Key Takeaways
- Texas electricity demand surged to 85 GW in 2023, reaching a record high compared to the usual 60–70 GW range and driving summer electricity rates up 18% to 14.15 cents per kWh.
- High temperatures push prices up as air conditioners and cooling systems increase statewide power use, forcing utilities to rely on less efficient, costlier plants to meet demand.
- Fixed-rate plans protect against summer spikes by locking in a set price per kilowatt-hour for 6 to 36 months, while variable-rate plans rise sharply during heat waves.
- Spring and fall offer the best time to shop since mild weather reduces demand, making it easier to find lower electricity rates through comparison platforms like Shop Texas Electricity.
- Simple efficiency steps cut summer bills when homeowners maintain air conditioners, raise thermostat settings, switch to LED lighting, and seal windows and doors to keep cool air inside.
Summers in Texas aren’t just hot—they’re energy-intensive. With triple-digit temperatures becoming more frequent, households across the state turn to air conditioners, ceiling fans, and refrigerators working overtime to stay cool. But this increased usage also pushes electricity demand to record-breaking levels, leading to higher prices across the board.
In 2023, Texas experienced one of the hottest summers in its history. The state’s electricity demand hit a record high of 85 gigawatts (GW), compared to the typical range of 60 to 70 GW. That surge caused average electricity rates to jump to 14.15 cents per kilowatt-hour (kWh), marking an 18% increase in summer electricity costs over two years. While the rise in rates is driven by demand and supply dynamics, the good news is that consumers have options—both in how they use energy and which electricity plan they choose.
Why Do Electricity Rates Go Up in the Summer?
Electricity rates in Texas are heavily influenced by seasonal demand. As summer temperatures climb, more people rely on cooling systems like central air conditioning, window units, and portable fans to stay comfortable. This results in a massive increase in statewide electricity consumption. Utilities must work harder to meet that demand, often activating additional power plants—which are typically less efficient and more costly to run.
Texas’ deregulated electricity market adds another layer. In this system, retail electricity providers buy power from the wholesale market, where prices fluctuate based on demand. When everyone is using more energy at the same time—as they do in summer—wholesale prices spike, and those costs are passed down to consumers, especially those on variable-rate plans.
In short, the hotter it gets, the more electricity we use—and the more it costs to produce and deliver that electricity to homes and businesses across Texas.
How to Lower Your Summer Electricity Bill in Texas
1. Optimize Your Air Conditioning System
Your AC unit is likely the biggest energy user in your home during the summer months. If it’s not properly maintained, it will consume more electricity while delivering less cooling power. To ensure your system is running efficiently, check and replace air filters regularly, clean condenser coils, and make sure your vents are unblocked. It’s also a good idea to schedule an annual inspection with a professional technician, especially before peak summer hits.
2. Adjust Your Thermostat Strategically
Raising your thermostat setting by just a few degrees—especially when you’re not home—can lead to noticeable savings. According to energy experts, you can save about 10% a year on heating and cooling just by adjusting your thermostat 7 to 10 degrees from its normal setting for eight hours a day. Smart or programmable thermostats can help automate this process, ensuring your home stays comfortable when you need it, and energy-efficient when you don’t.
3. Switch to LED Lighting
Traditional incandescent bulbs waste a lot of energy as heat, which adds to your cooling load. In contrast, LED bulbs are far more efficient—they use up to 75% less energy and last significantly longer. Plus, they emit less heat, helping your air conditioner work more efficiently. Upgrading your entire home to LEDs can deliver year-round energy savings, not just during the summer.
4. Use Fans to Circulate Cool Air
While fans don’t actually lower the temperature of a room, they create a wind-chill effect that makes you feel cooler. This allows you to raise your thermostat a few degrees without sacrificing comfort. Make sure ceiling fans are set to rotate counterclockwise in the summer, which pushes cool air down and keeps rooms feeling fresh. Portable and window fans can also help bring in cooler air during early mornings and evenings.
Choosing the Right Electricity Plan for Texas Summers
Texas’ deregulated energy market gives consumers the power to choose their electricity provider and plan. This flexibility is an opportunity—but only if you take advantage of it.
Fixed-Rate vs. Variable-Rate Plans
A fixed-rate electricity plan locks in your rate per kWh for the duration of your contract, typically 6 to 36 months. This shields you from seasonal price hikes, making your bills more predictable—even during extreme heat waves.
On the other hand, a variable-rate plan changes month-to-month based on market conditions. While these plans might seem cheaper during low-demand months like spring, they can become very expensive in the summer when prices surge.
If you live in Texas and expect to run your AC for several months a year, a fixed-rate plan is almost always the more economical and stable choice.
When to Shop for Electricity Plans
The best time to shop is during mild weather seasons—typically spring or fall—when demand is low and prices are more competitive. Websites like Shop Texas Electricity allow you to compare providers, filter plans by rate type, and find the most affordable options in your ZIP code.
Other Summer Energy-Saving Tips
Beyond your thermostat and lighting, here are additional ways to reduce electricity usage:
- Seal windows and doors: Prevent hot air from leaking in by using weatherstripping or caulking.
- Use appliances efficiently: Run your dishwasher, washing machine, and dryer during early morning or late evening hours when demand is lower.
- Turn off electronics when not in use: Devices like TVs, game consoles, and even phone chargers consume energy even in standby mode.
- Insulate your attic: Proper insulation can keep cool air inside and reduce the strain on your HVAC system.
These small changes, when combined, can lead to significant savings on your monthly bill.
Frequently Asked Questions
When is electricity the cheapest in Texas?
Electricity is generally cheaper during the spring and fall. These seasons have lower demand due to milder weather, which helps drive down both wholesale and retail electricity rates.
What is the average summer electricity bill in Texas?
In 2023, the national average summer electricity bill was about $144.33/month. In Texas, however, that number can be significantly higher depending on home size, AC usage, and the type of electricity plan you’re on.
How can I lower my bill quickly?
Start with simple but effective strategies: raise your thermostat when you’re away, switch to LED lights, unplug idle electronics, and use fans strategically. You should also consider switching to a fixed-rate electricity plan if you’re not already on one.
Stay Cool, Save Money
While Texas summers may be inevitable, sky-high energy bills don’t have to be. Understanding how electricity pricing works, maintaining your cooling systems, and choosing the right plan can help you keep your home comfortable and your energy costs under control.Don’t wait until the peak of summer to take action. Enter your ZIP code at Shop Texas Electricity to compare the latest fixed-rate electricity plans, lock in a competitive price, and power through the heat with confidence.
