8 min read • Updated October 2026 • By the CliQ Team — the team that created Blink
Why are Texas electric rates going up? Mostly the cost of delivering power, not the power itself. Texas's average residential rate rose from 15.36 to 15.88 cents per kilowatt-hour between July 2025 and July 2026, up 3.4%, according to the EIA. That's still below the US average of 18.31 cents. The utilities that own the poles and wires are recovering storm repairs and paying for a grid that's growing fast. Oncor's delivery rates went up about 3% on a typical bill in June 2026, and Houston-area bills now carry charges for Hurricane Beryl repairs. Demand set an all-time record of 91,134 megawatts on July 22, 2026, according to ERCOT. City-owned utilities move on their own schedules: Austin Energy raised rates October 1, El Paso Electric in May, and CPS Energy held its rates this year.
Help is available. The state's Comprehensive Energy Assistance Program (CEAP) covers households earning up to $49,500 for a family of four. Here's what's driving Texas rates, what's changed for your area, how to get help, and the part of the bill you control.
Why Texas Electric Rates Are Rising
In most of Texas, including Houston and Dallas–Fort Worth, a bill has two main parts. The energy charge comes from the retail electric provider you picked, and it's set by your plan. The delivery charges come from the utility that owns the poles and wires in your area, like Oncor, CenterPoint, AEP Texas, or TNMP. You can't shop for those. The Public Utility Commission of Texas (PUCT) approves them, and your provider passes them through. ABC13 in Houston looked at why delivery costs are climbing.
Video by ABC13 Houston via YouTube, December 2025. Not affiliated with CliQ.
- Oncor (Dallas–Fort Worth and much of North and West Texas). The PUCT approved a settlement of Oncor's rate case on April 17, 2026, and new rates took effect about 45 days later. Oncor says that adds about $4.64 a month, roughly 3%, for a home using 1,000 kilowatt-hours on a 15-cent plan. Oncor also gets to recover, through the end of 2026, what it would have collected under the new rates since January 1. In its original request, Oncor said about 45% of the increase was for storm repairs, about 20% for inflation and higher costs, and about 25% for keeping its borrowing costs down.
- CenterPoint (Houston area). In 2025, the PUCT approved CenterPoint's recovery of about $1.2 billion in repair costs from Hurricane Beryl and other storms, spread over 15 years. CenterPoint funded it with bonds in early 2026. According to its bond filing, the new storm charges make up about 1.2% of a typical 1,000 kWh bill, or about 1.7% counting an earlier storm charge.
- Demand. ERCOT, which runs the grid for most of Texas, set a new all-time demand record of 91,134 megawatts on July 22, 2026, up from the 2023 record of 85,508. Its preliminary long-term forecast, which counts new data centers, industry, and oil and gas operations, projects far more growth by 2032, though ERCOT's CEO said he believes the forecast is higher than actual growth will be. More demand means more lines, substations, and power plants to pay for.
The short version: the part of a Texas bill that's rising fastest is the part you can't shop for: delivery, storm repairs, and the cost of a grid that keeps getting bigger.
What It Means for Your Area
If you choose your provider (Houston, Dallas–Fort Worth, and most of ERCOT)
Your energy charge depends on your plan, so it's worth knowing what you signed up for, and when it ends. WFAA's consumer reporter walked through what happens when a contract runs out, and how to time your next one.
Video by WFAA via YouTube, August 2026. Not affiliated with CliQ.
If you're comparing plans, the PUCT's rules give you a few fixed points to check:
- Power to Choose (powertochoose.org) is the PUCT's official site for comparing plans.
- The Electricity Facts Label (EFL) on every plan shows the average price at 500, 1,000, and 2,000 kWh a month. Compare at the usage closest to yours, since some plans look cheap only at one level.
- Fixed vs. variable. A fixed rate holds for the contract term. A variable rate can change month to month.
- When a contract ends. Your provider has to send a notice marked "Contract Expiration Notice" before a fixed-rate contract ends. If you do nothing, you're moved to a month-to-month plan whose price can change, which you can cancel without a fee.
Austin Energy
Austin's City Council approved Austin Energy's budget in August, including a 5% base rate increase effective October 1, 2026. Austin Energy's budget shows a typical 860 kWh bill going from $117.07 to $120.73 a month. Base rates add $2.99, and the regulatory charge adds $3.96 because of rising costs in the ERCOT market, partly offset by a lower power supply charge. Last year's increase also raised the monthly customer charge from $15 to $16.50.
CPS Energy (San Antonio)
CPS Energy's board approved its budget for the year starting February 2026 without a rate increase, after City Council members pushed back on one. CPS has said a future increase is still possible. Its last base rate increase was in 2023.
El Paso Electric
El Paso isn't on the ERCOT grid. El Paso Electric's rates are still set by the PUCT, which approved an increase in February 2026 that was smaller than the utility asked for. Starting in May 2026, the average residential bill went from about $98 to about $111 a month, according to the utility, and the fixed monthly customer charge rose from $9.25 to $13.71. KFOX14 covered the decision.
Video by KFOX14 via YouTube, February 2026. The final dollar figures came later and are in the paragraph above. Not affiliated with CliQ.
Electric co-ops set their own rates through their boards, so check your co-op's notices. For how Texas compares with other states, see which states have the highest electricity rates.
CEAP and Other Help Paying Your Bill in Texas
These are the main programs and protections, from the state and the PUCT.
CEAP (Texas's LIHEAP program): help with heating and cooling bills
The Comprehensive Energy Assistance Program is run by the Texas Department of Housing and Community Affairs (TDHCA) through local agencies in every county, using federal LIHEAP funds. For 2026, the income limit is 150% of the federal poverty guideline: $23,940 for one person, $32,460 for two, $40,980 for three, $49,500 for four, and $8,520 more for each additional person. Call 2-1-1 or use TDHCA's Help for Texans page to find your local agency. Apply early, since funds can run out.
No shutoffs during extreme weather
Under PUCT rules, your service can't be disconnected for nonpayment on a day when the previous day's high didn't get above 32°F and freezing temperatures are forecast for the next 24 hours, or when the National Weather Service has issued a heat advisory for your county that day or either of the two days before. Providers must also offer a deferred payment plan, if you ask, for bills that come due during the emergency. There are added protections for people with serious illness or who depend on electric medical equipment.
City utility programs
Austin Energy's Customer Assistance Program discounts bills for income-qualified customers; its budget shows a typical CAP bill of $89.83 a month versus $120.73 without it. CPS Energy offers an Affordability Discount Program and bill help through the Residential Energy Assistance Partnership (REAP). Ask your provider, retail or city-owned, about payment arrangements before a bill comes due.
If you can't resolve a problem
Start with your provider. If that doesn't work, the PUCT's Consumer Protection Division takes complaints at 1-888-782-8477 or consumer@puc.texas.gov.
The Part You Control: How Much You Use
The PUCT and your city set the delivery rates. Your plan sets the energy rate. How much you use gets set at home.
Start with heating and cooling. They account for more than half of the energy used in a typical US home, according to the EIA, and in a Texas summer, air conditioning is the big one. The Department of Energy says turning the thermostat back 7 to 10 degrees for 8 hours a day, like while the house is empty, saves up to 10% a year on heating and cooling. In summer, that means letting the house run warmer while you're out. One caution that matters in Texas: DOE says deep setbacks aren't a good fit for heat pumps, which are common here. With a heat pump, keep setbacks modest.
What that's worth: about $80 to $100 a year for the average US household. Your rate stays the same. The number of kilowatt-hours you buy at that rate doesn't.
The catch is doing it every day. Nobody remembers to bump the air conditioning up every morning and back down every evening, all summer. A schedule does it for you. For other reasons a bill runs high, see why your electric bill is so high, and check what a normal electric bill looks like.
That's where CliQ comes in. It's a $69.99 smart thermostat that runs the schedule for you. You set four temperatures for morning, day, evening, and night. Away mode adjusts the temperature when you leave and brings it back when you're home, including automatically based on your phone's location. The app is free, with no subscription.
It also fits older Texas homes. Plenty of them have a thermostat with no C-wire, the constant-power wire most smart thermostats need. CliQ doesn't need one. It works with most 24V systems, including gas furnaces, central air conditioning, and single-stage heat pumps. It doesn't control electric baseboard or wall heaters, or ductless mini-splits. If your old thermostat is a compatible Honeywell two-wire model, CliQ clicks onto the existing wall plate with no tools. Otherwise it's a screwdriver and a few minutes.
You can shop for your rate. You can't shop for delivery. You can cut what you use.
See the CliQ Smart Thermostat →$69.99 MSRP. No C-wire required.
Frequently Asked Questions
Why are Texas electric rates going up?
Mostly delivery costs. The utilities that own the poles and wires, like Oncor and CenterPoint, are recovering storm repair costs and paying for a fast-growing grid, and the PUCT has approved increases. Demand also set a record of 91,134 megawatts in July 2026. Texas's average residential rate rose 3.4% between July 2025 and July 2026, to 15.88 cents per kWh, still below the US average.
How much did Oncor delivery charges go up in 2026?
The PUCT approved a settlement of Oncor's rate case on April 17, 2026, and new rates took effect about 45 days later. Oncor says that's about $4.64 a month, roughly 3%, for a home using 1,000 kWh on a 15-cent plan. Oncor is also recovering, through the end of 2026, the difference for January 1 until the new rates began.
How do I compare electricity plans in Texas?
Use Power to Choose (powertochoose.org), the PUCT's official comparison site. Check each plan's Electricity Facts Label, which lists the average price at 500, 1,000, and 2,000 kWh a month, and compare at the usage closest to yours. Check whether the rate is fixed or variable, the contract length, and any early cancellation fee.
What happens when my Texas electricity contract expires?
Your provider has to send a notice marked "Contract Expiration Notice" before a fixed-rate contract ends. If you don't choose a new plan, you're moved to a month-to-month plan whose price can change between billing cycles, and you can cancel it at any time without a fee.
Who qualifies for CEAP in Texas?
For 2026, households earning up to 150% of the federal poverty guideline: $23,940 for one person, $32,460 for two, $40,980 for three, and $49,500 for four, plus $8,520 for each additional person. CEAP is run by TDHCA through local agencies. Call 2-1-1 to find yours.
Can my electricity be shut off in extreme weather in Texas?
Not for nonpayment during an extreme weather emergency. Under PUCT rules, that's a day when the previous day's high didn't exceed 32°F and freezing temperatures are forecast for the next 24 hours, or when the National Weather Service has issued a heat advisory for your county that day or either of the two days before. Providers must also offer a deferred payment plan, on request, for bills due during the emergency.
Prices verified as of October 2026. Check retailer links for current pricing.
Sources
US Energy Information Administration — Electric Power Monthly, Table 5.6.A, average residential price by state — eia.gov
Oncor — Rate Review: PUCT approves final order, April 2026 — oncor.com
CenterPoint Energy Restoration Bond Company III — Prospectus (Form 424B1), 2026 — sec.gov
Community Impact — CenterPoint Energy to increase customer rates to pay for Hurricane Beryl, other storms, October 7, 2025 — communityimpact.com
ERCOT — 2026 peak demand records — ercot.com
ERCOT — ERCOT releases preliminary long-term load forecast for 2026–2032, April 15, 2026 — ercot.com
Public Utility Commission of Texas — Substantive Rules, Chapter 25 (§25.475 contract expiration; §25.483 disconnection) — puc.texas.gov
Public Utility Commission of Texas — Consumer protection rules during extreme weather, June 7, 2024 — puc.texas.gov
Austin Energy — FY 2027 Proposed Budget, Electric Utility Commission briefing — austintexas.gov
Austin Electric Utility Commission — Recommendation 20260720-011, July 20, 2026 — austintexas.gov
Community Impact — San Antonio City Council pushes CPS Energy to avoid rate increase in FY 2026–27, March 2026 — communityimpact.com
El Paso Matters — What's changing on your El Paso Electric bill, April 12, 2026 — elpasomatters.org
Texas Department of Housing and Community Affairs — Community Affairs income guidelines, Program Year 2026 — tdhca.texas.gov
US Department of Energy — Programmable Thermostats — energy.gov
US Energy Information Administration — Residential Energy Consumption Survey 2020, end-use consumption — eia.gov
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