What Is the Average Electric Bill in Texas?

Posted by Alex Paul on June 27th, 2022

Texas is one of the largest states in the US, boasting thriving metropolitan cities, world-class museums, and a range of scientific advancements. It is also one of the top consumers of energy, with the eighth-largest electricity bills in the country.

What is the average electric bill in Texas? Read on to find out.

Understanding the Average Texas Utility Bill

Texas electricity prices have been on an upward spiral since April 2022. They have climbed primarily due to global economics and the high costs of natural gas. Texas generates at least 40% of its electricity with natural gas-fired power plants.

Geopolitical influences, supply chain issues, and regulatory changes are other major reasons for the increasing electricity prices in the Lone Star state. For example, several regulatory changes followed the February 2021 Winter Storm Uri. One of the changes saw the market cap of wholesale electricity markets move from ,000/MWh to ,000/MWh.

According to the U.S. Energy Information Administration (EIA), in February 2022, the Texas average electricity rates were 12.8 cents for one kWh. This average includes electricity and delivery costs in both the state’s regulated and deregulated markets.

Texas homes’ electricity usage is higher than the natural average. Many of the states’ homes are larger, and cooling costs significantly impact energy usage. Based on EIA data, Texas’ average household electricity usage in kWh is 1,176 monthly, or 14,112 kWh annually.

Multiplying the average power cost per kWh by the average kWh per month in Texas will give you the state’s average electricity bill. Therefore, the average electric bill in Texas is 0.53.

As a Texas homeowner, you’ll also pay other applicable fees and taxes. These costs come from the average cost of 12.8 cents per kWh, multiplied by the average household energy consumption of 1,176 kWh per month.

Full article: What Is the Average Electric Bill in Texas?