What Is a Good Electricity Rate in Texas?

Last updated October 18, 2026 · By the TexasPowerCost team

Right now, a good fixed electricity rate in Texas is about 12¢/kWh or lower — that is the cheapest quartile of standard fixed-rate plans statewide, measured against a median of roughly 13.2¢/kWh at 1,000 kWh of monthly use (based on 296 live plans, updated October 18, 2026). But the only rate that matters is the one you actually pay at your usage.

"Good rate" is the most common way Texans ask whether they are overpaying, but the advertised cents-per-kWh figure is a weak benchmark. In the deregulated ERCOT market, providers tune that number — especially on bill-credit plans — to look cheapest at exactly 1,000 kWh per month. Use a little more or less power and your real, effective rate moves. So a "good" rate is really two things at once: competitive versus today's market, and competitive at your own usage level.

A good rate versus the market

Against the current Texas market, a useful rule of thumb is: a rate at or below 12¢/kWh (the cheapest quarter of standard fixed plans) is a good deal; a rate near the median of 13.2¢/kWh is average; and anything well above the median is below-average value. These figures are the all-in effective rate at 1,000 kWh from the Electricity Facts Label — they already include recurring charges and bill credits, so they are comparable across providers.

A good rate versus your usage

The market benchmark only gets you halfway. The same plan can be a great rate for a 1,000 kWh home and a poor one for a 2,000 kWh home, because bill credits and fixed charges spread differently across your usage. To know whether a rate is good for you, it has to be priced at your real monthly kWh — not the advertised 1,000 kWh figure.

⚡ See your real rate at your usage →

How to judge a good rate

1. Know your real usage. Average the kWh from your last 12 bills.
2. Compare against the market. At or below the cheapest quartile is a good deal; above the median is below-average value.
3. Price at your usage, not the headline. Use a tool that interpolates the full EFL curve so the rate you compare is the rate you will pay.
4. Check the contract. Term length, early termination fee, minimum-usage fees, and fixed-versus-variable can all turn a low rate into a bad deal.

Keep reading

To understand why the advertised rate misleads, read The 1,000 kWh Illusion. To find the cheapest plan for your home, see the cheapest electricity supplier in Texas and our city-by-city rankings. For typical usage benchmarks, see average Texas home electricity usage. Want the math? Read our methodology.

Frequently asked questions

What is a good electricity rate in Texas right now?

A good fixed-rate plan in Texas is currently around 12 cents per kWh or lower — the cheapest quarter of standard fixed plans statewide, against a median near 13.2 cents. But the truly good rate is whichever plan gives the lowest total bill at your own monthly usage.

Why is the advertised rate not a reliable measure of a good rate?

Texas providers advertise the rate at exactly 1,000 kWh, a number they engineer to look low with bill credits. Use more or less power and your effective rate changes. A "good" advertised rate can become a poor real rate at 700 or 2,000 kWh.

What is the average electricity rate in Texas?

The median standard fixed-rate plan in our live data sits near 13.2 cents per kWh at 1,000 kWh of monthly usage. Rates above that are below-average value; rates near or under 12 cents are among the most competitive available today.

Is a lower rate always a better deal?

Not always. A low rate paired with a short term, a high early termination fee, a minimum-usage fee, or a variable structure can cost more overall. Judge a rate alongside the contract term, fees, and whether it is fixed before deciding it is good.

How do I find a good rate for my home?

Enter your ZIP code and your real monthly usage into a tool that prices every plan across the full EFL curve, then sort by total monthly cost. The plan at the top is the genuinely good rate for your home, not just a good-looking headline.