Texas electricity rates
As of May 2026, the average residential electricity rate in Texas is 16.44 cents per kilowatt-hour, 10.8% below the U.S. average of 18.44¢. That is the 25th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +5.9% from 15.53¢ in May 2025
- Vs. U.S. average
- -10.8% U.S. average 18.44¢
- National rank
- #25 of 51 · #27 cheapest
- Supply market
- ERCOT Retail choice statewide
Why Texas pays what it pays
Texas runs its own grid. ERCOT covers roughly ninety per cent of the state's load and is not synchronously connected to the rest of the country, which means it is not subject to FERC's wholesale market jurisdiction the way other regions are. It also means Texas has no capacity market. Generators earn from energy and ancillary services alone, and scarcity pricing is the mechanism that signals new investment.
Generation is dominated by natural gas and wind, with rapidly growing solar and battery capacity. West Texas wind and Permian-adjacent solar have added enormous zero-fuel-cost supply, which holds average prices down. Gas sets the marginal price when they are not producing.
The state's rate sits below the national average, but the average conceals wide variation. Two households on the same street can pay very different rates depending on which retail plan they signed and when.
Winter Storm Uri in February 2021 remains the defining event. Wholesale prices hit the cap for days, several retailers failed, and the resulting costs are still being recovered through charges that appear on bills across the state.
Where Texas power comes from
Texas generated 591 TWh in 2025, the largest output of any state. Natural gas supplied 48.8% of it. Renewables accounted for 32.2%, against 23.8% nationally, which ranks Texas #18 of 51.
- Natural gas 48.8% 288 TWh
- Wind 21.9% 129 TWh
- Coal 11.7% 69 TWh
- Solar 9.9% 59 TWh
- Nuclear 7% 42 TWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
How Texas compares
Texas ranks #25 of 51 jurisdictions by residential price, making it the 27th cheapest. Within the West South Central division, every other state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Oklahoma | 13.38 | +3.4% | #49 |
| Louisiana | 14.15 | +6.7% | #42 |
| Arkansas | 14.36 | +8.9% | #41 |
| Texas | 16.44 | +5.9% | #25 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What Texas households actually pay
Texas looks cheaper on paper than it is in practice. It has the 27th cheapest rate in the country but only the 6th highest bill from the bottom, because households there use 1,093 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your Texas bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Heating in Texas: gas, heat pump or resistance
Residential natural gas in Texas averaged $17.98 per thousand cubic feet in 2024, about $1.73 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In Texas, a heat pump is cheaper to run than a gas furnace by about $3.21 per million BTU at these assumptions. Over a 60 million BTU heating season that is roughly $193, before counting the cooling a heat pump also provides.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each Texas utility charges
The statewide average hides a wide spread. Across the 132 Texas utilities reporting to the EIA, rates run from 7.91¢ at Southern Federal Power, LLC to 24.62¢ at Rhythm Ops LLC . Together they serve 12 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Reliant Energy Retail Services | 17.38 | $179 | 1,030 | 1.5 million |
| TXU Energy Retail Co, LLC | 18.70 | $201 | 1,077 | 1.4 million |
| City of San Antonio | 12.43 | $133 | 1,070 | 865,914 |
| Austin Energy | 12.58 | $105 | 834 | 507,291 |
| Entergy Texas Inc. | 13.66 | $165 | 1,210 | 457,369 |
| US Retailers, LLC | 14.60 | $194 | 1,328 | 412,301 |
| Just Energy | 15.15 | $185 | 1,223 | 407,723 |
| Pedernales Electric Coop, Inc | 12.22 | $146 | 1,191 | 405,587 |
| Ambit Energy Holdings, LLC | 18.77 | $178 | 950 | 360,476 |
| El Paso Electric Co | 13.46 | $96 | 710 | 312,576 |
| Denton County Elec Coop, Inc | 13.77 | $166 | 1,208 | 298,734 |
| Green Mountain Energy Company | 17.52 | $160 | 912 | 292,172 |
| Direct Energy Services | 16.37 | $182 | 1,112 | 266,249 |
| Gexa Energy, LP | 18.11 | $216 | 1,192 | 259,811 |
| Champion Energy Services | 9.98 | $95 | 953 | 225,587 |
| Southwestern Public Service Co | 13.35 | $128 | 957 | 222,146 |
| Value Based Brands LLC | 16.85 | $202 | 1,198 | 221,191 |
| Stream SPE, LTD | 16.60 | $198 | 1,194 | 158,854 |
| Southwestern Electric Power Co | 12.03 | $127 | 1,058 | 156,271 |
| Amigo Energy | 16.19 | $175 | 1,080 | 146,495 |
| Constellation NewEnergy, Inc | 15.95 | $195 | 1,225 | 139,928 |
| Frontier Utilities, LLC | 16.82 | $189 | 1,123 | 132,700 |
| Magic Valley Electric Coop Inc | 10.20 | $132 | 1,295 | 126,402 |
| Tri-County Electric Coop, Inc (TX) | 12.65 | $188 | 1,487 | 118,075 |
| Bluebonnet Electric Coop, Inc | 11.42 | $138 | 1,206 | 113,890 |
Showing the 25 largest of 132. Utilities with fewer than 1,000 residential customers are not published.
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in Texas
In the competitive area, three functions are separated. Transmission and distribution utilities (Oncor, CenterPoint Energy, AEP Texas, Texas-New Mexico Power) own the wires and are regulated. Retail electric providers sell the plan and send the bill. Generators sell into ERCOT. The state runs Power to Choose, an official comparison site.
Outside the competitive area, municipal utilities such as Austin Energy and CPS Energy in San Antonio, plus co-operatives, serve their territories under the traditional model with no choice available.
Texas sits in ERCOT and Texas. The only state running its own grid, with no capacity market and the deepest retail competition in the country. Read the regional analysis.
What you can actually do about it
Read the Electricity Facts Label before you sign anything. The most common expensive mistake in Texas is a plan whose advertised rate applies only at one specific usage level, typically 1,000 kWh, and is much worse above or below it. The EFL shows the rate at 500, 1,000 and 2,000 kWh.
Avoid wholesale-indexed residential plans. They were the mechanism behind the catastrophic bills during Uri, and the upside in normal months is small relative to the tail risk.
Set a calendar reminder for the contract expiry date. Holdover rates after a fixed term ends are usually far above market, and the rollover is automatic.
Closest states by price
These jurisdictions charge within a fraction of a cent of Texas, which is useful if you are comparing a move or a multi-state operating cost.
Texas electricity rates: common questions
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is 16.44 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -10.8% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Texas?
The average Texas household paid $173 a month across the twelve months to May 2026, using an average of 1,093 kWh. That is +11.4% against the U.S. average bill of $155, and it ranks 6th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the Texas bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Texas ranks #25 of 51 on price but 6th on the actual bill, because households there use about 1,093 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Texas gone up?
Texas rates rose 5.9% over the year to May 2026, from 15.53¢ in May 2025 to 16.44¢.
Can I choose my electricity supplier in Texas?
Retail choice statewide. Residential customers in Texas can buy supply from a competitive provider while the local utility continues to deliver it and maintain the wires.