In Houston Texas electricity service customers are beginning to see that choosing a variable electric rate plan and waiting for it to eventually go up is not the best choice.

The wait and see game works for awhile but eventually you can get stung as did Steve Smith who remodeled my house not but a few months ago.

We needed some drywall hung in the living room and some electrical rewiring done and me and Steve started talking. He mentioned that he used to get on a the cheapest variable electricity rate in Houston and wait and see.

If his rate started to go up to high he would simply shop around again and choose the next best offer out there at the time. He did this until one month electricity rates in Houston were sky high.

He could not find a good low priced variable electricity rate plan or fixed plan for that matter. He started to see how doing the wait and see game may work for a little while but you will eventually get burned.

He went ahead and bit the bullet and signed up for 6 months at a pretty high price for that time in Houston Texas. Fortunately after 6 months rates came back down to normal price levels.

He now is on a fixed electricity rate in Houston Texas and enjoys the price assurance a fixed rate offers and the time saved not having to continuously shop for Houston electricity companies every few months.

Steve is now out of the home remodelling business and has started a small sub sandwhich shop in the East Texas area. He used ElectricityBid to procure his commercial electricity rate and we look forward to working with him in the future when his contract comes up for renewal.

If you need to shop for commercial or residential electricity in Houston TX please use the compare tool at the top right by entering in your zip code. You can compare multiple Houston TX electricity companies and find the rate plan that makes the most sense for your situation.

We have compiled a list of some of the cheaper electricity rates, prices and plans from some reputable electricity companies in the Houston area.  The electricity companies in the list below have a track record of offering electricity service in the Houston area for a few years now and with the new PUCT rules in place the bundled electricity rates shown in the chart include all fees and charges including TDSP related charges, advanced meter fees, etc. We have listed monthly base charges to the right of each rate so you can see which electric company charges a base charge and which ones do not. Many times the cheaper electric rate with a base charge will save you more money than going with a higher electricity rate with no monthly base charge.

The confusing issue some electricity service customers still face is with a variable electricity rate. You can be quoted an initial rate in the advertisement when choosing a variable rate but some providers can change that electricity price even before receiving your first months electric bill. To our knowledge none of the Houston electricity companies in the chart below adjust their initial quoted variable rate until after you have been with them for atleast a month. If you choose a fixed Houston electricity rate the rate will not change the entire term of the fixed electricity agreement. We strongly recommend choosing a fixed electricity rate in the Houston Texas area to avoid any surprises.

Most electricity companies in Houston will also notify you before your fixed electricity agreement is up so you can renew before being put on a variable electricity rate. By having advanced notification that your electricity contract is about to expire you can have assurance that you will never have to deal with a fluctuating variable electricity price. Most Houston home owners and renters choose a fixed electricity rate because they have knowledge of exactly what the rate will be. By simply multiplying the rate times the kWh usage used during the month you can confirm you are being charged correctly.

Right now a 1 year fixed Houston residential electricity rate for September 2009 is the most popular fixed electricity rate agreement. We believe that a 3 year fixed rate actually makes sense right now considering Houston electric prices are close to all time lows. We think some electricity service customers in Houston could even consider signing up for something even longer term like the Just Energy 5 year residential electricity agreement. Most people are uncomfortable committing to an electricity price for that long but because electricity rates are this low right now it really isn’t that bad of a choice.

If you are like me 2 or 3 years is about the max amount of time you will want to commit to for a fixed Houston electricity rate. If you pick a longer term rate with a Houston electricity company you are basically buying insurance betting that electricity prices will be going up in the next few years. This keeps you in a low electricity price for several years while prices will likely head back up considering they are near as close to zero as they will probably go. If you choose a 1 month fixed electricity rate you have price insurance only for the first month of the rate, after that the rate can change with fuel prices. If you choose a variable rate plan with no initial 1 month term the rate could do just about anything. Even if you see an electricity price in a quoted advertisement the rate can legally adjust even before your first months electricity usage.

We recommend if you are considering a variable electricity rate in Houston that you atleast choose a 1 to 3 month fixed rate. After the initial term the rate follows a fuel commodity or index price along with the market. There are several choices when picking a fixed Houston electric rate and right now you can pick from 3 months, 6 months, 1 year, 2, and 3 year terms. Occasionally there will be other alternative fixed terms like a 9, 15, or 18 month fixed electricity rate. You can compare electricity rates for September 2009 using the historical snapshot below. These rates are for historical reference for the month of September 2009 so you can track what electricity companies in Houston were charging during this time. TXU Energy and Reliant Energy in Houston are both falling behind on price when compared with some of the cheapest electric companies in Houston. Although TXU and Reliant remain the two biggest Houston electricity providers they still do not offer low prices compared to some of the other Houston electric providers.

September 2009 Houston Texas Electricity Rates

We have compiled a list of some of the best and worst residential electricity rates in the Houston Texas area. You will find this detailed list below. The best Houston electric rate at this time is with Champion Energy - Learn More. Reliant Energy and TXU Energy again remain at near the bottom of this list. Trickster Electric Company is near the top although we have received several complaints that Trickster raises the electric rate through TDSP related charges once the customer gets the electricity bill. Because of this we want to warn customers about the potential of Trickster’s (name withheld by legal) electric rate being higher then what it appears. If you are one of Trickster’s customers that thought you were going to be charged one rate but once you received the energy bill were charged a much higher energy price then please feel free to comment below. Read below from one of our readers and a customer of Trickster (name withheld by legal):

Gary Huber
April 6th, 2009 at 2:33 am

Stay away!! 9.7 cent plan kept going up 13,14 and finally to 16 cents!!! Ridiculous!!

Tim Gundlach
March 5th, 2009 at 3:09 pm

Trickster Energy (name withheld by legal) is a rip off. SIgn up for .12 kilowatt, but have been billed up to .17/kw. Also the customer service is horrible. Stay away !!

If TXU Energy or Reliant Energy called asking you to renew at an electric rate several cents higher then where the market is currently at we recommend checking out our recommended Houston electric providers on the top left of this page. All fees and charges are disclosed.

Click Here and Compare January 2008 Houston Residential Rates

Houston residential electric rates have steadily come down this month and when comparing to the summer of 2008 they are several cents cheaper. This last summer we had one of the worst electricity rate spikes in the history of Texas. Because residential electricity rates in Texas have come down so much since this summer we recommend signing up for atleast 1 year. A 1 year fixed electric rate insures that your Houston electricity rate is locked in for the duration of the term.

Houston Electric Service More Expensive then Dallas Rates

In Houston rates are a little higher then they are in the Dallas Texas area and other deregulated electric service cities in the state. Houston’s congestion and line loss issues on their poles and wires contributes to a higher electric rate in comparison to other cities regardless of the electric provider in Houston you go with.

TDSP, Pole and Wires Charges, and Comparing Electricity Rates

When comparing residential electricity rates in Houston do not be confused when looking at commercial energy prices. Commercial energy prices usually just show the “energy only” portion of the rate. When you look at a rate comparison chart showing several commercial energy providers the rates will look much better then they do when looking through residential electric service rates. The reason for the difference in price is that the Texas residential electric rate is an all in rate that includes the pole and wires charges and the “energy only” charges. The commercial rate isn’t any cheaper it just doesn’t have the pole charges included.

Are Commercial Electric Rates Intentionally Deceptive?

Commercial energy providers in Houston are not trying to be deceptive when the rate that is quoted does not have the pole and wires charges included in the energy rate. The reason for this difference is because the electricity provider does not know what the pole and wires charges will be immediately for a Texas business. A Texas chemical plant may pay a penny on top of the “energy rate” while a Curves fitness studio may pay 9 cents kWh for their pole charges. The pole charges are not known until an accurate estimate is completed based on several specs of the facility or the historical electricity usage is pulled from the electric utility in Houston.

All-In Energy Prices

The below Houston residential electric prices include the pole charges and energy only charges. These electric rates are all in rates that include all charges. You may browse through and pick the company, term and electric rate that meets your specific residential electric service needs.

Compare Houston Residential Electric Rates Below

January 2008 Update

Hurricane Ike, Electric Comparison, and Relief from Summer Rates

Houston had a major issue with hurricane Ike this last month and surprisingly it had little effect on electric rates. A lot of oil and gas infrastructure was shut down but nothing was destroyed. This still usually has a negative impact on the price of electricity but because oil and natural gas is being swayed by several other factors in the trading commodities market the electric rates did not spike up.

Electric rates in Houston have come down way below their highs this summer when rates were at historical all time highs. That price spike in the summer was related to natural gas prices rising in the commodities sector beyond any level they have seen before. This had about a 90% correlation with the price of electricity. To complicate matters Houston residential electric rates were higher then usualy because several providers had bought electricity on the MCPE ERCOT market and could not meet their financial responsibilities. These electric companies also had no hedging in place so if an electric customer in Houston was on a variable electric rate they may have seen their rate tripple during this time.

Electric Rates Look Much Better From Summer Prices

Take a look at our Houston Texas electric rate comparison. We have rates listed from cheapest to most expensive. Most rates are fixed and there is a designation in the chart to differentiate between a fixed rate or a variable rate. I do not recommend signing a variable Houston electric rate contract as it is subject to change without notice. You may click on the links in the chart below and sign up online at these discounted online electric rate prices.

Houston Residential Electric Rate Comparison Chart

List of Providers from Cheapest to Most Expensive in Houston

We have put together a list of the electric providers in Texas from cheapest to most expensive. The top 3 Texas electric providers in the list all happen to be a little cheaper then what those companies normally advertise. We worked out discount electric rates with these providers and Startex (the cheapest right now) has a high rating from the public utility commission of Texas in regards to customer satisfaction. Because these companies have the cheapest rates and have a high reputability factor we are listing them for our readers to sign up with. You will receive their discount rates provided you sign up online using the links in the list below. These rates were updated on August 20th so between now and September rates could go up or down with the market so these rates may be a little higher or lower as the month proceeds.

Congestion Problems in Houston Texas

If you are in or around Houston Texas you will notice that your city has higher rates then the rates in Dallas Texas. The Houston area has some of the highest electric rates in Texas across the board. The reason electric rates are higher in Houston has to do with congestion and line loss issues. The state of Texas is working on resolving the congestion and line loss issues in Houston Texas. Until the givernment comes up with a good plan for this you will continue to pay a little higher for your electricity then the rest of the state.

List of Electric Companies in Houston

 The city of Houston has some of the highest electric rates in the state due to line losses and congestion issues. This issue effects your electric rate regardless of the electric provider you choose. These issues are included in the non-negotiable  TDSP charges also known as pass through charges that are fixed by the PUCT and bundled into the residential electric rate. The nodal system the PUCT and ERCOT are working to implement in the state of Texas and Houston will help to alleviate this issue.

The only other place in Texas with higher electric rates then Houston is Brownsville Texas and surrounding AEP service area. Brownsville Texas is faced with the same issues that effect Houston and cause electric rates to be higher then they are in cities like Dallas or Laredo Texas.

Heads up on What is Going on in the Market This Month

Right now the market is still close to a 3 year high. We saw electric rates in Texas go up the entire month of June and now in July we still see energy prices rising higher. Most people have noticed in the news of how oil has reached $148 setting an all time historical record. The energy sector is up across the board and Houston electric rates are the highest in the state of Texas. Houston must pipe in their energy from far off causing line losses. The power consumption and demand of Houstonians causes congestion and they just don’t turn on enough power plants in your town to meet peak demand periods. Because of these issues you pay ridiculously high prices. Last year rates were around 10 – 11 cents kWh. If you are now trying to renew an energy contract or lock in again you will be surprised to see Houston electricity rates about 5 – 10 cents higher then last year.

July 2008 Electric Rate Chart

We have Houston, Harris County, Brazoria County, and surrounding Centerpoint Energy utility areas electric rates listed here from best to worst. A 12 month fixed Houston electric rate is recommended as rates are expected to travel back down. Long term contracts are cheaper, however you would be locking in at the top of the market when the expectation is that electric rates will be coming back down before 24 and 36 months. Many of the electric rates in the chart below are discount 12 month fixed electric rates. By clicking on the links below and signing up online you will achieve a slightly better rate then what that company normally advertises.

What is Electricity Doing Right Now?

As of May 2008 Electric rates are currently close to a 3 year high and because of this Texas residential electric rates do not look so good right now. Many people would like to wait and renew when rates drop down but there is just no way to know when this will happen. Electric rates could hover at historical highs for several months before they drop back down to prices many people are comfortable paying.

Who We Recommend

We recommend signing a 12 month energy agreement and then trying again next year. Notice: Riverway Power recently cancelled their residential electric customers agreements in mid April according to several people who called in and left comments regarding them so we do not recommend using them as their fixed electric rate is subject to change. Our preferred electric providers at this time are Affordable Energy, Startex Energy and Bounce Energy Guaranteed No Deposit. All of these Texas electric companies have accurate billing, good customer service and low rates.

We are now approaching the end of the month of June and since writing this article rates have continued up along with a barrel of oil and natural gas. Oil and natural gas are trading at all time historical highs and the analysis shows that traders are hedging against a falling dollar by buying energy. The rise in prices can best be attributed to investors and traders trading up the price. This price spike will most likely be a bubble we will see fall but we have no idea when that will be. If you are buying Houston electricity you are exeriencing the worst of it. Houston electric rates are higher then they have ever been right now and higher then the rest of the state.

Read more about Texas Electricity

Read more about Startex Power

Read more about Champion Energy

Mathew Tomlinson is sick of looking at his electric bill and being overcharged beyond the normal rate he has been paying his electric provider.

He is not alone as several other people in his business location have called angrily to their Piney Point Village electric company to express outrage at the higher electric rates.

Many residents have thought about drafting a petition regarding the higher electric rates and mailing it to the Electric Reliability Council of Texas to try

and do something about the higher energy costs. ERCOT has had plenty of corruption in their ranks in the past and many have wondered if the tariffs and TDSP

charges have been done with the Texas consumer in mind. Kickbacks and a network of commercial bribes have caused operations at ERCOT to look a bit like

something you might see in Russia although the corruption element at ERCOT is all supposedly cleaned up now. Many were surprised the Texas ERCOT organization

created to oversee the electric grid in Texas would come up on corruption charges. Could there possibly be something to the claim that some of ERCOT’s rules

and regulations were created from past corruption and commercial bribery. If there is any hint of truth to this then all those Texas consumers fed up with higher rates may eventually feel vindicated when they get to say, “I told you so.”

ERCOT insists they are doing as much as they can to keep electric customers costs low. The nodal system that ERCOT is implementing across the state should

alleviate some cities from paying higher congestion and line loss related charges that the bigger cities in the region cause. This will help lower costs in some areas and give an incentive for larger cities to work on improving their efficiency in the electrical within buildings, with new pole and wires infrastructure, and lowering overall KW electricity demand from business to business.

Line items on an electric bill have caused confusion underneath the TDSP charges section. Many times for commercial customers the TDSP charges can make up 50% or more of a companies electric bill. This has caused many commercial companies to have to close shop as the electricity to run the business is too expensive to continue to stay in business.

Residential TDSP charges only make up a small percentage of the electric bill. Residential electric customers spend about 2 – 3 cents kWh in TDSP charges

while the remainder of the electric rate is from the Retail electric provider. The 2 – 3 cents in TDSP charges are past through from the pole and wires

utility company with no additional markup. There is currently no law in place in Texas that does not allow marking up the TDSP charges so some electric

providers have lowered their “energy only” rate only to then raise their “TDSP charges” higher then the normal pass through with no markup. This trick has

caused many people to second guess their electric bill when changing to the supposedly cheapest electric provider in Texas.

Natural Gas has been going up steadily which makes up most of the fuel that powers the electricity generation plants in Texas. Because natural gas is tied so

closely to Texas electric rates you see a very close correlation. Natural Gas hit a 3 year high not to long ago and electric rates in Texas also hit a 3 year

high at the same time. Having more alternative power generation plants can even out the erratic Texas electric prices and give Texas consumers a cheaper electric.

Building clean coal powered electric generation facilities as well as nuclear will help stabilize the electric prices in Texas. The United States is the

Mideast of coal if you were to compare us to the amount oil the Mideast controls. Texas should start building more coal power plants that can burn the coal

and a clean way. Clean coal power is a possibility and would drastically lower the states electricity rate.

Electric rates right now are so high because of the energy commodities market but that is not to say that there could still be some funny business going on

with some the PUCT’s (Public Utility Commission) and ERCOT’s tariffs and regulations. ERCOT did have a recent history of corruption and not everything is known about what all went on. The PUCT has no corruption related charges against them and in fact enforce strict rules and penalties against electric companies that do not obey by the rules.

Jim from Texas City said, “I have an electric bill where I pay about 16 cents kWh just in TDSP charges for my business. This became so high I could no longer

afford to stay in business. I eventually had to close my bed and breakfast and work for somebody else.”

The Electric Reliability Council of Texas (ERCOT) operates the electric grid and manages the deregulated market for about 75 percent of the state

Most commercial business owners in Texas paying the amount in TDSP charges as Jim was paying would be willing to sign a petition and send it to ERCOT. The issue is that small business owners sometimes get hit with a TDSP charge that just doesn’t justify keeping the doors to their business open any more. “The electric rate for a business in this situation is just to high” says, Jim.

“Texas commercial businesses I talked to said they would sign a petition even though they imagined it probably would do absolutely no good.” he said.

Jim, wasn’t confident that having a petition signed by several business owners in Texas would do any good but he wanted to go on record that he was not happy with electric rates for businesses in Texas.

“Most people don’t say anything to the government, ERCOT or the PUCT about how they feel but I think somebody should say something to show people are beginning to take notice”, he said.

ERCOT maintains they are operating at the highest ethical and professional conduct and have done everything in their power to remove corruption in their ranks. The PUCT’s tariffs and regulations related to TDSP charges have been fashioned based upon the fairest business model they could agree upon that considers several different tiers of energy usage. Some companies demand more energy at one particular time in the day but do not use that many kilowatt hours throughout the day. These companies get hit with a TDSP charge that is made up of about 90% in demand charges. Companies that find themselves in this situation should hire an electrician to come in and audit the electrical in the building for ways to become more efficient and to lower their peak electric demand KW.

Getting A Headache Finding The Right Company

I woke up one day still mad from the electric bill I received the previous day that was over $500 . My usage wasn’t that bad and that is when I realized I might be getting gouged with a rate I could probably drop for something better. I realize part of this is my fault for letting things go so long without researching or doing anything. There is a lot of spam and garbage internet sites out there that just don’t have good information or atleast it might be good but it is outdated information. I decided to just get on the phone and give as many Texas electric providers a call as possible.

Calling The Electric Companies

I called just about all of these electric companies and one thing that stood out was the slight subtleties of the rate plans being offered. Some providers were charging the best rate but it would be a variable electric rate. This basically means they can raise the rate at anytime for whatever reason they want. The fact that the want me to sign a 12 month contract to get on a rate that they could raise higher during the contract made no sense to me. After I figured out that the 12 month variable rate contract was more of a gimmick then saving money I decided to keep looking. I stressed to the energy companies that I need a fixed rate and I don’t want there to be a monthly customer service charge unless the rate is exceptionally good.

TXU Electric, Reliant And The Rest Of Them

I called Reliant Electric Company, TXU Electric, Spark Energy, Startex Power, Accent Energy, Amigo Energy, Trickster Energy (name withheld by legal), Cirro Energy, Ambit Energy, Texas Power, Champion Energy, and several others I cannot remember the name of right now. Cirro Energy and Texas Power wanted me to sign a contract on a variable rate. I declined these two offers after understanding I would be getting into an energy rate that could change during the course of the contract with no way to back out of the contract if I become unhappy with the rate. Startex had a variable rate that allowed you out of the contract if at any time you are not satisfied with it. I wrote down their variable rate as well as their fixed rate term rates as well. Champion Energy had only one term to choose from at 12 months and it was a fixed electric rate. I wrote them down too as they were one of the lowest I found.

Wrapping Up The Research

After researching all the electric providers I could find I determined that Startex Power was the Houston Electric Company who had the very best 12 month electric rate for the Houston Texas area. As of January 2008 their rate was 11.1 cents kWh for 12 months with no monthly customer service charge. For most other terms I found that Startex Power also had the lowest electric rates.

Startex Power – Check Rates

Cheap Electric Providers In Dallas Texas