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 is the Transmission and Distribution Utility (TDU) for Houston and much of the surrounding Gulf Coast region. CenterPoint owns the infrastructure — lines, meters, and transformers — but has no role in setting your electricity supply rate.
Dozens of retail electricity providers (REPs) list plans for CenterPoint's delivery area, and prices vary by provider, plan type and contract length. Houston's long, hot summers drive heavy air-conditioning use: at Bush Intercontinental Airport, average daily highs are 90°F or above from June through September (NOAA 1991–2020 normals).
The cheapest plans we currently see for CenterPoint's area are in the table above. Where a plan's price depends on how much electricity you use, its prices at 500, 1,000 and 2,000 kWh are shown alongside.
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 October 2026Plans serving the CenterPoint Energy delivery area. Each price is the plan's average at 1,000 kWh a month from its Electricity Facts Label, with CenterPoint Energy delivery charges and monthly fees included. Plans marked "Price varies by usage" use bill credits or tiered pricing, so check the price at your own usage.
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 is in CenterPoint Energy's delivery area on the ERCOT grid, where Texas retail electricity choice applies: homes there choose their provider, and CenterPoint delivers the power.
CenterPoint Energy Delivery Charges
CenterPoint Energy delivers electricity in Houston under rates regulated by the Public Utility Commission of Texas. Its delivery charges appear on every bill and are the same whichever provider you choose; the average prices on every plan's Electricity Facts Label include them.
Seasonal Energy Costs in Houston
Houston's cooling season is long. NOAA's 1991–2020 normals for Bush Intercontinental Airport put average daily highs at 86.9°F in May, 90°F or above from June through September (peaking at 94.9°F in August) and 82.8°F in October. Over a typical year the station records about 3,288 cooling degree days against 1,266 heating degree days, so air conditioning, not heating, drives most household electricity use.
Neighborhood Energy Differences
Usage depends mostly on a home's size, age, insulation and air-conditioning equipment, so two homes on the same street can use very different amounts. Your bill shows your monthly kWh history; use it to pick a plan priced well at your own usage.
Houston Market Insight
Market fact
Every Houston plan's price includes CenterPoint's regulated delivery charges, which are the same whichever provider you choose, so the difference between plans comes from each provider's own pricing.
Local saving tip
Compare plans at the usage on your own bill. Texas Electricity Facts Labels show each plan's average price at 500, 1,000 and 2,000 kWh, and a bill-credit plan can cost far more per kWh at one of those levels than at another.
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?
The table above lists the cheapest plans we currently see in CenterPoint Energy's area, with links to enroll. Each price is the plan's all-in average at 1,000 kWh a month, including CenterPoint Energy delivery charges. Where a plan's price varies with usage, its 500 and 2,000 kWh prices are shown too: a bill credit can make a plan cheap at exactly 1,000 kWh and expensive at other levels.
How much does the average Houston household pay for electricity?
We don't have a reliable Houston-only figure. Across Texas, EIA data puts average residential use at about 1,105 kWh a month in 2025, peaking at about 1,520 kWh in August. To estimate your own bill, multiply your monthly kWh by a plan's price at the closest usage level on its Electricity Facts Label.
Is Houston in a deregulated electricity market?
Yes. Houston is in CenterPoint Energy's delivery area on the ERCOT grid, where Texas retail choice applies, so you choose your retail electricity provider and CenterPoint delivers the power.
What is CenterPoint Energy and how do delivery charges work in Houston?
CenterPoint Energy is Houston's transmission and distribution utility: it owns and maintains the power lines and meters. Its delivery charges are regulated by the Public Utility Commission of Texas, are the same whichever retail provider you choose, and are included in the average prices on every plan's Electricity Facts Label.
When is the best time to switch electricity providers in Houston?
When your current contract is ending, or any time a cheaper plan would save you more than the early termination fee on your current plan. That fee is listed in your plan's terms of service and on its Electricity Facts Label.
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