Electricity Rate in Texas (2026): 15.07c/kWh Average
Texas Electricity Rate: What You Need to Know
Texas electricity averages 15.07 cents per kWh for residential customers as of April 2026, according to the EIA Electric Power Monthly. This is 2.58c below the US average of 17.65c/kWh. The average monthly bill for Texas households is $174 based on typical usage of 1156 kWh.
Texas operates the only US state-level grid independent of the federal interstate system - the ERCOT (Electric Reliability Council of Texas) grid covers about 90% of Texas load. ERCOT is an energy-only market with no centralized capacity payment mechanism, meaning generators are paid only when electricity is being produced. This creates intense competition: 100+ retail electricity providers compete on PowerToChoose.org (PUCT), where fixed-rate plans of 11-13c/kWh are commonly available. The 87% switching rate from the default utility to competitive suppliers is the highest in any US deregulated market. Texas rates averaged 15.07c/kWh in April 2026, above the national average despite deregulation, because ERCOT summer peak prices can be extreme (up to $9,000/MWh in 2021 Winter Storm Uri) and those costs flow into customer bills over time. The 13% of Texas not on ERCOT (far west Texas, parts of the Panhandle) is served by regulated monopolies.
Generation mix: Natural gas 50%, wind 25%, solar 10%, coal 15%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.
Year-over-year change: Texas rates rose 6.4% year-over-year as of April 2026. This compares to the US average increase of 5.4% over the same period.
Deregulated: You Can Shop for a Better Rate
ERCOT mandatory retail choice - PowerToChoose.org (PUCT) lists 100+ providers; 87% switching rate. 13% in regulated areas (AEP, CenterPoint, Oncor, TNMP wires only).
How to shop for a better rate ->Your Texas Electricity Bill Components
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