If you live in Texas, you’re familiar with energy conservation alerts. In 2023, ERCOT (Electricity Reliability Council of Texas) issued 13 requests for energy conservation. And 2024 is expected to have hotter than average temperatures, so the risk of energy conservation alerts is high! Use this guide to understand ERCOT’s energy conservation and energy emergency alerts.
ERCOT
How Does Weather Affect Texas Electricity Rates?
Weather can significantly impact Texas electricity rates due to supply and demand. Warm weather drives high electricity usage for cooling homes and businesses. Cold weather extremes cause power usage to soar with demand for heat. Your best bet for electricity shopping is to avoid the seasonal extremes.
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Texas Electric Rates – Market Trends and Price Forecast 2026
Texas electricity rate trends for 2026 show prices similar to 2025. Our Texas electricity rates trend forecast includes key factors driving electricity prices and what types of electricity plans will be popular this year.
Whether you live in Houston, Dallas or another area, the question is always, “Will electricity prices in Texas go down anytime soon?” Don’t bet on it.
Key Takeaways
Texas electricity prices for 2026 will continue at levels seen in 2025. Here are 3 key takeaways on Texas electricity rate trends for this year.
- Residential electricity rates in Texas will average 14-19¢ per kWh including delivery costs.
- Texas commercial electricity rates will average 7-9¢ per kWh plus delivery costs.
- Longer term contract terms (24 to 36 months) will be more expensive than short term contracts.
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Preparing Your Home for a Texas Cold Front
North and West Texas have their share of cold weather and even snow. But those on the Gulf Coast are less familiar with what to do when a Texas cold front is on the way. Here’s your checklist to prepare for below freezing weather in Texas.
Texas Electric Delivery Rates Increase
Delivery rates for Texas electricity change twice a year, in March and September. Rates always drop in March and increase in September. This September, rates for CenterPoint and TNMP customers will experience sizable increases, with smaller rate changes for Oncor, AEP Central and AEP North.
Find current and historical delivery rates using the links below.
What are Market Securitization Charges?
Market securitization charges are a new line item on Texas electricity bills. They’re a direct outcome of Winter Storm Uri, paying for some of the extraordinary costs of that storm.
The Texas legislature passed House Bill (HB) 4492 in 2021 in response to the storm’s financial impact on the ERCOT power region. The legislation allows Texas REPs to add the charge to their bills for the next 30 years
You can’t avoid paying these fees, which are from a regulatory change. But you might as well understand them, since you’ll be paying them for the next 3 decades.
Will Electricity Prices Fall this Fall in Texas?
We get questions like this all the time from customers, friends and neighbors. Will electricity prices fall this fall?
Normally we would say, of course! Electricity prices always drop in the fall in Texas. And this year is no exception, based on what we’re seeing with pricing. Prices are dropping… just not as far as we all hoped.
This article was written in Summer 2022. See our Texas Electricity Rate Trends 2023 article for the latest electricity price forecast for 2023.
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Cheapest Electricity Rates & Plans in Texas (February 2026)
Finding the cheapest electricity rates in Texas doesn’t have to be a chore or require tons of research. Every month, we update our recommendation for the top three cheapest electricity companies in Texas, and highlight the cheapest electricity rates in your area. Here’s the February update.
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Why are Texas Electricity Prices So High?
In 2022, we had some of the highest electricity prices since deregulation. But now? Prices have come down by 30% or more vs. last year.
Here’s a recap on why prices are so high some years (and during the summer) and some strategies on how to get the best price for your home or business.
Texas Electricity Trends for 2022
Texas electricity rates in 2022 continue to show the greatest value with long terms plans. The other big trend? More green energy electricity plans as Texas moves generation to renewable energy.
(In a hurry? Jump right to our recommendations on the best residential Texas electricity plan for 2022.)