Houston Electricity Rates
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Why Houston Electricity Bills Hit $300+ in Summer
Houston's humidity is the real problem.
Your AC doesn't just cool the air, it has to remove moisture. That humidity makes your AC work 20-30% harder than the same unit in Dallas or Austin. Houston AC units run 2,800-3,300 hours per year. The national average? 1,800 hours.
Summer Reality Check
Winter Relief
Houston's mild winters mean heating costs stay low. Most of your winter bill is still the fridge, lights, and phantom loads.
About CenterPoint Energy (Your TDSP)
If you live in Houston, CenterPoint Energy delivers your electricity regardless of which retail provider you choose. They own and maintain the power lines, transformers, and meters.
CenterPoint charges a delivery fee that's the same no matter which provider you pick. As of late 2025, their charges are:
- →Base charge: $4.90/month
- →Delivery charge: 6.0009¢/kWh
The rates you see on our comparison tool already include CenterPoint's delivery charges. You're comparing the total price you'll actually pay.
Houston's Deregulated Electricity Market
Houston has been deregulated since 2002. That means you're not stuck with one utility company. Over 40 retail electricity providers compete for your business, and that competition keeps prices lower than they'd be otherwise.
What Competition Gets You
- →Rates as low as 9¢/kWh (vs. 16.67¢ Houston average)
- →100% renewable energy plans at competitive prices
- →No-contract variable plans for flexibility
- →Fixed-rate plans that lock in pricing for up to 36 months
What to Watch Out For
- →Teaser rates that only work at exactly 1,000 kWh
- →Bill credits that disappear if you use too much or too little
- →High cancellation fees ($150-$300)
- →Auto-renewal at much higher rates after contract ends
Houston Money-Saving Tip
Most Houstonians use 2,000+ kWh in summer and 1,200 kWh in winter. When comparing plans, check the rate at 2,000 kWh, not just 1,000 kWh. Some plans that look cheap at 1,000 kWh get expensive at 2,000 kWh, which is what you'll actually use June through September.
What's Normal in Houston?
Your usage depends on home size, AC thermostat setting, insulation quality, and how many people live there. Here's what's typical:
| Home Type | Summer (Jun-Sep) | Winter (Nov-Mar) | Summer Bill (@ 16¢/kWh) |
|---|---|---|---|
| Apartment (500-1,000 sq ft) | 800-1,200 kWh | 600-900 kWh | $128-$192 |
| Small home (1,000-1,500 sq ft) | 1,200-1,600 kWh | 900-1,200 kWh | $192-$256 |
| Medium home (1,500-2,500 sq ft) | 1,400-1,800 kWh | 1,000-1,400 kWh | $224-$288 |
| Large home (2,500+ sq ft) | 2,000-3,000 kWh | 1,400-2,000 kWh | $320-$480 |
If your bills are significantly higher than these ranges, you might have insulation issues, an old AC unit, or air leaks. Consider an energy audit.
Best Time to Switch Electricity Providers in Houston
Good Times to Switch
- •April-May: Lock in a fixed rate before summer demand spikes
- •October-November: Providers compete harder when usage drops
- •30 days before contract ends: Avoid auto-renewal at higher rates
- •When moving: New address = fresh start, no cancellation fee
Times to Be Careful
- •July-August: Peak demand = higher rates across the board
- •During winter freeze events: Rates temporarily spike
- •Mid-contract: You'll pay cancellation fees ($150-$300)
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