Last Updated on August 15, 2022 by Mary Pressler

How Much Should I Be Paying for Electricity in Texas?

A Breakdown of Texas Electricity Rates in 2022

Texas electricity rates have increased dramatically in 2022, and getting higher power bills compared with last summer is normal. However, even with the current spike in kilowatt-hour prices, it helps to know the typical consumption and power bill for a Texan home. This way you can tell if your current bill is reasonable or above-average.

Your monthly power bill depends on two main factors:

  • Kilowatt-hour consumption during the billing period.
  • Your electricity plan of choice.

Here we will provide a quick calculation of the monthly power bill you can expect, based on the average home consumption in Texas, and a popular electricity plan in the Oncor service area: Premier 12 – No Deposit & No Credit Check from Payless Power.

Learn More: How to Read an Electricity Facts Label in Texas

Typical Power Bill for a Texas Home in Summer 2022

According to the US Energy Information Administration, the average Texan home consumes 14,112 kWh per year, which is equivalent to 1,176 kWh per month. We will calculate the resulting power bill, based on the Electricity Facts Label (EFL) of the chosen plan:

Electricity Charges Description
Fixed Daily Charge $3.66 per day, covers the first 17 kWh of daily consumption
Energy Charge 20.5562 cents/kWh, for consumption above the first 17 kWh
TDSP Delivery Charge 3.8907 cents/kWh, included in the Daily and Energy charges
TDSP Monthly Charge $3.42 per month

During a 30-day billing cycle, you pay the fixed TDSP charge of $3.42/month, and $3.66/day covering your first 17 kWh of daily consumption ($109.80 for the first 510 kWh of monthly consumption). The fixed payment in this case is $113.22 per month.

This electricity plan also charges 20.5562 cents/kWh, for all consumption over 510 kWh. Assuming the average home consumption of 1,176 kWh, you must pay for the 666 kWh difference. This is equivalent to an additional $136.90.

Adding the fixed charge and the per-kWh charge, you get a monthly light bill of $250.12 with this electricity plan. This means you would be paying 21.27 cents/kWh.

Typical Power Bill at Different Consumption Levels

The following table repeats the power bill calculation at different home consumption levels, between 500 kWh and 2,500 kWh.

Monthly Consumption Total Power Bill Average Price per kWh
500 kWh $113.22 22.64 cents/kWh
750 kWh $162.55 21.67 cents/kWh
1,000 kWh $213.95 21.39 cents/kWh
1,176 kWh (Texas Average) $250.12 21.27 cents/kWh
1,250 kWh $265.34 21.23 cents/kWh
1,500 kWh $316.73 21.12 cents/kWh
1,750 kWh $368.12 21.04 cents/kWh
2,000 kWh $419.51 20.98 cents/kWh
2,250 kWh $470.90 20.93 cents/kWh
2,500 kWh $522.29 20.89 cents/kWh

Again, consider that Texas currently has above-average electricity prices. This can be explained in great part by the high price of natural gas, which accounts for 50% of power generation in the Lone Star State. When inflation slows down and gas prices decrease again, the same can be expected of electricity rates in Texas.

The US Bureau of Labor Statistics reported an inflation rate of 8.5% between July 2021 and July 2022. The energy sector had the highest increase in the Consumer Price Index – 32.9% in the same 12-month period. In particular, electricity prices were up by 15.2% while natural gas prices were up by 30.5%.

Will Texas Electricity Rates Go Down in 2022?

As the dog days of summer drag on, many of us are left wondering when we might see lower electric bills. It’s hard to say if electric rates will decrease soon, but as natural gas rates drop we should see some relief. In the meantime, there are many things a Texas homeowner can do to save electricity at home, including using cold water, turning the thermostat up slightly and better insulating windows and doors.

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