advertised at an extremely low rate can sometimes depend on bill credits, minimum usage requirements, or tiered pricing.
For example, a plan might advertise an attractive rate at exactly 1,000 kWh but produce a considerably different effective price at 500 or 2,000 kWh.
This is why comparing the Electricity Facts Label (EFL) is important before selecting a plan.
Fixed-rate electricity plans can provide more predictable energy charges for the length of the contract.
Current Texas comparisons show true fixed-rate plans starting around:
These figures are examples from current listings rather than statewide guaranteed prices. Rates can change frequently.
Some plans have terms of 6, 9, 12, 24, or 36 months.
A shorter contract may provide more flexibility, while a longer contract can lock in a rate for a longer period.
However, electricity prices can change with market conditions and seasonal demand. Texas electricity prices are generally influenced by summer cooling demand, weather, fuel costs, and grid conditions.
Choosing a longer contract therefore involves balancing price certainty against the possibility that lower rates could become available later.
Houston is located in the CenterPoint Energy service territory.
Current marketplace information shows Houston-area electricity plans ranging from very low advertised promotional rates to substantially higher traditional fixed-rate plans. One current listing reports the lowest advertised Houston rate at 5.9¢/kWh, while a separate comparison of true fixed-rate plans starts around 11.7¢/kWh.
The difference demonstrates why advertised rates should be compared carefully rather than judged by the headline number alone.
Much of the Dallas-Fort Worth area is served by Oncor.
Current comparisons show true fixed-rate plans beginning around 12.3¢/kWh at the 1,000-kWh usage level.
Other plans can display lower advertised rates because of bill credits or different pricing structures.
The official Public Utility Commission of Texas Power to Choose website allows eligible Texans to compare electricity offers by ZIP code. The PUC also advises consumers to review provider offers and contract information before selecting a retail electricity provider.
When comparing plans, check:
There is no single statewide rate that represents the cheapest deal for every household.
A rate that looks inexpensive at 1,000 kWh might be less attractive for a home that normally uses 500 kWh or 2,000 kWh. Household electricity consumption also tends to increase during hot Texas summers because of air-conditioning use.
For that reason, comparing plans using the actual expected usage pattern is generally more useful than simply selecting the lowest advertised cents-per-kWh figure.
The cheapest electricity plans in Texas in 2026 can start well below 10¢ per kWh in certain marketplace listings, but those headline rates may involve specific usage levels, bill credits, or other conditions. Straightforward fixed-rate plans currently appear closer to the 12¢–13¢ per kWh range in some major service territories.