What actually makes a Texas bill so high?
Check these five causes in order. The first one hit millions of Texas homes this fall, whether they changed anything or not.
- 1Your delivery charge went up
The wires company raised its price. Oncor's jumped on October 4, 2026, and CenterPoint's on October 1. See the numbers.
- 2Your plan's bill credit vanished
Some cheap-looking plans only work if you use an exact amount. Miss it by 1 kWh and the price jumps. See the cliff.
- 3Your AC worked overtime
In a Texas summer, cooling is usually the biggest use of power in a home. More kWh means a bigger bill, even at the same price.
- 4Your contract ended
When a fixed plan expires, most companies move you to a month-to-month rate that can cost much more.
- 5Fees hit a low-use month
Base charges and minimum-use fees cost the same no matter how little you use, so small months look pricey.
Is a higher delivery charge behind my bill?
If you live in the Dallas–Fort Worth or Houston areas, yes. Delivery pays for the poles, wires and meters, and the state approved higher charges this year.
Bars start at zero. That's $12.32 more a month than in May, about $148 more a year. The October 4 charges are temporary; if the state's final decision is lower, Oncor must refund the difference with interest. Sources: Oncor tariff and PUCT Dockets 58306 and 59249.
Bars start at zero. Oncor from October 4 and CenterPoint from October 1, 2026; AEP Texas and TNMP from fact labels dated September 2026.
Many "fixed" plans pass delivery changes through to you. That's why your bill can rise in the middle of a contract. Your plan's fact label says how it handles them.
Why is my "cheap" plan so expensive?
You may be on a bill-credit plan. It looks cheap because it gives you a credit, but only when your use lands in a set window, like exactly 1,000 kWh or more. Miss it by a little and you lose the whole credit.
An example, not a real plan: 9.9¢ per kWh with a $75 credit at 1,000 kWh. Using 1 kWh less costs $74.90 more. Delivery charges are extra in both cases.
Plans like this aren't illegal, but they only pay off if your use reliably hits the window every month. Spring and fall months often don't. Before you sign, run the plan's three prices through our bill-credit trap checker, or learn to spot credits on the fact label.
Why is my summer bill so much higher?
Air conditioning. In hot climates like Texas, cooling is one of the biggest uses of electricity in a home, so July and August bills can far outrun spring ones with no change to your plan.
Some utilities pay you to let a smart thermostat ease up on the hottest afternoons; see demand response programs. If your AC is old, a new efficient one can cut cooling use; see what a new AC costs and heat pump vs. AC.
My plan ended, or I barely used power. Why the big bill?
Two quieter traps. Both are easy to fix once you know where to look.
When a fixed plan ends, most companies move you to a month-to-month rate that can cost much more. The last 14 days of a contract are a free window to switch with no cancel fee, so put the end date on your calendar a month early. See what to do before a contract ends.
Base charges cost the same every month, like the $4.95 on one Direct Energy plan. One AEP Texas Central plan adds a $9.95 charge in any month you use less than 1,001 kWh.
Which half of my bill can I change?
Every bill in Texas's shopping areas has two halves. One is set by the state. The other is up to you.
Example only: 1,000 kWh at the Texas average of 15.88¢ per kWh (EIA, July 2026), split using Oncor's delivery charge from October 4. Your split depends on your plan and utility.
So a plan with a lower energy charge can still save you real money, even though delivery keeps climbing.. That's where shopping on Power to Choose pays off.
Is it your price or your usage?
Divide your bill by the kWh you used. That’s your all-in price. If it’s close to the Texas average of 15.88¢ (U.S. Energy Information Administration, July 2026), your usage is driving the bill. If it’s well above, your plan is.
Bars start at zero. Examples before taxes. The 15.88¢ average is EIA’s all-in home price for July 2026, released September 24, 2026.
Same kWh, an $80 gap a month. If your price is the problem, see what a good Texas electricity rate looks like right now. If your kWh is the problem, compare it with a normal Texas bill for your usage.
Is my bill too high? Check it in 20 seconds
Type two numbers from your last bill. You'll see your price per kWh, how it compares with the Texas average, and how much of your bill is delivery you can't shop.
In Austin or San Antonio? The city utility sets your whole price; see Austin Energy or CPS Energy.
About $72.73 of that is Oncor delivery. Add your bill total to see your own price per kWh.
Partner toolWe may earn a fee if you sign up. It never changes our scores.
Delivery uses each utility's current charges: Oncor $4.06 + 6.8673¢, CenterPoint $4.90 + 6.5333¢, AEP Central $3.24 + 5.6898¢, AEP North $3.24 + 5.5751¢, TNMP $7.56 + 7.7710¢ per kWh. Results are estimates; taxes vary by city.
How do I lower my Texas electric bill?
Focus on the half you control. These five moves work in Texas.
- 1Shop the energy rate
Compare simple 12-month fixed plans on Power to Choose, the state’s free site. Our company scores show which records are cleanest.
- 2Price plans at your real use
Don't trust the 1,000 kWh price alone. Our plan cost calculator shows what a plan costs at your own kWh.
- 3Skip bill-credit plans unless your use is steady
If your kWh swings a lot month to month, a plain plan is usually safer.
- 4Set a contract reminder
Shop a month before your plan ends so you never land on a holdover rate.
- 5Trim summer cooling
A few degrees on the thermostat, fans and shade cut the biggest part of a summer bill. Running laundry at night only saves money on a true free nights plan.
High bill questions, answered
Why did my electric bill go up when I didn't change anything?
Often it's your delivery charge, set by the wires company, not your plan. Oncor's rose to $72.73 a month at 1,000 kWh on October 4, 2026, and CenterPoint's rose on October 1. Those charges are the same with every electric company, so switching won't remove them.
What is a delivery or TDU charge?
It's the cost of the poles, wires and meters that bring power to your home. A regulated utility like Oncor, CenterPoint, AEP Texas or TNMP sets it, with the state's approval. It's identical across every electric company in your area and often makes up about half the bill.
Why did my electric bill double?
Put this month’s kWh next to the same month last year. If your kWh about doubled too, your usage did it, most often the AC in a hot month. If your kWh barely moved but the bill doubled, look for an expired contract, a lost bill credit or a new delivery charge. The bill checker above splits it out.
Why is my summer electric bill so high?
Air conditioning. In the Texas heat, cooling is usually one of the biggest uses of power in a home, so July and August bills can be far above spring ones with no plan change. The cause is extra kWh, not always a higher price.
I picked the cheapest plan. Why is it so expensive?
You may be on a bill-credit plan. Its low advertised price depends on a credit you only get when your use lands in a set window, like 1,000 kWh. Use a little less and you lose the whole credit, so your real price per kWh jumps.
Can I lower my delivery charge by switching companies?
No. Delivery charges are the same for every electric company in your utility's area. Switching only changes the energy part of your bill, but shopping that part and matching a plan to your real use can still save real money.
Why is my bill so high when I barely used any power?
Fixed charges don’t shrink when you use less. Your utility’s monthly charge, any base charge and any minimum-use fee stay the same, so a small month costs more per kWh. On a bill credit plan, using less can also cost you the whole credit.
My plan ended and now I pay more. What happened?
When a fixed contract ends, most companies move you to a month-to-month rate that can cost much more. You can switch with no cancel fee in the last 14 days of a contract, so shop a new fixed plan before yours expires.
How do I dispute a high electric bill in Texas?
Call your electric company first. Ask it to explain each charge and confirm your meter reading. If that doesn’t fix it, file a free complaint with the Public Utility Commission of Texas at 1-888-782-8477 or customer@puc.texas.gov.
How do I lower my Texas electric bill?
Shop the energy rate on a simple 12-month fixed plan and price it at your real use. Avoid bill-credit plans unless your use is steady, set a reminder before your contract ends, and trim summer cooling. You can't shop delivery, so focus on the rest.
What do you want to do next?
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Sources and updates
Sources (11)
- Public Utility Commission of Texas, Docket 59249, Oncor temporary tariff (Item 105): Oncor residential delivery from October 4, 2026, $1.48 customer charge, $2.58 meter charge and 6.8673¢ per kWh, temporary and subject to refund.
- Oncor, Rate case: the Docket 58306 base-rate order approved April 17, 2026, with new rates from June 1, 2026.
- Oncor, Tariff for Retail Delivery Service: 2026 residential delivery rates, including the August 1, 2026 transmission update.
- Reliant Energy, Electricity Facts Label, Secure Advantage 12, Houston: CenterPoint delivery of $4.90 a month plus 6.5333¢ per kWh from October 1, 2026.
- Direct Energy, Electricity Facts Label, Auto Pay Texas 12, AEP Texas Central (dated September 30, 2026): AEP Texas Central delivery of $3.24 a month plus 5.6898¢ per kWh, and a $4.95 base charge.
- Chariot Energy, Electricity Facts Label, AEP Texas North: AEP Texas North delivery of $3.24 a month plus 5.5751¢ per kWh.
- Gexa Energy, Electricity Facts Label, Gexa Eco Choice 12, TNMP (dated September 17, 2026): TNMP delivery of $7.56 a month plus 7.7710¢ per kWh.
- Direct Energy, Electricity Facts Label, Live Brighter 1K+ 24, AEP Texas Central (dated September 30, 2026): a $9.95 charge in months under 1,001 kWh.
- U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Texas average residential price of 15.88¢ per kWh, July 2026.
- U.S. Energy Information Administration, Use of energy explained: energy use in homes: air conditioning as a major use of home electricity in hot climates.
- Public Utility Commission of Texas, Electricity FAQs: contract expirations, cancel fees and switching.
Changelog · last updated October 16, 2026 · 3 updates
- October 16, 2026: Linked our new Smart Meter Texas guide and our list of every Texas electricity company. No figures changed. We also added our new city guides, four new company reviews and the Smart Meter Texas guide to the guide map.
- October 13, 2026: Moved to theday.company/tx/high-electric-bill; the old address forwards here. Added a quick decision box, a date alert and a yearly money-at-stake line in the bill checker and next-step links. Turned the normal-bill section into a price-or-usage test, added answers on a doubled bill, a big bill in a low-use month and how to dispute a bill, and linked our average-bill, rate and contract-ending guides plus a full list of Texas guides. No figures changed.
- October 5, 2026: Guide published: the five causes of high Texas bills, ranked; 2026 delivery charges for every major utility; the bill-credit cliff; and a bill checker.
How to cite this page: The Day Company, "Why is my Texas electric bill so high?", updated October 16, 2026, https://theday.company/tx/high-electric-bill.
Delivery charges are each utility’s residential rates as of October 2026 and change about twice a year; Oncor’s October 4 charges are temporary. The Texas average is the U.S. Energy Information Administration’s July 2026 figure. The bill-credit example is illustrative, not a real plan, and checker results are estimates. The Day Company is not affiliated with any utility or electric company named here.