Texas Electricity Rates Today: Average Cost Per kWh by Service Area

# Texas Electricity Rates Today: Average Cost Per kWh by Service Area

The average electricity rate in Texas is 12.9 cents per kWh at 1,000 kWh of monthly usage, based on an all-in rate analysis of 1,500+ active plans from 52 providers across the state's six TDU service areas. Rates range from about 12.1 cents per kWh in CenterPoint's Houston service area to 15.9 cents per kWh in LP&L's Lubbock service area, so where you live changes what a competitive rate looks like.

What Are the Current Average Electricity Rates by TDU Service Area?

Texas electricity rates vary by Transmission and Distribution Utility (TDU) service area because each TDU charges its own delivery rate, which is built into every all-in retail price. The table below shows the all-in rate at 1,000 kWh of usage for all six TDU service areas in Texas, including LP&L, the smallest and currently most expensive market.

CenterPoint's Houston territory has the lowest average rate in Texas at 12.1 cents per kWh, while LP&L's Lubbock territory has the highest average rate at 15.9 cents per kWh, a gap of nearly 4 cents per kWh between the two markets.

What Do Most Texans Actually Pay for Electricity?

Most competitively priced electricity plans in Texas fall between 11 and 13 cents per kWh, not at the headline low rates advertised on comparison sites. About 41 percent of plans price between 11 and 13 cents per kWh, making this the single largest pricing band in the market.

Only about 1.5 percent of plans offer an all-in rate below 7 cents per kWh. These ultra-low rates are the exception, not the norm, and they typically come with usage credits, time-of-use windows, or other conditions that raise the effective rate for a typical household.

How Does Contract Term Length Affect Your Electricity Rate?

Longer electricity contracts in Texas do not reliably cost less than shorter ones. Plans with 7 to 12 month terms average 12.2 cents per kWh, the lowest average of any term category, while plans with 25 to 36 month terms average 14.0 cents per kWh, nearly 2 cents per kWh higher.

This is a counterintuitive finding: locking in a longer contract does not automatically secure a lower rate in the current Texas market. It is also worth knowing what happens when your contract expires, since month-to-month holdover rates are often significantly higher. The 7 to 12 month term category is both the most popular and tied for the cheapest average rate, which makes it the benchmark term length for rate comparisons.

What Is Included in the Texas Electricity Rates Listed Here?

Every rate in this article is an all-in rate at 1,000 kWh of monthly usage, meaning it includes both the retail energy provider's (REP) energy charge and the TDU's delivery charge. TDU delivery charges cover the cost of the poles, wires, and infrastructure that physically deliver electricity to a home, and they are billed at a fixed rate that is identical for every provider operating in that same TDU service area.

Rates advertised as "energy-only" or "energy charge" exclude the TDU delivery charge, which can add several cents per kWh to the final bill. You can verify what your plan actually charges by reading your Electricity Facts Label (EFL). Comparing an energy-only rate from one provider to an all-in rate from another produces a misleading result, so any accurate Texas electricity rate comparison must standardize on all-in pricing at a consistent usage level, such as 1,000 kWh.

How Can You Tell if Your Electricity Rate Is Competitive?

A Texas electricity rate is competitive if it falls at or below the average all-in rate for your specific TDU service area at your actual usage level. A household in Oncor territory paying above 13.1 cents per kWh, in AEP Texas North paying above 13.5 cents per kWh, or in CenterPoint territory paying above 12.1 cents per kWh is paying more than the current market average for that area.

Statewide averages are a useful starting point, but TDU-level averages are the more accurate benchmark because delivery charges differ by service area. For a deeper look at how to find the best plan for your usage, Smart Meter data gives you a more precise answer than averages alone. A rate that looks high compared to the 12.9 cent statewide average may actually be competitive in a higher-cost TDU area like TNMP or LP&L, and a rate that looks average statewide may be overpriced in a lower-cost area like CenterPoint.

Where Does This Rate Data Come From?

The rates in this article are drawn from a database of 1,500+ active plans offered by 52 retail electricity providers across all six Texas TDU service areas. This includes plans listed on the Public Utility Commission of Texas's Power to Choose (PTC) marketplace as well as broker-negotiated plans not publicly listed there. The dataset is refreshed on an ongoing basis to reflect current market pricing and is provider-neutral: no single provider's plans are weighted, promoted, or excluded based on any commercial relationship. You can browse the full dataset on the GridWise Plans Database.

Compare Your Actual Rate Against the Market

Averages and tables tell you what the market looks like, but they cannot tell you whether your specific plan, at your specific usage, is a good deal. WattTrim compares your current plan against 1,500+ options across all 6 Texas TDU service areas, including exclusive broker-negotiated rates not found on PowerToChoose.org. Always free.

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WattTrim's plan rankings are based solely on your actual usage data. Provider compensation never influences your results.

WattTrim LLC is a registered Texas Electricity Broker, PUCT License No. BR260145.