saving money with cheap electricity

How to Find Cheap Power Rates in Texas

Want to know what is the cheapest electricity company in Texas? There’s many ways you can search for it. “Cheap power near me.” “Cheapest electricity for my home.” “Best Electricity Plan in <city> Texas.”

If you’re searching for the cheapest electricity company in Texas, you’re not alone.

Because no one wants to pay too much for electricity. And no one wants to feel like they got (ah hem) scr*wed by a power plan they didn’t understand.

But how do you find the cheapest electricity company in Texas? Here’s how.

In a hurry? Jump directly to cheap power rates in your area:

Cheapest Power Prices in Houston (Centerpoint Area)

Lowest Power Prices in Dallas Fort Worth (Oncor Area)

Cheapest Electricity Price in Corpus Christi (AEP-Central Area)

What does “Cheap Power” Mean in Texas?

First off, what’s cheap power mean in Texas? You’re basically looking for the energy company with the lowest cost per kWh. And that means the lowest total average cost per kWh including delivery.

Because regardless of who you go with as your power company, you will pay delivery charges to the local utility company as part of your bill.

Some companies will show a “bundled” rate or “all-in” rate where they quote one price for both delivery and power. Whereas others will show an “unbundled” or “energy only” rate where they quote your rate for supply with a nebulous “plus delivery fees.” Sometimes it looks like you have low rates when you don’t.

That difference in pricing can be confusing. And that’s why the Public Utility Commission of Texas (PUCT) requires that all retailers provide their average price per kWh at three usage levels: 500 kWh, 1000 kWh and 2000 kWh. That allows consumers to compare apples to apples across all companies. Easy, right?

But it’s not so easy. Tiered rates, bill credits, free electricity and special offers all come into play when you look at the power pricing. You think you are getting a cheap power rate, but you may end up paying too much.

And that’s why picking the best cheap electricity plan for your home really depends on your usage. You can shop by zip code and by average electricity usage to find the cheapest electricity plan for your Texas home.

Search Electricity Providers by Zip Code to Find Cheapest kWh Rate

Why is it Hard to Find the Cheapest Electricity Rate?

In Texas, you have the power to choose from over 40 competing electricity providers.

But it’s hard to find cheap electricity in Texas.

Why? It’s because all those providers offer multiple rates, contract lengths and discount offers. Plus, each provider has its own website designed to point you to the offers that are good for them, but may not be good for you. Offers have confusing EFL details, overlooked fine print, and introductory rates.

As a result, many customers are still tricked by offers. A rate may look great based on 1000 kWh a month or the advertised rate. But if you use more or less than that, your rate may be very different.

And just when you thought you found the best cheap electricity plan for your home, you get your first bill. And you end up getting surprised by unexpected fees. You miss out on finding the best cheap electricity for your home.

That’s where we come in.

How to Shop for Cheap Texas Power Plans

Here are the steps to shop for cheap power in Texas:

Time needed: 5 minutes.

How to shop for cheap power plans in Texas

  1. Understand your usage.

    Plans include tiered rates, and hidden fine print. You should have a good idea of your highest and lowest usage levels before shopping.

  2. Search electricity providers by zip code.

  3. View available plans by usage level. Or use the Electricity Bill Calculator to enter your own usage.

    Select the usage level closest to your monthly usage (500, 1000, 2000 kWh monthly). Or enter your specific usage level.

    electricity bill calculator texas

  4. Narrow down to top 3 plans to compare pricing

  5. Review “Plan Details and Pricing.”

    Review the Plan Details and Pricing on each plan. Enter your average usage to see what your actual price per kWh will be, using our “Calculate Your Bill” feature.

Above all, don’t get fooled by gimmicks and fine print. Use ElectricityPlans.com to find the a low cost power provider.

What are the Types of Electricity Plans?

There are several different types of electricity plans to shop from. We find that most people get the lowest rates with a fixed price plan.

Fixed Rate Plans: A fixed rate plan secures your rate of electricity per kWh for the term of your agreement. The only way your price will change is if there are changes in regulation, or changes in delivery costs. Most Texas consumers pick fixed rate plans.

Variable Rate Plans: A variable rate plan has an energy rate that changes monthly, usually without any notice. This can leave you open to changes in market conditions. We recommend Bulb energy as the best variable rate plan

Tiered Rate Plans / Bill Credit Plans: Caution, choose carefully. Tiered rate plans and bill credit plans target consumers that use a certain level of usage. But if you use more or less than that level, you may pay more than you expected. Always shop using our Electricity Bill Calculator feature to see if you are really getting low rates. We recommend Gexa Energy or 4Change Energy for tiered rate plans.

Free Electricity Plans: Free nights, free weekends, free highest usage days. These plans use data from your smart meter to give you free electricity at certain times. Make sure you understand your electricity usage by time of day before signing up for one of these plans. We recommend Champion Energy or Pulse Power for cheapest free electricity.

Renewable Energy 100% Green Plans: You can get renewable energy plans from most companies. Renewable energy will not be delivered to your home. However, these companies buy Renewable Energy Certificates to support local green projects, to back your electricity usage. We recommend Chariot Energy for cheapest 100% Texas Solar Power.

Prepaid No Deposit Electricity: Low credit score? Get electricity set up by pre-paying for your electricity. We recommend Payless Power, who has both fixed rate and variable month to month low rates.

How Does Usage Affect My Electricity Price?

Knowing your electricity usage is key to getting the best cheap power plan.

Most retail energy companies display average price per kWh at 2000 kWh a month on their web site. And the Power to Choose state shopping site displays at 1000 kWh. (The average home in Texas uses 1200 kWh annually.)

As a result, retailers constantly develop new power rates that “look good” at a specific average usage kWh level.

And that’s why you have to watch out. Because an electricity rate that looks excellent at 1000 kWh a month may be a horrible choice if you use 1500 kWh a month. And on the other hand, a plan that looks good at 2000 kWh a month could be a bad choice if you actually use 900 kWh a month.

Here’s an example:

Of course you would be unhappy if you only used 1000 kWh a month and bought this plan based on the 2000 kWh rate you saw. That’s a 30% difference in the rate you would pay!

At ElectricityPlans, we review the fine print in every power plan. We review the math, and break it down in a Pricing Details section. That way you can see how the plan works … even if it’s complicated, like the one below!

And it’s because math is hard that we will calculate exactly what your monthly bill will be, for the plan you are interested in. (Excluding taxes and PUCT assessment fee).

Just type in your kWh usage, and we’ll do the math for you!

Plus, when you are scanning rates, we make it easy to see at a glance if a plan has complicated bill credits and tiered rates to look out for. Just look at our one-line summary for each plan.

What Company Has the Cheapest Electricity Plan in Texas?

Don’t be fooled. Because retail energy providers play games with average prices all the time.

The cheapest power plan is the one that fits your usage, with the least fine print.

That’s the only way to make sure it’s the one for you. Follow our instructions above on how to shop for cheap power plans.

Some of the lowest cost power providers in Texas include Pulse Power, Think Energy and Frontier Utilities. Shop online to find your best electricity rate.

Cheap Light Companies in Texas with No Deposit

Now on to another topic of concern. If your have a credit score below 600, you will probably have to pay a deposit for your electricity. That deposit can be up to two month’s worth of your estimated electricity. And you won’t get back that deposit until you’ve made 12 months of on-time payments.

So the better way to get cheap electricity with no deposit is a prepaid electricity option.

With prepaid electricity, you pay in advance for your electricity. Setting up an account can cost as little as $39 to start.

You can go month to month with a variable pre-paid rate. But we recommend a fixed price plan because it will protect you against rate changes. Our favorite is the fixed rate 12 month prepaid electricity plan from Payless Power. It’s the only prepaid electricity plan that gives you price certaintly. You can read our review of Payless Power prepaid electricity plans. Or call them at 1-866-934-3451 to enroll.

Electricity Usage Levels by Size of House

If you don’t know your electricity usage, you will need to estimate it. Here’s a helpful guide:

  • Usage assumption to find cheap electricity for a small apartment. Assuming a 750 square foot apartment, energy use is around 750 kWh/month.
  • Usage assumption to find cheap electricity for a large apartment. Assuming a 1000 square foot apartment, energy use is around 1000 kWh/month.
  • Usage assumption to find cheap electricity for a small house. A home around 1500 square feet will use around 1250 kWh/month.
  • Usage assumption to find cheap electricity for a large house? A large home around 3800 square feet would use around 2200 kWh/month.

Usage for homes will vary based on the age of the home, insulation, appliances, and how many people live in the home. That’s why the most important thing is to locate your most recent electricity bill and use that information to estimate your usage.

Check our article on how to find the Average Electricity Bill in Texas for more info on electricity usage by size of house.

Find Cheap Texas Power Prices in Your Area

Cheapest Power Prices in Centerpoint (Houston Area)

Provider Plan Name Term Rate/kWh
Frontier Utilities Frontier Max 12 12 7.8 Details
Frontier Utilities Straight Power 12 12 8.4 Details
Gexa Energy Gexa Saver Premium 12 12 8.6 Details
Pulse Power Texas Smart 12 12 8.8 Details
4Change Energy Budget Saver 12 12 8.9 Details
Pulse Power Texas Fixed 6 6 9.4 Details
Cirro Energy Smart Value 12 Online 12 9.8 Details
4Change Energy Generous Saver Plus 12 12 9.8 Details
Bulb Simply-Flex 1 9.8 Details
Frontier Utilities Smart Budget 12 12 10.2 Details
Pulse Power Texas Fixed 36 36 10.2 Details
Pulse Power Texas Fixed 18 18 10.2 Details
Chariot Energy GridEdge 12 12 10.4 Details
Champion Energy Services Champ Saver 18 18 10.4 Details
Frontier Utilities Stay Cozy 12 12 10.4 Details
Direct Energy Veterans and Active Military 24 24 10.4 Details
Pulse Power Texas Fixed 12 12 10.5 Details

Lowest Power Prices in Oncor (DFW Area)

Provider Plan Name Term Rate/kWh
Frontier Utilities Frontier Max 12 12 7.6 Details
4Change Energy Budget Saver 12 12 8.3 Details
Pulse Power Texas Smart 12 12 8.3 Details
Gexa Energy Gexa Saver Premium 12 12 8.3 Details
Frontier Utilities Straight Power 12 12 8.4 Details
Pulse Power Texas Fixed 6 6 8.9 Details
Cirro Energy Smart Value 12 Online 12 9.2 Details
Bulb Simply-Flex 1 9.2 Details
4Change Energy Generous Saver Plus 12 12 9.3 Details
Frontier Utilities Stay Cozy 12 12 9.3 Details
Frontier Utilities Smart Budget 12 12 9.5 Details
Pulse Power Texas Fixed 36 36 9.6 Details
Pulse Power Texas Fixed 18 18 9.6 Details
Direct Energy Veterans and Active Military 24 24 9.6 Details
Champion Energy Services Champ Saver 18 18 9.7 Details
Champion Energy Services Champ Silver 24 24 9.8 Details
Champion Energy Services Champ Saver 36 36 9.8 Details

Cheapest Power Prices in AEP-Central (Corpus Christi Area)

Provider Plan Name Term Rate/kWh
Frontier Utilities Straight Power 12 12 8.4 Details
Frontier Utilities Frontier Max 12 12 8.7 Details
4Change Energy Budget Saver 12 12 8.9 Details
Pulse Power Texas Smart 12 12 9.5 Details
Bulb Simply-Flex 1 9.7 Details
Pulse Power Texas Fixed 6 6 9.8 Details
4Change Energy Generous Saver Plus 12 12 9.9 Details
Gexa Energy Gexa Saver Premium 24 24 9.9 Details
Cirro Energy Smart Value 12 Online 12 10.1 Details
Gexa Energy Gexa Saver Premium 12 12 10.1 Details
Frontier Utilities Smart Budget 12 12 10.2 Details
Direct Energy Veterans and Active Military 24 24 10.2 Details
Champion Energy Services Champ Saver 18 18 10.3 Details
Pulse Power Texas Fixed 18 18 10.4 Details
Pulse Power Texas Fixed 36 36 10.4 Details
Direct Energy Veterans and Active Military 12 12 10.4 Details
Champion Energy Services Champ Saver 36 36 10.4 Details

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