Compare Texas Commercial Electricity Rates & Plans — Save 15–30%

ERCOT wholesale prices and retail offers typically rise heading into summer (June-September) as statewide air conditioning demand strains the grid, then ease in fall and winter. Businesses that lock in a fixed-rate contract during the spring shoulder season (roughly February-May) generally secure better pricing than those shopping during peak summer demand or scrambling after an unexpected rate spike. If your current contract is set to expire between June and September, it's worth starting the comparison process at least 60-90 days early to avoid being forced into a summer-priced renewal or, worse, an auto-renewed holdover rate. Businesses with highly seasonal usage (like those with heavy outdoor cooling loads) should also discuss seasonal load patterns with us directly, since the best plan structure can differ depending on whether your peak usage and your contract renewal dates line up.

Three terms cause the most problems for Texas businesses: auto-renewal clauses that roll your account onto a high default "holdover" rate if you don't cancel within a narrow notice window (often 30-60 days before expiration); early termination fees (ETFs) that can run into the thousands if you need to break a contract early, especially relevant if you're planning to move, expand, or sell the business; and ratchet clauses in demand-based pricing, where one unusually high usage month can set an elevated demand charge for several months afterward. Always also confirm whether the quoted rate is truly all-in (including TDSP delivery) or just the energy charge. As your broker, we flag every one of these terms in plain language before you sign anything, and we set calendar reminders to alert you 90 days ahead of any contract expiration so you're never caught on an auto-renewed rate.

The right plan depends on your usage pattern, risk tolerance, and budgeting needs. Fixed-rate plans (typically 7-9¢/kWh for 12-36 months) lock in price certainty and are the most common choice for businesses that want predictable monthly budgets and protection from ERCOT summer price spikes. Variable-rate plans can dip under 8¢/kWh in low-demand months but expose you to volatility, making them better suited for businesses with cash flow flexibility and active rate monitoring. Indexed plans tie your price to ERCOT's real-time wholesale market (averaging 8-10¢/kWh) and tend to fit larger, sophisticated users who can absorb short-term swings for potential long-term savings. Green energy plans add a modest 9-11¢/kWh premium but include Renewable Energy Certificates (RECs) useful for ESG reporting and sustainability commitments. Most small and mid-sized Texas businesses choose fixed-rate plans for stability; we'll model your actual usage data against all four structures during your free quote.

Demand charges are based on the single highest 15-minute interval of electricity draw during your billing cycle, measured in kW, not the total energy you consume. Residential customers rarely see this charge, but most commercial and industrial accounts do because business equipment (HVAC systems, compressors, walk-in coolers, multiple machines running simultaneously) can create sharp usage spikes even if your average daily consumption is moderate. A single 10-minute spike from equipment starting up together can set your demand charge for the entire month. This is why two businesses with identical monthly kWh usage can have very different bills. We analyze your interval data to identify peak-shaving opportunities and help you choose providers and rate structures (some indexed or demand-capped plans) that reduce this exposure rather than penalize normal operations.

Your total commercial electricity bill has three core components: the energy charge (what you pay per kWh for the actual power, currently averaging 8.7¢/kWh in Texas as of March 2026), TDSP delivery fees (3-5¢/kWh charged by your utility like Oncor or CenterPoint to transport electricity over their lines, regardless of which retail provider you choose), and demand charges (based on your peak 15-minute usage spike each month, which can add 30-50% to commercial bills). Taxes and small regulatory fees round out the total. When comparing quotes, always ask for the fully loaded rate, not just the headline energy price, since two plans quoting 7.5¢/kWh can produce very different total bills depending on how delivery and demand charges are structured. Our reverse auction shows you itemized, all-in pricing from every bidding provider so you're comparing apples to apples.