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How Does Weather Affect Texas Electricity Rates?

Extreme weather in Texas has a significant impact on electricity prices in the state, since heating and cooling drives electricity usage.

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. And yet electricity supply has its limitations. Your best bet for electricity shopping is to avoid the seasonal extremes.

Texas Electric Rates – Market Trends and Price Forecast 2025

Last Updated June 9, 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.

When is the Best Time to Shop for Electricity in Texas?

We are often asked, what’s the best time to shop for electricity in Texas? The reality is, you don’t always get to choose when you shop for electricity, as it depends on your contract expiration. But if you have a choice? There are certain months to pick and certain months to avoid.

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.

How to Lower Your Electricity Bill this Winter

It’s the double whammy for electricity bills. We often think that only our summer electricity bills are high. But your winter electricity bill can also be expensive depending on our winter weather.

Winter energy savings tips focus on insulation, keeping your “building envelope” secured against the elements, and setting your thermostat at the proper level.

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 (June 2025)

Last Updated June 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 JUne 2025 update.

Best Cities for Using Solar Panels in Texas

Texas is a top state for residential solar panels. According to Google Project Sunroof, 90% of Texas buildings are solar-friendly. But what are the top cities for solar panels in Texas? And why are they the best cities to consider rooftop solar? Here’s our summary of the best cities for solar in Texas, based on third party data.

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