Texas Commercial Electricity Rates Right Now: A 2026 Buyer's Guide

If you manage electricity costs for a Texas business, the headline for Texas commercial electricity rates 2026 is dispersion, not direction. In the CenterPoint (Houston) service area, the cheapest advertised 12-month commercial fixed rate is about 6.87 cents per kWh, while the average across listed offers is around 7.77 cents per kWh, according to EnergyBot's Houston commercial data. That is a spread of roughly 13 percent between the best rate and the market average. At 50,000 kWh per month, the gap between the cheapest rate and the average works out to about 450 dollars per month, or roughly 5,400 dollars per year, in avoidable cost. The rates exist. Capturing them depends on whether you actively shop or quietly renew.

What the Market Data Shows for Texas Commercial Electricity Rates 2026

The competitive set in Houston is tight. As of late May 2026, business fixed-rate offers cluster in the high-6 to high-7 cent range, with APG&E, Gexa Energy, ENGIE, Reliant, Rhythm, and Energy Texas all competing within roughly a penny of each other. When the field is that close, contract structure and pass-through terms matter more than the headline rate.

The current Houston business-rate table from ElectricityPlans (updated May 29, 2026) shows the shape of the market:

Provider	Term	Energy Rate
APG&E	12 months	6.87 cents/kWh
APG&E	24 months	7.08 cents/kWh
Gexa Energy	12 months	7.11 cents/kWh
ENGIE	12 months	7.14 cents/kWh
Reliant	12 months	7.50 cents/kWh

Two points stand out. First, the commercial comparison data confirms APG&E sits near the bottom of the Houston field, so the 6.87 cent rate is a real benchmark, not an outlier. Second, longer terms carry a premium right now. APG&E's rate runs 6.87 cents for 12 months but 7.46 cents for 60 months, an 8.6 percent premium to lock in for five years. That inverts the old assumption that longer contracts always price lower, and it means a 60-month lock is buying budget certainty, not a discount.

These rates are not landing in a calm market. ERCOT recently requested a good-cause exception to delay its May 2026 Report on Capacity, Demand, and Reserves, and PUCT staff are revising the Value of New Entry input used in the grid's reliability assessment, as tracked by Energy Choice Matters. Both signal that resource adequacy, and therefore forward pricing, remains unsettled. For a buyer, that argues for locking a term you are comfortable with rather than waiting for a clean price decline the data does not promise.

The Part Most Buyers Miss: Delivery Charges

A low energy rate is only half the bill. Every Houston commercial account also pays CenterPoint delivery charges, which are regulated, identical across every REP, and routinely ignored until the invoice arrives. At 1,000 kWh, CenterPoint delivery adds about 46.55 dollars on top of whatever energy rate you signed, which can quietly double your effective cost per kWh.

The Total Cost Reality Check

Use a simple framework before you compare any two offers: total delivered cost equals the REP energy rate plus the TDU delivery charges. In CenterPoint territory the delivery side runs a 5.47 dollar monthly base charge plus per-kWh charges, totaling roughly 26.01 dollars at 500 kWh, 46.55 dollars at 1,000 kWh, and 87.64 dollars at 2,000 kWh (the per-kWh delivery component is about 4.1 cents). Run the math at two commercial usage levels:

• At 1,000 kWh: 6.87 cents energy (68.70 dollars) plus 46.55 dollars delivery equals 115.25 dollars, an effective 11.5 cents per kWh delivered.
• At 10,000 kWh: 6.87 cents energy (687 dollars) plus roughly 416 dollars delivery equals about 1,103 dollars, an effective 11.0 cents per kWh delivered.

The headline 6.87 cent rate lands closer to 11 cents once delivery is layered in, which is why real-world Houston bills average far higher than advertised energy rates. EnergySage data puts actual Houston bill-based costs near 17 cents per kWh in May 2026. Because CenterPoint delivery charges are the same no matter which provider you choose, the energy rate and the contract terms are the only levers you actually control. Compare offers on delivered cost, not the number on the marketing page.

What You Should Do Right Now

1. Pull your real usage. Calculate your actual monthly kWh from the last 12 bills, not just your peak summer month, so quotes are priced against your true load shape.
2. Get at least three competing quotes. Ask three or more REPs to price your exact usage profile and TDU zone, so the comparison is clean.
3. Demand blended, all-in quotes. Request the delivered rate including pass-throughs and fees, not just the energy charge.
4. Compare term premiums explicitly. Put 12-month, 24-month, and 36-month quotes side by side and decide whether the certainty of a longer lock is worth the premium.
5. Check your exit before you shop. Confirm your current contract's end date and early termination fee so you do not trade a small saving for a large penalty.
6. Ask for an index quote too. Request index-rate pricing alongside fixed offers so you can see the spread you are paying for certainty.
7. Factor in delivery. When comparing across service territories or sites, include TDU delivery charges in the total, since they vary by utility and can erase an energy-rate advantage.

Benchmark every quote against current published offers using our Texas commercial rate comparison, and if you want the background on why published rate data gives you leverage, see our note on why published rate data matters for commercial buyers.

Questions to Ask Your REP or Broker

• What is your blended rate, including energy and all pass-throughs, at my specific usage level?
• What is the early termination fee if my business situation changes, and is it per remaining month or a flat charge?
• Do you offer a block-and-index structure at current market pricing, and how does it compare to your fixed rate?
• How does my rate change if my load grows 20 percent or drops 15 percent during the term?
• What happens to my rate at renewal if I do not actively re-shop the contract?

Frequently Asked Questions

What is the average commercial electricity rate in Houston in 2026?

As of late May 2026, the average advertised commercial energy rate in the Houston (CenterPoint) area is about 7.77 cents per kWh, with the cheapest 12-month fixed offers near 6.87 cents per kWh. These figures are energy-only. Once CenterPoint delivery charges are added, the effective delivered cost is roughly 11 cents per kWh at typical commercial usage.

How do I compare commercial electricity rates in Texas?

Compare offers on total delivered cost using the same usage profile and TDU territory for every quote. Add the REP energy rate to the regulated TDU delivery charges, then check the contract term, base charges, minimum-usage fees, and early termination penalties. The headline energy rate alone is not a reliable comparison because delivery and fees can change the ranking.

What is the difference between a fixed and index commercial electricity rate in Texas?

A fixed rate locks your energy charge for the full contract term and makes budgeting predictable. An index rate moves with a market indicator and can rise or fall during the term. Most commercial buyers favor fixed for budget certainty, while index suits buyers who can absorb price spikes or want short-term exposure. A block-and-index structure hedges part of the load and exposes the rest.

How do CenterPoint delivery charges affect my commercial electricity bill?

CenterPoint delivery charges are regulated and identical across all REPs in the Houston area, so they do not change based on your provider. They include a 5.47 dollar monthly base charge plus per-kWh delivery of roughly 4.1 cents, which adds about 46.55 dollars at 1,000 kWh and 87.64 dollars at 2,000 kWh. Always include them when comparing the true cost of any offer.