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 12-14¢ per kWh including delivery costs.
- Texas commercial electricity rates will average 6-8¢ 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?
Texas electricity prices typically drop in the fall. However, after an unusual 10% price decline this summer, we expect rates to remain mostly flat through the end of the year.
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Cheapest Electricity Rates & Plans in Texas (October 2026)
📉 Rates are trending down this October and it’s an excellent time to shop for the cheapest Texas electricity rate. Look for great deals on “odd-term” contracts such as 9, 10 or 15 months. As always, our recommendation is for no gimmicks basic fixed rate electricity plans, which are the best fit for most consumers.
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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.
What’s Going On With Texas Electricity? February 2021
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.
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