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Texas Electricity Information

Texas has the most competitive electricity market in the country, thanks to deregulation that began in 2002. In most parts of the state, residents and businesses can choose their own retail electric provider (REP) rather than being locked into a single utility. Transmission and distribution remain managed by regulated utilities like Oncor or CenterPoint, ensuring reliability, while REPs compete to offer different plans, rates, and perks, from fixed-rate contracts to renewable energy options. This system gives Texans the power to shop for electricity much like any other service, creating flexibility, competitive pricing, and opportunities to align energy choices with personal preferences, such as supporting green power.

See Our List of Best Electric Providers in Texas

Cheat Sheet: How to Read the “Electricity Facts Label” (EFL)

In Texas, the price you see in a large font on a sales advertisement is rarely the price you actually pay. To find the real cost, you must open the Electricity Facts Label (EFL) document linked to every plan.

1. The “Average Price per kWh” Table

The top of every EFL shows the average price based on usage. It usually looks like this:

Average Monthly Use	500 kWh	1000 kWh	2000 kWh
Average Price per kWh	15.9¢	11.2¢	14.5¢

500 kWh (Apartments): If you live in a small apartment, look strictly at this column.
1000 kWh (Small Homes): This is the standard “advertised” rate.
2000 kWh (Large Homes): If you have a large house with a pool or older A/C, focus on this column.

2. Base Charges & TDU Fees

Look at the “Electricity Price” section text for these specific line items:

Base Charge: A monthly fee (often $4.95 – $9.95) just for being a customer.
TDU Delivery Charges: This is the fee paid to the company that owns the poles (like Oncor or CenterPoint). It is usually around 4¢–5¢ per kWh plus a monthly fee (~$4).
- Pro Tip: Check if the advertised rate is “Bundled” (includes TDU charges) or “Unbundled” (TDU charges are added on top). Most fixed-rate plans are bundled, but it’s worth verifying.

3. Contract Terms & Termination Fees

Contract Length: Ensure the term (12, 24, or 36 months) matches your lease.
Early Termination Fee (ETF): This is the penalty for cancelling early. It is often $20 per month remaining or a flat fee of $150–$400.

Student Tip: If you move out of your residence completely (and provide proof of move-out), Texas law states you cannot be charged this fee.

4. Type of Product: Fixed vs. Variable

Always check the “Type of Product” line.

Fixed Rate: Your rate per kWh will not change for the length of your contract. (Recommended)
Variable / Indexed Rate: The rate can change every single month based on the market. These are risky and can result in massive bills during summer or winter storms.

Track Your Usage for Free

Did you know you can see exactly how much power you used yesterday, down to the 15-minute interval?

SmartMeterTexas.com is the official state-run portal that connects to your home’s meter.
Why use it? You can monitor your usage in real-time to avoid “bill shock” at the end of the month. It helps you catch malfunctioning AC units or see if you are using too much power during “peak” expensive hours.

Understanding ERCOT Grid Alerts

The Electric Reliability Council of Texas (ERCOT) manages the state’s power grid. You may see alerts on your phone or TV during extreme heat or cold.

Weather Watch: Normal conditions, but high demand is forecasted. No action needed, just stay aware.
Voluntary Conservation Notice: The grid is tight. You are asked to voluntarily raise your thermostat by 1-2 degrees and avoid running large appliances (washer/dryer/dishwasher) between 3 PM and 8 PM.
Energy Emergency Alert (EEA): The grid is at risk. Rotational outages (controlled blackouts) are possible to protect the system.

Electricity Generation

Electricity generation in Texas is a mix of natural gas, wind, coal, and solar, making it one of the nation’s leaders in renewable energy production. However, with natural gas and coal still accounting for a significant portion of energy generation, emissions remain a challenge, even as the state continues to expand its renewable energy capacity to reduce its carbon footprint.

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Electricity Production

Primary Source

Natural Gas

Total Generation: 547,294,552 MWh
Ranks 1st Highest in the U.S.
Average Price: 15.23¢ /kWh
Ranks 13th Cheapest in the U.S.
Average Electric Bill: $150.56
Ranks 41st Cheapest in the U.S.

Electricity Production By Source

Emissions From Electricity Generation

Carbon Dioxide Emissions Rank

1st Highest

212,769 TMT

Sulfer Dioxide Emissions Rank

1st Highest

111,222 tn

Nitrogen Oxide Emissions Rank

1st Highest

165,149 tn

Renewable Electricity Generation

Renewable Production Rank

1st Highest

148,762,830 MWh
27.18% of Total Production

Source U.S. Energy Information Administration (EIA) Based on data from 2023

Energy Usage in Texas

Energy Usage Per Capita Rank

46th Lowest

Average Per Person: 459 million BTU

Texas’s electricity consumption is one of the highest in the nation, reflecting its large population, strong industrial base, and hot climate. Located in the South-Central region, the state faces long, sweltering summers that drive massive air conditioning demand, especially during peak hours. Winters are generally mild, though occasional cold snaps can sharply increase heating needs. Industrial activity, including energy production, petrochemicals, and manufacturing, also accounts for a large share of consumption. This combination of climate and economic activity makes Texas a heavy electricity user, putting unique demands on its independent power grid.

Municipal Utilities in Texas

While most cities, towns, and villages throughout the state of Texas offer municipal essential services like providing clean water, sewage treatment and dealing with waste and storm water, some also offer other services like electricity, natural gas, sanitation or recycling. In Texas, 75 cities offer municipal electricity utility services to their residents.

Largest Electric Companies in Texas

The rest of Texas receives electric utility service from one of many primary providers. Here’s a list of some of the larger providers that might be available to your home:

Texas Natural Gas Information

Texas is both the largest producer and consumer of natural gas in the United States, and it plays a central role in powering the state’s homes, businesses, and electric grid. Natural gas is used extensively for electricity generation, helping balance the grid during periods of high demand, and it is also a common choice for residential heating, cooking, and water heating. Because Texas spans a south-central climate region with hot summers and mild winters, natural gas use peaks in winter for heating but remains significant year-round due to its role in power generation.

Residential demand is lighter compared to colder states, but the state’s size, industrial activity, and heavy reliance on air conditioning in summer make natural gas essential for fueling power plants. With abundant natural gas reserves and infrastructure, the state remains well-positioned to meet its own demand while also serving as a major supplier to the rest of the country.

Average Natural Gas Price

$3.07 /CCF

Ranks 45th Cheapest in the U.S.

Average Natural Gas Bill

$111 /month

Ranks 33rd Cheapest in the U.S.

Natural Gas Usage Per Capita

11th Lowest

Average Per Person: 130.34 MCFs Annually

Largest Natural Gas Companies in Texas

Many of the residents of Texas receive their natural gas utility service from one of the larger companies that service the state.

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Texas Internet Connectivity

Broadband Availability

84.95%

Ranks 19th in the U.S.

Percent of Ppopulation with access to 100 Mbps download and 20 Mbps upload

1 Gig Availability

47.33%

Ranks 37th in the U.S.

Percent of population with access to download speeds of 1 Gbps

Fiber Availability

45.31%

Ranks 33rd in the U.S.

Percent of population with access to Fiber Internet

Largest Internet Providers in Texas

When it comes to high-speed internet, homes in Texas have plenty of options to stay connected! From bustling cities to quiet rural areas, a variety of providers offer reliable service across the state. Here are some of the biggest names keeping Texas homes online and in the loop:

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Utility Costs in Texas

The average monthly total utility bills in Texas is $306.14, which is 10.46% higher than the national average.

Average Electric Bill

$151

Higher than national average

Average Natural Gas Bill

$111

Higher than national average

Average Water Bill

$45

Higher than national average

Assistance for Paying Utility Bills in Texas

If you are struggling to pay your electricity, gas, or water bills, there are several state and local programs available to help. While some well-known past programs (like Lite-Up Texas or Texas Utility Help) are no longer active, the Comprehensive Energy Assistance Program (CEAP) and local community agencies remain the primary sources of aid.

Comprehensive Energy Assistance Program (CEAP)

CEAP is a federally funded program designed to assist low-income households in meeting their immediate energy needs. It is administered by the Texas Department of Housing and Community Affairs (TDHCA) through a network of local community organizations.

What it covers: Assistance with electricity, natural gas, and propane bills. It can help with payment of past-due bills or provide relief for future bills.
Eligibility: Generally available to households with an income at or below 150% of the Federal Poverty Guidelines. Priority is often given to the elderly, disabled individuals, and families with young children.
How to Apply: You cannot apply directly to the state. You must contact the specific service provider for your county.
- Find your local provider: Use the TDHCA “Help for Texans” search tool. Select “Utility Bill Payment Help” and enter your city or county to find the agency serving your area.
- Call for help: Dial 2-1-1 from any phone in Texas to speak with a specialist who can direct you to local assistance agencies.

Weatherization Assistance Program (WAP)

If you want to lower your monthly bills permanently, the Weatherization Assistance Program helps low-income households improve the energy efficiency of their homes.

Services: Installation of weather stripping, wall/attic insulation, and minor home repairs to keep your home cooler in summer and warmer in winter.
Apply: Use the same TDHCA search tool but select “Weatherization” as the help type.

Immediate Payment Plans & “Share” Programs

If you do not qualify for federal aid, or if you need immediate temporary relief:

Contact Your Provider: Most Retail Electric Providers (REPs) in Texas offer Deferred Payment Plans or payment extensions if you face a financial hardship or weather emergency. You must contact them before your service is disconnected.
Share Programs: Many companies (such as TXU, Reliant, and Entergy) and municipal utilities (like Austin Energy or CPS Energy) have their own charitable “bill payment assistance” funds supported by donations. Check your provider’s website specifically for a “Bill Assistance” or “Share” page.

Water Bill Assistance

The federal Low Income Household Water Assistance Program (LIHWAP) closed in late 2023. However, many local cities and water districts maintain their own assistance funds.

Action: Call your water utility’s customer service line directly and ask if they have a “hardship program” or a partnership with a local charity (like Catholic Charities or St. Vincent de Paul) to help with water bills.

Specialized Assistance by Group

If you belong to one of the following groups, you may qualify for specific protections or priority funding.

For Seniors (65+)

Seniors are often given priority status for the CEAP and Weatherization programs listed above. Beyond that, you have specific legal rights in Texas:

Deposit Waiver: By law (Public Utility Commission of Texas rules), if you are 65 years of age or older and do not have a delinquent balance with your current electric provider, you cannot be charged a deposit when signing up for new service. You must provide a valid ID to prove your age.
Deferred Payment Plans: If you face a bill you cannot pay, Retail Electric Providers are often required to offer deferred payment plans to customers who are 65+ to avoid disconnection, especially during extreme weather events.
Critical Care Registry: If you require electricity for life-sustaining medical equipment, apply for the Critical Care & Chronic Condition Residential Customer status. This does not forgive your bill, but it provides extra notifications and protections before disconnection.

For Veterans

Several organizations in Texas focus specifically on helping veterans avoid homelessness and utility disconnection.

Texas Veterans Commission (TVC): The TVC manages a “Fund for Veterans’ Assistance” which provides grants to local organizations. These local charities then use that money to help veterans pay bills.
- How to find help: Visit the TexVet.org Housing & Utilities page to find the specific non-profit in your county that holds a TVC grant.
Burn Pit Registry / Service-Connected Disability: If you have a service-connected disability, you may qualify for financial hardship grants through organizations like the Texas VFW or Combined Arms.
Military Discounts:
- TXU Energy: Offers a military discount program for active duty and veterans.
- Veteran Energy: This is a private electricity provider that donates a portion of your bill to veteran support agencies. While not a “discount” program per se, they often cater to the military community with specific plan structures.

For College Students

There are rarely government utility programs specifically for students; however, you have two main options:

University Emergency Funds: Most Texas universities (including UT, Texas A&M, Texas Tech, and UH) have a “Student Emergency Fund” managed by the Dean of Students or Financial Aid office. These are specifically designed to pay one-time essential bills (like electricity or water) to keep a student enrolled.
- Action: Search your university website for “Emergency Aid” or “Crisis Fund.”
Contract Flexibility: If you are renting an apartment for a semester or school year, avoid signing 24-36 month electricity contracts. Look for 6-month or 12-month fixed-rate plans to avoid massive “early cancellation fees” when you move out for the summer or after graduation.