5 Factors Which Affect Texas Energy Prices

5 Factors Which Affect Texas Energy Prices

All is greater in Texas, including our energy bills, both residential and commercial. As one of the most populated and largest states in the US, Texas generates a lot of energy by wind and oil but still uses a lot more energy.

Curious why the average electric bill for your apartment is so high? Odr how about the average use of kWh in Texas for various types of homes? Learn how much energy is absorbed by the Lone Star State and what does that mean for your monthly budget.

The Average Electric Bill in Texas

Texas has the 8th largest energy bill in the United States. This sounds at first glance like an outrage, but Texas is actually low in energy. We have 11.82 cents on average per kWh. Texas' prices are comparatively poor compared to Connecticut, a sizeable figure of 22 cents per kWh.

This is because Texas ranks in terms of average kWh rates at 31st in the nation. However a standard Texas best electricity rates is $140/million for 1,170 kWh. Why are our bills so high in comparison to other states?

Crypt the harsh summers in Texas which increase your energy costs. Texans have to run the AC virtually throughout the year, resulting in high energy bills. Texans face their fair share of freezing winters too which means that the power charges for the freezing cold months are even higher. Since all of our homes are larger in Texas, we need more energy to cool and heat our homes and offices effectively.

Depending on where you live in Texas, the average electric bill can vary. Some cities have deregulated energy in order to allow customers to choose their cheapest electric company or supplier and others to control where energy can be purchased. For e.g., if you lived in Houston, your bill will be about $150 per person, while residents and business owners pay around $110 per month.

These 5 Factors Will Affect “How Much Electricity You Can Expect To Pay In Texas”

1. Regulations

Government laws have an immense effect on rates for energy. Some cities, such as San Antonio, control how much utilities can charge and where people can purchase energy.

But the majority of the state is unchecked in true untamed Texas-style. You can shop around a deregulated market and select your energy supplier unless you live in a regulated area. If so it is critical that you shop at the best electricity rates periodically. Deregulation means that you can offset quotes from utility companies in your region, theoretically scoring the lowest rate possible.

2. Fuel Costs

From which source is your electricity come from? If your electricity comes from natural gas, coal or wind, as do most people in the Lone Star State. Wind is theoretically free, but your average energy bill in Texas is dictated by the non-renewable resources.

For example, you will see better savings on your energy bill when the price of natural gas booms and rates are poor. But you'll pay a lot more if this is not a good Natural Gas Year – and there is restricted availability. The economics of supply and demand in action: you pay less if it's abundant.

Related Reading: 5 Tips to Reduce Your Business Electric Bill

3. Operating Costs

After all, energy providers are companies. You have running expenses you have to cover, which you, the client, carry on.

Whether it’s:

  • Paying employees

  • Managing pipelines

  • Transporting gas in trucks

  • You’re paying for it in your monthly bill.

Therefore, choosing a services provider which operates lean is so important. The more effective it is the more savings you produce. Often shop for the most reliable utility so that your energy bill can be reduced in Texas.

4. Weather Conditions

Texans have a saying that is “If the weather doesn't please you wait only ten minutes and it's going to change." But it isn't far-fetched to believe that the weather in Texas is severe. And in Texas, extreme conditions will raise your average electricity bill.

If a heatwave occurs, during this time you can pay extra for the energy demand spikes. As extreme temperatures drive demand up, the price of fuel is that and your electricity bill also is increasing.

5. Consumer Usage

Although we can blame your electricity bill for the regulations and for high fuel costs, usage is also a major issue. You have to pay for it when you use more energy. Your room size and leverage will also impact your usage (and bills). New buildings tend to be more energy-efficient, and older buildings are leaching power. The same goes for size: larger households need more electricity. 

This is a breakdown in Texas' average monthly power bill for respective places:

Type of Building

Average Monthly kWh Used

Average Monthly Electric Bill in Texas


600 kWh


Small House

1,200 kWh


Large House

2,400 kWh

2,400 kWh

Small Office  (i.e. Law Office)

2,000-4,000 kWh


Small Business (i.e. Gas Station)

5,000-10,000 kWh


Medium Business (i.e. Large Restaurant

20,000 kWh


Large Business (i.e. Mid-size Hotel)

65,000 kWh


Extra Large Business (i.e. Manufacturing Facility)

200,000 kWh


Enterprise (i.e. Large Cold Storage Facility)

300,000+ kWh


As you can see, the average electrical bills in Texas can affect various types of homes or other buildings. You should also take seasonal conduct into account that it also results in various monthly averages. For example, in the summer, children are more often at home and may be attached to their televisions, tablets and other electronics. In addition, higher temperatures mean your AC units work hard to provide indoor comfort. Finally, the pools consume a lot of resources, contributing to higher expenses.

Learn How to Lower Your Electric Bill in Texas

No one wants to say "Howdy," but the truth of living in Texas is just that. Enjoy a cold Lone Star on the TV, blowing the AC, but keep in mind it's all at a price. Understand your Texas average electricity bill and all the variables that can increase or reduce it.

Curious if you could save more? Check out ServiceDealz. We help Texans find the best electricity deals in their area to save more money on electricity. 

About the Author

Deepika Blogger Published On : Dec. 18, 2020

Blogger & Writer from Dallas, Texas


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