
Texas is known for its Power to Choose energy market, with an average electricity rate of 11.3 cents per kilowatt-hour. The Lone Star State has several dozen electricity providers, including TXU Energy, Reliant Energy, and Cirro Energy. TXU Energy is one of the largest retail electricity providers in Texas, serving over two million residents and businesses. With so many electricity companies in Texas, it can be challenging to find the right provider, but there are tools available to help Texans compare energy plans and providers in their area.
| Characteristics | Values |
|---|---|
| Number of electricity companies in Texas | Over 100 |
| Major utilities in Texas | Oncor, Centerpoint Energy |
| Retail Electricity Providers (REPs) in Texas | TXU Energy, Reliant Energy, Cirro Energy, Constellation, Direct Energy, Rhythm, Gexa Energy, 4Change Energy, Acacia Energy, Accent Energy, Agera Energy, Alliance Power, Spark Energy, StarTex Power, TriEagle, Veteran Energy, Champion Energy Services |
| Average electricity rates in Texas | 11.3 cents per kilowatt-hour |
| Good electricity rate in Texas | Between 11 and 15 cents per kWh |
| Cheapest electricity plans in Texas | Frontier Saver Plus 12, Gexa Eco Saver Plus 12 |
| Cost of cheapest plans | 11.5 and 11.6 cents per kWh, respectively |
| Business electricity rates in Texas | Advertised without transmission and delivery fees (TDU) |
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What You'll Learn

Texas electricity rates
Texas residents and businesses can choose from a variety of electricity providers and plans, with rates that are generally cheaper than the US average. The average residential energy rate in Texas is 14.68 cents per kilowatt-hour (kWh), while the commercial rate is 8.6 cents per kWh. However, the lowest marketplace rates can be as low as 10 to 11 cents per kWh, and a good Texas electricity rate typically falls between 11 and 15 cents per kWh.
There are several types of energy plans available in Texas, including fixed-rate, variable-rate, and prepaid plans. Fixed-rate plans offer a steady electricity rate for a set term, providing protection against market fluctuations, while variable-rate plans change with the energy market and can result in higher bills during peak periods. Prepaid plans, such as Payless Power's Prepaid 6 and Prepaid 12, offer flexibility and do not require a deposit.
When choosing an electricity provider and plan in Texas, it is important to consider factors such as plan type, length, and supplier reputation. Popular name brands in Texas include TXU Energy, Reliant Energy, and Cirro Energy. Constellation, a leading provider of carbon-free energy, is also available in Texas and is committed to being 100% carbon-free by 2040. Direct Energy, another major provider, offers sophisticated yet simple product innovations to improve energy efficiency. For environmentally conscious consumers, Gexa Energy offers green plans like the Eco Saver Plus 12 and Eco Saver Plus 24. Rhythm is a Texas electricity provider that offers 100% renewable energy plans sourced from Texas wind farms, solar power, and hydro power.
To find the best electricity rates and plans in Texas, residents can use online platforms like EnergyBot, Choose Energy, and Choose Texas Power. These platforms allow users to compare rates, plans, and providers based on their specific needs and budgets. By entering their ZIP code, Texans can explore the options available in their area and make informed decisions about their electricity choices.
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Texas electricity companies' charitable contributions
Texas has several dozen electricity providers, including TXU Energy, Reliant Energy, and Cirro Energy. The major utilities serving the state include AEP Texas Central, AEP Texas North, CenterPoint Energy, Oncor Electric Delivery, and Texas-New Mexico Power.
Many electricity companies in Texas contribute to charitable causes. For example, in 2023, Constellation contributed a total of $18.7 million in combined company and employee donations to support more than 4,400 charities. Additionally, Constellation employees logged 102,600 volunteer hours in community service.
Direct Energy, one of the largest electricity, natural gas, and home services providers in North America, offers the Neighbor-to-Neighbor Bill Assistance Program, which allows Texas customers to donate any amount to help community members with their electricity bills.
Veteran Energy, another Texas electricity provider, donates a portion of each customer's bill to a veteran support organization chosen by the customer. 4Change Energy is another company that donates four percent of its profits to charities chosen by its customers, including Feeding Texas, the American Cancer Society, the American Red Cross, and Heroes for Children.
Rhythm is a Texas electricity provider that offers renewable energy plans sourced from Texas wind farms. Their plans include options for customers who want to further support eco-efforts, such as solar buyback and EV charging.
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Texas electricity companies' environmental impact
Texas is the leading state in energy production, providing about a quarter of the country's domestically produced primary energy. The state has a large number of crude oil and natural gas fields, as well as coal deposits. However, Texas also has abundant renewable energy resources and is the top state in wind-generated electricity. The state also has a high solar energy potential due to its many sunny days, and it has geothermal resources suitable for power generation.
Texas has witnessed a significant surge in renewable energy generation in recent years, particularly in wind and solar power. This shift towards clean energy sources has positively impacted the environment and reduced energy prices and consumer costs. The state had over 57,000 megawatts of utility-scale generating capacity from renewable sources at the end of 2023. When small-scale solar was included, the state had just over 60,000 megawatts of total renewable net summer generating capacity.
Several electricity companies in Texas offer renewable energy plans, allowing customers to have a positive impact on the environment. Constellation, the nation's leading provider of carbon-free energy, serves over 2.5 million customers in the United States and is committed to being 100% carbon-free by 2040. They offer flexible plans and products to streamline home energy usage and security. Another company, Rhythm, provides renewable energy plans sourced from Texas wind farms and offers straightforward pricing with no hidden fees. TXU Energy, a Vistra Energy company, serves over two million residents and businesses and offers a range of energy plans.
Direct Energy is one of the largest electricity, natural gas, and home services providers in North America, serving nearly four million residential customers. They offer product innovations to guide homes and businesses towards energy efficiency and improved functionality. Gexa Energy offers Eco Saver Plus plans on the Choose Energy marketplace, providing environmentally conscious shoppers with 100% green energy options. Payless Power offers prepaid electricity plans with no deposit required, and their plans include a percentage of renewable energy.
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Texas electricity companies' customer service
Texas has several dozen electricity providers, and the market can be overwhelming to navigate. However, with the right tools, Texans can find a plan that suits their needs and budget. EnergyBot and Choose Energy are two platforms that help Texans compare energy plans and providers in their area. EnergyBot uses your actual energy usage data to tailor suggestions, while Choose Energy allows you to compare all-inclusive rates, plans, and providers.
When choosing an electricity provider, it is essential to evaluate the plan type, length, and supplier reputation. Texans should also consider their priorities and preferences, such as renewable energy plans. For example, Rhythm is a Texas electricity provider that offers renewable energy plans sourced from Texas wind farms, with straightforward pricing and no hidden fees. Constellation is another provider that serves over 2.5 million residential and business customers, with a commitment to being 100% carbon-free by 2040.
TXU Energy, a Vistra Energy company, is a leading Texas electricity company serving more than two million residents and businesses. They offer various plans, including free charging for electric vehicles and rooftop solar buyback plans. TXU Energy also provides a mobile app for customers to view their usage, pay their bills, and set up alerts.
Direct Energy is one of the largest electricity, natural gas, and home services providers in North America, serving nearly four million residential customers. They are known for their sophisticated yet simple product innovations that guide customers toward energy efficiency. Additionally, they offer a Neighbor-to-Neighbor Bill Assistance Program, allowing Texas customers to donate to help community members with their electricity bills.
Reliant Energy is another trusted electricity provider in Texas, offering fixed-rate stability and month-to-month flexibility. They have served millions of Texans since 2001 and provide smart home solutions that integrate comfort, security, and energy usage management.
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Texas electricity companies' plans and pricing
Texas has a deregulated energy market, which means that most Texans can compare electricity rates and plans from third-party electricity providers. There are several dozen electricity providers in Texas, including TXU Energy, Reliant Energy, and Cirro Energy. The electricity rates in Texas range between 11¢ and 25¢ per kilowatt-hour, with most households paying between 11¢ and 14¢. The average residential Texas electricity rate is 14.68 cents per kWh, based on the latest EIA update in January 2025. However, as of March 2025, Texas electricity rates averaged 15.60 ¢/kWh.
There are a variety of tools and platforms available to Texans to compare electricity plans and providers in their area. These platforms, such as Compare Power, Choose Energy, and EnergyBot, allow users to input their specific usage data to find the most cost-effective plan. Some platforms also offer additional features, such as buying guides, energy resources, and soft credit checks.
Many electricity providers in Texas offer renewable or green energy plans, with some even providing 100% renewable energy. These plans may have slightly higher electricity rates, but as more renewable energy facilities have been built, the prices have become more competitive with traditional forms of energy generation. For those interested in green energy plans, providers such as Gexa Energy offer 100% renewable plans like the Eco Saver Plus 12 and Eco Saver Plus 24. Rhythm, a Houston-based electricity company, also offers a 100% renewable 9-month term plan with no minimum use fee or monthly base charge.
It is important to note that electricity rates in Texas can fluctuate dramatically due to various factors, including demand, fuel costs, and weather conditions. As a result, it is recommended to compare rates every 3-6 months to ensure that you are not overpaying. Spring and fall are typically the best seasons to secure more affordable rates, as demand and prices tend to be lower during these periods.
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Frequently asked questions
The profitability of an electricity company depends on several factors, including pricing, reliability, service, green energy, and flexibility. Companies like TXU Energy, Reliant, and Gexa Energy often rank highly, but your best option depends on your specific usage and preferences.
TXU Energy, Reliant Energy, and Cirro Energy are some of the most popular electricity companies in Texas. TXU Energy is one of the largest retail electricity providers in the state and is a subsidiary of Vistra Corp. Gexa Energy, Constellation, and 4Change Energy are some other profitable electricity companies in Texas.
You can switch electricity providers in Texas by comparing plans, rates, and reviews to find the perfect match for your needs and budget. Choose Energy is a free energy marketplace where you can compare electricity plans and providers in your area. EnergyBot is another platform that connects directly to your utility company, making it easy to compare and switch to the best plan.











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