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Electric Rates

Houston Electricity Rates

Ever since deregulation was applied to the Texas electricity market, several impacts have been observed on price as well as consumption. With the introduction of multiple providers of electricity offering low rates, the cost incurred on electricity has been dropping. Deregulation has also availed 85% of Texas power consumers with the choice of picking their electrical services from a variety of REPs or retail electric providers.

When it comes to residential electricity rates, the rates in Texas at 10.98 cents/kWh have been approximately 7.50% lower than the national average of 11.88 cents/kWh. The same trend is also seen in commercial electricity rates where the average is 19.13% lower than the national average commercial rate. These rates need to be as low as possible owing to the large scale use of electricity in Texas when compared to other states. Texas ranks fifth in national residential consumption of the country, using almost 26% more power in residences as compared to other residences in the country.

The rates in Houston, Texas generally follow the state average in both residential as well as commercial electricity consumption. Read through this article to get insights into residential, commercial as well as industrial rates in Houston, Texas.

Residential Houston Electricity Rates

Basic estimates of money spent on electricity can be made through average size calculations of residences along with local rates. Through this, people can make informed decisions about the monthly expenditure on electricity when living in Houston.

Electricity Rates for a 1-Bedroom Apartment

A typical 1-bedroom apartment would be approximately 750 square feet while the average electrical consumption in Texas is around 750 kWh per month. The local rate in Houston for residential consumption is 10.98 cents per kWh. Thus, on an average, the amount of money you would spend on electrical consumption every month would be anywhere between $80 and $85 (10.98 c/kWh X 750 kWh/month).

Electricity Rates for a 2-Bedroom Apartment

The overall size of a 2-bedroom apartment is slightly bigger than a 1-bedroom apartment. Considering that the average size would be 1,000 square feet, the consumption would also be higher, at around 880 kWh consumed every month instead of 750 kWh per month. If we were to factor in our cost of 10.98 cents for every kWh, the total cost of powering a 2-bedroom apartment in Houston would be approximately $97 (10.98 c/kWh X 880 kWh/month). This cost is also not exorbitant considering the national average.

Electricity Rates for a House

The average size of a house in Houston is taken to be 2,000 square feet. The consumption in a house on average is approximated at 1325 kWh per month. Of course, there will be certain months where the consumption will be above average but it will dip the other way in some months based on natural weather conditions. The average cost of powering a house in Houston at 10.98 cents per kWh would be anywhere between $145 and $150.

Commercial Electricity Rates in Houston

When it comes to commercial purposes, the electrical rate in Houston is very competitive at 8.16 cents per kWh. This commercial rate, just like the residential rate, is equal to the average commercial rate in the state of Texas. When compared to the national average commercial electricity rates of 10.09 cents per kWh, the rate in Houston is 19.13% lower than the national average. Therefore, one can consider the rate of 8.16 cents pretty inexpensive when compared to certain cities where rates can be as high as 30 cents per kWh.

Industrial Electricity Rates in Houston

Industrial electricity rates are always the cheapest in comparison to residential and commercial rates. The average industrial electricity rate in Houston is 5.57 cents per kWh. This average is equal to the state average of industrial electricity rates. The national average of industrial electrical rates is 6.67 cents per kWh. Thus, the industrial electricity rate in Houston is 16.49% lower than the national average.

As you can see, coming up with an estimate of monthly consumption for electrical consumption is very easy. The same can be calculated for industrial and commercial use as well. It is important that the rates of electrical use are low in Texas due to the high amount of consumption that is typical of the state, as well as the size of the state in relation to other states in the country.

While low rates are important due to the high consumption rates, they are also important due to the low household income compared to the national average. The national average of household income stands at $58,522 while Texans earn an average of $57,477 per household.

This is another reason why low electricity rates are required so that most households can afford them. One can also expect the same going forward as competitors keep vying to push lower prices while also improving infrastructure surrounding power generation.

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About Payless Power

Payless Power wants to be your Texas electric company.

Whether you live in a large city or small town, we can save you money! Where do we provide Texas electricity? We service customers in more than 400 deregulated communities in Texas. We work with principal utilities throughout the state of Texas to provide prepaid electricity. The utilities are: Oncor in the DallasFort Worth Metroplex and various parts of West Texas; CenterPoint Energy in Houston and the surrounding areas; AEP Central in Corpus Christi and surrounding areas; AEP North in Abilene and other North Texas communities.

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