houston electricity rates

As the largest city in Texas and the fourth largest city in the United States, Houston has a lot to offer. It’s known for its vibrant cultural diversity, great shopping, unique attractions, theaters, museums, and world-class culinary scene. On top of all that, Houston residents get to choose their own electric provider. That means you can find a Houston electricity plan tailored just for you. 

Here in the Lone Star State, when it comes to energy retail we’re all about choice. In 2002, the Texas electricity market opened to competition. Now 85% of Texans can choose the electricity provider that best fits their lifestyle. But not all providers are created equally. Keep reading to learn how to compare Houston electric providers and find the best electricity plan for your needs.

Specify Residential vs. Commercial 

Just like residents, businesses have energy choice in Houston. Commercial electricity rates are usually lower than residential rates. But businesses also pay a demand charge based on their peak need for electricity, which is charged directly from the Transmission and Distribution Utility (TDU). If you’re searching for a plan for your company, whether you own a large, medium, or small business, make sure you specify that in your search.

Understand Types of Rates

When you compare electricity companies in Houston, be aware there are three different types of rates. Each has benefits and drawbacks. 

1. Fixed-rate electricity plans

These plans offer peace of mind and no surprises. You get a stable electricity rate for the length of your contract, so you don’t have to worry about your rate going up unexpectedly. Fixed-rate plans have one downside. If you’re in a long-term contract with a Houston electricity provider and energy rates go down, you may have to pay a penalty if you want to switch to a plan with a better rate. Also, pay attention to the date your term ends. If you let your electricity service contract expire, your company may automatically move you to a variable-rate plan.

2. Variable-rate electricity plans
These plans offer flexibility. They’re usually month-to-month, and the rate changes based on the cost of wholesale electricity. Variable rate plans, like the On Your Terms plan, are great if you’re in a temporary housing situation. But be wary of signing up for a variable rate plan during the hot Houston summer, when electricity rates tend to increase steeply. 

3. Indexed electricity plans
These plans have gotten popular in recent years and are often include free electricity during a specific time of the day or week electricity is used. Indexed plans can save you money if you’re interested in paying attention to electricity rates and shifting your lifestyle to the time of day or week your electricity is free. However, if you’d prefer not to direct energy into thinking about your electric service, a plan like Free Pass might be a good option since the free electricity you get is automatically calculated each month.


Know Your Usage

Once you know which type of plan best suits you, it’s almost time to compare electricity rates in Houston. But first, figure out how much power you need. Most electricity providers in Houston offer rates in tiers based on customers’ average electric power usage. Look at your past bills to determine your average usage. Or if you’re moving into a new house or apartment unit in Houston, ask your leasing agent or a previous tenant for historic electricity usage information for your unit. But keep in mind your actual usage will vary based on the weather and your lifestyle.

Factor in Charges and Fees

Before you sign up for a plan, read the Terms of Service and Electricity Facts Label to understand exactly what you’ll be charged. Ask the electricity provider whether you’ll be charged a deposit, if there are any extra monthly charges or fees, and which actions or inactions on your part will result in a fee.

Consider Rewards and Promotions

When you’re comparing energy companies in Houston, don’t forget to ask about their reward plans. Cash-back rewards and referral programs can help you save money. But beware of companies that offer low "introductory" or "promotional" rates for the first month or so of service. Before you know it, you will pay a much higher rate. Also, look out for tricky teaser rates from Houston electrical providers. Some companies offer an extremely low rate if you use an exact kWh of electricity, which is nearly impossible to do. Look for an honest company with straightforward plans.

The Benefits of Choosing TXU Energy

TXU Energy is the number one choice for electricity in Texas. We offer several electricity plans in Houston with various benefits to choose from, including:

●  Straightforward Pricing
We won’t try to confuse you with tricky promotional or teaser rates. Choose TXU Energy for a rate you can count on.

●  Guaranteed Price Protection
We have plans that let you lock in your price with a guaranteed rate to avoid rising power generation costs. That could save you money on your bill and offer you peace of mind.

●  Cash-Back Rewards
Take advantage of plans with 3% cash back loyalty rewards on your annual Houston electricity purchases. Get rewarded for something you’re already using every day.

●  Refer-a-Friend Program
When a friend signs up for TXU Energy through our popular referral program, you can both earn a $50 reward card.

●  Renewable Energy
We all want to be part of a cleaner, greener Texas. That's why we offer innovative renewable programs. We can help you put solar panels on your house, which save energy and allow some customers to deposit electricity back to the grid for bill credits. Or you can power your home on energy from solar and wind farms right here in the Lone Star State.

●  Technology That Works for You
Our customer app and smart thermostat make it easy to control your electricity your way. Our MyEnergy Dashboard gives you information on energy saving to help keep your bills low.

Here at TXU Energy, we pride ourselves on being the best energy company in Houston. We love being part of this diverse and exciting city. We’ve been providing Houston electricity for years, and we offer straightforward pricing and great plans designed to fit your household’s needs. Click here to see our Houston electricity rates.

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