Houston Electricity Rates (2025) — CenterPoint Energy Plans

5 minute read · Local market guide

Houston is one of the most competitive electricity markets in the United States. With more than 50 retail providers competing for customers through the CenterPoint Energy service territory, rates can vary significantly — and shopping before your contract expires is one of the most reliable ways to keep your electricity bill low.

Is Houston in the deregulated electricity market?

Yes — Houston is fully within the deregulated ERCOT electricity market. All ZIP codes in the 77001–77099 range, plus suburbs including Katy (77449, 77450, 77493, 77494), Sugar Land (77478, 77479, 77498), Pearland (77581, 77584, 77588), The Woodlands (77380–77385), and Baytown/Pasadena are eligible to choose a retail electricity provider.

This is not true of every Texas city. Austin is served by Austin Energy, a municipal utility — Austin residents cannot choose their provider. San Antonio is served by CPS Energy, another municipal utility, and is also not deregulated. If you are unsure whether your address is eligible, enter your ZIP code in the search above — it will show available plans if your area is covered, or explain if it is not.

Who provides electricity in Houston?

Houston's electricity market is split into two layers:

• CenterPoint Energy — the TDSP that owns the physical wires, poles, and meters throughout Greater Houston. When the power goes out, you call CenterPoint (713-207-2222). You cannot choose your TDSP.
• Retail Electric Providers (REPs) — the companies you pay for electricity supply. Over 50 REPs compete for Houston customers, including TXU Energy, Reliant, Gexa Energy, Rhythm Energy, Green Mountain, and many more. You choose your REP and can switch at any time.

What affects Houston electricity rates?

Several factors determine what Houston residents pay for electricity:

• ERCOT wholesale prices— Houston's retail rates are anchored to wholesale electricity prices on the ERCOT grid. Summer heat waves and winter freezes drive wholesale prices up, which eventually flows through to variable rate customers.
• CenterPoint delivery charges — every Houston bill includes regulated delivery charges from CenterPoint. These are fixed regardless of your retail provider. In 2024, CenterPoint received approval for a significant delivery rate increase following Hurricane Beryl infrastructure improvements.
• Competition among REPs— Houston's large customer base and number of competing providers generally keeps retail margins competitive. Switching at contract expiration ensures you benefit from this competition.

Houston electricity usage patterns

Houston's hot, humid climate means air conditioning dominates electricity usage from April through October. A typical Houston home uses:

• Summer (June–Sept): 1,400–2,200 kWh/month
• Spring/Fall: 800–1,100 kWh/month
• Winter: 900–1,300 kWh/month (heating, less extreme than Dallas)

Because summer usage is so high, bill credit plans that activate at 1,000–2,000 kWh are especially valuable in Houston during summer months. Check rates at the 2,000 kWh column on the Electricity Facts Label if your home regularly uses that amount in summer.

How to find the cheapest Houston electricity plan

1. Enter your Houston ZIP code on Texas Energy Compare to see all available plans.
2. Set the usage filter to your typical monthly kWh (check last month's bill).
3. Sort by rate — the all-in effective cost already includes CenterPoint delivery charges.
4. Click the EFL link on any plan to verify the rate structure before signing up.

Houston ZIP codes served by CenterPoint include 77002 (downtown), 77019, 77027, 77056, 77079, and hundreds more throughout Greater Houston and surrounding suburbs. Compare current Houston electricity plans →