What’s Does The Average Electric Bill Cost in Texas? (Real PUCT data)

Everything tends to run a little bigger in Texas, and that includes our electricity bills. Between the blazing summers, wide-open spaces, and a whole lot of folks who love their air conditioning, energy use in the Lone Star State adds up fast.

For residential customers, the average electric usage and the average electricity bill in Texas are higher than in many other states. How much is the average? Looking to compare your bills to see if you’re overpaying or getting a deal? Or maybe you’re considering relocating to Texas from out-of-state and want to know what to expect to pay on your energy utilities?

Even though Texas is a powerhouse when it comes to producing energy—from wind turbines out west to oil fields down south—we also use more electricity than almost any other state.

In this guide we’ll use real data from the governing agencies that manage Texas’ energy industry to find the true costs of the average electric bill in the state. For the TL;DR answers, check the Key Insights below. If you want to know the sources of the data, our methodology, and how to check the numbers for yourself, keep reading.

When considering the cost of living, utility bills—including your monthly energy bill—make up a significant portion of overall household expenses.

Curious about what’s driving those high energy bills? Want to know how electricity usage compares between homes or apartments across Texas? Let’s break it down and see why Texans burn through so many kilowatt-hours—and what that means for your budget. In colder northern states, utility bills often have a higher average cost due to heating, while in Texas and other hot regions, electric bills spike during the summer months.

 
  
  
 
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A lot of websites will claim to have the correct average bill data, but most of the time they’re using a selected sample set from their own enrollment database. This can introduce bias or gaps to their numbers based on the selection of REPs and plans in their enrollment systems, and their access to customer load profile data, skewing the final numbers they provide.

To truly get the answer, let’s look unbiased data from an independent source: the Public Utilities Commission of Texas. After all, one of the PUCT’s primary missions is to review and approve rate changes, ensuring fair pricing for energy, so they’ll have their finger on Texas’ pulse!

The PUCT gathers the residential rates from publicly available data across all 5 TDSPs (the utilities that maintain the grid) from multiple companies providing a representative sample of the most popular REPs (the energy companies that sell you power).

They do this four times per year aligned to the seasons: March (spring), June (summer), September (fall), and December (winter). The plans appear to be standard fixed-rate plans to make comparisons accurate, and the rates include the TDU pass-through charges.

Important note: while these periods represent the seasons, they’re not the highest or lowest usage periods in the PUCT’s data (see the note on load profiles below), so the bills can run slightly higher and slightly lower during the peaks and valleys.

The PUCT provides this data to the public so customers like you can do research like this to determine if you’re overpaying for your energy bills. You can find the billing data at the PUCT’s Quarterly Retail Electric Service Bill Comparison page.

These retail rates are then multiplied by the PUCT’s load profiles, which are mathematical models of typical monthly home power usage at the three usage tiers (the way all energy rate plans are required to show).

These three usage tiers show the total monthly rate per kilowatt hour including the REP’s costs and the pass-through TDU fees, at 500 kWh, 1,000 kWh, or 2,000 kWh used per month. See more about how bills are calculated below.

While apartments and condos may use around 500 kWh per month, the typical Texas home uses around 1,100 kWh per month, so most people in the energy industry use numbers from the 1,000 kWh tier.

The load profiles estimate homes will have reduced electricity usage in the winter and shoulder months, followed by high peaks during the summer months, just like real Texas families.

Unlike real Texans, in the model the total power used for the year comes up to clean round numbers that when divided by 12 months exactly equal the usage tier’s average each month (500 kWh, 1,000 kWh, or 2,000 kWh). We have five years of this data between 2020 and 2024.

This is the current PUCT annual load profile for homes averaging 1,000 kWh per month

The first way we can get the typical bill for Texans is to use the PUCT’s provided bill data. With our remaining REPs (see Caveats below), we take the average of their June bills going back the past several years at the 1,000 kWh usage tier. This tells us what the PUCT generally expected homes to pay each year during the summer – some would be higher, some would be lower.

If we want to estimate the total annual cost, look at the bills per month, or fill in gaps in the data, we’ll need to use the PUCT’s rates data and their load profiles to retrace their steps. We take two related data sets and multiply the electricity rate by the number of kilowatt hours used each month to get the total bills.

Because acquisitions and failures are common in the industry and would skew our data in later years, we filtered out all of the short-lived companies that had short data sets. In return, we got a set of companies consistently present across all data points, representing some of the most popular brands – good for long-term comparisons.

While all years have the summer bills (except 2021), there are gaps in the other months’ records, so we focused on the June bills for our comparisons.

We filtered out 2021 because it only has the later months’ data (presumably the chaos caused by Winter Storm Uri in January was still being dealt with and the volatility in the market made the earlier months’ data unusable). Since we’re looking at the peak summer rates and June is missing here, we excluded 2021 from our analyses.

These load profiles are averaged across the state and don’t account for regional demand differences. ERCOT divides the state’s energy grid into different regional “load zones” based on region, demand, weather patterns, and more. To manage billing analyses, the PUCT applies an averaged set of load profiles for residential consumers across the state, so expect that bills will have some higher peaks and lower valleys for some parts of the state.

 
  
  
 
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Before we get into what the average bill looks like, let’s set a foundation of understanding how energy billing actually works in Texas. Knowing what goes into the bills will empower you to follow the official PUCT methodology, understand how they get to their totals, and figure out where you stand vs. the state averages.

Let’s start with the basics: electricity usage is measured in kilowatt-hours, or kWh. One kWh equals using 1,000 watts of electricity for one hour. So if you run a 100-watt light bulb for 10 hours, that’s 1 kWh.

Now, imagine you’re trying to figure out your electricity usage for the month. You can take your total monthly kWh usage (usually listed on your bill), divide it by the number of days in the month, then divide that by 24 to estimate your hourly average. But don’t worry—most Texans won’t need to go that far unless you’re really digging into an energy audit or tracking specific appliances. Conducting an energy audit can help you understand how you consume energy and identify ways to save.

Here’s the simple version: To estimate your monthly bill, multiply the number of kilowatt-hours you use by your electric rate per kWh.

In Texas, that rate falls between $0.10 and $0.20 per kWh, depending on your provider, plan, term and location. For example, if your home uses 1,000 kWh in a month and your rate is $0.15 per kWh, your usage charge would be $150.

According to the U.S. Energy Information Administration (2024), Texas residents paid an average of 13.15¢ per kWh, but this can vary significantly in deregulated areas depending on plan type, TDU fees, and seasonality. Energy rates are influenced by several factors, including fuel costs, the efficiency of power plants, and market conditions.

When you open your electricity bill, you’ll notice it’s made up of several different charges—not just a single fee for the power you use.

The main component is the energy charge, which is based on how many kilowatt hours (kWh) of electricity you’ve consumed during the billing period. This reflects your actual energy usage, whether it’s from running appliances, lighting, or heating and cooling your home.

Next, you’ll see delivery charges. These cover the cost of getting electricity from the power plant to your home, including maintaining the power lines and infrastructure. Delivery charges are set by your local utility company and are usually listed separately from the energy charge. They include an energy rate charged per kilowatt hour just like your electric company’s charge, plus a base charge per month.

Finally, some electricity bills include an additional base charge from the electric company themselves—a fixed monthly fee that helps cover administrative costs and customer service. Typically, these are pure profit add-ons from REPs to help improve margins, especially when they’re very competitive with low energy rates.

These additional costs can represent 40% or more of your total—so it’s worth reviewing your bill regularly to understand what you’re really paying for. Your utility company and electricity provider all play a role in setting or influencing these rates and plan options, which can impact your overall energy expenses.

As of March 2025, the average cost of electricity in Texas is around 15.3 cents per kilowatt-hour (kWh)—and that includes both the energy you use and the cost to deliver it to your home. This number comes from the U.S. Energy Information Administration (EIA) and reflects prices in both regulated and deregulated areas across the state. It may also include bill credit plans or time-of-use plans which may impact the average.

To put this into perspective, the national average is about 17.11 cents per kWh, which means Texas households are paying roughly 10% less than the typical U.S. customer. That’s a small but meaningful edge, especially when you’re running air conditioning nearly year-round in north Texas cities like Dallas or Fort Worth, or humid south Texas cities like Houston and Corpus Christi.

Some states experience higher electricity bills due to increased demand during hot summers or colder winters (Alaska, the Great Lakes, and New England), which can drive up utility costs. Hawaii and Alaska feature the highest bills due to their remote locations, raising energy production and delivery costs.

Of course, electricity prices can vary depending on where you live and what kind of plan you’re on. Fixed-rate plans offer stability, while variable-rate plans can swing with the market—and in Texas, that market can move fast. But overall, the state’s competitive energy market and abundant energy supply help keep prices relatively affordable compared to the national average. Comparing different plans can help you reduce costs on your monthly electricity bill.

Quick Tip: Always look at the “average price per kWh” on your bill—it includes both usage and delivery charges, giving you the “total” cost of powering your home. If you’re on a time-of-use or bill credit plan, pay close attention to the requirements in order to calculate your true rate.

In Texas, while the rate per kilowatt hour the lights company charges you may be the same across the state, the total charge for your electricity use includes pass-through charges from the utility company that owns and maintains the electrical grid in your area. Therefore, the “average price per kWh” will vary slightly by region depending on the utility’s costs and the consumption patterns of the areas.

What is the average electric bill for Dallas homes?

Per the PUCT’s bill data, Oncor (serving Dallas, Fort Worth, Tyler, and Waco) has the lowest bills on average. In 2024, at the typical 1,000 kWh tier, the average electricity bill in Dallas was between $128 and $254 at the lowest period and the peak summer months.

What’s the average electric bill in Houston?

CenterPoint, the TDSP that serves Houston and its metro, has had some of the highest energy bills, so expect to pay more if you live in South Texas than North Texas. At the 1,000 kWh usage tier, the average electric bill in Houston was between $120 and $275 with the lowest bill in March and the highest bill in August. In addition to higher TDSP rates, bills are driven by usage, and Houston’s hot, humid summers will tend to produce greater demand from homes and businesses than Dallas-Fort Worth’s (still very hot) more temperate region.

The highest energy bills were delivered by the Texas-New Mexico Power (TMNP) utility company, which serves a much smaller footprint in arid west Texas, humid south Texas along the coast, and the rural areas outside of the major metros.

You may have also noticed that 2022’s bills were much larger than all of the other periods. 2022 saw a confluence of factors that drove up energy rates across the US and Texas.

In a report published by the U.S. Energy Information Agency, wholesale electricity prices at all of the trading hubs across the U.S. where electricity is sold saw higher prices than 2021, except Texas’ ERCOT, due to Winter Storm Uri.

The report also mentioned that multiple severe weather events caused spikes in 2022. A July heatwave in Texas caused record-breaking demand on the power grid and some renewable sources saw dips in production, which shifted the fuel mix that powers energy production across the state to adopt more expensive alternatives to cover the loss.

Winter Storm Uri, which knocked out power for over 11 million people, had such a big impact on Texas that new laws and regulations were enacted, multiple power companies went bankrupt, and the PUCT didn’t report rates data for the first half of the year in its rates data set we use.

It’s therefore likely that the 2022 rate surges are a result of both the extreme demand of the heatwave and the lingering hangover of the industry recovering from the devastation of Winter Storm Uri.

 
  
  
 
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While we can’t make declarative statements about all of the companies operating in Texas’ deregulated energy markets, using the bill data that the PUCT collects, some patterns start to emerge.

Remember: the PUCT company selection is intended to be a representative sample of the most common companies in the Texas market. This means that there are discount energy companies, independent companies, and many brands owned by the biggest conglomerates in the industry.

There are 12 companies in the data from 2020, but several of them have been acquired by others, leaving 9 brands in the data set currently.

• Ambit Texas
• CPL Retail Energy
• Direct Energy
• Discount Power
• Entrust Energy
• First Choice Power
• Green Mountain Energy
• Reliant Energy
• TXU Energy
• V247
• Veteran Energy
• WTU Retail Energy

However, just like a handful of companies own nearly all of the brands in foods and consumer products, a few large energy companies control over 70% of Texas’ energy market and operate multiple sub-brands to reach different market segments.

So which companies were the most expensive and the least expensive?

In general, discount brands including Discount Energy and Veteran Energy had consistently lower bills than the other brands, while Ambit consistently had the highest electricity bills.

If you’ve ever wondered why your electricity bill seems higher one month and lower the next—even when your habits haven’t changed—you’re not alone. In Texas, it’s not just the size of your home that affects how much you pay. A few key factors can have a big impact on your monthly utility bills, and knowing what they are can help you take back control and reduce costs.

One of the most powerful tools Texas residents have is choice. Thanks to the state’s deregulated electricity market, many Texans can shop around and choose their Retail Electric Provider (REP). Residential customers can compare plans from different utility providers, electric companies, and electricity providers to find the best fit for their needs. That means you’re not stuck with a one-size-fits-all utility—you get to compare plans, rates, and terms.

But here’s the thing: not all providers are created equal. Some offer transparent, fixed-rate plans with no surprises. Others may bury fees in the fine print or hit you with unpredictable variable rates. Always read the terms and compare your options before you sign up. Choosing a reliable provider with a competitive, stable rate can make a noticeable difference in your monthly electric costs.

Tip: Use tools like Shoptexaselectricity.com to compare Texas electricity plans from reputable providers.

Let’s be real—Texas weather doesn’t mess around. From triple-digit summer days to unexpected winter freezes, the climate can seriously drive up your energy use. Increased demand during extreme weather leads to higher heating and cooling costs, especially cooling costs in summer, as more households use air conditioning at the same time.

• Summer: Your air conditioning might be running nearly 24/7 just to keep things comfortable. That means a major increase in electricity usage and, naturally, a bigger bill.
• Winter: The last few years have brought historic winter storms, pushing many Texans to crank up the heat—especially those with electric furnaces or space heaters. For many residential customers, natural gas is also a factor in heating, which can impact both utility bills and electric costs.

The more extreme the weather, the harder your HVAC system works, and the more energy you’ll use. When choosing an electricity plan, think beyond just price. A fixed-rate plan can protect you from seasonal spikes.

Understanding these factors can help residential customers reduce costs on their utility bills by making informed choices about their electricity provider, monitoring usage, and considering energy-efficient upgrades.

This one’s pretty straightforward: the more electricity you use, the more you’ll pay. But what drives that usage can vary.

• Do you live with multiple people? More people means more lights, more devices, more laundry—more everything
• Are most of your appliances electric? Think about your heating system, oven, water heater, washer, and dryer – if your home uses natural gas for heating, your electricity bill could be much lower
• Do you work from home? That could mean running a computer, printer, and other electronics all day long.

Electricity costs aren’t the same all year round—seasonal changes can have a big impact on your energy usage and your monthly bill. In Texas, hot summers often mean running air conditioning for hours on end, which can quickly drive up electricity costs. During the winter, heating systems—especially electric ones—can also lead to higher energy consumption.

ERCOT records total grid energy demand for over 95% of Texas. Their data shows that during peak summer months energy use can increase over 50% higher than winter months!

Energy companies sometimes offer seasonal rate plans or tips to help you save money during periods of high or low energy usage. By being aware of how your energy needs change with the weather, you can plan ahead, adjust your thermostat, and take steps to reduce your electricity usage during peak times. This not only helps you manage your budget but can also lead to lower bills throughout the year.

To wrap this article up, let’s summarize what we’ve covered today.

First, we’ve found the average electric bills in Texas using the official data provided by the Public Utilities Commission and then shown how to estimate the average electric bill for each month using that same data. We’ve broken this data down by region (TDSP) and company to understand which electric companies are the most expensive and how utility bills vary from city to city in Texas.

Next, we’ve gathered data from the Energy Information Agency to compare Texas’ electricity rates to other states and found out that, while not the cheapest, Texas has competitive rates that run about10% lower than the US average.

To understand how the rates are calculated, we looked at how bills are formulated in Texas and what fees go into those bills.

Finally, we used ERCOT’s grid data to look at the average usage by month for the past nine years to learn how much energy usage patterns shift across seasons, which impacts your bills.