How to compare electricity rates in Texas

Compare the three average prices, then the term, the type of plan, the cancel fee and the other fees. The Commission's rule says the label must give the total average price, in cents per kWh, at 500, 1,000 and 2,000 kWh for a home.

A label we read on Oct. 25, 2026 listed a $5.00 fee for each billing period without autopay. That is $60 a year, about half a cent per kWh at 1,000 kWh, and it is not in the three prices.

The other lines matter too. The label shows if the plan is prepaid, if the price can change, and how much of the power is renewable. Our guide to reading a facts label walks through each line.

Copy the three "Average Price per kWh" numbers from each label. The tool turns them into a monthly bill at your kWh, ranks the plans, and checks them against the market in your area.

This estimate draws straight lines between the three label prices. It leaves out taxes and any fee the label lists apart from the price.

Two plans with the same price at 1,000 kWh can differ a lot at 700 or 1,500 kWh. That is why your kWh is the starting point. Your bill shows it, and Smart Meter Texas shows your history for free. Test a hot month and a mild month.

Want to price a plan from its energy charge, base charge and delivery numbers instead? Our plan cost calculator does that, with the utility's charges built in.

The table shows the lowest and the middle price in each area, at all three usages. Use it to see how far a plan sits from the pack.

The prices are from the Power to Choose list. The Oncor cells and the 1,000 kWh columns update every day (list read October 24, 2026). The other cells are re-read by a person and were last read October 25, 2026. "Plain" means a 12-month fixed plan without a bill credit or usage fee flag, and without prepaid or time-of-use pricing. Areas differ mainly because each wires company charges a different delivery price. Our guides to Oncor and CenterPoint show those charges.

The gap inside one area is the money you can save by comparing. Each 1¢ per kWh is $120 a year at 1,000 kWh.

This page teaches the method. For a ranked list of the cheapest plans each week at your usage, see our cheapest plans guide.

A bill credit or a usage fee makes the price jump between 500, 1,000 and 2,000 kWh. A plain bill grows steadily as you use more power. A label whose bill falls, or whose cost per extra kWh swings, is hiding a credit or a fee. The tool flags it.

This made-up plan has the shape of a real bill-credit plan. Its label price is 19.6¢ at 500 kWh, 6.8¢ at 1,000 and 12.9¢ at 2,000.

The bill at 1,000 kWh is $30 less than at 500. That is a credit that switches on at a set use. A month just under the line can lose it. The plan only looks cheap if you hit the number every single month. Our guide to bill-credit plans shows the traps.

You can shop the seller's energy charge, base charge and fees. You cannot shop delivery, which is the same for every seller in your area. Taxes follow the law.

Labels differ on taxes. One label we read on Oct. 25, 2026 says its average prices leave out local and state taxes. Check the line on yours so you compare the same thing on each plan.

The Commission's rule also sets what a bill must show. It lists "the average price you paid for electric service this month." That figure counts all the fixed and variable monthly charges, but not sales tax or one-time items. Put it next to your label price. If it is higher, find the fee or the missed credit that explains the gap.

Compare the plan first, then the company behind it. Check its Commission license, its complaint score, and what its terms say about deposits and cancel fees. A low price from a company with a poor record can still cost you.

We score companies on public records in our best companies guide, and the full list of companies shows who is licensed and which brands share an owner. This page stays with the math. Those pages hold the company details.

Find your kWh, pick a few plans of the same type, copy their three prices, run the tool, read each label's fees, and check the company. Then sign up and keep your three days.

1. 1
   Find your kWh.

   Use the "kWh used" line on a real bill. Try a summer month too.

2. 2
   Pick plans of the same kind.

   Compare 12-month fixed plans with 12-month fixed plans. A month-to-month plan is a different bet. See our guide to month-to-month plans.

3. 3
   Copy the three prices.

   Use the label's 500, 1,000 and 2,000 kWh numbers, not the headline.

4. 4
   Run the tool.

   Add the market check for your area. Look for flagged plans.

5. 5
   Read the fees.

   Look at the term, the cancel fee, the autopay fee and the renewal line.

6. 6
   Check the company, then sign up.

   After you get the terms, you can cancel a new plan within three federal business days with no fee. Our switching guide shows the steps.

To see plans at your ZIP, use the plan finder on this page. Then bring each label's three prices back to the tool.