Commercial Electricity Broker in Austin, Texas
Austin businesses access competitive commercial electricity rates through the deregulated ERCOT market, with Oncor as the TDU provider. By comparing quotes from 150+ retail electricity providers, Austin companies typically save 15-30% compared to accepting the first quote, with rates ranging from 8-14¢ per kWh depending on usage volume and contract terms.
Last updated: January 2026
Commercial Electricity Services in Austin, Texas
Austin stands as the capital of Texas and the eleventh-largest city in the United States, home to over 1 million residents and a rapidly expanding business community that has earned it the nickname 'Silicon Hills.' As a major technology hub, Austin's economy is driven by companies like Dell Technologies, Apple, Tesla, Oracle, and hundreds of startups that have relocated to capitalize on the city's talent pool and business-friendly environment. Beyond technology, Austin's diverse economy includes state government operations, the University of Texas at Austin (one of the nation's largest universities), a thriving music and entertainment industry, and a booming hospitality sector serving millions of visitors for events like South by Southwest and Austin City Limits. For Austin businesses operating in Oncor's service territory, electricity costs represent a critical budget line that requires strategic management. The city's hot climate drives air conditioning demands for eight months of the year, while data centers, manufacturing facilities, and office buildings require substantial power loads to maintain operations. In Texas's deregulated electricity market, Austin businesses can choose from over 150 retail electricity providers competing for their contracts, creating significant opportunities for cost savings through competitive procurement. However, understanding rate structures, contract terms, and market timing requires specialized expertise. That's where Power My Business delivers value—we help Austin companies from downtown tech offices to East Austin warehouses secure competitive commercial electricity rates that support innovation and growth while protecting against price volatility.
How the Austin Commercial Electricity Market Works
Austin operates in the deregulated ERCOT electricity market, allowing businesses to choose from over 150 retail electricity providers competing for your business. Oncor serves as the transmission and distribution utility (TDU) that maintains the power lines and delivers electricity to Austin locations, but you select which retail provider supplies your energy. This competitive environment gives Austin businesses significant leverage to negotiate lower rates. Pricing varies based on your usage volume, peak demand during expensive grid hours, contract term length, and current wholesale market conditions. The most effective approach is comparing multiple quotes simultaneously and using competitive offers to negotiate better terms with each provider.
For a comprehensive overview of Texas commercial electricity, see our Texas Commercial Electricity Guide.
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Best Contract Terms for Austin Businesses
**Fixed-rate contracts (12-36 months):** Lock in predictable pricing to protect against market volatility, ideal for budget planning and avoiding summer price spikes in Austin's hot climate.
**Early termination penalties:** Negotiate for prorated or no penalties to maintain flexibility if your business needs change or market rates drop significantly during your contract term.
**Contract renewal notifications:** Require 90+ days' notice before expiration to give yourself time to shop for better rates without being forced into auto-renewal at higher month-to-month prices.
**Demand charge structures:** For Austin businesses with high peak usage, negotiate favorable demand charge terms or consider time-of-use rates to reduce costs during expensive grid hours.
**Volume discounts:** If your Austin business consumes over 100,000 kWh annually, explicitly request volume discounts that can reduce your rate by 1-2¢ per kWh compared to standard pricing.
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Common Bill Fees in Austin (Oncor)
Understanding the fees on your Austin electricity bill helps you compare quotes accurately and identify the true total cost.
**Energy charge:** The per-kWh rate you pay for electricity consumption, typically 7-12¢ per kWh for Austin commercial customers depending on usage volume and negotiated contract terms.
**Oncor TDU delivery charges:** Covers the cost of maintaining power lines and delivering electricity to your Austin location. These charges are the same across all retail providers and typically add 3-5¢ per kWh to your total cost.
**Base service charge:** A fixed monthly fee (usually $10-$50) that covers meter reading, billing, and customer service. This fee varies by provider and should be factored into your total cost comparison.
**ERCOT fees:** Small charges (typically $0.50-$2 per month) that fund the Electric Reliability Council of Texas grid management and market operations.
**Demand charges (if applicable):** For Austin businesses with high peak usage, demand charges based on your highest 15-minute usage interval can add 2-4¢ per kWh to your effective rate. Negotiate these terms carefully.
Note: TDU charges are the same across all retail electricity providers in Austin. Only the energy rate and supplier-specific fees vary between quotes.
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Industries We Help in Austin
Technology & Software Companies
Restaurants & Food Service
Retail Stores & Shopping Centers
Office Buildings & Coworking Spaces
Manufacturing & Industrial
Healthcare Facilities & Medical Offices
Hotels & Hospitality
Data Centers & Cloud Services
Schools & Educational Institutions
Gyms & Fitness Centers
Music Venues & Entertainment
Real Estate & Property Management
Don't see your industry? We help businesses of all types in Austin save on electricity costs.
Case Study: Hill Country Brewing Company
Craft brewery with taproom and restaurant • South Congress, Austin, TX
Previous Rate
14.5¢ per kWh
High energy costs from brewing operations and refrigeration
New Rate
11.1¢ per kWh
36-month fixed-rate contract
Monthly Savings
$720
Annual Savings
$8,640
"Brewing is energy-intensive, and our electricity bill was eating into our margins. Power My Business negotiated a rate that saves us nearly $9,000 a year. That's money we can invest back into expanding our distribution."
Sarah Chen
Co-Founder & Head Brewer
Austin Service Areas
We serve businesses throughout Greater Austin and surrounding communities
Round Rock
Northern suburb with major employers (Dell, IKEA) and growing tech sector
Cedar Park
Northwest suburb with retail centers, healthcare facilities, and professional services
Pflugerville
Northeast suburb with manufacturing, distribution, and retail operations
Georgetown
Northern community with historic downtown, healthcare, and light manufacturing
Lakeway
Western suburb with professional services, retail, and hospitality businesses
Bee Cave
Hill Country community with retail centers and professional offices
Leander
Northwest suburb with expanding commercial development and retail
Manor
Eastern suburb with industrial parks, warehousing, and distribution centers
Dripping Springs
Southwest community with tourism, hospitality, and craft beverage industry
Bastrop
Eastern community with manufacturing, retail, and small business concentration
Frequently Asked Questions About Commercial Electricity in Austin
Get answers to common questions about Austin commercial electricity rates and contracts
What are typical commercial electricity rates in Austin, TX?
Austin commercial electricity rates typically range from 8-14¢ per kWh total cost (including energy rate + Oncor TDU charges + fees). Small businesses (under 50,000 kWh annually) usually pay 12-14¢ per kWh, while larger businesses (over 200,000 kWh annually) can secure rates as low as 8-10¢ per kWh through volume discounts and aggressive negotiation. Rates fluctuate based on wholesale market conditions, contract term length, and your peak demand patterns.
How does Oncor affect my Austin electricity bill?
Oncor is the transmission and distribution utility (TDU) that maintains power lines and delivers electricity to Austin businesses. Oncor charges are the same regardless of which retail electricity provider you choose, typically adding 3-5¢ per kWh to your total cost. These charges cover infrastructure maintenance, meter reading, and grid reliability. When comparing Austin electricity quotes, always calculate total cost (energy rate + Oncor charges + fees) to identify the genuinely lowest offer.
Can Austin businesses switch electricity providers mid-contract?
Yes, but switching mid-contract usually incurs early termination penalties ranging from $500-$2,000 depending on your contract terms and remaining time. However, if wholesale market rates have dropped significantly (20%+ below your contracted rate), paying the penalty and switching to a lower rate may save money over the remaining contract term. Your broker can calculate whether early termination makes financial sense. Otherwise, plan to switch 90 days before your contract expires to avoid auto-renewal penalties.
What contract term length is best for Austin businesses?
Most Austin businesses choose 12-24 month fixed-rate contracts to balance rate stability with flexibility. Shorter terms (12 months) let you renegotiate sooner if market rates drop, while longer terms (24-36 months) provide extended protection from price increases and often secure lower rates through multi-year discounts. The optimal term depends on current wholesale market conditions, your business growth plans, and budget predictability needs. Brokers can recommend the best term based on market forecasts.
How long does it take to switch commercial electricity providers in Austin?
Switching commercial electricity providers in Austin typically takes 1-2 billing cycles (30-60 days) after contract approval. Your broker submits enrollment paperwork to your new provider, who coordinates with your current provider and Oncor. There's no service interruption during the switch—your meter continues recording usage without any physical changes or technician visits required. If switching at contract expiration, start the process 90 days in advance to ensure seamless transition without auto-renewal.
Do Austin businesses need to contact Oncor when switching providers?
No, Austin businesses never need to contact Oncor when switching retail electricity providers. Oncor continues delivering electricity to your location regardless of which provider you choose. Your new retail provider handles all coordination with Oncor automatically during the switching process. You'll continue receiving Oncor TDU charges on your bill, but these charges remain the same across all providers. Your only action is choosing a new retail provider and signing the contract.
What's the best time of year to negotiate Austin electricity contracts?
The best time to negotiate Austin electricity contracts is during spring (March-May) or fall (September-November) when wholesale electricity prices are lowest and suppliers compete more aggressively for business. Avoid negotiating during peak summer (June-August) when Austin heat drives air conditioning demand and prices to annual highs, or winter (December-February) when cold snaps spike rates. Start negotiations 90-120 days before your current contract expires to maximize leverage and avoid rushed decisions.
Can brokers help Austin businesses with multiple locations?
Yes, brokers specialize in managing electricity procurement for Austin businesses with multiple locations. They aggregate your total usage across all sites to negotiate volume discounts, coordinate staggered contract renewals to avoid all locations expiring simultaneously, and provide consolidated reporting. Multi-location Austin businesses often save more because brokers leverage higher combined usage to secure better per-kWh rates from providers competing for larger accounts. Brokers also handle the administrative burden of managing multiple contracts.
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Real Austin Business Success Story
Discover how a 45,000 sq ft Austin office building saved 16% ($9,600/year) by timing their contract renewal during favorable winter market conditions.
Read Austin Office Building Case Study