Energy Solutions: What Is a Good Rate per KWH in Texas?

Everything comes bigger in Texas. Including your electricity bill when those sweltering hot summers hit!

In 2019, the census found over 28 million Americans calling Texas their home. Most of these Texans found that deregulated electricity has helped save them a big chunk of change!

But, how do you know which company has the best rate? What does energy deregulation even mean?

Don’t worry! We put together a quick guide to help you find the best KWH rate in your area. Keep reading to learn everything you need to know to take control of your electricity bill!

How Many KWH Do You Use?

The first step to choosing the right power company is to know how much energy you use and when.

Some energy plans have different rates for different times of the day. Those plans may look cheaper, but you end up spending more because you use the bulk of your energy during peak hours.

Take a look at your usage history for as far back as you can find. look for patterns in your day to day energy use and compare that to your energy plans to see what you should expect to pay each day.

Another trend to look for is your annual energy use. Do you notice your electricity bill double during the summer months? How about a spike around Christmas from all those lights?

Knowing how you use your energy can help you choose the least expensive electricity plan.

Understand Transmission and Distribution Service Provider Fees

A major part of your electricity bill comes from fees tacked on by the Transmission and Distribution service provider (TDSP). These service providers maintain the poles and wiring that send the electricity from the power plant to your home.

Different companies charge different fees for these services. You may see a flat fee on each bill, or a few cents of surcharges added to your kilowatt-hour rate. Some companies charge both!

Make sure to know what the TDSP charges are before signing up for an electricity plan so you don’t get sticker shock when you get your first bill!

Reading Your Electricity Facts Label

Another thing you need to know is how to read an Electricity Facts Label (EFL) from each electricity company such as Reliant Energy. The EFL has 2 main components; the electricity price and the disclosures.

The Electricity price area shows the rate you pay for your electricity and a list of charges, like usage fees, TDU delivery fees, and usage credits.

In the disclosures section, you’ll see the type of plan, contract term length, any applicable termination fees, and any other disclosures that could affect your energy rate.

You’ve Got the Power!

Once you understand how to choose the right energy company and how you use electricity, you can make an educated decision about who you choose as your electricity company.

If it seems daunting at first, don’t panic! Take it one step at a time and you’ll get the hang of understanding all these numbers and variables in no time!

We hope you loved reading this article and that you learned a few things about finding the energy company with the best KWH rates for you! If you’re looking for more articles about home, wealth, lifestyles, and more, check out the rest of our blog today!

1 thought on “Energy Solutions: What Is a Good Rate per KWH in Texas?”

  1. Based on some energy comparison sites, you can currently get rates as low as 6.8 kWh if you live in Texas. It of course depends on your monthly usage, but you can easily get a free quote or compare energy rates on sites like or which is the official energy rates sites in the state of Texas.

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