In Houston electricity per kWh is 16.2 cents if you use 1000 kWh per month. It’s 16.7 per kWh if you use 500 kWh per month and it’s 16.1 cents per kWh if you use 2000 kWh per month. These rates are for signing up for a 12 month agreement.
This was written on 9-26-2022. You can get an updated price for your current switch or move-in date at https://powertochoose.org
Power To Choose is a state sponsored non-profit comparison site for residential electric service in Texas. There are Houston electric rates comparisons on this site to make quick work of finding the best electric rates.
Sometimes a utility concierge is a good way to go if you are new to the Houston area or new to Texas. Feel free to call me directly if you would like help ordering your electric service. My name is Donny and my direct line is 1-903-245-4989.
The price per kWh can go down based on your kilowatt hour usage for a couple different reasons. Sometimes there is a monthly customer service fee that when averaged in to larger usage averages out at a lower rate.
If an electric company is charging you a $10 monthly arbitrary fee this will make your rate look different as an average number based on how many kilowatt hours you use in a month.
The Texas Electricity Facts Label is a legal requirement that all electric providers must include with their advertised rate. Not may people take the time to look at it but it shows that your fixed electric rate is subject to change.
Fortunately it can only change based on strict government regulated reasons that are related to the Transmission and Distribution of the electricity (Pass-Through Charges), changes to the Electric Reliability Council of Texas, regulatory actions, and local or state law changes.
Surprise, You May Get a higher Average Fixed Electric Rate the More Kilowatt hours You Use
What you may see with your fixed electric rate when you get your bill is a higher average electric rate if you use a lot of kilowatt hours in the month. The TDU may Pass-Through a demand charge that raises the average rate you pay if you demand energy during peak times during the day too much.
Unfortunately the demand charge for residential service will remain a mystery until you start getting charged. It is best to use your electricity service moderately during peak air conditioning times to avoid a higher demand charge.
What is the Commercial Energy price per kWh in Houston Texas
If you need to know the commercial electricity price per kWh in Houston Texas it is pretty simple but can be complicated.
I will break it down simple for those that can make due with the simple answer.
Commercial electric rates area generally about 4 cents cheaper than residential electric rates but this is not always the case.
So as of today a 12 month fixed electric rate for a home is 16.2 cent per kWh so a commercial rate is likely 12.2 cents per kWh.
To complicate matters commercial electricity prices vary in price based on “load profile” and there are even industry break downs that show what the price is based on the industry your company is in.
When quoted a commercial price you will be quoted the “energy only” price. The TDU (Transmission and Distribution Charges) are shown separately and are not a part of the quote but given to see what the “all-in” rate would look like. The TDU charges are a pass-through charge and are non-negotiable.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.
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