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Houston Electricity Rate for Residential Consumers

by David Mac - 13 Jul 2022, Wednesday 285 Views Like (0)
Houston Electricity Rate for Residential Consumers

The average residential customer in Houston pays 9.24 cents per kilowatt hour for electricity, according to the Houston Chronicle. That's about one-third of what the national average is and a fraction of what customers in some other major U.S. cities pay.

What is Houston Electricity Rate?

Houston electricity rate is the price charged by Houston area utilities for electricity used in homes. It is based on the average cost of producing electricity in Texas and includes an allowance for energy use. The rate is updated monthly.

Houston’s electricity rates are not regulated like other cities in the state. This means that Houston’s prices are determined by a market mechanism. The price of electricity is set each weekday morning by the wholesale cost of electricity, which is the cost at which power plants sell electricity to generators. The city sets an average cost which is used to calculate electric bills.


Houston has had sporadic increases and decreases in its electricity prices over the years. In 2002, the average residential bill was $87 per month. By 2009, however, that figure had increased to $139 per month. The city began to see decreases in electricity prices starting in 2011, and since then the average residential bill has been $96 per month.

Houston offers three plans through TXU Energy: Basic, mid-tier, and premium. The Basic plan has an annual fee of $8 per month and provides customers with 1,000 kWh of electricity per month. The mid-tier plan has an annual fee of $16 per month and provides customers with 2,000 kWh of electricity per month.

Houston Electricity Rate by Company

Houston has some of the most competitive electricity rates in the United States. This is primarily due to Houston's energy market being among the most competitive in the country.

The average residential electricity rate in Houston is currently $0.176 per kWh. This is significantly lower than the national average of $0.253 per kWh, and it ranks as one of the lowest rates in the country.

Of course, this doesn't mean that Houston electricity rates are unbeatable. The average rate that you'll pay will depend on your specific situation and your Electricity provider. However, these rates are definitely worth checking out if you're in the market for a new electricity contract.


Houston Electricity Rate by Type of Service

Houston electricity rates are based on the amount of energy used, not the type of service. A kilowatt hour is 1,000 watts used for one hour. Houston uses the Texas Interconnection grid and has its own power plants. This means that Houston electricity rates are different from other cities in Texas and also from other parts of the country.


Houston electricity rates for residential consumers are dependent on the type of service they choose. The three types of service are standard, peak, and off-peak. Standard service is the cheapest, and it’s available during off-peak hours. Peak service is more expensive, but it’s available during peak hours. Off-peak service is the most expensive, and it’s available at all hours.

Houston electricity rates also vary depending on the size of the household. A household with one person consumes about half as much electricity as a household with four people. Rates also vary by month, so be sure to check your bill each month to see how your electricity costs change.

Houston Electricity Rate by Monthly Usage

Houston is a great city to live in and it's also great to have access to clean and affordable energy. The electricity rates for Houston residents are some of the lowest in the country, making it an excellent place to live and work. The average residential electricity rate in Houston is just 36.58 cents per kWh, which is less than half the national average of $0.79 per kWh. This means that you can save money on your energy bill every month by using Houston electricity.

Houston electricity rates for residential consumers are typically quite high, but there are a few things you can do to minimize your electric bill. First, make sure to use the most energy-efficient appliances and devices that you can. Second, be sure to account for seasonal changes when it comes to your HVAC system — during the summer months, for example, it’s often more important to keep your home cooler than it is to save on your electricity bill. Finally, be aware of Houston’s green energy incentives and take advantage of them whenever possible.