Business Energy · Texas
Business Electricity Rates in Texas: Compare Commercial Plans
Compare business electricity rates, commercial electricity plans, contract terms and energy costs based on your business location and electricity usage.
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// The rate landscape
Current Texas business electricity prices
Texas business electricity is very affordable compared to national levels. According to the latest U.S. Energy Information Administration data, Texas business customers pay an average of about 8.26¢ per kWh — roughly 39% below the U.S. commercial average of 13.54¢. A typical small business using a few thousand kWh per month can see an energy charge well under 10¢/kWh.
Advertised 12-month fixed plans currently cluster in the 12–15¢ range (at ~1,000 kWh/month), with the cheapest offers around 12.3¢. Watch out for rates advertised as low as ~6¢ — they often carry restrictive conditions like high minimum usage to qualify for the bill credit.
Location matters. Dallas/Fort Worth (Oncor) businesses pay as low as 8.9–9.2¢ all-in, while Houston (CenterPoint) businesses often pay 12–13¢. One case study showed a Houston business paying ~$1,400 on 13¢ rates versus ~$1,016 in DFW on 8.9¢ — for the same 10,000 kWh. Always check updated rate data when shopping.
TEXAS AVERAGE (BUSINESS)
HOUSTON (CENTERPOINT)
U.S. AVERAGE (BUSINESS)
CHEAPEST ADVERTISED PLAN
DALLAS–FORT WORTH (ONCOR)
TEXAS RESIDENTIAL
Commercial rates run far below residential (16–17¢) — businesses buy in volume and can negotiate bulk pricing.
// How to compare
How to compare Texas business electricity plans
In Texas’s deregulated market, comparing plans is a must — but it requires knowing what to look at: provider reputation, term length, rate type (fixed vs. variable), price per kWh, bill credits, fees, and the utility (TDSP) serving you.
Identify your utility (TDSP)
Check small vs. large business terms
Choose your plan term
Look for value adds
Compare rates at your usage
Sample Texas business rates by utility
12-month fixed at 1,000 kWh usage. Illustrative — actual rates vary by ZIP and usage.
Utility (TDSP)
Territory
Delivery charge
Typical all-in rate
10,000 kWh example
Utility (TDSP)
Oncor
Territory
Dallas–Fort Worth
Delivery charge
~4.19¢/kWh
Typical all-in rate
~9.2¢/kWh
10,000 kWh example
~$920
Utility (TDSP)
CenterPoint
Territory
Houston
Delivery charge
~6.0¢/kWh
Typical all-in rate
~12.5¢/kWh
10,000 kWh example
~$1,250
Utility (TDSP)
Texas average
Territory
Statewide
Delivery charge
—
Typical all-in rate
~8.3¢/kWh
10,000 kWh example
~$830
Utility (TDSP)
U.S. average
Territory
Nationwide
Delivery charge
—
Typical all-in rate
~13.5¢/kWh
10,000 kWh example
~$1,350
Providers don’t control delivery charges — those are fixed by your utility. When you shop, you’re negotiating the energy price only.
// Your bill, decoded
Understanding your business electricity bill
Your monthly bill combines supply charges, delivery fees, fixed costs, taxes — and, for medium and large accounts, demand charges. Knowing each lever shows you exactly where the savings live.
Energy (supply) charge
The variable charge for the kWh you use, at your contracted rate (e.g. 9.2¢/kWh). Cost = usage in kWh × price in ¢/kWh — it rises proportionally with consumption.
Delivery (distribution) charges
The cost of maintaining local poles, wires, transformers and your meter. Set by your utility (Oncor ~4.19¢, CenterPoint ~6.0¢) and identical on every plan.
Taxes & regulatory fees
Load factor
Not a line item, but it affects everything above. Steady usage keeps the demand component low; erratic peaks raise it.
Transmission charges
A small pass-through fee for moving electricity from power plants into your region’s high-voltage grid — usually a couple of cents.
Customer charge
Demand charges
For larger accounts, a $/kW fee based on your peak load during critical hours (often the 4 system peaks of the year). One DFW case: ~$800–$1,600/month on a 500 kW average — nearly half the bill.
Sample monthly bill — medium Texas business
Simplified fictional breakdown (total $3,200). All numbers illustrative.
Component
What it covers
Share of bill
Example amount
Component
Energy + delivery
What it covers
kWh used × contracted rate, plus utility delivery fees
Share of bill
60%
Example amount
$1,920
Component
Demand chargesEnergy + delivery
What it covers
Peak kW during critical hours × $/kW fee
Share of bill
32%
Example amount
$1,024
Component
Customer charge
What it covers
Flat monthly meter fee
Share of bill
2%
Example amount
$64
Component
Taxes & fees
What it covers
State/local taxes and PUCT riders
Share of bill
6%
Example amount
$192
The levers for savings: a lower energy rate directly reduces the biggest chunk, managing your peak demand cuts demand charges, and watching contract terms and usage bands prevents surprises.
Common questions, answered.
Can Texas businesses choose their electricity provider?
Yes. Texas is largely deregulated, so most businesses can choose a Retail Electric Provider (REP) to supply their energy. The local utility (Oncor, CenterPoint, etc.) still delivers the power and maintains the grid. The Public Utility Commission regulates the market and provides PowerToChoose.org for comparison.
How do I compare power rates in Texas?
First know your average monthly kWh and your utility. Then compare plans using each Electricity Facts Label (EFL) or online tools — the EFL shows your real price at different usage levels. Look beyond the advertised price: include base charges, fees and credits to see the true cost.
What affects my business electricity bill?
How many kWh you use, the time of use (peak vs. off-peak), your utility's delivery rates, and your peak demand in kW. In short: you pay for the energy consumed, plus delivery, plus any demand-based charges and taxes.
When is the best time to shop for business electricity rates?
Late spring to early summer (April–June) is often prime time, before summer demand spikes prices. But the real rule: shop whenever your contract is ending or you spot attractive rates — and lock in before the summer heat hits, if possible.
Where can I get quotes and compare suppliers?
Request custom quotes from REPs directly or through an independent broker/consultant. Entering your ZIP and average usage on a comparison platform shows multiple offers side-by-side. Provide your load profile for the most accurate pricing.
Do businesses pay more than residential rates in Texas?
Generally no — businesses usually pay less per kWh because they buy in volume. Texas businesses pay roughly half the residential rate per kWh. However, larger accounts incur demand charges that homes don't, so total dollars can be higher due to volume.
// Take Action
Lock in lower business power rates.
Review your last few bills to note your average kWh usage and utility (Oncor, CenterPoint, TNMP…). Then compare fixed-rate plans for 12–24 months, focusing on the effective price at your usage level — not just the headline rate. If your current rate is above 10¢ and the market is near 9¢, switching can save hundreds on a larger bill.
If demand charges apply to you, ask about demand management programs. And if you have a clean energy goal, many Texas REPs offer 100% wind or solar-backed options.
Ready to Find a Better Electricity Plan?
Electricity rates can vary depending on where you live, how much energy you use, and the plan you choose. Compare your options and find an electricity plan that fits your home and energy needs.
As a Texas energy consultant, I’ve seen businesses save significantly simply by requesting a current proposal during their renewal window. There’s no cost to see if you can get a better rate.
