Compare Texas Electricity Rates
Contents
- 1 Compare Texas Electricity Rates
- 2 Why Shop for an Energy Supplier?
- 3 AEP Central
- 4 AEP North
- 5 Texas-New Mexico Power Company
- 6 An Overview of the Texas Energy Market
- 7 Texas Electricity Rates Compared to the U.S. Average
- 8 Choose the Right Energy Plan for your Home or Business
- 9 Texas Utilities
- 10 Electric Suppliers
- 11 Utility Companies
Texas is one of the best places to compare electricity rates. When most people think of Texas, they think of energy, and rightly so. Houston is home to more than a dozen large energy suppliers that offer power throughout the state as well as to other parts of the country. A residential or commercial customer shopping for electric rates in Texas will have no shortage of energy suppliers to choose from. This is good news for Texans as energy suppliers are forced to compete in a highly competitive market, which has the effect of pushing down energy rates.
Why Shop for an Energy Supplier?
On January 20, 1999, legislation was introduced, known in the energy industry as Senate Bill 7 (SB7), that would forever change the landscape of the Texas energy market. The legislation called for an end to the monopoly utility providers had over the market. Energy deregulation, also known as energy choice, would allow Texans to shop around for a competitive supplier to save money on their electric bill. Since the passing of SB7, Texans continue to enjoy low energy prices while maintaining the same level of service from the utility companies.
Oncor is Texas’s largest local distribution company and the 6th largest in the US, serving more than 10 million customers in 420 cities and 120 counties in the state. The service area includes north-central, west, and east Texas.
- Oncor’s customer service can be reached at 1-888-313-4747
CenterPoint is a local distribution company with its primary focus on electric transmission and distribution and natural gas distribution. CenterPoint delivers natural gas to more than 4.5 million customers in eight states. The company is responsible for maintaining the lines and wires that serve about 2.5 million Texans in the greater Houston area and southwestern Indiana.
- CenterPoint’s customer service can be reached at 1-800-332-7143
AEP Central
American Electric Power (AEP) is a local distribution company headquartered in Corpus Christi. The company serves more than 1 million customers in south and west Texas. AEP continues to offer delivery of electric service to customers no matter the retail electric provider they choose.
- AEP Central’s customer service can be reached at 1-877-373-4858
AEP North
American Electric Power (AEP) is a local distribution company headquartered in Corpus Christi. The company serves more than 1 million customers in south and west Texas. AEP continues to deliver electricity to its customers.
- AEP North’s customer service can be reached at 1-877-373-4858
Texas-New Mexico Power Company
Texas-New Mexico Power Company (TNMP) is an electricity transmission and distribution service provider that only serves Texas. Headquartered in Lewisville, the company provides electric delivery service to just under 250,000 home and business customers.
- Texas-New Mexico Power Company’s customer service can be reached at 1-888-866-7456
An Overview of the Texas Energy Market
Texas is known for energy and for good reasons. The state is currently the top U.S. producer for both crude oil and natural gas accounting for 41% and 25% of total production, respectively. Texas generates more electricity than any other state, and more than double than the second-largest producer, Florida. Texas also leads the nation in wind-power generation, producing 28% of all U.S. wind-powered electricity, according to the U.S. Energy Information Administration.
Texas Electricity Rates Compared to the U.S. Average
| Electricity | Texas | U.S. Average | Time Period |
|---|---|---|---|
Residential | 12.74 cents/kWh | 13.34 cents/kWh | February 2021 |
Commercial | 16.29 cents/kWh | 11.93 cents/kWh | February 2021 |
Industrial | 12.15 cents/kWh | 8.15 cents/kWh | February 2021 |
Choose the Right Energy Plan for your Home or Business
Residential customers shopping for Texas electricity rates will have a variety of energy plans to choose from. The most common is the fixed-rate plan. Locking in a long-term fixed-rate, customers can protect themselves against a rising market. This plan is popular for a reason, as customers will have peace of mind in knowing how much they will be charged each month by the energy supplier.
Large commercial or industrial-size users may benefit from other rate plans. A business that qualifies, can float the energy market with a product plan known as the index rate. The index rate is tied to the wholesale price of a commodity, such as natural gas, plus a fixed-retail adder. Depending on the customer’s risk-tolerance, the index rate plan has the potential to save large users a tremendous amount of money, even compared to the lowest fixed rates.
A popular trend in many states, including Texas, are green energy plans. This allows the customer to choose how the estimated amount of electricity they are expected to consume is generated. For those who wish to decrease their carbon footprint, this energy plan will be right for you. Electricity generated from these plans comes from renewable sources such as wind, hydro, and solar. Many consider this to be a cleaner alternative to coal.
| Electric Rate Products | Pros | Cons |
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Fixed Rate |
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Variable Rate |
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Index Rate |
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Renewable Energy Rates |
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