What is the Best Price for Electricity in Houston, Texas?


This article is your guide to the best Houston electricity prices in Texas. In the vibrant and bustling city of Houston, Texas, homeowners face a common question: “What is the best price for electricity, and what constitutes a good rate?” With a lot of light companies in Houston and a constantly evolving energy market, it’s crucial to understand what makes an electricity plan both cost-effective and suitable for your needs. Our guide aims to help you understand electricity prices in Houston and help you navigate the options to find the best electricity rates that align with your household’s energy usage and budget.

Here at The Energy Professor, we want to give you the information you need to not only save money on your energy bill but also to become more energy efficient. We hope you find this post helpful! It makes it easier for you to know more about electricity prices in Houston. Be sure also to check out our one-of-a-kind energy savings calculator!

The Energy Professor Electricity Rate Check Tool

What is the Best Houston Electricity Price?


As of December 2023, the best electricity price in Houston is 13.83¢ per kWh, offered by AP Gas & Electric under the “True Simple 6” plan for a 6-month term. This represents the lowest residential electricity rate currently available in Houston.

However, determining the “best” electricity price isn’t solely about the lowest rate per kWh; it also depends on individual needs and preferences. Here’s a more detailed look at what to consider:

What is the Average Houston Electricity Rates and Lowest Houston Electricity Rates?

  • Residential Electricity Rate: The lowest rate is 14.57¢ per kWh, while the average rate is 16.06¢ per kWh.
  • Commercial Electricity Rate: For businesses, the lowest rate is 7.66¢ per kWh, and the average rate is 8.65¢ per kWh.

What are the top 5 cheapest electricity plans in Houston, Texas?

The top 5 cheapest electricity plans in Houston, Texas, based on the lowest residential electricity rates, are as follows:

  1. AP Gas & Electric – True Simple 6
    • Term: 6 months
    • Rate: 13.83¢ per kWh
  2. Chariot Energy – Solarize 6
    • Term: 6 months
    • Rate: 13.95¢ per kWh
  3. OhmConnect Energy – TexasConnect 19
    • Term: 19 months
    • Rate: 14.32¢ per kWh
  4. OhmConnect Energy – Connect & Save 36
    • Term: 36 months
    • Rate: 14.54¢ per kWh
  5. OhmConnect Energy – Connect & Save 24
    • Term: 24 months
    • Rate: 14.69¢ per kWh

These plans offer some of the most competitive rates in the Houston market. It’s important to note that electricity rates can fluctuate and may vary based on individual usage patterns and other factors. Therefore, it’s advisable for consumers to regularly compare rates and read the terms and conditions of each plan to ensure they choose the one that best fits their specific energy needs and preferences.

Factors to Consider in Choosing the Best Plan

  • Usage Patterns: Your electricity usage significantly impacts which plan will be most cost-effective for you.
  • Plan Types: Fixed-rate plans offer price stability, while variable-rate plans can fluctuate but may offer lower rates at times.
  • Term Lengths: Consider whether short-term or long-term plans align better with your needs.
  • Renewable Energy Plans: These might be slightly more expensive but are environmentally friendly.
  • Additional Fees and Company Reputation: Watch out for hidden fees and consider the provider’s customer service and reliability.

Finding the Best Rate

To find the most cost-effective plan for your specific needs, use our Energy Comparison Tool and consider your electricity usage patterns. Houston’s deregulated market offers a variety of plans, making it crucial to compare options regularly.

In summary, while plans from AP Gas & Electric currently offer the lowest rate, the best plan for you will depend on several factors including your usage, preferences for contract terms, and interest in renewable energy. Regularly updated comparison tools are invaluable in finding the most suitable plan.

Related post: What is the Average Electric Bill in Texas?

What is the Average Houston Electric Rates?


The average electricity rates in Houston are as follows:

  • Residential Electricity Rate: The average rate for residential customers in Houston is 16.06¢ per kWh.
  • Commercial Electricity Rate: For commercial customers, the average rate is 8.65¢ per kWh.

These rates reflect the general cost of electricity in Houston, but individual bills may vary based on usage patterns, the specific plan chosen, and the electricity provider. Consumers need to consider these average rates as a benchmark when shopping for electricity plans, keeping in mind that rates can fluctuate based on market conditions and other factors.

What are the Lowest Electricity Rates in Houston?

Residential Electricity Rates:

  • The lowest available residential electricity rate is 13.83¢ per kWh, offered by AP Gas & Electric under the “True Simple 6” plan with a 6-month term.

Commercial Electricity Rates:

  • For commercial customers, the lowest rate is 6.72¢ per kWh, provided by NRG Energy, Inc. for a 3-month term.

These rates represent the most competitive options currently available in the Houston electricity market. However, it’s important to note that these rates can change frequently due to market dynamics. Consumers are advised to regularly compare rates to ensure they are getting the best available deal for their specific energy needs.

Understanding Houston’s Electricity Market

Houston’s energy market is deregulated, meaning you have the power to choose your electricity provider from a range of energy companies in Houston. This setup encourages competition among providers, often leading to more attractive rates and plans for consumers.

Key Terms and Concepts

  • Fixed-Rate Plans: These plans lock in your electricity rate for the duration of your contract, offering stability against price fluctuations.
  • Variable-Rate Plans: These rates can change based on market conditions, sometimes offering lower rates but with less predictability.
  • Green Energy Plans: Many Houston electric companies now offer plans that source electricity from renewable sources, appealing to environmentally conscious consumers.

Comparing Electricity Rates in Houston

To find the best electricity rates in Houston, you can use our Electricity Comparison Tool to compare electricity rates Houston-wide. Consider your household’s energy consumption patterns and compare plans from various electric providers in Houston. Remember, the cheapest electricity Houston offers might not always be the best choice if it doesn’t align with your usage or preferences.

Related post: What is Energy Deregulation?

Evaluating Houston Electric Companies


When selecting among various Houston electric companies, it’s crucial to look beyond just the electricity rates. Factors like customer service quality, the transparency of billing practices, and the overall comprehensibility of electricity plans play significant roles in ensuring a satisfactory customer experience.

Considerations for Choosing an Energy Provider

  1. Reputation and Customer Experience: Investigate customer reviews and ratings for energy providers in Houston.
  2. Contract Terms and Flexibility: Carefully examine the contract terms. This includes not only the length of the contract but also any cancellation fees, rate changes after introductory periods, and specific conditions under which rates might change. Transparent and fair contract terms are indicative of a trustworthy provider.
  3. Additional Services and Benefits: Many energy providers in Houston go beyond basic electricity supply. Look for companies offering value-added services such as:
    • Energy Audits: These can help you understand your energy consumption better and suggest ways to reduce it.
    • Smart Home Integration: Providers offering integration with smart home technology can enhance your ability to manage energy usage efficiently.
    • Renewable Energy Options: If you’re environmentally conscious, consider providers that offer green energy plans. These plans support renewable energy sources, contributing to a sustainable future.
  4. Billing Transparency: Opt for companies that provide clear, detailed bills without hidden charges. This transparency helps in avoiding unexpected costs and enables easier budget management.
  5. Customer Support: Responsive and helpful customer support is essential, especially for addressing outages, billing inquiries, and service changes. Providers with accessible and efficient customer service are generally more reliable.
  6. Local Presence and Responsiveness: Given Houston’s unique energy landscape, choosing a provider with a strong local presence can be beneficial. These companies are often more attuned to Houston-specific issues and can respond more effectively to local demands and emergencies.

Making an Informed Decision

In the deregulated energy market of Houston, consumers have the advantage of choice. By considering these factors, you can make an informed decision that balances cost, service quality, and additional benefits, leading to a more satisfactory and sustainable energy solution for your home or business.

Related post: Are Electric Prices Going Up?

Do you Need Cheaper Electricity?

If you’ve taken the time to understand the information on your bill and discovered you’re paying more than you’d like for your electricity, have you looked around for a cheaper deal? The Energy Professor has a wealth of information on ways to save on your utilities, including details of top deals that could significantly reduce your monthly or quarterly electricity bills.

We hope you found this article helpful! If you are looking for ways to increase energy efficiency and sustainability in your home be sure to take a look at all of the latest renewable energy options in your area. The Energy Professor helps residential and small business owners find qualified energy suppliers in New YorkNew JerseyPennsylvania, Texas, Ohio, Maryland, Illinois, and Massachusetts.

Nik Chapman

Nik Chapman is the Executive Editor of The Energy Professor with lifelong passion for studying and exploring the natural environment. Nik has a Bachelor of Science in Environmental Sciences and Biology and has specialized in work with Green Energy, Renewable Energy and Environmental Justice. Nik has worked directly with small communities and nonprofits to help make environmental education more accessible for everyone. Nik currently lives in Washington State and enjoys tide pooling on the Oregon Coast and taking hikes to local waterfalls