Houston Electricity Rates - Compare Plans & Providers

Find the cheapest electricity rates in Houston & switch in minutes.
Get Started - It's Free
Houston
At GridHacker, we aim to provide up-to-date, informative content about electricity plans. Our partners do not direct our editorial content, but we may reference their plans in our articles. Read about how we make money to learn more.
Written By:
Thad Warren
done icon
Verified
By:
Kendra Aquino
On:
September 16, 2024

Best Electricity Rates in Houston

Houston, Let Us Power Your Home

Welcome to Houston, where the energy market is as dynamic as the city itself. At GridHacker, we know that setting up or switching electricity services can feel overwhelming. That’s why we’re here to simplify the process for you.

Our innovative approach takes the hassle out of finding the best electricity plan. By analyzing your past energy usage, we identify the plan that perfectly fits your needs and budget. Say goodbye to the confusion of complex energy plans and let us handle the hard work. Trust us to find the best electricity plan for you—you’ll be glad you did.

How to Switch Electricity Companies in Houston

Effortlessly switch to the best electricity provider in Houston using GridHacker. Here’s your quick guide to landing the most competitive electricity rate in Houston.

Step 1: Compare Electricity Rates in Houston

‍Start by entering your zip code here to uncover the array of options from premier Houston electric providers. To fine-tune your search for the best rates, utilize our data linking feature that retrieves your historical electricity usage from your utility, ensuring a match tailored to your consumption patterns.

Step 2: Dive into the Plan Details

‍Navigating electric plans can feel like deciphering a complex circuit diagram. We steer clear of confusing introductory rates and convoluted terms that can lead to unexpected bill surges. On our site, you’ll find the plan details neatly laid out, translating the contract jargon into easily digestible information, so you can make an informed choice without the guesswork.

Step 3: Secure Your New Energy Plan

‍Once you’ve pinpointed the ideal energy plan for your Houston home or business, simply follow the step-by-step process to initiate the switch. We’ll equip you with a dashboard to monitor the progress of your new energy contract, ensuring a seamless transition and ongoing transparency.

Houston's dynamic energy market offers a spectrum of opportunities to not only reduce your electric bills but also align with your personal or business energy needs. With GridHacker, navigating this landscape becomes straightforward, empowering you to make the best energy decision for your needs.

Types of Energy Plans in Houston

There are several types of electricity plans available in Houston, Texas. These include:


Fixed-rate plans in Houston

These plans offer a fixed rate for the length of the contract, typically between 6 and 36 months. Customers on a fixed-rate plan will pay the same price for their energy usage each month, regardless of fluctuations in the market.


Variable-rate plans in Houston

These plans have rates that can fluctuate based on the market price of electricity. Customers on a variable-rate plan may see their rates go up or down each month.


Green energy plans in Houston

These plans offer electricity generated from renewable sources such as solar or wind. Customers on a green energy plan may pay a slightly higher rate for their electricity, but they can feel good about supporting renewable sources.


Prepaid plans in Houston

These plans allow customers to pay for their electricity usage in advance. Customers on a prepaid plan will not receive a monthly bill, but they will need to monitor their usage and add funds to their account as needed.

It's important to compare different plans and choose one that best fits your needs and budget. You can compare electricity plans in Houston by contacting the various electricity providers in the area and asking about their available plans and rates.


Electric Utilities and Providers in Houston

There are two types of electric companies in Houston that you are likely familiar with. Utilities and providers. Keep reading to learn more.


The Electric utility in Houston is CenterPoint Energy

The electric utility in Houston is CenterPoint Energy. They are responsible for maintaining the electricity grid and delivering electricity to homes and businesses through a network of power lines and other electrical infrastructure.

When you have a power outage your utility company is responsible for making the repairs.


Electricity Service Information in Houston

Report an electricity outage in Houston

To report an electricity outage or downed power line, contact CenterPoint Energy at 800-332-7143.

You can also report an outage with CenterPoint online here.

Shop cities nearby to Houston

Houston zipcodes

77001 77002 77003 77004 77005 77006 77007 77008 77009 77010 77011 77012 77013 77014 77015 77016 77017 77018 77019 77020 77021 77022 77023 77024 77025 77026 77027 77028 77029 77030 77031 77032 77033 77034 77035 77036 77037 77038 77039 77040 77041 77042 77043 77044 77045 77046 77047 77048 77049 77050 77051 77052 77053 77054 77055 77056 77057 77058 77059 77060 77061 77062 77063 77064 77065 77066 77067 77068 77069 77070 77071 77072 77073 77074 77075 77076 77077 77078 77079 77080 77081 77082 77083 77084 77085 77086 77087 77088 77089 77090 77091 77092 77093 77094 77095 77096 77097 77098 77099 77201 77202 77203 77204 77205 77206 77207 77208 77209 77210 77212 77213 77215 77216 77217 77218 77219 77220 77221 77222 77223 77224 77225 77226 77227 77228 77229 77230 77231 77233 77234 77235 77236 77237 77238 77240 77241 77242 77243 77244 77245 77246 77247 77248 77249 77250 77251 77252 77253 77254 77255 77256 77257 77258 77259 77260 77261 77262 77263 77265 77266 77267 77268 77269 77270 77271 77272 77273 77274 77275 77276 77277 77278 77279 77280 77282 77284 77285 77286 77287 77288 77289 77290 77291 77292 77293 77294 77296 77297 77298 77299

Other energy resources for Houston

Houston Electricity FAQs

The cheapest electricity provider is Chariot Energy, with a rate as low as 9.7.

The electric utility in Houston, Texas is CenterPoint. Some areas of Houston may be served by other utilities or co-ops. You can find the utility for your address here.

There are several ways you can lower your electricity bill in Houston:

  1. Use energy-efficient appliances: Replacing your old appliances with Energy Star certified appliances can help you save on your electric bills. These appliances are designed to use less energy and can help you reduce your energy consumption.
  2. Turn off lights and appliances when not in use: Leaving lights and appliances on when you're not using them can add up on your electricity bill. Make a habit of turning off lights and appliances when you leave a room or when you're finished using them.
  3. Use natural light: During the day, open blinds and curtains to let in natural light instead of turning on the lights. This can help you save energy and lower your electricity bill.
  4. Install a programmable thermostat: A programmable thermostat can help you save on your electric bills by allowing you to set a schedule for your heating and cooling system. You can set the thermostat to turn off when you're not home or when you're asleep, which can help you reduce your energy consumption.
  5. Shop around for a better electricity rate: The cost of electricity can vary significantly among different providers. By shopping around and comparing rates, you may be able to find a better deal and lower your electric bills

Transmission fees, also known as delivery fees, are charges from your utility company for delivering electricity from the power plant to your home or business. These fees cover the maintenance of the power lines, poles, and other infrastructure necessary to keep electricity flowing safely and reliably to your location.

Even though you pay your electricity bill to your energy provider, the transmission fees are set by the utility and are included in your bill as a separate charge. These fees are regulated by state agencies to ensure fairness​​.

If you need same-day electricity service in Texas, you're in luck—thanks to deregulation, you have options to get power quickly. Here’s how to secure electricity on the same day:

  1. Choose a Provider Offering Same-Day Service: Some Texas electricity providers specialize in fast activation. Companies like TXU Energy, Reliant, and Direct Energy often offer same-day service if you sign up early in the day.
  2. Apply Early: To increase your chances of getting power the same day, submit your application before noon. This allows enough time for processing.
  3. Select a No-Deposit Plan: If you're worried about delays due to credit checks or deposits, opt for a no-deposit or prepaid plan. These plans often have faster processing times because they skip the credit check and deposit requirements.
  4. Use a Smart Meter: If your property has a smart meter, the provider can usually activate your service remotely, speeding up the process. Make sure to mention this when signing up.
  5. Confirm Activation: After signing up, confirm with the provider that your electricity will be activated on the same day. Some providers may offer a confirmation email or text message once your service is live.

For more detailed information, check out the full guide on GridHacker's blog.

Getting ready to move to Houston? Here's how to set up electricity in the Bayou City, where you have plenty of choices to find the perfect plan for your new home.

1. Understand Houston’s Deregulated Market

Houston operates in a deregulated electricity market, which means you get to pick your electricity provider instead of being stuck with a single utility. This opens up a wide range of options, allowing you to find a plan that matches your lifestyle and energy habits.

2. Shop Around for the Best Plan

Your next step is to shop around. Houston has a variety of electricity plans, from month-to-month variable rates to long-term fixed-rate contracts. If you value stability and don't want your rate to fluctuate, a fixed-rate plan could be the way to go. However, if you’re comfortable with some variability in your bill, a variable-rate plan might offer lower rates when market prices drop.

Use a reliable tool like GridHacker to compare plans from different providers. Be sure to check the Electricity Facts Label (EFL) for each option, which gives you the details on pricing, contract length, and any additional fees.

3. Choose Your Provider and Plan

After reviewing your options, select the provider and plan that best fits your needs. During the sign-up process, you’ll need to provide your new address and the date you want your service to start.

4. Initiate Service Setup

Once you've enrolled in a plan, your new provider will take care of the rest, including coordinating with CenterPoint Energy, Houston's local utility that manages the infrastructure and handles any power outages. If your move-in date is coming up soon, make sure to schedule the start of your service in advance to avoid any delays.

5. Monitor Your Electricity Use

After your electricity is up and running, it's wise to keep track of your energy consumption. Houston’s hot and humid climate can lead to higher energy usage, especially in the summer, so monitoring tools or alerts from your provider can help you stay within your budget.

With these steps, you'll be all set to power your new home in Houston, leaving you free to explore everything this vibrant city has to offer!

An Electricity Facts Label (EFL) is a standardized document required by the Public Utility Commission of Texas (PUCT) that provides a clear and detailed breakdown of the essential components of an electricity plan. The purpose of the EFL is to ensure that consumers can easily compare different plans and make informed decisions based on transparent and consistent information.

Here’s what you’ll typically find in an EFL:

  1. Energy Charge: This is the cost of the electricity itself, usually expressed in cents per kilowatt-hour (kWh). The energy charge can be fixed or variable, depending on the type of plan.
  2. Base Charge: Some plans include a flat fee that you pay regardless of how much electricity you use. This base charge is often listed separately and can affect your overall cost, especially if your electricity usage is low.
  3. TDU Delivery Charges: The Transmission and Distribution Utility (TDU) charges are fees for delivering electricity to your home, maintaining the grid, and covering related infrastructure costs. These are typically passed through to you by the electricity provider and are included in your monthly bill. They can be a significant part of your total cost, so it’s important to consider them when comparing plans.
  4. Usage Credits or Discounts: Some plans offer bill credits if you use a certain amount of electricity each month. For instance, a plan might provide a $30 credit if your monthly usage exceeds 1,000 kWh. These credits can help lower your bill, but only if your usage falls within the specified range.
  5. Contract Terms: The EFL outlines the length of the contract, which could range from a few months to several years. It also details any early termination fees you might incur if you cancel the plan before the contract ends.
  6. Renewable Content: If you're environmentally conscious, you'll want to pay attention to this section. The EFL will specify the percentage of electricity sourced from renewable energy, which can help you choose a greener plan.
  7. Other Fees and Charges: The EFL will also list any other fees that might apply, such as late payment fees, fees for paper billing, or additional charges for using certain payment methods.

Why the EFL Matters When Shopping for an Electricity Plan in Texas

In Texas, the electricity market is deregulated, which means you have the power to choose your electricity provider and plan. However, with so many options available, it can be overwhelming to decide which plan is best for you. This is where the EFL comes in handy. By comparing the EFLs of different plans, you can see beyond the flashy marketing claims and understand the real costs involved.

For example, you might come across a plan that advertises a super low rate. But when you dig into the EFL, you discover that the low rate only applies if you use exactly 1,000 kWh in a month—use less or more, and your rate could skyrocket. Without the EFL, it would be easy to overlook these details and end up with a plan that’s not actually as good as it seems.

How to Use the EFL When Comparing Plans

When you’re comparing electricity plans, the EFL allows you to do an apples-to-apples comparison. Here’s how you can use it effectively:

  1. Look at the Rate Structure: Check whether the energy charge is fixed or variable. If it’s variable, understand how it can change over time.
  2. Consider Your Usage: Analyze the rate at different usage levels (500 kWh, 1,000 kWh, 2,000 kWh) to see how your monthly bill might vary.
  3. Examine the Fees: Don’t ignore the TDU charges, base charges, and any potential penalties for early termination. These can add up quickly.
  4. Check for Bill Credits or Discounts: If a plan offers usage credits, think about whether your typical monthly usage will allow you to take advantage of these credits.
  5. Pay Attention to Contract Length: Make sure the contract term aligns with your needs. If you might move soon or prefer flexibility, a shorter contract or a month-to-month plan might be better.

Key Takeaway: The EFL is Your Best Tool for Informed Decision-Making

The Electricity Facts Label is the key to making an informed decision when choosing an electricity plan in Texas. It provides transparency, allowing you to see exactly what you’re signing up for, without any hidden surprises. By carefully reviewing the EFL, you can ensure that the plan you choose aligns with your budget, usage habits, and preferences. So, the next time you're shopping for electricity, make sure to scrutinize the EFL—it’s your roadmap to avoiding unexpected costs and finding the best deal.

You can find more information about EFLs and how to read an EFL here.

How to Avoid an Early Termination Fee on Your Electricity Plan

So, you’re thinking about switching electricity plans but worried about getting slapped with an early termination fee (ETF)? It’s a common concern, especially if you’re in a deregulated market where you have the power to choose your energy provider. But don’t worry—I’ve got you covered with tips to help you navigate this situation without any unwelcome surprises.

What’s the Big Deal About Early Termination Fees?

First off, an early termination fee is essentially a penalty that electricity providers charge if you cancel your contract before the end of the agreed term. These fees can range from as low as $50 to over $200, depending on your plan and provider. It’s a way for companies to recoup the costs of losing a customer early.

1. Know Your Contract Inside and Out

The best way to avoid an ETF is to understand the terms of your contract from the get-go. When you sign up for a fixed-rate plan, you’re usually locked in for a specific period, often 12, 24, or even 36 months. If you decide to break that contract early, that’s when the ETF comes into play.

Pro Tip: Some providers offer plans without ETFs, or they might waive the fee under certain circumstances, like moving to an area they don’t service. Be sure to read the fine print on your Electricity Facts Label (EFL) or ask your provider directly about any exceptions.

2. Take Advantage of the Move-In Grace Period

In many deregulated markets, if you’re moving to a new address, you might be able to cancel your current plan without paying an ETF. Texas, for example, allows you to terminate your electricity contract without penalty if you’re moving to a location where your current provider doesn’t operate. Just make sure to provide proof of your new address.

3. Plan Your Switch Around Your Contract End Date

Timing is everything. If you’re thinking about switching providers, try to plan it around the end of your current contract. Most companies will send you a notice 30-60 days before your term ends, letting you know your options. This is your chance to shop around without worrying about ETFs.

Pro Tip: Even if your contract isn’t up yet, some providers will allow you to switch plans within the same company without a fee. It’s worth a call to customer service to ask.

4. Look for Plans with Low or No ETFs

Some electricity providers offer plans specifically designed to be flexible, with low or no early termination fees. These plans might have slightly higher rates, but the peace of mind they offer could be worth it, especially if you anticipate needing to switch plans before your contract is up.

5. Negotiate with Your Provider

Believe it or not, some providers are open to negotiating the ETF, especially if you’ve been a loyal customer or are willing to switch to another plan within their offerings. It never hurts to ask if they can reduce the fee or offer other perks to stay.

6. Utilize the Cooling-Off Period

In some states, there’s a “cooling-off” period right after you sign up for a new plan, during which you can cancel without any penalties. This period is typically a few days long, so if you have second thoughts immediately after signing up, you can back out without facing an ETF.

7. Watch Out for Automatic Renewals

Some contracts automatically renew at the end of the term, often at a different rate. If you’re not careful, you could be locked into another term with a new ETF. To avoid this, set a reminder to review your contract terms before the renewal date and switch or renegotiate if necessary.

Key Takeaway: Plan Ahead to Dodge Those Fees

The main takeaway here? Avoiding an early termination fee largely comes down to planning and awareness. By knowing your contract terms, timing your switch wisely, and exploring flexible plan options, you can often sidestep these fees altogether.

Ready to Shop Around?

If you’re thinking about switching your electricity plan, now’s the time to compare your options. Check out our marketplace to find the best rates and plans in your area. With a little foresight, you can find a plan that suits your needs—without worrying about pesky early termination fees.

Remember, your power is your choice. Use it wisely!