What's the Average Electric Bill in Texas in 2026?

If you just opened your electricity bill and thought "that can't be right," you're not alone. Texans pay some of the most variable electricity bills in the country - and the range between what a savvy shopper pays and what everyone else pays is enormous.

So what's normal? Let's dig into the numbers.

The Average Texas Electric Bill in 2026

The average residential electricity bill in Texas lands between $150 and $180 per month when you look at the full year. But that number hides a huge amount of variation.

Your actual bill depends on:

• Where you live - Houston (CenterPoint territory) tends to run higher TDU charges than Dallas (Oncor)
• Your home's size and age - a 3,000 sq ft home from the 1990s with poor insulation will cost dramatically more than a 1,500 sq ft home built to modern code
• Your electricity plan - this is the single biggest variable most people overlook
• The season - summer bills in Texas can easily hit double or triple your winter bills

Summer vs. Winter: The Texas Swing

Texas electricity bills follow a predictable seasonal pattern, driven almost entirely by air conditioning.

| Month | Typical Usage | Typical Bill | |---|---|---| | January-March | 800-1,100 kWh | $90-$140 | | April-May | 1,000-1,300 kWh | $110-$160 | | June | 1,400-1,800 kWh | $160-$220 | | July-August | 1,800-2,500 kWh | $220-$400+ | | September-October | 1,200-1,600 kWh | $140-$200 | | November-December | 900-1,200 kWh | $100-$150 |

For larger homes (2,500+ sq ft), July and August bills of $300-$400 are common. Homes with older AC units, poor insulation, or west-facing windows can push well past $400.

This seasonal swing is exactly why comparing plans at a single usage level (like PowerToChoose.org does at 1,000 kWh) can be misleading. A plan that's cheap at 1,000 kWh might be expensive at 2,000 kWh thanks to tiered pricing or disappearing bill credits.

What's Actually on Your Bill

Your electricity bill has three main components, and most people only pay attention to one of them:

1. Energy Charges (The Part You Control)

This is the per-kWh rate from your Retail Electricity Provider (REP) - companies like TXU, Reliant, Gexa, Rhythm, and dozens of others. This is the only part you can change by switching plans.

2. TDU Delivery Charges (Fixed by Your Area)

Your Transmission and Distribution Utility (Oncor, CenterPoint, AEP, or TNMP) charges for maintaining the power lines and delivering electricity to your home. These charges are the same regardless of which REP you choose. They typically add 4-6¢/kWh to your effective rate.

3. Taxes, Fees, and Base Charges

Monthly base fees range from $0 to $9.95 depending on your plan. Taxes and regulatory fees add another small percentage. Some plans also include renewable energy certificate costs. The number that actually matters is your average price per kWh: total bill divided by total kWh used. That's the all-in number that tells you whether you're getting a good deal.

Are You Overpaying? Here's the Benchmark

As of mid-2026, here's a rough guide to where you stand:

| All-In Rate (incl. TDU) | Verdict | |---|---| | 8-11¢/kWh | Excellent - you're on a great plan | | 11-14¢/kWh | Good - competitive for most contract terms | | 14-16¢/kWh | Mediocre - worth shopping around | | 16-20¢/kWh | Overpaying - you should switch soon | | 20¢+ /kWh | Red flag - likely on an expired contract or month-to-month rate |

To find your all-in rate, take your total bill amount and divide by the kWh shown on your bill. If you're at 16 cents or above, there's almost certainly a better plan available.

The Rate Trap: Expired Contracts

Here's the most common way Texans end up overpaying: the expired contract.

You sign up for a competitive 12-month plan at 10¢/kWh. Life gets busy. Twelve months later, your contract expires and your provider quietly moves you to a month-to-month "variable" rate - often 18-24¢/kWh.

There might be a small notice buried in your bill, but most people miss it. You could spend months - or even years - paying nearly double what you should.

This is so common that it's one of the most frequent findings when people run their usage through WattTrim. They discover they've been on an expired plan paying hundreds more per year than necessary.

Check your current contract end date. It's on your bill or your provider's website. If it's already passed, you're almost certainly overpaying.

Why "Average" Doesn't Matter - YOUR Bill Does

National and state averages are interesting for context, but they don't tell you anything about whether you're on the right plan. Two identical homes on the same street can have electricity bills that differ by $50-$100/month simply because one homeowner shopped for a plan and the other didn't.

In deregulated Texas, your electricity cost is almost entirely determined by which plan you chose (or didn't choose). The grid, the delivery infrastructure, and the electrons are all the same. The only difference is pricing.

WattTrim's Top 5 Plans page shows the current best rates by contract term, updated regularly. It's a quick way to see what competitive rates look like right now. But because of tiered pricing and bill credits, the cheapest plan at the average usage level might not be the cheapest plan at your usage level.

That's why a personalized analysis based on your actual 12 months of usage data gives you a much clearer picture than any rate comparison table.

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Ready to Find Your Best Plan?

Browsing plans is a great start - but every home uses electricity differently. WattTrim analyzes your actual Smart Meter usage data to find the cheapest plan for how you use power, not just a generic benchmark.

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