Electricity Bills 101: The Average Cost of Electricity

We want to help you understand the average cost of electricity in Texas, to make sure that you’re getting the best rate possible,

At EnerWisely, we’re dedicated to finding the cheapest electricity plans in your area that match your home’s unique needs.

These figures can serve as a point of comparison when searching EnerWisely for the plan that’s right for you.

How Much Does the Average Electricity Bill Cost?

The average monthly electricity bill in the United States is $121.01.

This is based on information from the Energy Information Administration. The EIA publishes a list of the average residential electricity bill by state.

What is the average energy price in Texas?

Keep in mind that the average prices published by the EIA, are a lot lower than ones published by the Public Texas Utility Commission (PUCT).

The PUCT published a summary of representative electricity prices by zip code. Those zip codes are grouped under one of the five Utility Areas in the state.

When trying to understand energy bills, you will come across terms like energy rates, energy prices, and energy costs. Keeping in mind that both gas and electricity are forms of energy, both services generate utility bills.

Understanding energy prices can be a little bit trickier than comparing streaming services for example.

Gas prices affect both types of bills. However, there is less flexibility on the gas bill for homes as typically you don’t get to choose your gas provider.

For electricity this is different. In Texas competitive electricity markets, you have the power to choose your provider. Each retail electricity provider (REP) offers several light plans and electricity rates.

This is normally simplified as an advertised rate. The truth is that your effective rate plan depends on the amount of electricity you use. Often, your bill is not calculated based on the total monthly consumption. That’s why looking at average electricity rates can be misleading.

What is the Average Monthly Electricity Bill in Texas?

Residential electricity consumers in Texas pay an average of $132.40 per month for their electricity bill.

What is a Good Cost per kWh in Texas?

From the EIA’s report, we can see that the average cost of electricity per kWh in Texas was 12.11 cents in 2021.

However, according to the PUCT the average rates published in Power to Choose was 19.95 cents per kWh in the Oncor service area. For CenterPoint utility, which covers Houston and surrounding area, the cost per kWh was 21.53 cents.

If you’re paying around this much or less, then you can be sure you’re getting a good rate per kWh.

The average prices shown on this sheet were compiled by the PUCT based on the Electricity Facts Labels of the Electricity Providers REPs. The actual cost per kWh to a customer may vary based on the actual usage of the customer.

Here are some examples of the average rates published that the PUCT published on June 2022, based on the last 12 months

 

Average Electricity Prices Dallas Area –

TDU Service Area – Oncor Electric Delivery

Table

	Average Monthly Usage
Retail Electric Provider	500 kWh	1000 kWh	2000 kWh
AMBIT ENERGY Lone Star Classic 12	22.60 ¢	21.27 ¢	22.60 ¢
DIRECT ENERGY Live Brighter	27.21 ¢	26.37 ¢	25.95 ¢
DISCOUNT POWER Wise Buy – 12	27.45 ¢	25.70 ¢	24.95 ¢
GREEN MOUNTAIN ENERGY Pollution Free 12	26.21 ¢	25.37 ¢	24.95 ¢
RELIANT ENERGY Secure Advantage 12 Plan	26.21 ¢	25.37 ¢	24.95 ¢
TXU ENERGY Simple rate 12	27.56 ¢	26.23 ¢	25.56 ¢
VETERAN ENERGY Basic 12	20.29 ¢	19.95 ¢	19.78 ¢

Average Electricity Prices Houston Area –

TDU Service Area – CenterPoint Energy 

Table

	Average Monthly Usage
Retail Electric Provider	500 kWh	1000 kWh	2000 kWh
AMBIT ENERGY Lone Star Classic 12	26.60 ¢	25.16 ¢	24.45 ¢
DIRECT ENERGY Live Brighter	28.35 ¢	27.42 ¢	26.95 ¢
DISCOUNT POWER Wise Buy – 12	28.60 ¢	26.75 ¢	25.95 ¢
GREEN MOUNTAIN ENERGY Pollution Free 12	27.36 ¢	26.42 ¢	25.95 ¢
RELIANT ENERGY Secure Advantage 12 Plan	27.36 ¢	26.42 ¢	25.95 ¢
TXU ENERGY Simple rate 12	28.47 ¢	27.03 ¢	26.32 ¢
VETERAN ENERGY Basic 12	23.38 ¢	21.53 ¢	20.73 ¢

Average Electricity Prices Brazoria, Friendswood Area –

TDU Service Area – Texas New Mexico Power 

Table

	Average Monthly Usage
Retail Electric Provider	500 kWh	1000 kWh	2000 kWh
AMBIT ENERGY Lone Star Classic 12	26.53 ¢	24.75 ¢	¢
DIRECT ENERGY Live Brighter	29.87 ¢	28.59 ¢	27.95 ¢
DISCOUNT POWER Wise Buy – 12	28.30 ¢	27.43 ¢	25.95 ¢
GREEN MOUNTAIN ENERGY Pollution Free 12	28.88 ¢	27.59 ¢	26.95 ¢
RELIANT ENERGY Secure Advantage 12 Plan	28.88 ¢	27.59 ¢	26.95 ¢
TXU ENERGY Simple rate 12	24.19 ¢	22.41 ¢	21.52 ¢
VETERAN ENERGY Basic 12	24.32 ¢	22.21 ¢	21.15 ¢

Average Electricity Prices Corpus Christi, McAllen & Laredo Area –

TDU Service Area – AEP Texas Central

Table

	Average Monthly Usage
Retail Electric Provider	500 kWh	1000 kWh	2000 kWh
AMBIT ENERGY Lone Star Classic 12	23.98 ¢	22.39 ¢	21.60 ¢
DIRECT ENERGY Live Brighter	27.57 ¢	26.49 ¢	25.95 ¢
DISCOUNT POWER Wise Buy – 12	28.82 ¢	26.82 ¢	25.95 ¢
GREEN MOUNTAIN ENERGY Pollution Free 12	27.58 ¢	26.49 ¢	25.95 ¢
RELIANT ENERGY Secure Advantage 12 Plan	27.58 ¢	26.49 ¢	25.95 ¢
TXU ENERGY Simple rate 12	24.29 ¢	22.70 ¢	21.91 ¢
VETERAN ENERGY Basic 12	23.53 ¢	21.53 ¢	20.65 ¢

Average Electricity Prices Corpus Abilene, San Angelo Area –

TDU Service Area – AEP Texas North

Table

	Average Monthly Usage
Retail Electric Provider	500 kWh	1000 kWh	2000 kWh
AMBIT ENERGY Lone Star Classic 12	23.97 ¢	22.39 ¢	21.60 ¢
DIRECT ENERGY Live Brighter	27.57 ¢	26.49 ¢	25.95 ¢
DISCOUNT POWER Wise Buy – 12	26.83 ¢	26.24 ¢	25.95 ¢
GREEN MOUNTAIN ENERGY Pollution Free 12	27.58 ¢	26.49 ¢	25.95 ¢
RELIANT ENERGY Secure Advantage 12 Plan	27.58 ¢	26.49 ¢	25.95 ¢
TXU ENERGY Simple rate 12	23.87 ¢	22.29 ¢	21.50 ¢
VETERAN ENERGY Basic 12	19.54 ¢	18.95 ¢	18.65 ¢

How Much Does Heating and Cooling Cost on Average?

The latest data from the EIA says that in areas like Texas (hot and humid during the summer), the average residential electricity consumer was paying about $520 per year in air conditioning costs.

For heating, the average cost of electricity was about $400 per year.

These stats are due to be updated next year, in 2023. Due to inflation and other market factors, it’s safe to expect these figures have at least doubled since the last update.

How to Save Money on Your Electricity Bill

One of the best ways to save money on your electricity bill is to check with EnerWisely to ensure you’re on the best plan for your needs. It will also give your personalized saving tips to improve your home’s energy efficiency.

If you prefer to research on your own, pay close attention to the following factors that are driving the cost of your bill:

Eliminate Energy Vampires

Inefficient use of energy might be the number one reason your electricity bill is too high.

Throughout your home, many devices continue to draw power even when it seems like they’re off. These energy vampires can drain dozens of kWh per month in pure waste. Identifying and eliminating these sources of waste can make a big difference in your bill.

Shift your Time of Use

If it’s possible for you to change the hours during which you use most of your electricity, you could save thousands of dollars per year on a time-of-use plan.

Certain plans in Texas offer free nights or weekends. Check with EnerWisely’s plan matchmaker tool to see if there are any in your area.

Use Energy Efficient Appliances and Electronics

When shopping for appliances, make sure you’re always searching for the Energy Star label. The Energy Star is a government program that identifies the appliances and electronics developed with energy efficiency in mind and that meet a certain threshold described by Energy Star.

How to Save on Heating and Cooling Costs

Try these simple tips to save big on your heating and cooling costs:

Use It Smart

It’s simple, but learning to live in slightly warmer or colder conditions than you’re used to could make a big difference in your monthly bill. For example try to use a cooling setting of 75 degrees Fahrenheit or more in the summer, and a heating setting of 72 degrees Fahrenheit or less in the winter.

Insulate

Your home’s insulation is possibly the biggest factor for energy efficiency. Making sure your entire home is properly insulated is the first step toward ensuring total energy efficiency.

Upgrade Your Thermostat

Your home’s thermostat and heating and cooling systems should be upgraded to the latest, most reliable models. Technology has come a long way, and modern equipment has the sensitivity and functionality to keep your home at a stable temperature using the least amount of energy possible.

Check for Leaks

Look at any weak points (connections, wall intersections, windows, doors, etc.) where air could potentially leak from your heating or cooling systems.

How to Get the Lowest Price on Your Electricity Bill

Knowing the average cost of electricity can help you understand how much you should be paying. However, averages lack a lot of important contextual details that will affect the cost of your bills.

If you find that you’re paying electricity bills that are significantly higher than the average cost of electricity, it may be time to perform a home energy audit to find out if you’ve got any glaring inefficiencies.

EnerWisely has a free online tool that can provide you with a home energy score. This is the equivalent to the gas efficiency of your car. And it helps you compare with other homes in your area to have points of reference.

Additionally, EnerWisely helps you check to make sure that you are getting the best deals for electricity prices. The plan comparison tool of EnerWisely analyzes all electricity plans available in your area based on your consumption.

And to keep things simple, it shows you matching scores. The matching scores reflect how good each electricity plan works for you. The higher the score, the better the deal is for you. A smart comparison tool that allows you to choose smart, quickly and with confidence.

EnerWisely is the only way to shop for plans using intelligent analytics that suggest the best plan for your needs and the ways you can improve your home’s energy efficiency and save even more money. We also have a unique rewards program that keeps the benefits rolling in even after you’ve shopped with us.

If you’re ready to start saving money and improve your home’s energy efficiency at the same time, start EnerWisely free home energy quiz. And if all you’re looking for is the cheapest electricity rates, use EnerWisely free best deal finder tool.