If you’re looking for cheap electricity in Houston, TX, you’ve come to the right place. We compiled the best electricity plans in Houston from the top providers, ensuring that each electricity company we select meets our high standards for business stability, eco-friendliness, and transparent pricing. You can rest easy knowing you’re choosing the best from the best.
There was a time when electricity was electricity.  Like so many other places around America, in Houston, electricity didn’t mean “cheap electricity”.  But you moved into your home and you called the utility and they turned on the power and the bill came in and you paid it every month.  Oh, sure, you might grumble at the amount but then you’d go around and yell at the kids for leaving the lights on and the TV blaring with nobody in the room or maybe you’d look into buying more energy-efficient appliances.  When it came down to it, the Bill was the Bill.  Either you paid the bill or you ate dry packet meals, had cold showers, and watched TV by peering through the neighbor’s window after dark (preferably once they’d turned the TV on).  What’s that?  You want cheap electricity?  Sure thing:  call 1-800-WHO-CARES any time during regular business hours of 2:17am to 3:04am Sundays only.

After spending so much time and energy with energy companies, I figure I should pass this info onto the internet world (within Houston). I am a Centerpoint Energy resident (you don't get to choose the electricity provider you have; it's based on where the electricity is provided). I think Houston is predominantly a Centerpoint energy area (correct me if I'm wrong).


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The increase in retail rates come as companies prepare for surging prices in the wholesale electricity markets where they buy their power. Forecasts of higher than normal temperatures and record power demand are coinciding with the shutdown of at least three coal-fired plants, leading to concerns that temporary shortages on the hottest summer days could send wholesale prices, which typically average less than $50 per megawatt hour, spiking to $3,000 per megawatt hour or higher. (A megawatt hour is 1,000 kilowatt hours.)
The local electric company is the utility – that’s the company who owns the infrastructure, including the poles and power lines that deliver electricity to your home. They are who you call if your power goes out or there's an emergency. But in almost every city in Texas, you must choose another company to supply that energy, called a Retail Electric Provider (REP). These REPs, like Spark Energy, allow you to choose electricity plans that offer competitive prices and plans to meet your needs.
Houston is known for its hot summers and mild winters. You can save money on your yearly electricity bills by locking in your rate with Bounce Energy before the warmer months begin. With our variety of plans as well as our Build Your Own Plan tool, you can even customize how long you want to lock in your electricity rate, be it as little as 2 months or as long as 3 years! Lock in your rate today and enjoy savings throughout the year, no matter how hot it gets outside.
​2013 ​On March 14, CenterPoint Energy announced it was teaming up with ArcLight Capital Partners LLC and Oklahoma City-based OGE Energy Corp. (NYSE: OGE) in an $11 billion deal to create one of the largest master limited partnerships in the U.S. The joint venture includes OGE Energy and ArcLight's midstream transportation, gathering and processing business, Enogex LLC, and all of CenterPoint Energy's interstate pipelines and field service businesses. ArcLight Capital Partners is a Boston-based energy investment firm. 
Here are my 2 cents about electric companies when shopping around for the best rates. Currently, the average cents/kWh in Houston is 10 cents, after speaking to a very helpful, very informative Green Mountain Energy representative. Although their rates are a little higher than my current rates, they have FANTASTIC customer service (which is almost worth it). The GME rep even recommended that I stick with what I am using now since it's cheaper.
1. After your contract ends, the energy company will send you a notification of your rate increasing to a variable rate (which usually translates to 2-3 cents higher/kWh by a certain date). They are supposed to notify you of this change. I've noticed as a customer, we get short-changed of one month from the contract rate (if you signed for 7 cents for 6 months, you'll only get that for 5 months). If you don't call, your rate goes up significantly if you don't call to change to a cheaper contract. Tell them you want the cheapest rate or you will cancel with their company.
CenterPoint Intelligent Energy Solutions LLC, IES, which manages TrueCost, is not the same legal entity as CenterPoint Energy Resources Corp. (CERC) or CenterPoint Energy Houston Electric, LLC (CEHE), nor is IES regulated by the Railroad Commission of Texas or the Public Utility Commission of Texas. You do not have to buy products or services from IES in order to continue to receive quality regulated services from CERC or CEHE.
CenterPoint Intelligent Energy Solutions LLC, IES, which manages TrueCost, is not the same legal entity as CenterPoint Energy Resources Corp. (CERC) or CenterPoint Energy Houston Electric, LLC (CEHE), nor is IES regulated by the Railroad Commission of Texas or the Public Utility Commission of Texas. You do not have to buy products or services from IES in order to continue to receive quality regulated services from CERC or CEHE.
Texas currently produces and consumes more electricity than any other state in the country. This energy consumption is due to its size, but the ample land makes it a major producer of wind power – a renewable, or green, energy source. The environmentally friendly energy created by wind power is available to many Texas residents to supply the electricity in their home or business.
Consumers were promised cheaper power when Texas deregulated its electricity markets in 2002 at the urging of big industrial users and power companies. Average retail prices have declined by more than 60 percent since 2001, although much of that decline is due to the plunge in natural gas prices that followed advances in shale drilling and consequently wholesale power prices. Proponents of deregulation argue that they still have choices that can save them money.
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​2013 ​On March 14, CenterPoint Energy announced it was teaming up with ArcLight Capital Partners LLC and Oklahoma City-based OGE Energy Corp. (NYSE: OGE) in an $11 billion deal to create one of the largest master limited partnerships in the U.S. The joint venture includes OGE Energy and ArcLight's midstream transportation, gathering and processing business, Enogex LLC, and all of CenterPoint Energy's interstate pipelines and field service businesses. ArcLight Capital Partners is a Boston-based energy investment firm. 
Houston and its surrounding suburbs play a huge role in the global oil industry. Houston energy providers and Fortune 500 companies are located all across the city. Whether you’re in town to visit Houston or you’ve lived here your whole life, the city has a lot to offer. Sports fans can root for the Astros and the Rockets, while others can enjoy shopping, exploring parks and checking out the vibrant nightlife.
As a result, power companies have shut down Texas coal plants unable to compete with lower-cost generators. Meanwhile, the low electricity prices of recent years — a function of cheap natural gas — and small profits have discouraged companies from investing in new power plants. ERCOT, which oversees about 90 percent of the state’s power grid, said power reserves that are called on when demand peaks on the hottest summer days have shrunk to the lowest levels since Texas deregulated power markets in 2002.

As the largest city in Texas, Houston has a lot to offer – great shopping, out-of-this-world attractions, theaters, museums, a world-class culinary scene and more. At TXU Energy, we love being part of this diverse and exciting city. We’ve been providing Houston electricity for years – offering straightforward pricing and great plans designed to fit your household’s needs. It’s what’s made us the #1 choice for Texas electricity service.
That phenomenon has played out in Texas electricity markets, where few customers are willing to navigate the maze of power plans in the hope of shaving a few cents per kilowatt hour from their electric rates, according to the Texas Coalition for Affordable Power which buys electricity on behalf of municipal governments in Texas. As result, customers in regulated markets such as San Antonio and Austin on average pay less for electricity than those in deregulated markets like Houston, according to the coalition.
Electric companies buy longer-term contracts so they can hedge their risks when they’re selling long-term electricity plans. Just a week ago, it looked as if wholesale prices would be as high as Texas has seen in the past 15 years, said Ned Ross, director of governmental affairs for Direct Energy, the third biggest seller of electricity in Texas, behind No. 1 NRG and No. 2 TXU. Future prices have retreated recently, but companies buying power for August are still paying at least double what they paid a year ago, according to data from the Electric Reliability Council of Texas, or ERCOT, which oversees the state’s power markets.
The increase in retail rates come as companies prepare for surging prices in the wholesale electricity markets where they buy their power. Forecasts of higher than normal temperatures and record power demand are coinciding with the shutdown of at least three coal-fired plants, leading to concerns that temporary shortages on the hottest summer days could send wholesale prices, which typically average less than $50 per megawatt hour, spiking to $3,000 per megawatt hour or higher. (A megawatt hour is 1,000 kilowatt hours.)
In the Houston area, only 16 percent of CenterPoint Energy’s 2.4 million residential customers — or about one in six — switched their electricity providers over the past year, according to the state’s grid manager, the Electric Reliability Council of Texas. Among the 3.5 million customers of the state’s largest electric distribution utility, Oncor of Dallas, just 13 percent — only one in eight — signed up with a new retail power company in the last 12 months.

Since 2002, Amigo Energy has been one of the best electric companies in Texas. Not only that, but more recently we’ve received far fewer Public Utilities Commission of Texas (PUC) complaints than most other large residential electricity providers across the state.2 In fact, our customer service gets even better over the phone because our call-in customers have yet to file a PUC complaint this year.3 This ain’t our first rodeo—with over 15 years of experience and a track record of reliable service, you can trust Amigo Energy as your retail electricity provider.


Using an average of 1,063 kWh of power each month, Houston’s energy consumption rates exceed the national average by over 100 kWh. As a city however, it does manage to maintain a lower monthly energy charge than the rest of the US, incurring an average fee of $99 in comparison to the $112 national monthly average. To further save on their plans each month, residents can choose from a selection of Texas-based energy suppliers and service plans.
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