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Texas Electric Rates – Market Trends and Price Forecast 2025

Last Updated July 1, 2025

Texas electricity rate trends for 2025 show prices similar to 2024. 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.

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Key Takeaways

For 2025, here are 4 key takeaways on Texas electricity rate trends.

Texas electricity prices for 2025 will continue at levels seen in 2024. Residential electricity rates will average 15-18¢ per kWh including delivery costs.
Longer term contract terms (24 to 36 months) will be the cheapest electricity options.
Pricing continues to show seasonality, with the best time to shop for electricity in the spring and fall.
Texas commercial electricity rates for 2025 will be in the 7-9¢ per kWh range, plus delivery costs.

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 Oncor and Centerpoint are comparable to last year, with AEP Central, AEP North and TNMP showing increases.

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.

Cheapest Texas Electricity Rates and Plans (July 2025)

Last Updated July 1, 2025

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 July 2025 update.

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.)

What’s Going On With Texas Electricity? February 2021

Last Updated October 14, 2022

What’s going on with Texas (ERCOT) electricity? And more importantly, why don’t I have lights?

Below we walk through what’s going on with Texas electricity during this brutal cold snap. We also have some ideas on why rolling blackouts have turned to 36+ hours without power in some areas.

Understanding the Sales Tax Exemption in Texas for Cutting Energy Costs

You’ve heard about how Texas supports business growth. Among the many measures in place, certain businesses (as well as select residential communities) don’t have to pay the sales tax on their electricity bill. And any business that uses electricity in its production activities could qualify.

In this article, we’ll help you understand how to qualify for Texas’s sales tax exemption for commercial electricity.

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Key Takeaways

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