Texas Electricity Rate Calculator

Texas has a deregulated electricity market, meaning residents in most of the state can choose their retail electricity provider (REP). However, the delivery infrastructure remains regulated — you cannot choose your TDU. This two-part system means your final electricity bill has components from both your chosen retailer and your assigned TDU.

When shopping for electricity, many Texans focus solely on the advertised energy rate in cents per kWh. But this rate tells only part of the story. Your actual bill includes TDU delivery charges (both a fixed monthly fee and a per-kWh charge), retailer base fees, and potentially usage credits that only apply at specific consumption levels.

The Electricity Facts Label (EFL) is a standardized document required by the Public Utility Commission of Texas (PUCT) for every retail electricity plan. It shows the average price per kWh at three usage levels: 500, 1,000, and 2,000 kWh. This is the most reliable way to compare plans — but even the EFL can be misleading if your actual usage falls between these benchmarks or if usage credits create artificial dips in the pricing curve.

Every electricity bill in deregulated Texas includes TDU charges, regardless of which retailer you choose. These charges fund the maintenance and operation of the physical power grid — the poles, wires, transformers, and substations that deliver electricity from power plants to your home.

TDU charges have two components: a fixed monthly charge (ranging from about $3.42 to $7.85 depending on your territory) and a per-kWh delivery charge (approximately 3.8 to 4.5 cents per kWh). These charges are set by the PUCT and change periodically through rate cases.

The four main TDUs in Texas deregulated areas are Oncor (serving the Dallas and Fort Worth metro and much of North Texas), CenterPoint Energy (Houston metro), AEP Texas (South and West Texas including Corpus Christi, Laredo, and Midland), and TNMP (Texas-New Mexico Power, serving parts of Central Texas near Austin including Leander and Round Rock).

Many electricity plans advertise extremely low rates — sometimes as low as 5 or 6 cents per kWh. These headline rates often rely on usage credits that only apply when you use a very specific amount of electricity. For example, a plan might offer a $50 credit when you use exactly 1,000 kWh or more but less than 2,000 kWh.

At 1,000 kWh, that credit makes the plan look incredibly cheap. But at 500 kWh (where the credit does not apply), or at 2,000 kWh (where the credit is diluted across more usage), the effective rate can be significantly higher. Our calculator shows you the cost at multiple usage levels so you can identify these traps before signing a contract.