Austin Electricity Rates & Plans
Last updated: October 18, 2026 · 6 min read
Austin is the capital of Texas and one of the fastest-growing large cities in the United States — and one of the few major Texas cities whose residents cannot shop for competitive electricity plans. Austin is served by Austin Energy, a city-owned municipal utility operated by the City of Austin. This guide explains why, what your options are as an Austin customer, and what the suburbs look like if you're moving in or out of the city.
Important: Austin residents cannot shop for electricity plans
Austin Energy is a municipal utility — it is owned and operated by the City of Austin, not a private investor-owned company. Austin is not part of the Texas deregulated electricity market. The search tool on this site will return no plans for Austin ZIP codes because no competitive plans are offered there. Austin residents pay Austin Energy rates set by the Austin City Council.
Why Austin Has Austin Energy — Not the Competitive Market
Texas's 1999 electricity deregulation law (Senate Bill 7) restructured the electricity market for most of the state but explicitly allowed municipal utilities and rural electric cooperatives to opt out of retail competition. Austin Energy — which the City of Austin has owned since 1895 — chose to remain as a vertically integrated municipal utility rather than participate in ERCOT retail competition.
This decision was made by Austin's elected leadership on behalf of residents. The rationale included preserving local control over utility rates, maintaining Austin Energy's renewable energy program infrastructure, and protecting ratepayers from market price volatility. Whether this was the right choice is debated, but the result is clear: Austin residents have no retail electricity choice.
Austin Energy Rate Structure
Austin Energy uses a tiered rate structure — the first kilowatt-hours used in a month cost less per unit, and rates increase in steps as monthly usage rises. This is the opposite of how many competitive market plans work, where per-kWh rates sometimes decrease above 1,000 kWh. For Austin customers, conserving energy is financially rewarded at every level of usage because staying in a lower tier means a lower effective rate.
The rate structure includes several line items: an energy charge (tiered), a distribution charge, a customer charge, and various rider adjustments for fuel costs, transmission, and renewable energy programs. For the current approved rate schedule, visit austinenergy.com or call Austin Energy at 512-494-9400.
Austin's ZIP Codes — All Austin Energy
| Austin ZIP Cluster | General Area | Utility | Can Shop? |
|---|---|---|---|
| 78701–78705 | Downtown, University of Texas area | Austin Energy | No |
| 78721–78759 | East, North, and South Austin | Austin Energy | No |
| 78660 (Pflugerville) | Northeast Austin suburb | Oncor or PEC — verify | Verify by address |
| 78664/78681 (Round Rock) | North Austin suburb | Oncor (most addresses) | Yes — deregulated |
Austin Energy's Renewable Energy Programs
Austin Energy operates one of the most advanced municipal renewable energy programs in the country. Its GreenChoice program allows residential customers to pay a premium for a fixed-price renewable energy subscription — typically wind and solar sourced from West Texas. GreenChoice has historically offered 5- and 10-year rate locks, providing price stability that competitive market variable-rate plans cannot match.
Austin Energy's overall power mix is among the greenest of any large Texas utility. The city has invested in solar generation through large-scale contracts and rooftop solar rebate programs. If renewable energy is a priority, Austin Energy's programs may actually be more accessible than what's available through competitive REPs in other parts of Texas.
Austin Energy vs. the competitive market
How does Austin Energy rate compared to competitive plans in Houston or Dallas? Historically, Austin Energy's rates have been competitive with — and sometimes below — the average competitive market rate in Texas. The city's large renewable portfolio and access to municipal bond financing allow lower capital costs than investor-owned utilities. However, unlike the competitive market where the best plan can be significantly cheaper than average, Austin customers have no ability to seek a below-average rate. You pay Austin Energy's approved tariff, period.
How to Lower Your Austin Energy Bill
Since Austin residents cannot switch providers, bill reduction comes from usage reduction and program participation. Austin Energy offers several paths:
Home Performance with ENERGY STAR: Rebates on insulation, air sealing, duct sealing, and HVAC upgrades for qualifying homes. Austin Energy-certified contractors conduct audits and complete eligible improvements. Visit austinenergy.com/rebates for current program details.
Smart thermostat rebates: Austin Energy offers rebates on qualifying smart thermostats and may run demand response programs during peak summer periods where participating customers receive bill credits for allowing brief setpoint adjustments.
Rooftop solar: Austin Energy has a Value of Solar (VoS) tariff for residential solar customers — it differs from traditional net metering and has evolved over the years. Current interconnection rules and buy-back rates are available at austinenergy.com/solar.
Customer Assistance Program (CAP): Income-eligible customers receive a monthly discount on their Austin Energy bill. Contact Austin Energy's customer service at 512-494-9400 for current eligibility criteria.
Smart move for Austin residents
Austin Energy's tiered rate structure makes energy conservation more financially rewarding than flat-rate competitive plans. Every kWh you reduce that pushes you into a lower tier saves you the top-tier rate — not just the average rate. If your household is consistently in the highest usage tier, a targeted efficiency investment (attic insulation, duct sealing, or smart thermostat) can drop you into a lower tier and reduce every subsequent month's bill at the highest possible per-kWh savings rate. The Austin Energy rebate programs help offset the upfront cost of these improvements.
Key Takeaways
Austin residents cannot shop for competitive electricity plans. Austin Energy is a municipal utility owned by the City of Austin, operating outside the Texas deregulated market. Rates are approved by the Austin City Council. Bill reduction options include efficiency programs, GreenChoice renewable subscriptions, rooftop solar, and income-based assistance. If you live in Austin suburbs — Round Rock, Pflugerville, Cedar Park — your utility may be different; confirm by entering your ZIP in the search tool.
In a deregulated Texas city? Compare plans here.
The search tool works for all ERCOT ZIP codes — Houston, Dallas, Round Rock, and more.
Search Competitive Plans →Frequently Asked Questions
Can I shop for electricity plans in Austin, Texas?
No. Austin is served by Austin Energy, a city-owned (municipal) electric utility operated by the City of Austin. Austin Energy is not part of the deregulated Texas electricity market. Austin residents pay rates approved by the Austin City Council and cannot choose a different electricity provider. If you want to lower your electricity cost in Austin, your options are usage reduction, Austin Energy efficiency programs, and — if eligible — income-based assistance programs.
Why can't Austin residents choose their electricity provider?
Texas electric deregulation applies only to areas served by investor-owned utilities (Oncor, CenterPoint, AEP Texas, TNMP) within the ERCOT grid. Austin Energy is a municipal utility — owned and operated by the City of Austin. Municipal utilities were excluded from the 1999 deregulation law (Senate Bill 7) and chose to remain outside the competitive market. Austin City Council sets Austin Energy rates, not market competition.
What are typical Austin Energy electricity rates?
Austin Energy uses a tiered rate structure where the first block of kWh costs less per unit and rates rise as usage increases. As of May 2026, the all-in effective rate for most Austin residential customers runs approximately 9.5–13.0 cents per kWh depending on usage level and which rate adjustors apply. Austin Energy has historically offered rates below the Texas competitive market average, in part due to its renewable energy portfolio and municipal cost structure. Contact Austin Energy or visit austinenergy.com for the current approved rate schedule.
What is Austin Energy's green power program?
Austin Energy offers GreenChoice, one of the longest-running municipal renewable energy subscription programs in the United States. GreenChoice customers pay a premium to lock in a fixed price for wind and solar energy for up to 10 years. The program has historically filled quickly when opened for enrollment. Visit austinenergy.com/GreenChoice for current availability and pricing.
If I move to the Austin suburbs, can I get competitive electricity?
It depends on where you move. Round Rock and Pflugerville are partially Oncor Electric Delivery territory and may be in the deregulated market. Cedar Park and Leander are largely served by Pedernales Electric Cooperative. Georgetown is served by Georgetown Utilities. None of these is Austin Energy. Confirm your address by entering your ZIP in the search tool — if competitive plans appear, you can shop.
Are there low-income electricity assistance programs in Austin?
Yes. Austin Energy operates the Customer Assistance Program (CAP) for income-eligible residential customers, providing a monthly bill discount. Additionally, LIHEAP (Low Income Home Energy Assistance Program) assistance is available through the City of Austin's social services programs. Contact Austin Energy at 512-494-9400 for current program availability and eligibility.
Learn More
For the deregulated Austin suburb market, see the Round Rock electricity rates guide. For an explanation of which Texas cities are deregulated and which are not, see the how Texas deregulation works guide. San Antonio is another major non-deregulated Texas city — the San Antonio electricity rates guide covers CPS Energy in detail. The cheapest electricity by Texas city guide covers the competitive market.
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