Compare Lowest Houston Electric Rates to Lowest Cost Plans

Which Lowest Houston Electric Rates Have Cheap Plans?

Confused by bill credit plans? Find out how Houston electric plans with the lowest annual rates can sometimes save you more.

Shoppers looking for the lowest Houston electric rates primarily see two very different types of 12-month electricity plans. Some are bill credit plans that advertise very low average prices if you hit the right usage level. Others are fixed rate plans that charge a steady energy price each month with no credits or usage tiers. Both types can look cheap on paper, but they can lead to very different bills over a full year. Because Houstonians pay both retail charges and CenterPoint delivery charges in one combined bill, the real difference comes from how the retail plan structures its energy charge and any credits. That structure is where many shoppers get surprised. 

How Bill Credit Plans Work in Houston

Chariot Energy, APG&E, and Companion Energy offer the lowest rates on 12-month plans. Each plan offers a $125 bill credit when your usage reaches 1,000 kWh. These plans show very low average rates because the bill credit offsets a higher base energy charge.

In summer, many homes in the Bayou City easily hit or exceed 1,000 kWh by using their HVAC systems. During those months, the bill credit usually applies, and the plan can truly deliver one of the lowest monthly bills. In winter, usage can also land near that target with the furnace running.

The risk shows up in spring and fall. During mild months, usage can drop below the credit window. When that happens, you lose the bill credit but still pay the higher base energy rate. That can make those moderate months costlier than expected, even though a bill credit plan touts itself as one of the lowest Houston electric rates.

How Houston Fixed Electric Rate Plans Compare

The three lowest fixed rate 12-month plans from Octopus Energy, Constellation, and Energy Texas post higher advertised prices per kWh. However, they do not rely on bill credits. Your energy charge stays the same whether you use 500 kWh, 1,000 kWh, 1,500 kWh, or more.

This structure makes fixed rate plans especially strong during spring and fall. While bill credit plans may lose their discount in these months, fixed rate plans keep steady pricing. That often leads to lower bills during moderate seasons, when many Houston homes naturally use less power.

In summer, fixed rate plans may not look as cheap as bill credit plans that hit the perfect usage target. But over a full year, they often avoid the bill spikes that come from missing a credit by a small amount. Consequently, they also boast much higher Safe-Rate™ scores. 

Which Plan Type Saves More Over a Year?

Assuming average Houston usage, bill credit electricity plans can win during peak summer months if you consistently land in the discount window. However, many households do not hit that target every month. Miss it by even 1 kWh, and the savings can disappear quickly.

Fixed rate plans tend to save more during mild months and provide steadier bills all year. For many customers, that consistency leads to lower total costs over 12 months, even if the posted rate is not the very lowest. To see how different plans compare for your home and find the true lowest cost options, not just the lowest advertised rates, compare current plans here: http://www.texaselectricityratings.com/electricity-rates.