Electricity rates in Houston, TX
7 in 10 Texans are overpaying for electricity. What should your rate actually be?
Last updated June 2026 - Base Power Team
Quick answer
Electricity rates in Houston, Texas
- Typical Houston all-in electricity rate: 17.1¢/kWh, higher than the Texas average of 16.39¢/kWh.
- Average Houston home electricity usage: 1,400–1,500 kWh/month in summer, well above the Texas average of 1,096 kWh.
- Typical Houston monthly bill: $187, compared with about $145 on Base's flat 8¢/kWh energy charge.
How do electricity charges in Houston work?
Houston is a power-to-choose market, so you pick your provider and their energy rate. Your bill shows two things - your energy charge, and your delivery charge. You shop for your energy charge by picking your provider. CenterPoint sets your delivery fee, and it stays identical regardless of which provider you select.
What's the cheapest electricity rate in Houston?
The cheapest plan depends on your usage. When comparing plans, look at your all-in rate (energy plus delivery), as it decides your bill. Most REPs' headline rates look cheaper because they apply only in a small usage band. They may also depend on a bill credit you get only at the right kWh level.
Base has a flat 8¢/kWh energy charge. No extra fees. After covering CenterPoint's pass-through delivery fees, your total, all-in electricity rate comes to roughly 13.2¢/kWh. At typical use, that is about $42 below the Houston average.
What are the best electricity rates in Houston, TX?
Flat & clear | Typical Houston REP | Texas average | |
|---|---|---|---|
| Energy charge | 8¢ per kWh | 10–14¢ per kWh | 11.24¢ per kWh |
| CenterPoint delivery | 5.15¢ per kWh | 5.15¢ per kWh | 5.15¢ per kWh |
| All-in rate | 13.2¢ per kWh | 15.15–19.15¢ per kWh | 16.39¢ per kWh |
| Avg. monthly bill | $145 per month | $166–$210 per month | $180 per month |
In Houston, you can only compare and choose the energy-charge portion. CenterPoint's 5.15¢/kWh delivery fee is regulator-approved and the same across every plan. So the all-in rate is what actually separates one provider from another.
A typical Houston REP lands at 15.15–19.15¢/kWh all-in, and the Texas average is 16.39¢; Base is 13.2¢ - a flat 8¢ energy charge plus that same pass-through delivery. At the Texas-average usage of 1,096 kWh each month, that's about $166–$210 on a standard plan, compared with roughly $145 using Base.
Base's energy charge is its advertised rate; exact, usage-based pricing is in the Electricity Facts Label. See your exact rate →
What's the difference between providers in Houston?
Each dot is a Texas retail electricity provider that serves Houston. Left to right shows how many homes the provider serves, drawn from EIA data. Top to bottom shows that provider's modeled all-in rate, based on published plans in our comparison data set. The largest, most-advertised names tend to be more expensive, and many households aren't aware that they're missing out on savings.
The biggest, most-advertised providers in Houston are often the priciest. Tap one below to see what you could save each month by switching to Base.
Click on any provider to compare rates with Base.
Typical Houston REP
17.1¢
all-in rate
13.2¢
all-in rate
save $42 monthly
Based on the Texas-average 1,096 kWh a month.
See how much you could save with Base Power.
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What if I don't know how my Houston electricity bill works?
We'll break it down for you.
What's Houston's grid like?
Houston is the 4th-largest city in the U.S. and home to a 6.8-million-person metro. The city's grid is one of the most watched in the country.
CenterPoint Energy provides power throughout Harris County and nearby Gulf Coast areas. CenterPoint is your transmission and distribution utility (TDU), the company that owns the poles and wires.
Within Texas's power-to-choose setup, you choose the provider that sells you electricity. The Public Utility Commission of Texas (PUCT) protects Houston and the ERCOT grid.
Natural disasters have heavily disrupted Houston's power grid. Two million CenterPoint homes lost power after May thunderstorms and Hurricane Beryl.
We've found that 7 in 10 Houstonians may be overpaying for electricity, and are looking for solutions amidst a tricky grid.
Why are my Houston bills so high in summer?
Houston's heat is about humidity more than the thermometer. The city averages only a few 100°F days a year, but August highs push the heat index past 110°F from humidity.
Air conditioning does most of the work. For the average homeowner, summer usage climbs to roughly 1,400–1,500 kWh a month, and bills can run about 30% higher than in spring.
What can you control?
Your Houston electricity bill isn't one charge – it's three separate businesses stacked on top of each other. Some, like your delivery charge, are identical no matter who you sign up with. But you're free to choose your retail provider – and many Texans don't realize that until they've lost savings by staying with their default provider.
Texas splits the power industry into three parts. Generation is the power plants and solar farms that make your electricity. Retail is the provider that buys that electricity and sells it to you. Delivery is the company that owns the poles and wires that carry it into your home.
Understanding which is which is the difference between chasing a headline rate and actually lowering your bill. The diagram below breaks down where each dollar goes – and shows the one area you can change.
Power generation
Power plants, wind farms, and solar panels across Texas generate the electricity and feed it onto the ERCOT grid. These generators sell electricity into a marketplace, and your retail provider bids on portions of that supply. This decides the base cost of power long before it reaches you.
Your retail provider
You choose this
Your retail provider buys that power, packages it into a plan, and sets the rate you pay. It's the one piece you get to choose – and the biggest lever on your bill.
Delivery (CenterPoint)
Your local utility owns the poles, wires, transformers, and meter that carry power the last mile to your home. All Houston homes pay the same delivery rates. This means there's nothing to shop around for here.
Your home
Where the power finally lands – keeping your lights on, AC running, EV charging, everything plugged in. How much you use, and when, shapes your monthly bill after you've picked the right provider.
In Houston, CenterPoint handles delivery, and those charges are the same no matter who you buy from.
When comparing providers, focus on all-in rates.
Well, how do I find the best provider in Houston?
It depends on your home, your usage, and your plan. But many providers aren't transparent, so a lot of Houston homeowners pay more than they expect.
Many plans advertise a low rate. That rate only kicks in as a "bill credit" when you use a certain amount of energy. Miss the threshold and the actual rate jumps, costing you hundreds a year.
If you know your monthly usage, you can compare the all-in cost of your current provider against others in Houston. Doing that by hand is tough, so we built a bill comparison tool. Upload a bill, tell us your provider, or share your current rate, and we can estimate what you'd save by switching. It takes less than a minute.
We believe energy should be affordable
Most power companies make more money when your bill goes up. Base doesn't. We support Texas communities with lower rates and a more resilient grid. We keep your energy bill low and your charges predictable. No tricks, no surprises.
Join 30,000+ Texans in accessing a flat, transparent rate.
- One flat 8¢ per kWh energy charge
- No bill-credit minimums and no usage fees
- A rate below the market average, guaranteed – even at renewal
Keeping the lights on should be affordable.
Takes about two minutes.
FAQs
Find your city
We break down electricity rates for cities across Texas. Pick yours to see how your local utility, the average bill, and Base's flat 8¢/kWh rate work where you live.
Sources
- U.S. EIA — Electric Power Monthly, Table 5.6.A (Mar 2026)
- U.S. EIA — average residential electricity use & bills
- Power to Choose — the official PUCT marketplace
- Census QuickFacts — Houston (2024 population)
- Texas Tribune — PUC report on CenterPoint & Hurricane Beryl
- Wikipedia — 2024 Houston derecho
Plan documents: Electricity Facts Label (EFL) · Terms of Service & Your Rights as a Customer. Products and pricing are offered to qualified customers in Texas only.