Texas Deregulated Electricity

Best Texas Electricity Rates 2026
Compare Plans & Save Up To $600/Year

Texas has deregulated electricity — you choose your provider. Most Texans overpay by $40-60/month just by staying on the default plan. We break down the best plans by use case so you can switch in 5 minutes.

Instant · $7 · No subscription

Find your actual cheapest plan in Texas

Listed rates change constantly, and the “average” price hides base charges and tiered-rate traps. Paste your ZIP and usage — we pull 100+ live plans, rank the 5 cheapest for your actual usage, and email you the signup links. 60 seconds.

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$147/mo
Avg TX household bill
At 1,200 kWh usage
$40-60/mo
Potential savings
vs. default/grandfathered plans
5 min
Minutes to switch
No service interruption

How Texas deregulated electricity works

1. Your grid is the same
No matter who you choose, your electricity still comes from the same poles and wires (owned by your local utility — Oncor, CenterPoint, etc.). Only the pricing and billing changes.
2. You pick the Retail Electric Provider (REP)
REPs like Reliant, TXU, Gexa, and Green Mountain buy wholesale power and sell it to you. They compete on price and plans.
3. Switching takes 5 minutes
Go to PowerToChoose.org (state-run comparison tool), enter your ZIP, compare plans, and sign up. Service transfers automatically — no trucks, no interruption.

Compare live Texas electricity rates

Real plans, pulled live from the state's Power to Choose marketplace. Sorted by price at 1,000 kWh/mo.

Leaning toward Rhythm? Use our referral link — you get a sign-up credit on your first bill.

Find the exact best plan for your ZIP code

PowerToChoose.org is the official Texas PUC comparison tool. Enter your ZIP + monthly kWh usage to see every available plan sorted by price.

Go to PowerToChoose.org →

Free · Run by the Texas PUC · No account required

Texas Electricity FAQ

Will my electricity go out when I switch?
No. Service continues uninterrupted. Your local utility (Oncor, CenterPoint, etc.) still owns and maintains the lines. Only billing changes.
What's a "price-to-compare" and why does it matter?
This is the all-in rate per kWh that factors in all fees at 1,000 kWh/month usage. Always compare price-to-compare rates, not the advertised "base rate," which often hides fees.
When is the best time to switch?
Anytime outside the summer peak (June-August). Rates are lowest in winter and early spring. If your contract is expiring, compare 30+ days in advance.
Should I lock in a 12-month or month-to-month plan?
Lock in a fixed rate if you expect to stay in your home at least a year — it protects against summer price spikes. Month-to-month gives flexibility but can spike during heat waves.
What is demand charge and should I avoid it?
Some plans charge extra based on your peak hour usage in a month, not just total kWh. For most households with AC, demand charge plans can cost more. Avoid unless you carefully shift usage.
Rates shown are representative averages for illustration purposes. Actual rates vary by ZIP code, usage level, and plan terms. Always verify current rates at PowerToChoose.org before switching. Some links are affiliate links — we may earn a commission if you sign up through them, at no cost to you. Last updated May 2026.