Independent resource. Not affiliated with any utility or energy provider. Data sourced from the U.S. Energy Information Administration.Verified May 2026
Texas Electricity Cost 2026: 14.20¢/kWh
Texas residential electricity rates average 14.20 cents per kWh in 2026, -21.3% vs the 18.05¢ US national average. The state operates a deregulated retail market with natural gas/wind as the primary generation source.
State Rate
14.20
cents/kWh
Monthly Bill
$126
at 886 kWh
vs National
-21.3%
national avg 18.05¢
Rank (cheapest first)
25/50
YoY change +5.0%
Market Type
Deregulated
Residential customers can shop for a supplier
Primary Generation
Natural Gas/Wind
per EIA State Energy Profile
Annual Bill (avg usage)
$1,510
vs national $1,919
Texas electricity market
Deregulated state in the ERCOT region (most of the state). Local utilities (Oncor in north Texas, CenterPoint in Houston, AEP Texas in south Texas) handle delivery; residential customers shop for supply on the state-run PowerToChoose.org portal. About 87% of eligible residential customers have switched at some point. The non-ERCOT regions (El Paso, parts of east Texas) are regulated.
Where Texas residents save
Active shopping on PowerToChoose is the dominant savings lever. Compare on the actual rate at your usage level (the EFL discloses the rate at 500/1000/2000 kWh tiers) and check the early termination fee. Variable-rate plans are dangerous in ERCOT given the 2021 winter storm precedent; lock in a fixed rate.
Primary utilities
- Oncor
- CenterPoint Energy
- AEP Texas
Official Texas supplier comparison tool
Texas runs an official, vendor-neutral supplier comparison portal. Use it to see all licensed retail suppliers serving your ZIP code, compare per-kWh supply rates, and check contract terms before signing up.
Power to Choose →Texas bill estimates by usage
| Home Profile | Monthly kWh | Monthly Bill | Annual Bill |
|---|---|---|---|
| Apartment | 500 | $71 | $852 |
| Small house | 750 | $106 | $1,278 |
| Average household | 886 | $126 | $1,510 |
| Large house | 1200 | $170 | $2,045 |
| Large house + EV | 1500 | $213 | $2,556 |
Estimates use the Texas state-average rate of 14.20¢/kWh from EIA data. Your actual bill includes delivery charges, customer-service fees, and state/local taxes already blended into this retail rate, plus any locality-specific surcharges not captured at the state-average level.