Question: What is a good rate per kWh in Texas?
Answer: The average Texas household pays 11.1¢ per kWh.
This is based on the most recent annual residential electric rates data compiled by the Public Utility Commission of Texas.
If you were to find an electric service rate lower than 11.1¢ per kilowatt-hour, then you achieved a “good” electric rate compared to the average.
This is annual averages and because prices spiked to historical highs it is not typical of what the market has shown recently.
In the summer just a few short months ago residential electric rates were averaging around 23 cents per kWh for a 12 month fixed agreement.
Depending on the time of year the average rate might look double what the average annual rate would look like.
Consider that people who locked in around summer time who went shopping looking for the best rate ended up with a 23 cent per kWh rate and that was considered the best.
A year from that point of locking into this really expensive rate the market may have subsided and have average rates back in the 11 cent per kWh range.
Shopping for a new rate a year from this high point could offer a whole new price level that would look more favorable for what Texas has to offer electric service customers.
Some people who have moved to Texas from California in the summer of 2022 were disappointed that electric rates seemed about the same as California.
Hopefully this will change in the near future based on natural gas generation prices coming back down.
You can read more about this and how the Russia and Ukraine war has caused Texas electricity prices to rise because of liquid natural gas exports.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.