Houston Electricity Rates 2026
Compare electricity plans from top-rated providers serving Houston, Texas — fixed-rate, variable-rate, and 100% renewable options.
Houston sits at the heart of Texas deregulation. CenterPoint Energy serves as the Transmission and Distribution Utility (TDU) for approximately 2.7 million metered customers across Harris, Fort Bend, Montgomery, and surrounding Gulf Coast counties. CenterPoint owns the infrastructure — lines, meters, and transformers — but has no role in setting your electricity supply rate.
More than 70 REPs are licensed to serve Houston-area ZIP codes, making it among the most competitive retail electricity markets in the United States. Residential supply rates vary by provider, plan type, and contract length. Houston's humid subtropical climate means high air conditioning demand from April through October, and customers who sign fixed-rate annual contracts before summer typically pay less than those on month-to-month variable plans during peak months.
Leading providers serving Houston include Reliant Energy (headquartered in Houston), TXU Energy, Direct Energy, Gexa Energy, Pulse Power, Discount Power, Payless Power, Green Mountain Energy, and Frontier Utilities.
FAQ — Does CenterPoint choose my electricity rate? No. CenterPoint only charges a regulated delivery fee. Your supply rate is set by the REP you choose. Switching REPs does not change your CenterPoint service or cause any interruption.
Cheapest Plans in Houston
Updated July 2026Plans serving the CenterPoint Energy delivery area. Estimates assume 1,000 kWh/month.
Understanding Houston's Electricity Market
Houston's Economy & Energy Demand
Houston is the energy capital of the world, hosting the headquarters of Shell, ExxonMobil, ConocoPhillips, and dozens of other energy companies. The Texas Medical Center — the world's largest medical complex — along with the Port of Houston and NASA's Johnson Space Center drive massive economic activity and electricity demand.
Energy Market in Houston
Houston falls within the CenterPoint Energy service territory, which has the highest TDSP delivery charges in Texas. Despite higher delivery costs, the competitive supply market means Houston residents can still find excellent overall rates by carefully comparing REPs.
CenterPoint Energy Delivery Charges
CenterPoint Energy's delivery charges are the highest in Texas. This makes it especially important for Houston residents to find competitive supply rates to offset the fixed delivery cost. CenterPoint has been investing in grid hardening after several major storms, which contributes to the higher delivery fees.
Seasonal Energy Costs in Houston
Houston has the longest cooling season in Texas, running from April through October due to the combination of heat and high humidity. This extended AC season makes Houston's average annual electricity costs among the highest in the state. Humidity drives AC costs even when temperatures are moderate.
Neighborhood Energy Differences
The Woodlands and Sugar Land suburbs tend to have higher average electricity usage due to larger homes, while homes inside Loop 610 — particularly in Montrose and the Heights — often have older construction with less insulation, leading to less efficient energy use despite smaller square footage.
Houston Market Insight
Market fact
Houston's CenterPoint territory has some of the highest TDSP delivery charges in Texas, making supplier rate shopping especially important.
Local saving tip
In Houston, comparing plans at 1,000 kWh usage (not 500 kWh) gives you the most accurate cost estimate for a typical home.
How to Choose the Best Electricity Plan in Houston
Check Your Average Monthly Usage
Look at your past bills to see how many kilowatt-hours (kWh) you use per month. Most plans show rates at 500 kWh, 1,000 kWh, and 2,000 kWh usage levels. Choose a plan optimized for your actual usage pattern.
Read the Electricity Facts Label (EFL)
Every plan must provide an EFL that shows the true average rate at different usage levels. Look for base charges, minimum usage fees, and how the rate changes with usage. Learn how to read an EFL.
Consider Contract Length
Fixed-rate plans typically range from 3 to 36 months. Longer contracts may offer lower rates but include early termination fees if you need to cancel. Month-to-month plans offer flexibility but may have higher or variable rates.
Understand TDSP Charges
Your CenterPoint Energy TDSP charges are the same no matter which provider you choose. These fees cover the cost of delivering electricity through power lines to your home. Learn about TDSP charges.
Look for Renewable Energy Options
Many providers in Houston offer 100% renewable electricity plans powered by Texas wind and solar. These green plans are often competitively priced with traditional plans and help reduce your carbon footprint.
Top Electricity Providers in Houston
TXU Energy
One of Texas's largest providers with a wide variety of fixed and variable rate plans.
View Plans →Reliant Energy
Popular Texas provider offering flexible plans with rewards and renewable options.
View Plans →Gexa Energy
Known for 100% green energy plans and competitive rates across Texas.
View Plans →Pulse Power
Offers prepaid and traditional plans with no deposit options.
View Plans →Rhythm Energy
100% renewable energy with smart home integration and no long-term contracts.
View Plans →Green Mountain Energy
Pioneer in renewable energy with 100% solar and wind-powered plans.
View Plans →Frequently Asked Questions About Houston Electricity
What is the average electricity rate in Houston?
Electricity rates in Houston vary by provider and plan type. The best rate depends on your usage level, contract length, and whether you choose a fixed or variable plan. Use our comparison tool above to see current rates from all available providers.
Who is the electricity utility in Houston?
Houston is served by CenterPoint Energy. This is your Transmission and Distribution Service Provider (TDSP), which maintains the power lines and infrastructure. However, you can choose your electricity supplier (REP) from many competitive providers for your actual electricity supply.
Can I switch electricity providers in Houston?
Yes! Houston is in Texas's deregulated electricity market, which means you can choose from multiple retail electricity providers (REPs). Switching is easy, takes about 5 minutes online, and won't interrupt your service. Your CenterPoint Energy infrastructure remains the same.
What's the best electricity plan in Houston?
The best electricity plan depends on your household usage, whether you prefer fixed or variable rates, contract length preferences, and if you want renewable energy. Plans with 12-month fixed rates are popular for budget stability. Compare all available plans above to find the best fit for your needs.
Are there any green energy options in Houston?
Yes! Many electricity providers in Houston offer 100% renewable energy plans sourced from Texas wind and solar farms. Popular green providers include Rhythm Energy, Green Mountain Energy, and Gexa Energy. These plans are often competitively priced with non-renewable options.
How do I switch electricity providers in Houston?
Switching is simple: 1) Compare plans and choose one, 2) Sign up online with your chosen provider (takes about 5 minutes), 3) Your new provider handles the switch with CenterPoint Energy, 4) Service continues uninterrupted. There's no need to contact your old provider unless you have an early termination fee.
What are TDSP charges in Houston?
TDSP (Transmission and Distribution Service Provider) charges are fees paid to CenterPoint Energy for maintaining the physical infrastructure that delivers electricity to your home. These fees are the same regardless of which retail provider you choose and typically appear as a separate line item on your bill.
What are the cheapest electricity plans in Houston right now?
Houston electricity supply rates vary with contract length. However, CenterPoint's higher delivery charges mean your total all-in rate will be higher. Compare plans above to find the lowest total cost for your usage level.
How much does the average Houston household pay for electricity?
The typical Houston household bill runs above the Texas average due to CenterPoint's higher delivery charges and Houston's extended cooling season. Summer bills can run significantly higher for larger homes.
Why are Houston electricity bills higher than Dallas?
Houston bills tend to be higher for two reasons: CenterPoint Energy's TDSP delivery charges are higher than Oncor's in Dallas, and Houston's longer cooling season (April-October vs. June-August) means more months of high AC usage. The supply rate competition is similar in both markets.
What is CenterPoint Energy and how do delivery charges work in Houston?
CenterPoint Energy is Houston's transmission and distribution utility — they own and maintain the power lines and meters. Their delivery charges are added to your supply rate and are the same regardless of which retail provider you choose. These are the highest TDSP charges in Texas.
When is the best time to switch electricity providers in Houston?
The best time to switch in Houston is December through March, when cooling demand is lowest and providers offer their most competitive rates. Avoid switching during the April-September cooling season when rates tend to peak. Early spring is ideal for locking in a fixed rate before summer.
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