Texas has one of the most competitive electricity markets in the U.S. The approximately 16 million residents in the state, which is the largest electricity user in the country, have the power to choose their electricity providers — but it’s up to consumers to pick the best deals.
Why Deregulation Matters
Competition has had the effect of lowering prices at times since being introduced in the early 2000s—but prices also have spiked as energy companies respond to varying market conditions and extreme weather events ( such as the February 2021 winter storm). This makes it more important for the consumers to be aware of the rates and plan for the same accordingly.
City Spotlight: Houston vs. Fort Worth
Here’s how the current residential energy rates compare in two major Texas cities, based on Gatby’s June 23, 2025 data:
| City | Cheapest Rate (¢/kWh) | Average Rate (¢/kWh) | Estimated Monthly Bill (1,000 kWh) |
| Houston | 14.8¢ | 16.14¢ | $148 |
| Fort Worth | 15.5¢ | 16.64¢ | $155 |
- Houston: The lowest available rate is 14.8¢/kWh, about 9% cheaper than the city’s average.
- Fort Worth: The best rate sits at 15.5¢/kWh, around 7% below local average.
Assuming 1,000 kWh monthly usage, typical for many households, that works out to $148 in Houston and $155 in Fort Worth—a small but meaningful difference over time.
Seasonal Timing & Plan Types
- Switching seasonality: Gatby advises visiting in spring or fall, during peak sales. Summer and winter are premium periods in other large cities: Houston and Fort Worth, because of fervent demand.
- Contract terms: There are options for the short-term (6-12 months) or longer 36 month fixed plans. Shorter term plans put more money in your pocket but, at the same time, are often more expensive per kWh. Short and long term plans are available to choose from.
💡 Comparing Electricity Rates
We’ve included data here to spotlight current rates—but for real-time, ZIP-specific pricing and provider offers, we encourage you to explore the options directly through Gatby’s electricity rates. You can compare plans in your ZIP code, filter by term length, and find the best deal for your usage.
Key Takeaways & Tips
- Small rate differences add up: For 1,000 kWh/month, a 3.0¢/kWh variance saves you about $360/year, and over a long contract, that compounds.
- Shop during optimal seasons: Lock in new plans in spring or fall to avoid price spikes.
- Choose the right contract length: If you’re planning to stay put, longer fixed-term plans bring peace of mind and lower rates. If you expect changes soon, opt for shorter-duration plans.
- Use tools to compare: Platforms like Gatby allow customized, location-aware searches across dozens of providers.
Final Thoughts
Deregulation is supposed to grant power consumers freedom in Texas — but the choice comes with responsibility. But by keeping an eye on local trend (such as in Houston and Fort Worth), being strategic in timing and selecting a plan that works for you, you can fine tune your electricity costs.
For customized rate comparisons and to find the best rate in your area, enter your ZIP code above.
Editor’s note: all data reflects Gatby’s June 23, 2025 update.