These Texas Cities Pay the Least — and Most — for Electricity
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Well, it’s that time of year again when you get your electricity bill and can’t believe how much you have to pay just to keep you and yours from dying of heat stroke. Depending on where you live, though, maybe things aren’t as bad as that bill’s making you feel.
Choose Texas Power is a marketplace platform where you can compare retail electricity service rates for your home. This summer, the organization launched a new tool that allows you to see how your city stacks up in terms of overall electricity costs in the Lone Star State.
How Are Texas Cities Stacking Up?
Choose Texas Power ranked the five least expensive Texas locales when it comes to electricity these days, and the D-FW city of North Richland Hills came out on top with an all-in price of $0.1684 per kWh this year, marking a 3.11% decrease from the $0.1738 clocked in 2024.
The cities coming in after North Richland Hills in descending order are Sugar Land, Hewitt, Tomball, and Cypress.
“A common trait between these top affordable cities is close proximity to a large city like Houston, Dallas, and Waco,” reads the comparison tool’s explainer on Texas price differentials, noting that big urban areas with large populations typically see more competition between energy providers. “Increased competition may drive down the average electricity rates in these areas as providers strive to win customers.”
Cities that boast a lot of high-income residents also tend to have more modern infrastructure, which helps with delivery costs. Updated energy infrastructure usually means fewer repairs, which in turn means fewer or lower fees or taxes tied to improvements.
On the opposite end of the spectrum are rural communities, which tend to pay more for electricity. Delivery fees are usually higher because homes are more spread out. Houses are also less energy-efficient on the whole. Infrastructure can also be outdated and subject to frequent repairs.
So, what are the most expensive cities in Texas when it comes to electricity? Choose Texas Power has San Angelo at No. 1 ($0.1896) this year, about 4.5% more than it was in 2024. Following San Angelo in descending order are Abilene, Lubbock, League City, and Texas City.
Interestingly enough, D-FW’s own Lewisville came in at No. 6 at $0.1838. Dallas was in the middle of the pack at $0.1737, as was Fort Worth at $0.1722.
What All Is in My Electricity Bill?
Electric bills can be pretty convoluted. The fact of the matter is that you’re not just paying for the electricity you use. You’re also paying for its delivery to your home. There’s typically also a number of fees and taxes tacked on there associated with energy infrastructure improvements and regulation.
Depending on the plan you’re signed up for, your rate charge and final cost for the electricity you used can also be borderline unintelligible. There’s all kinds of plans you can sign up for. Some calibrate different rates for different times of the day, others lock you in at a rate based on your estimated usage for the week or month, but if you go over that threshold then a new rate will kick in for every kilowatt-hour (kWh) over that.
It can be exhausting. Choose Texas Power has a little crash course on how to read your bill. Mind you that companies can label their charges differently, but they usually provide their own guide explaining what each line item is, so be on the lookout for that.
