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The most affordable cities in Texas for electricity 

By Tiffany Reynolds

Texas electricity rates have recently been on the rise owing to changes in seasons that increase power demand and energy production costs. With most of the Texas energy market deregulated, residents can pick affordable electricity plans from a catalog of energy providers. Choosing a new electricity plan to meet your energy needs can be confusing as you need to consider numerous factors. Also, when should you switch electric plans to avoid termination fees? 

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Power Wizard’s DIY shopping tool empowers you to make the right energy decisions. We’ve consolidated different electric plans across several parts of Texas to help you pick the most affordable electricity in Texas. Here’s further insight into finding the best electric rate in a few of the most affordable cities in Texas. 

What are the most affordable cities in Texas regarding electricity? 

Whether you live in Texas or are planning to move here, knowing the prevailing electricity rates is crucial in making informed energy decisions. A few cities with the cheapest electricity in Texas include: 


This city of Texas is second only to California in terms of economic size and population. The city also stands sixth nationwide in total per capita energy consumption. Knowing your approximate monthly kilowatt-hours (kWh) and your home’s square footage can help you calculate future electric costs. Dallas homeowners use about 937 kWh of electricity every month, which is about 0.04% more than the national consumption of 900kWh. 

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Dallas energy prices are less than 15% of the national average in Texas. The city enjoys lower electricity rates than other Texas cities. Also, Dallas’s average apartment size is 848 square feet, with a median home size of 1,862 square feet. These attributes cause cheaper wholesale energy rates and better weather. 

Renewable energy sources are favored in Dallas since homeowners receive renewable energy tax credits. A federal tax credit is a dollar-for-dollar decrease in your payable income tax. For instance, in the federal solar tax credit, you can claim a tax reduction for a percentage of the cost of putting up your solar photovoltaic (PV) system. 

For eligibility, the PV system must have been used throughout the entire tax year and generate renewable energy for your home. Choosing an electrical plan from a renewable energy service provider also translates to lower electric utilities. Finding the ideal electricity plan can be tricky, with tons of retail electricity providers to pick from in a dynamic energy market. Power Wizard can help you easily navigate the Dallas, Texas, deregulated energy market and uncover the best Dallas electric plans and energy companies. 

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Fort Worth 

Fort Worth, the 12th biggest city in the U.S., is renowned for its casual cowboy feel. With a population of about 1 million, Fort Worth makes up about half of the broader Dallas-Fort Worth metropolitan region. The mean residential electric rate in Fort Worth is 12 cents per kWh which is similar to the mean rate in the wider Texas region but 22% lower than the national average. 

With an average monthly electricity consumption of 1,436 kWh, you spend about $172/month. Fort Worth residents get to enjoy the convenience of the deregulated energy market system. The numerous competitive electricity prices allow you to pick a retail electricity provider that meets your needs. You can also choose incentivized renewable electric plans that help diversify energy sources, reduce carbon emissions, and decrease dependence on fossil fuels. 


Houston is regarded as the energy capital of the world. This city in Texas is an intellectual capital. Houston is home to almost every facet of the energy sector, including production, exploration, marketing, transmission, technology, and supply. With over 4,600 energy-related firms, the area supports about a third of the country’s gas and oil extraction employment. Houston, Texas, electricity rates cost about 12 cents per kWh. 

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Due to the high concentration of thought leaders and electricity companies, Houston city has numerous opportunities for growth in renewable energy resources and power tech. The region’s ecosystem provides a competitive edge to energy providers working in wind, biomass, solar, and other renewable alternatives. 

With advances in renewable energy resources, Houston is well-positioned to set up large scale solar and wind projects for more affordable future energy costs and reduced power outages. Meanwhile, Power Wizard, a trusted energy information source, can help you find the best Houston electricity plans, rates, and companies to ensure that you don’t overpay. 

How do you find the best electric rate? 

Avoid jumping to any new appealing Texas electricity rate on offer. Do research before changing your existing electric plan to avoid making a mistake. You can find affordable electricity in Texas when you: 

1.   Compare electric companies and provider by zip code 

Look at your current rates to determine your pay per energy unit. Afterward, you can look at the new plan’s Electricity Facts Label (EFL) to see if you’re getting a good deal. The EFL ensures transparency by highlighting the factors impacting costs like recurrent charges, rates based on consumer energy habits, and the applicable zip code. 

The EFL has three main parts. 

  • The electricity price. The charges depend on the kWh used, base production costs, and power distribution fees. 
  • Rate calculation. Electricity retail plans may differ depending on the actual measures your provider uses. 
  • The disclosure chart. This section contains the details of your new plan featuring the duration, contract terms, and fees. 

Analyzing these factors allows you to compare and review the plans of different retail electricity providers based on your zip code. 

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2.   Know our options 

The electricity utilities you pay help meet the cost of power production and maintenance of the electric grid. The payments also fund public benefit programs promoting energy efficiency and adopting green energy practices. Two main residential energy plans are available: fixed rate and variable rate plans. 

Fixed rate plans 

In a fixed-rate or stable-rate electric plan, you get into a contract with a specific rate that doesn’t change irrespective of energy market fluctuations. With regular electricity habits, this energy plan ensures predictable electric bills with potential savings during spikes in market prices. While uncommon, unique situations may require a rate change and are defined in your contract terms and conditions. 

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Variable rate plans 

In variable rate energy plans, the cost of electricity changes based on the Retail Electric Providers preferences. This contract is, however, risky as you aren’t protected in case there are spikes in the energy markets. 

3.   Know your current energy usage 

Most advertised energy rates are based on specific consumption trends and don’t truly reflect the actual cost of electricity. Using Power Wizard’s calculator tool, you can perform a home energy audit to make an informed energy decision. The audit allows you to identify your energy patterns and possible energy conservation measures you can adopt. You can also use smart meters to monitor your energy consumption. 

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Stay in the know as an energy consumer 

Electricity costs are a product of how much power you consume per month and your current electricity plan. If you aren’t satisfied with your current electricity plan while living in Texas, consider switching to a new energy provider. The competition in the Texas deregulated market gives you the power to choose a cheap electric rate. 

Instead of going through the tedious process of scrolling through different energy sites, Power Wizard narrows down your preferred energy profile with a few mouse clicks. Enroll in our full service plan for improved customer service when looking for affordable electricity in Texas. 


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