Houston remains one of the cheapest major cities in America for electricity, thanks to Texas’ deregulated market and abundant natural gas. As of late November 2025, average residential rates for typical 1000 kWh usage range from 10.9¢ to 14.8¢ per kWh on fixed-rate plans – roughly 25–40% below the national average. Here’s exactly what Houstonians are paying right now and how to get the lowest rate.
Lowest Fixed-Rate Plans Right Now (12–36 months)
The best deals in Houston (CenterPoint territory) as of November 27, 2025:
- Gexa Energy – 10.9¢/kWh (36-month, 100% green)
- Frontier Utilities – 10.9¢/kWh (24-month)
- 4Change Energy – 11.0¢/kWh (24-month, 1% of profits to charity)
- Discount Power – 11.1¢/kWh (36-month)
- Constellation – 11.2¢/kWh (24-month)
- TXU Energy – 11.4¢/kWh (12-month with $150 bill credit at 1000 kWh)
These are all-in rates including base charge, energy charge, and CenterPoint delivery fees (~4.2–4.4¢/kWh). A 1000 kWh bill on a 10.9¢ plan runs about $109–$115 before tax.
Why Rates Dropped in 2025 (and Why They’ll Stay Low)
Natural gas, which fuels ~55% of Texas power, is trading near $2.70–$3.10 per MMBtu – the lowest inflation-adjusted price in decades. Mild summer demand and new wind/solar capacity kept wholesale prices low all year. ERCOT’s grid is also more reliable after billions in post-2021 upgrades, reducing the “Texas risk premium” that used to inflate retail rates. Bottom line: 2025–2026 contracts are being priced aggressively because providers know they can make money even at 10–11¢.
Hidden Traps to Avoid When Shopping in Houston
- Bill-credit plans that look cheap at 1000 kWh but explode at 800 or 1200 kWh (common in apartments and larger homes).
- Free-nights or free-weekends plans – great if you can shift 60%+ of usage to off-peak, terrible for most families.
- Teaser intro rates that jump 50% after 3–6 months.
- Plans with high base charges ($10–$20/month) that kill savings for low-usage households.
Always sort by “Average Price at your exact usage” on SparkyEnergy.com. The Electricity Facts Label (EFL) is your friend – it shows the real price at 500, 1000, and 2000 kWh.
Quick-Start Guide to Lock in the Lowest Rate Today
- Go to SparkyEnergy.com and enter your zip code.
- Input your real monthly kWh from last bill (average Houston home uses 1,100–1,400 kWh).
- Filter for: Fixed Rate → 12 months or longer → No “Minimum Usage Fee/Credit” tricks.
- Sort by “Average Price” at your usage level.
- Enroll online in 5 minutes – switch happens automatically in 3–14 days with zero interruption.
Pro tip: If your current plan is expiring soon, act now. Many providers are already raising January rates 0.5–1¢ as winter hedging begins.Houston electricity shoppers are in the sweet spot right now: rock-bottom wholesale costs, fierce competition, and a stable grid. A family on an old 17¢ plan can cut their bill in half just by switching to a new 36-month fixed plan at 10.9–11.2¢. That’s $800–$1,200 in savings over three years for literally five minutes of clicking.Rates this low probably won’t last forever – natural gas is cyclical, and demand keeps growing – but for the next 12–36 months, Houston remains the best big-city deal in America for power. Shop today, lock it in, and forget about electricity bills until 2028 or 2029.
