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Texas · Competitive supply market

Commercial electricity in Texas

Most Texas commercial accounts inside ERCOT competitive territory choose their retail electric provider while the transmission and distribution utility continues to deliver power and handle outages under regulated tariffs. Municipal utilities such as Austin Energy and CPS Energy, many cooperatives, and non-ERCOT areas including El Paso Electric are not open to choice.

  • StructureCompetitive supply market
  • RegulatorPUCT
  • Utility territories8

What Texas businesses pay for electricity

Average commercial electricity price in Texas

8.57¢ per kWh

12 months to August 2026 · EIA, preliminary

  • vs US average (13.87¢)−38%below the national figure
  • vs previous 12 months+0.0%from 8.57¢
  • Final 2025 (EIA-861)8.56¢3rd lowest of 51 markets
  • Average commercial customer9,509 kWha month, about 814 at the 2025 average
  • Since 2020+13%US +26% over the same years
Texas average commercial electricity price compared with the US, 2010 to 2025, and the 12 months to August 2026 Texas: 9.19¢ in 2010, 8.56¢ in 2025, 8.57¢ over the 12 months to August 2026 (preliminary). United States: 10.19¢, 13.37¢, 13.87¢. 6¢8¢10¢12¢14¢16¢ 20102012201420162018202020222024 12 mo TX 8.57¢ US 13.87¢
TexasUnited States12 months to Aug 2026, preliminary
Show the numbers
Average commercial electricity price, cents per kWh (EIA)
PeriodTexasUnited States
20109.19¢10.19¢
20118.83¢10.24¢
20128.16¢10.09¢
20138.02¢10.26¢
20148.16¢10.74¢
20158.15¢10.64¢
20168.26¢10.43¢
20178.26¢10.66¢
20188.16¢10.67¢
20198.06¢10.68¢
20207.60¢10.59¢
20218.72¢11.22¢
20229.05¢12.41¢
20238.82¢12.59¢
20248.55¢12.75¢
20258.56¢13.37¢
12 months to Aug 2026 (preliminary)8.57¢13.87¢

This is the average revenue per kWh from every commercial customer in Texas, from a corner shop to a hospital: energy, delivery, demand and other charges billed, divided by kWh sold. The average customer uses more than a typical small business, because a few very large customers pull the mean up. It is dated context for reading a bill — not a quote, not an available offer, and not what any one business pays.

What a typical building pays in Texas

The same federal survey of commercial buildings behind the cost estimator, run for a typical-sized building of eight common kinds and priced at Texas's average commercial price for the 12 months to August 2026. Typical size is the median floor area of the surveyed buildings of that kind, and the middle half is the range between the 25th and 75th percentile of them.

What a typical building of each kind pays for electricity in Texas, per month
BuildingTypical sizeTypical billMiddle halfSurvey basis
Office building5,000 sq ft$490$300 to $740509 in the South
Medical, dental or outpatient clinic5,500 sq ft$650$370 to $85083 in the South
Retail store or showroom6,500 sq ft$480$330 to $710146 in the South
Grocery or convenience store2,400 sq ft$920$640 to $1,40091 nationwide
Sit-down restaurant or cafeteria3,850 sq ft$1,100$640 to $1,600132 nationwide
Warehouse or distribution centre6,700 sq ft$210$89 to $430274 in the South
Hotel, motel or inn12,000 sq ft$1,500$570 to $1,900130 in the South
Gym, fitness or recreation facility8,300 sq ft$550$420 to $1,000148 nationwide

A screening estimate, not a quote. The price is an average across every commercial customer in Texas, scaled for building size, and the buildings are whole buildings from EIA's 2018 survey, so a suite inside a larger building, or one with unusual hours or equipment, can differ a lot. Estimate your own building in Texas, or check a real bill.

What utilities billed commercial customers in Texas

For each utility, EIA records how many commercial customers it had in 2025 and the average revenue per kWh it billed them. The 10 largest of 74 Texas utilities with 500 or more commercial customers are shown.

Largest utilities in Texas by commercial customers, with the average price each billed in 2025
UtilityTypeCommercial customersBundled price per kWh
City of San AntonioMunicipal97,66110.09¢
Southwestern Public Service CoInvestor-owned58,9969.67¢
Entergy Texas Inc.Investor-owned56,7399.86¢
Austin EnergyMunicipal55,30610.96¢
Pedernales Electric Coop, IncCooperative53,50510.41¢
El Paso Electric CoInvestor-owned40,2079.17¢
Southwestern Electric Power CoInvestor-owned31,02610.32¢
Denton County Elec Coop, IncCooperative23,03013.57¢
Tri-County Electric Coop, Inc (TX)Cooperative20,40213.47¢
Bluebonnet Electric Coop, IncCooperative19,8109.43¢

Together the 10 shown serve about 30% of Texas’s 1,530,891 commercial customers, and all 74 serve about 51%. EIA’s 2025 table has no commercial sales rows for Oncor Electric Delivery, CenterPoint Energy Houston Electric, AEP Texas Central, AEP Texas North or Texas-New Mexico Power, so they are not in this table; their own pages say what each tariff charges. All Texas commercial customers together averaged 8.56¢ per kWh in 2025.

Bundled is the price paid by commercial customers who buy their energy and delivery from the utility, so it is an all-in price. Delivery-only is what the utility billed customers who buy their energy from a competitive supplier, so it is the delivery charge alone and cannot be compared with a bundled price. Each figure averages every commercial customer of that utility and service type, from a corner shop to a campus, so a utility with larger customers averages a lower price per kWh. It is dated context, not a quote and not an offer, and the utility that serves an address is named on its bill.

Source: U.S. Energy Information Administration, Form EIA-861, 2025 final data. Utilities across the country · every utility as a CSV.

Most Texas commercial accounts inside ERCOT competitive territory choose their retail electric provider while the transmission and distribution utility continues to deliver power and handle outages under regulated tariffs. The local utility continues to own delivery, metering and outage response under regulated tariffs that no supplier can change.

Source: Public Utility Commission of Texas market structure; this site's market registry · 2026-10-31

Competitive supply market. ERCOT competitive areas only. Municipal utilities, cooperatives that have not opted in, and non-ERCOT territories are NOT competitive.

What a Texas commercial account can actually do

Eligible commercial accounts in Texas can award a supply contract to a licensed supplier. The local utility continues to deliver the power, own the meter and restore outages, and continues to charge for that under a regulated tariff that no supplier can change.

That means two separate pieces of work, and the second is the one most buyers never get done:

  1. The supply decision. Run a real, time-boxed competition among qualified suppliers on identical verified facts, then hold the contract to what was awarded.
  2. The regulated half. Rate schedule fit, demand charges, ratchet exposure, power factor and billing accuracy. No supplier earns anything here, which is precisely why no supplier raises it.

Utility territories in Texas

Eligibility is determined by the utility territory serving the specific service address, not by the state and not by the ZIP code. One city can cross more than one territory.

Texas territories where eligible commercial accounts may contract supply
UtilityRoleAccount keyed onTerritory
Oncor Electric DeliveryTDUESI IDDallas–Fort Worth and much of north, central and west Texas.
CenterPoint Energy Houston ElectricTDUESI IDHouston metropolitan area and the surrounding Gulf Coast.
AEP Texas CentralTDUESI IDCoastal and south Texas, including the Corpus Christi and Rio Grande Valley areas.
AEP Texas NorthTDUESI IDWest central Texas, including the Abilene and San Angelo areas.
Texas-New Mexico PowerTDUESI IDNon-contiguous pockets across Texas, including parts of the Gulf Coast, west Texas and north Texas.

Not open to supply choice. Accounts in these Texas territories cannot award a supply contract, whatever the rest of the state does. This is exactly the distinction a state-level answer gets wrong.

Texas territories NOT open to competitive supply
UtilityTypeAccount keyed onTerritory
Austin EnergyMunicipal utilityAccount numberCity of Austin and limited surrounding areas.
CPS EnergyMunicipal utilityAccount numberSan Antonio and surrounding Bexar County areas.
El Paso ElectricInvestor-owned utilityAccount numberEl Paso and far west Texas, outside ERCOT.

Where Texas sits

Every US market on one view, coloured by what an account can actually do there. Texas is highlighted, and every other tile is a link.

Alaska — Regulated — advisory only. Average commercial price 22.8 cents per kWh AK 22.8¢ Maine — Competitive supply market. Average commercial price 22.2 cents per kWh ME 22.2¢ Vermont — Regulated — advisory only. Average commercial price 20.8 cents per kWh VT 20.8¢ New Hampshire — Competitive supply market. Average commercial price 21.1 cents per kWh NH 21.1¢ Washington — Regulated — advisory only. Average commercial price 11.7 cents per kWh WA 11.7¢ Idaho — Regulated — advisory only. Average commercial price 9.6 cents per kWh ID 9.6¢ Montana — Limited or special pathway. Average commercial price 12.7 cents per kWh MT 12.7¢ North Dakota — Regulated — advisory only. Average commercial price 7.6 cents per kWh ND 7.6¢ Minnesota — Regulated — advisory only. Average commercial price 12.6 cents per kWh MN 12.6¢ Illinois — Competitive supply market. Average commercial price 13.8 cents per kWh IL 13.8¢ Wisconsin — Regulated — advisory only. Average commercial price 13.5 cents per kWh WI 13.5¢ Michigan — Limited or special pathway. Average commercial price 15.3 cents per kWh MI 15.3¢ New York — Competitive supply market. Average commercial price 22.3 cents per kWh NY 22.3¢ Rhode Island — Competitive supply market. Average commercial price 23.6 cents per kWh RI 23.6¢ Massachusetts — Competitive supply market. Average commercial price 24.2 cents per kWh MA 24.2¢ Oregon — Limited or special pathway. Average commercial price 10.3 cents per kWh OR 10.3¢ Nevada — Limited or special pathway. Average commercial price 9.3 cents per kWh NV 9.3¢ Wyoming — Regulated — advisory only. Average commercial price 9.7 cents per kWh WY 9.7¢ South Dakota — Regulated — advisory only. Average commercial price 11.3 cents per kWh SD 11.3¢ Iowa — Regulated — advisory only. Average commercial price 11.3 cents per kWh IA 11.3¢ Indiana — Regulated — advisory only. Average commercial price 13.8 cents per kWh IN 13.8¢ Ohio — Competitive supply market. Average commercial price 13.2 cents per kWh OH 13.2¢ Pennsylvania — Competitive supply market. Average commercial price 13.6 cents per kWh PA 13.6¢ New Jersey — Competitive supply market. Average commercial price 17.4 cents per kWh NJ 17.4¢ Connecticut — Competitive supply market. Average commercial price 21.7 cents per kWh CT 21.7¢ California — Limited or special pathway. Average commercial price 27.0 cents per kWh CA 27.0¢ Utah — Regulated — advisory only. Average commercial price 10.3 cents per kWh UT 10.3¢ Colorado — Regulated — advisory only. Average commercial price 13.1 cents per kWh CO 13.1¢ Nebraska — Regulated — advisory only. Average commercial price 8.9 cents per kWh NE 8.9¢ Missouri — Regulated — advisory only. Average commercial price 10.9 cents per kWh MO 10.9¢ Kentucky — Regulated — advisory only. Average commercial price 12.4 cents per kWh KY 12.4¢ West Virginia — Regulated — advisory only. Average commercial price 11.7 cents per kWh WV 11.7¢ Virginia — Limited or special pathway. Average commercial price 11.0 cents per kWh VA 11.0¢ Maryland — Competitive supply market. Average commercial price 16.6 cents per kWh MD 16.6¢ Delaware — Competitive supply market. Average commercial price 13.6 cents per kWh DE 13.6¢ Arizona — Regulated — advisory only. Average commercial price 12.2 cents per kWh AZ 12.2¢ New Mexico — Regulated — advisory only. Average commercial price 10.9 cents per kWh NM 10.9¢ Kansas — Regulated — advisory only. Average commercial price 11.6 cents per kWh KS 11.6¢ Arkansas — Regulated — advisory only. Average commercial price 11.3 cents per kWh AR 11.3¢ Tennessee — Regulated — advisory only. Average commercial price 13.3 cents per kWh TN 13.3¢ North Carolina — Regulated — advisory only. Average commercial price 10.6 cents per kWh NC 10.6¢ South Carolina — Regulated — advisory only. Average commercial price 11.7 cents per kWh SC 11.7¢ District of Columbia — Competitive supply market. Average commercial price 22.9 cents per kWh DC 22.9¢ Oklahoma — Regulated — advisory only. Average commercial price 9.3 cents per kWh OK 9.3¢ Louisiana — Regulated — advisory only. Average commercial price 11.5 cents per kWh LA 11.5¢ Mississippi — Regulated — advisory only. Average commercial price 13.8 cents per kWh MS 13.8¢ Alabama — Regulated — advisory only. Average commercial price 14.8 cents per kWh AL 14.8¢ Georgia — Regulated — advisory only. Average commercial price 11.8 cents per kWh GA 11.8¢ Hawaii — Regulated — advisory only. Average commercial price 40.3 cents per kWh HI 40.3¢ Texas — Competitive supply market. Average commercial price 8.6 cents per kWh TX 8.6¢ Florida — Regulated — advisory only. Average commercial price 11.7 cents per kWh FL 11.7¢
  • 14 you can choose — businesses can pick their supplier
  • 6 some can choose — by size, cap or program
  • 31 utility only — other charges can still be fixed

Number on each tile: average commercial electricity price in cents per kWh, 12 months to August 2026 (EIA, preliminary).

Worth knowing in Texas specifically

Beyond the ordinary demand charge on your own peak, the grid serving Texas allocates a further cost through a small number of hours per year. It is a delivery-side mechanism, so no supplier is involved and no supply contract affects it.

The timing matters: the work that reduces next year's charge has to happen during the window that sets it, not during the year you are paying it.

Before we can answer anything specific

We verify from the account, not from the address alone:

  • The utility territory actually serving the service address
  • ESI ID and customer class
  • Current supply arrangement, including any aggregation and its termination status
  • Contract expiry date and whether the decision window is open
  • 12 months of consumption and, where metered, peak demand
Get a free bill check

Supplier comparison is not open in Texas yet. The free bill check shows how much of your bill a supplier could even touch and what is worth a look today, which is the same first step whichever way you go.