Texas Business Electricity Rates
What does commercial electricity actually cost a Texas business? Here is a plain-English benchmark, plus how to read a rate so you compare plans the right way.
Figures below are reference benchmarks as of mid-2026, not a quote. Your rate depends on your usage, location, and term.
Get Your QuoteWhat Texas businesses pay
Texas commercial electricity averages about 8-9 cents per kWh all-in (energy plus delivery), roughly 35% below the national commercial average of about 13.6 cents per kWh. Competitive energy-only rates are advertised lower, near 4.6-7 cents per kWh, because they leave out delivery.
Energy charge
~4.6-7¢
Set by your retail provider. This is the only part that competes between plans.
+ TDU delivery
~1.5-3.5¢
Plus a fixed monthly charge. Passed through at cost by your wires utility, identical for every provider.
= All-in
~8-9¢
The real per-kWh price on your bill. Use this to compare plans fairly.
Source: U.S. Energy Information Administration (all-in commercial average) and Texas TDU delivery tariffs. Reference benchmark as of mid-2026, not a quote.
How Texas business electricity pricing works
Your bill has three parts. Knowing which is which is the key to comparing plans without getting misled by a low headline rate.
Energy charge. Set by your Retail Electric Provider (REP). This is the competitive part, the number plans actually fight over.
TDU delivery charge. Set by your wires utility (Oncor, CenterPoint, AEP Texas, or TNMP). It is regulated by the PUCT, billed at cost with no markup, identical for every provider in your area, and updated twice a year, on March 1 and September 1.
Taxes and fees. State and local taxes, plus any applicable regulatory fees.
The takeaway: because delivery is the same for everyone in your area, the only number that really varies between plans is the energy charge. Always compare on an all-in cents-per-kWh basis at your own usage level. An energy-only rate looks cheaper only because it leaves out delivery.
Rate types and what affects your price
Fixed vs. indexed
A fixed rate locks your energy charge for the contract term and is predictable. An indexed (variable) rate moves with the wholesale market, which can win when prices fall but exposes you when they spike.
Demand charges and load factor
Larger accounts (often above roughly 50 kW) can see demand charges billed per kW, not just per kWh. A steadier usage pattern (higher load factor) generally earns a better rate.
Switching providers, and where we fit in
- Switching is handled between providers and your wires utility, so there is no downtime and no rewiring. It usually takes one to two billing cycles.
- You generally have a 3-day right to cancel after signing a new agreement.
- As a broker, we compare plans across multiple providers and are paid a commission built into the rate, which does not increase your cost. See our regulatory disclosures for how we are compensated.
Frequently asked questions
What is a good electricity rate for a business in Texas?
As of mid-2026, the typical all-in commercial rate (energy plus delivery) is roughly 8-9 cents per kWh statewide, per the U.S. Energy Information Administration. Advertised energy-only rates run lower, around 4.6-7 cents per kWh. The right number for you depends on your usage, location, and contract term, so always compare plans on an all-in basis. This is a reference benchmark, not a quote.
Why is the advertised rate lower than what I actually pay?
Advertised energy-only rates exclude TDU delivery charges, which your wires utility (Oncor, CenterPoint, AEP Texas, or TNMP) passes through at cost. Delivery adds roughly 1.5-3.5 cents per kWh plus a fixed monthly charge, so your all-in price is higher than the headline energy rate.
How are business electricity rates different from residential?
Commercial rates are usually 15-25% lower per kWh than residential rates in Texas, but business plans add contract terms, possible demand (kW) charges for larger loads, and a credit check. Residential Power to Choose plans do not apply to commercial accounts.
Can I switch my business electricity provider without downtime?
Yes. Switching in Texas is handled on the back end between providers and your local wires utility, so the lights stay on with no service interruption. A switch typically takes one to two billing cycles, and you generally have a 3-day right to cancel after signing.
What does using a broker cost me?
Our comparison service is free. If you choose a plan through us, we may receive a commission from the provider that is already built into the rate and does not increase your cost. See our regulatory disclosures for details.
See your real all-in rate
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