Texas Commercial Electricity & Natural Gas

Texas Commercial Energy Market

Texas commercial electricity averaged about 8.35¢/kWh in April 2026 (EIA) — among the lowest of any state and the lowest of any fully deregulated market — while commercial natural gas averaged about $10.98 per Mcf. Texas runs the most competitive electricity market in the country: in the ERCOT area, businesses buy from a Retail Electric Provider (REP) while a Transmission & Distribution Utility (Oncor, CenterPoint, AEP Texas, or TNMP) delivers. Compare TX in our electricity rates by state and gas rates by state tables.

Read the In-Depth Texas Guide

For a full walkthrough of how the ERCOT market works, how to choose a Retail Electric Provider (REP), and how to manage 4CP transmission charges — a peak-management strategy that can save large facilities tens of thousands a year — read our detailed Texas Commercial Electricity Rates & Procurement Guide (2026), plus the Texas electricity market business guide and Texas natural gas market guide.

How Texas Energy Choice Works

In the competitive ERCOT area, your REP is who you contract with for supply; your TDU (Oncor, CenterPoint, AEP Texas, TNMP) delivers the power, reads the meter, and restores outages regardless of REP. Because ERCOT is an energy-only market (no centralized capacity market like PJM), baseline rates are low but the market is exposed to summer scarcity pricing during extreme heat. Note that municipal utilities (Austin, San Antonio), co-ops, and El Paso Electric are not deregulated. See the ERCOT summer 2026 outlook.

How to Lower Your Texas Energy Costs

• Shop REPs competitively and lock a fixed all-in rate — don't auto-renew with the incumbent. See comparing supplier offers.
• Time your lock for the off-season — locking a summer-inclusive term in fall/winter beats buying in the heat. See best time to lock in rates.
• Manage 4CP if you're a large user — curtailing during the four summer grid peaks cuts transmission costs for a full year. See demand charge management and the demand charge calculator.

Frequently Asked Questions

What is the average commercial electricity rate in Texas? About 8.35¢/kWh (EIA, April 2026) — the lowest among fully deregulated states. Your actual rate depends on your load profile, TDU territory, contract timing, and demand.

What is a Retail Electric Provider (REP)? In the competitive ERCOT area, the REP is who you buy electricity from and sign your contract with. Your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) still delivers the power and handles outages.

Is all of Texas deregulated? No. The competitive ERCOT area (most of the state, including Houston, Dallas, Fort Worth) is deregulated. Austin, San Antonio, El Paso, and many co-op areas are not.

Get a free Texas commercial rate review. Contact us or call 833-264-7776.