Commercial Electricity Broker in Houston, Texas
Houston businesses benefit from the deregulated ERCOT market with CenterPoint Energy as the TDU provider. By comparing quotes from 150+ retail electricity providers, Houston companies typically save 15-30% on commercial electricity costs, with rates ranging from 8-14¢ per kWh depending on usage volume, peak demand, and contract terms negotiated.
Last updated: January 2026
Commercial Electricity Services in Houston, Texas
Houston stands as the fourth-largest city in the United States and serves as the economic powerhouse of Texas, home to over 2.3 million residents and more than 150,000 businesses. As the global capital of the energy industry, Houston's economy is anchored by oil and gas companies, petrochemical facilities, and energy trading firms that drive billions in annual commerce. Beyond energy, the city has diversified into healthcare—with the world-renowned Texas Medical Center employing over 120,000 professionals—along with aerospace manufacturing, international logistics through the Port of Houston, and a thriving restaurant and hospitality sector. For Houston businesses operating in CenterPoint Energy's service territory, electricity costs represent one of the largest controllable operating expenses. The city's hot, humid climate drives year-round air conditioning demands, while industrial facilities require massive power loads for manufacturing and processing operations. In Texas's deregulated electricity market, Houston businesses have access to over 150 retail electricity providers competing for their contracts, creating significant opportunities for cost savings. However, navigating rate structures, contract terms, and seasonal pricing fluctuations requires expertise. That's where Power My Business comes in—we help Houston companies from Midtown offices to Channelview refineries secure competitive commercial electricity rates that protect their bottom line and support long-term growth.
How the Houston Commercial Electricity Market Works
Houston operates in the deregulated ERCOT electricity market, giving businesses the power to choose from over 150 retail electricity providers. CenterPoint Energy serves as the transmission and distribution utility (TDU) that maintains the power infrastructure and delivers electricity to Houston locations, but you select which retail provider supplies your energy. This competitive market structure allows Houston businesses to negotiate aggressively for lower rates. Electricity pricing varies based on your consumption patterns, peak demand during expensive grid hours, contract term length, and current wholesale market conditions. The most effective strategy is obtaining multiple simultaneous quotes and leveraging competing offers to secure the lowest possible rate.
For a comprehensive overview of Texas commercial electricity, see our Texas Commercial Electricity Guide.
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Best Contract Terms for Houston Businesses
**Fixed-rate contracts (12-36 months):** Provide budget certainty and protect Houston businesses from summer price spikes when air conditioning demand drives rates to annual highs.
**Early termination penalties:** Negotiate for prorated penalties or none to maintain flexibility if your business relocates, expands, or market rates drop significantly during your contract term.
**Contract renewal notifications:** Require 90+ days' notice before expiration to avoid auto-renewal at higher month-to-month rates and give yourself time to compare competing offers.
**Demand charge structures:** Houston businesses with high peak usage should negotiate favorable demand charge terms or explore time-of-use rates to reduce costs during expensive grid hours.
**Volume discounts:** If your Houston 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 Houston (CenterPoint Energy)
Understanding the fees on your Houston 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 Houston commercial customers depending on usage volume and negotiated contract terms.
**CenterPoint TDU delivery charges:** Covers the cost of maintaining power lines and delivering electricity to your Houston 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 included in 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 Houston 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 Houston. Only the energy rate and supplier-specific fees vary between quotes.
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Industries We Help in Houston
Oil & Gas Companies
Petrochemical & Refining
Healthcare & Medical Centers
Restaurants & Food Service
Retail Stores & Shopping Centers
Office Buildings & Corporate Parks
Manufacturing & Industrial Facilities
Warehousing & Distribution Centers
Hotels & Hospitality
Data Centers & Technology
Schools & Educational Institutions
Real Estate & Property Management
Don't see your industry? We help businesses of all types in Houston save on electricity costs.
Case Study: Guadalajara Mexican Grill
Full-service Mexican restaurant • Montrose, Houston, TX
Previous Rate
14.2¢ per kWh
Rising electricity costs impacting profitability
New Rate
10.8¢ per kWh
36-month fixed-rate contract
Monthly Savings
$600
Annual Savings
$7,200
"We were so focused on food costs and labor that we never shopped our electricity rate. Power My Business made it effortless, and the savings went straight to our bottom line. We're now reinvesting that money into kitchen equipment upgrades."
Maria Gonzalez
Owner
Houston Service Areas
We serve businesses throughout Greater Houston and surrounding communities
The Woodlands
Master-planned community north of Houston, home to corporate headquarters and growing business district
Sugar Land
Southwest Houston suburb with strong retail, healthcare, and professional services sectors
Pearland
Fast-growing suburb south of Houston with expanding commercial and industrial zones
Katy
Western Houston suburb with major retail centers, energy companies, and logistics facilities
League City
Coastal community near NASA with aerospace, maritime, and healthcare businesses
Missouri City
Diverse suburb with retail, healthcare, and professional services companies
Cypress
Northwest Houston area with growing industrial parks and commercial development
Friendswood
Southeast Houston suburb with retail, healthcare, and small business concentration
Tomball
North Houston community with manufacturing, distribution, and energy sector businesses
Spring
Northern suburb with corporate offices, retail centers, and industrial facilities
Our Houston Service Area
Frequently Asked Questions About Commercial Electricity in Houston
Get answers to common questions about Houston commercial electricity rates and contracts
What are typical commercial electricity rates in Houston, TX?
Houston commercial electricity rates typically range from 8-14¢ per kWh total cost (including energy rate + CenterPoint 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 CenterPoint Energy affect my Houston electricity bill?
CenterPoint Energy is the transmission and distribution utility (TDU) that maintains power lines and delivers electricity to Houston businesses. CenterPoint 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 Houston electricity quotes, always calculate total cost (energy rate + CenterPoint charges + fees) to identify the genuinely lowest offer.
Can Houston 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 Houston businesses?
Most Houston 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 Houston?
Switching commercial electricity providers in Houston 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 CenterPoint. 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 Houston businesses need to contact CenterPoint when switching providers?
No, Houston businesses never need to contact CenterPoint Energy when switching retail electricity providers. CenterPoint continues delivering electricity to your location regardless of which provider you choose. Your new retail provider handles all coordination with CenterPoint automatically during the switching process. You'll continue receiving CenterPoint 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 Houston electricity contracts?
The best time to negotiate Houston 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 Houston heat and humidity drive 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.
Can brokers help Houston businesses with multiple locations?
Yes, brokers specialize in managing electricity procurement for Houston 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 Houston 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 Houston Business Success Story
Learn how a 125,000 sq ft Houston warehouse reduced electricity costs by 22% ($31,800/year) by eliminating demand ratchet charges and negotiating competitive rates.
Read Houston Warehouse Case Study