GoodCharlie Blog

What Are the Electricity Rates in Houston, and How Do They Work?

Written by Daryl Lawrence | Jul 3, 2023 7:18:37 PM

If you're new to Houston, it's important to understand how the electricity market works. As the energy capital of the United States, Houston has one of the most competitive energy and electricity sectors. As such, understanding how electricity rates in Houston work and how to choose the right plan is essential. To aid you in this journey, this article will delve into how the energy market works, how Texas electricity rates are determined, and how to choose the right type of plan to maximize your savings. 

  1. What are the Average Electricity Rates in Houston? 
  2. How Are Electricity Rates in Houston Determined? 
  3. How Does Electricity Work in Houston? 
  4. Which Electricity Providers Have the Best Rates in Houston? 
  5. Does My Electricity Plan Affect My Rate? 
  6. Choose GoodCharlie Energy for the Best Electricity Rates in Houston
  7.  

What are the Average Electricity Rates in Houston? 

As with most Texas electricity rates, the energy rates in Houston are ever-changing and highly volatile. At the time of publication, however, the average residential electricity rates in Houston are right around 14 cents/kWh. This rate is on par with most of the rest of Texas, as the average Texas electricity rates are typically between 13 and 14 cents/kWh. 

However, just because 14 cents is the average electricity rate in Houston doesn't mean it has to be your rate. Contact us at GoodCharlie Energy for a competitive and affordable electricity quote. At the time of publication we're offering rates as low as 11.4 cents/kWh and give you the opportunity to shop for electric rates by zip code. You can then compare electricity rates to see how ours sizes up against the competition. 

How Are Electricity Rates in Houston Determined? 

Houston is one of the largest cities in Texas that's home to a deregulated electricity market. This means that electricity rates in Houston aren't monitored or regulated by the government, which means that each retail electric provider can determine their own rates. In most cases, the price they come up with will depend on the cost of energy production, transportation, delivery, and other factors. 

How Does Electricity Work in Houston? 

Just as the process of setting electricity rates in Houston is similar to the rest of Texas, so is the process of how it works. Contrary to what you might think, electricity takes time, money, and energy, quite literally, to create and deliver to your home or business. Here's how it works. 

  1. A power generator or power plant will convert energy from fossil fuels, the sun, or the wind into electricity. 
  2. These power plants then sell the electricity they create to retail electric providers (REPs). 
  3. REPs then determine the cost of electricity and sell it to residential and commercial customers throughout Houston. 
  4. You will then shop around for electricity plans and choose a plan from an REP that operates in your area. 
  5. When you sign up, your new REP will contact your local utility company and inform them of your decision. 
  6. The utility company will monitor the electric lines, poles, meters, transformers, and other components that carry electricity. 
  7. Depending on your electricity plan, you will pay your REP based on how much electricity you use. 
  8. They will then compensate your local utility company and continue to purchase more electricity from power generators. 

 

So, as you can see, even though you purchase electricity from REPs, they don't actually create, handle, or deliver electricity to your home or business. 

Which Electricity Providers Have the Best Rates in Houston? 

Because Houston has a deregulated energy market, anyone who wants to can start their own electricity company. As such, there are more than 120 electricity providers that operate in and around the Houston area. Each REP can structure their plans and rates however they like and add certain perks and benefits to their plans. 

Because of how many different REPs and plans there are in Houston, it's tough to say who the best REP is. There are various pros and cons to each REP, and it's ultimately up to you who you choose. If, however, you're looking for an electricity provider with low rates and high standards and that cares about more than money, contact us at GoodCharlie Energy. 

Does My Electricity Plan Affect My Rate? 

There are many factors that will affect your electricity rates, including the weather, time of year, cost to create electricity, and more. However, none of them play as constant a role in determining your electricity rate as the type of plan you choose.  

For example, variable-rate electricity plans have rates that fluctuate from month to month and are subject to change at any point. Prepaid electricity plans are convenient and straightforward, but they often have higher rates because they don't utilize pricing tiers. Flat-rate electricity plans are often the most expensive of all because they're very convenient and offer the allure of unlimited electricity. 

Finally, you have the option of a fixed-rate electricity plan. Fixed-rate plans are usually the overall cheapest type of electricity plan because of how steady and reliable they are. Fixed-rate plans also utilize pricing tiers, so it's important to understand your monthly usage so that you don't blow your budget. 

Choose GoodCharlie Energy for the Best Electricity Rates in Houston

If you're looking for the best electricity rates in Houston, look no further than GoodCharlie Energy, and here's why. 

  • We have competitive rates and comprehensive plans with no hidden fees. 
  • Each of our plans is available with electricity from a renewable resource such as wind or solar. 
  • We're the #1 choice for a REP in Texas by pet owners, thanks to our goal of making Texas the best state for a dog to live in. 
  • Our list of benefits includes 24/7 emergency video vet access, a $750 pet emergency fund, and a monthly donation from us to a local pet shelter. 
  • Transparent pricing that's easy to read and understand. 
  • Fixed-rate plans that you can choose based on your electricity usage. 
  • Outstanding customer service provided by people in Texas and from Texas. 
  • We're partnered with local pet shelters, including Dallas Pets Alive!

 

Switching to GoodCharlie Energy is easy if you're in the market for a new electricity plan. We might be a newer power company, but we're quickly becoming one of the best for affordable and reliable energy in Houston and the surrounding area. We ask you to join us in making Texas the best state for dogs and cats to live in. Contact us to make the switch today!