Current Texas Commercial Electricity Rates (January 2026)
These benchmark rates represent typical fixed-rate contracts for Texas businesses in the Oncor and CenterPoint service territories. Actual rates vary based on usage patterns, load factor, contract term, and market conditions.
| Business Class | Monthly Usage | Current Rate Range | Recommended Term | Savings Potential |
|---|---|---|---|---|
Small Business Retail, Offices, Restaurants | < 2,500 kWh | 8.9¢ - 10.5¢ per kWh | 36-Month Fixed | 15-20% |
Medium Commercial Multi-location, Light Manufacturing | 2,500 - 25,000 kWh | 7.9¢ - 9.2¢ per kWh | 24-Month Fixed | 20-25% |
Industrial / Large Commercial Manufacturing, Data Centers, Warehouses | > 25,000 kWh | < 7.5¢ Custom Pricing | Index or Block & Index | 25-30% |
*Rates reflect energy charge only. Transmission and Distribution Utility (TDU) charges from Oncor, CenterPoint, AEP, or TNMP apply separately. Source: Power My Business Market Analytics, January 2026.
Historical Rate Trends (2024-2026)
Texas commercial electricity rates have shown significant volatility over the past two years, driven by natural gas prices, ERCOT grid demand, and weather patterns. Understanding these trends helps businesses time contract renewals strategically.
Medium Commercial baseline
Medium Commercial baseline
Medium Commercial baseline
- Q2 2024: Natural gas prices spiked to $3.20/MMBtu due to increased LNG exports, pushing commercial rates to 10.2¢/kWh peak.
- Q4 2024: Mild winter reduced ERCOT demand, allowing rates to stabilize at 9.1¢/kWh by December.
- Q2 2025: New solar capacity additions (4.2 GW) and increased wind generation drove rates down to 8.6¢/kWh.
- Q1 2026: Continued renewable expansion and stable natural gas prices ($2.80/MMBtu) maintain favorable rate environment at 8.5¢/kWh.
ERCOT Demand Analysis & Peak Pricing Patterns
Understanding ERCOT grid demand patterns is critical for businesses with flexible operations. Peak demand periods drive higher wholesale prices, which translate to higher commercial rates during summer months.
Average peak demand during 2-7 PM
Rate Impact: Commercial rates can spike 15-25% during peak summer months. Businesses with demand response capabilities can save significantly by shifting usage to off-peak hours.
Average demand during spring/fall
Rate Impact: Mild weather and increased renewable generation create favorable pricing. Best time to lock in fixed-rate contracts for 24-36 month terms.
Large commercial and industrial customers with usage above 25,000 kWh/month should consider these advanced strategies to minimize costs:
- 4CP Management: Avoid the four highest ERCOT peak demand intervals (typically 2-7 PM on hot summer weekdays) to reduce transmission charges by up to 30%.
- Block & Index Contracts: Hedge a portion of usage with fixed blocks while taking advantage of favorable real-time pricing during off-peak periods.
- Load Factor Optimization: Maintain consistent usage patterns (high load factor) to qualify for better rates and avoid demand charges.
Top Texas Commercial Electricity Providers (2026)
These providers consistently offer competitive rates for Texas businesses. Rates shown are representative 24-month fixed contracts for medium commercial customers (10,000 kWh/month) in the Oncor service territory.
TXU Energy
Largest REP in Texas, strong commercial programs
24-Month Fixed
Reliant Energy
Flexible contract terms, renewable options
24-Month Fixed
Direct Energy
Competitive rates for multi-location businesses
24-Month Fixed
Gexa Energy
100% renewable options, transparent pricing
24-Month Fixed
Champion Energy
Strong customer service, index options available
24-Month Fixed
*Rates are estimates for medium commercial customers and vary based on usage profile, contract term, and market conditions. Power My Business compares rates from extensive network of providers to find the best match for your business.
Ready to Lock In Your 2026 Rate?
Get a free AI-powered bill audit and personalized rate comparison from extensive network of Texas electricity providers. Our licensed brokers will negotiate the best rate for your business's specific usage profile.
No cost, no obligation. Average savings: 15-30% on annual electricity costs.
Related Resources
Complete guide to the Texas deregulated electricity market, ERCOT, and how to choose the right provider.
Step-by-step guide to switching commercial electricity providers in Texas without service interruption.
Specialized rate analysis for Texas manufacturers, including 4CP management and demand response strategies.