Texas is one of the largest states in the US, boasting thriving metropolitan cities, world-class museums, and a range of scientific advancements. It is also one of the top consumers of energy, with the eighth-largest electricity bills in the country.

What is the average electric bill in Texas? Read on to find out.

Understanding the Average Texas Electric Bill

Texas electricity prices have been on an upward spiral since April 2022. They have climbed primarily due to global economics and the high costs of natural gas. Texas generates at least 40% of its electricity with natural gas-fired power plants.

Geopolitical influences, supply chain issues, and regulatory changes are other major reasons for the increasing electricity prices in the Lone Star state. For example, several regulatory changes followed the February 2021 Winter Storm Uri. One of the changes saw the market cap of wholesale electricity markets move from $9,000/MWh to $5,000/MWh.

According to the U.S. Energy Information Administration (EIA), in February 2022, the Texas average electricity rates were 12.8 cents for one kWh. This average includes electricity and delivery costs in both the state’s regulated and deregulated markets.

Texas homes’ electricity usage is higher than the natural average. Many of the states’ homes are larger, and cooling costs significantly impact energy usage. Based on EIA data, Texas’ average household electricity usage in kWh is 1,176 monthly, or 14,112 kWh annually.

Multiplying the average power cost per kWh by the average kWh per month in Texas will give you the state’s average electricity bill. Therefore, the average electric bill in Texas is $150.53.

As a Texas homeowner, you’ll also pay other applicable fees and taxes. These costs come from the average cost of 12.8 cents per kWh, multiplied by the average household energy consumption of 1,176 kWh per month.

Factors Influencing Electric Bills in Texas

The amount you pay for your electricity bills in Texas depends on five primary factors. These factors include government regulations, fuel costs, operating costs, weather conditions, and consumer usage.


Government regulations play an integral role in Texas electricity prices. Some cities, such as San Antonio, regulate the amount utility companies can charge. However, most state does not regulate electricity prices and the average electric rate by state differs.

If you do not live in a regulated city, you can review various energy providers in the deregulated market. Then, you can choose the best one for your needs. You will often want to pick a utility company offering the most competitive rates in your area.

Natural Gas Costs

Texas gets its energy from natural gas, coal, and wind. Wind energy is essentially free since it is a renewable resource. As a result, it may not significantly impact electricity costs.

However, the cost of non-renewable resources—natural gas and coal—will influence your electricity bills.

A natural gas boom will reduce prices, translating to lower electricity bills. On the other hand, you will likely pay higher electric bills when the natural gas supply decreases.

Operating Costs

Like other businesses, electricity companies have fixed and fluctuating operating costs. These costs include but are not limited to employee wages, pipeline management, and gas transportation. The companies pass these costs to the customers.

In other words, you pay for these operating costs in your monthly bill. So, when choosing an energy provider, go for a utility company with lower operating costs. The more efficient the company, the more you will save on electricity bills.

Weather Conditions

The Lone State experiences some of the most extreme weather conditions. Severe weather can significantly increase your average energy bill. For example, a heatwave can raise energy costs due to increased energy demand.

The spike in energy demand results in higher fuel prices. We have already observed that higher fuel prices are among the top factors contributing to increased electricity prices in Texas.

Consumer Usage

Your energy consumption is another leading factor that influences your electricity bill. The more energy you use, the more you will have to pay. Your energy usage and the bill also depend on the size and age of your property.

Newer buildings are usually more energy-efficient than their older counterparts. Likewise, you will use more electricity if you have a larger home than someone with a smaller home.

Let’s explore the average energy usage and cost for various sizes of properties in Texas.

One-Bedroom Apartment Electric Bill

The average one-bedroom apartment is about 750 square feet. Various online databases in Texas estimate the average energy consumption for a 750-square-foot apartment as roughly 750 kWh per month.

Therefore, we can calculate an average cost of electricity of 12.8 cents in February 2022. As a result, the average power bill for a one-bedroom apartment in Texas is about $96.

Two-Bedroom Apartment Electric Bill

A two-bedroom apartment of about 1,000 square feet uses about 880 kWh per month. Therefore, the average electric bill for a 2-bedroom apartment in Texas is roughly $112.64.

Small House Electricity Bill

The average kWh usage for a 2,000-sq-ft home is 1,325 kWh per month. Taking the average Texas electricity cost of 12.8 cents per kWh, the average monthly power bill for a small house will be $169.6.

Large House Electricity Bill

The average kWh usage for a 3,000-sq-ft home is 2,200 kWh per month. The average monthly power bill for a large house translates to $281.6.

Reduce Your Electricity Bill with Now Power Today

The electricity deregulation approved by Texas Senate Bill 7 on January 1, 2002, allows 85% of electricity consumers in Texas to choose their preferred providers. Are you a resident of one of the over 400 deregulated cities across the state? If so, you have the freedom to review plans from various providers and pick the best one for your needs and budget.

Now that you know the average electric bill in Texas, choose Now Power for the most affordable and reliable power. At Now Power, we’re committed to providing reliable energy plans for our Texas customers. Call us today at (844) 227-2648 to learn more about our available plans.