In Texas's deregulated electricity market, your rate per kWh depends on both your retail electricity provider and Oncor's TDU charges. Understanding your effective rate helps you compare plans and manage costs.
Texas generally has competitive electricity rates compared to other states, but rates vary significantly between providers and plan types.
Current Rate Ranges
As of 2026, typical all-in rates in Oncor territory range from:
- Competitive fixed-rate plans: $0.10-0.14 per kWh
- Average plans: $0.12-0.16 per kWh
- Variable-rate plans: $0.08-0.20+ per kWh (fluctuates)
- Premium green energy plans: $0.12-0.18 per kWh
These rates include both energy charges and Oncor TDU charges.
Calculating Your Effective Rate
To find your actual rate per kWh:
- Find your total bill amount
- Subtract any fixed monthly fees
- Divide by your total kWh usage
For example: ($150 bill - $10 fees) ÷ 1,000 kWh = $0.14/kWh effective rate
Compare this to the rate advertised on your plan's Electricity Facts Label.
Plan Types and Pricing
Different plan types have different pricing structures:
- Fixed-rate: Same rate for contract term (12-36 months)
- Variable-rate: Rate changes monthly based on market
- Indexed: Rate tied to natural gas or wholesale prices
- Free nights/weekends: Higher daytime rates, "free" off-peak
- Tiered: Rate changes at usage thresholds (e.g., 1,000 kWh)
Shopping for Better Rates
Use PowerToChoose.org to compare plans in Oncor territory. Look at the price at 1,000 kWh for typical homes, or 2,000 kWh for larger homes with high summer usage. Always read the Electricity Facts Label before signing up.