Rates Up 5.6% Amid Churn | TX Commercial Electricity - Apr 2026

Market Pulse

Across the 195 commercial plans from 28 Texas REPs tracked in the texascommercialplans.com database this week (April 1 through April 7, 2026), the market-wide average rate moved 5.6% higher week over week. That headline number tells an incomplete story: 500 plans were removed and 340 new plans entered the ERCOT market, making this the largest single-week portfolio reshuffling of 2026 so far. Among the 36 plans that persisted from last week, rate decreases outnumbered increases five to three, and four of five TDU territories posted lower averages. For commercial buyers tracking Texas commercial electricity rates in April 2026, the real signal is in the territory data, not the headline average.

What's Moving the Market

Oncor and LCRA Seek PUCT Approval for 300 Miles of 765-kV Transmission in the Permian Basin. Oncor Electric Delivery and LCRA Transmission Services have filed to expand high-voltage T&D capacity, supporting projected demand growth from 11,132 MW to 26,400 MW by 2038. For commercial buyers in western Texas, this is a long-term reliability signal that could reduce basis risk in future contracts. (ESS News)
ERCOT CEO Pablo Vegas Addresses Grid Cost Allocation Amid 410 GW of Interconnection Requests. ERCOT's interconnection queue now exceeds 410 GW, driven primarily by data centers, far outpacing the current 85 GW peak load. Infrastructure investments spanning 30 to 50 years will reshape wholesale market dynamics. Commercial buyers should watch how cost allocation mechanisms evolve, as these could pass through to retail contracts. (Texas Energy and Power)
GridStor and Axpo Execute Battery Storage Swap for 220 MW Hidden Lakes Project. A new Energy Storage Agreement for the 220 MW / 440 MWh battery facility in Galveston County creates pricing predictability for the Houston region. This type of storage-backed hedge helps stabilize the wholesale costs that underpin commercial retail rates. (BusinessWire)
PUC Staff Proposes Demand Reduction Service for Large Load Customers. Texas PUC staff is weighing two models (as-needed and seasonal) for procuring demand reductions from large commercial and industrial customers. If implemented, large-load buyers could monetize flexibility, while the resulting reliability improvements benefit all commercial ratepayers. (Energy Choice Matters)
PUC Requires Crypto Mining Firms to Report Energy Usage. A new PUCT rule mandates energy usage reporting from cryptocurrency mining operations. This transparency measure gives commercial buyers better visibility into the demand drivers behind wholesale price volatility. (Power Choice Texas)

Texas Commercial Electricity Rate Trends

This week's data tells a split story. The 5.6% increase in the market-wide average reflects the compositional impact of 500 plan removals and 340 new additions rather than broad-based rate hikes. Among the 36 plans that carried over from last week, five posted decreases, three posted increases, and 28 held steady.

At the segment level, short-term contracts (1 to 12 months) and mid-term contracts (13 to 24 months) are running at near-parity. Long-term contracts (25 to 36 months) remain the clear value play, averaging roughly 13% below short-term pricing. With only 12 long-term plans available across the market, buyers seeking longer commitments face limited selection but meaningfully lower rates.

Territory-level movement was overwhelmingly downward. AEP Central posted the largest decline, followed by TNMP. CenterPoint and AEP North also moved lower. Oncor stood alone as the only TDU area with upward rate movement, consistent with its position as the highest-volume territory (73 of 195 active plans).

Individual plan volatility was pronounced. One CenterPoint-area plan spiked over 60%, while another dropped more than 13%, reinforcing that plan-level swings can far exceed market-wide averages. Our rate trend chart (available in the full data download) shows a growing gap between short/mid-term and long-term contract pricing over the past several weeks.

See the full pricing breakdown in our data download.

REP Spotlight: Abundance Energy

This week's spotlight is on Abundance Energy, a retail electricity provider focused exclusively on green energy products for the Texas commercial market.

Abundance Energy currently offers 6 commercial plans, all carrying fixed-rate structures with contract terms ranging from 10 to 12 months. Their service territory covers four of the five major TDU areas: AEP Central, AEP North, CenterPoint, and Oncor. TNMP is the only territory where they do not currently list commercial plans.

All six plans include 100% renewable energy, positioning Abundance Energy as one of the few Texas commercial REPs offering an entirely green portfolio. For businesses with sustainability mandates or ESG reporting requirements, this simplifies procurement by eliminating the need to evaluate green vs. non-green plan variants.

In terms of pricing, Abundance Energy positions well below the current market-wide average, making them a competitive option for commercial buyers who want both cost efficiency and renewable sourcing. Their narrow term range (10 to 12 months) signals a focused strategy on near-term fixed commitments rather than long-duration contracts.

Get this REP's full plan data in our data download.

Buyer Intelligence

This week's most actionable insight for commercial buyers is to look past the headline rate increase. The 5.6% jump in market-wide averages was driven by plan portfolio turnover (500 removals, 340 additions), not by providers raising prices across the board. Buyers negotiating renewals should focus on territory-specific trends and individual plan pricing rather than market-wide averages.

For businesses in AEP Central and TNMP territories, this week's data shows a notably favorable buying environment. Oncor-territory buyers should expect slightly firmer pricing. In all cases, securing quotes from multiple Texas REPs remains the most effective hedge against compositional noise in published rate averages.

What are current Texas commercial electricity rates in April 2026?

As of the week ending April 7, 2026, the Texas commercial electricity market tracked 195 active plans from 28 retail electricity providers across all five TDU territories. Market-wide average rates moved 5.6% higher week over week, driven primarily by portfolio turnover rather than rate increases. Among plans that persisted from the prior week, five posted decreases while three posted increases, and four of five TDU territories saw declining averages. Long-term contracts (25 to 36 months) remain priced roughly 13% below short-term plans, though only 12 such plans are currently available.

How is ERCOT grid expansion affecting Texas commercial electricity rates?

ERCOT's grid expansion plans are creating long-term cost and reliability implications for commercial buyers. The Permian Basin T&D expansion proposal (300 miles of 765-kV transmission, supporting demand growth to 26,400 MW by 2038) signals improving infrastructure that could reduce wholesale price volatility. However, ERCOT CEO Pablo Vegas has acknowledged that 410 GW of interconnection requests, primarily from data centers, will require billions in investment over 30 to 50 years. How those costs get allocated across ratepayers will directly influence future commercial contract pricing.

Data Snapshot

Tracked REPs this week: 28
Active commercial plans: 195
Plans added this week: 340
Plans removed this week: 500
Plans with rate changes: 8
Avg contract term: 11.1 months

Full rate data, plan comparisons, and historical trends available in our data download.

Frequently Asked Questions

Why did Texas commercial electricity averages rise despite most TDU territories showing rate declines?

The 5.6% increase in market-wide average rates this week was driven by portfolio composition, not rate hikes. With 500 plans removed and 340 new plans added, the mix of available plans shifted significantly. Among the 36 plans that persisted week over week, more posted decreases (5) than increases (3), confirming that the average increase is a statistical artifact of plan turnover rather than a genuine market-wide rate increase.

Which TDU territory had the most rate movement this week?

AEP Central saw the largest week-over-week average rate change among the five TDU territories, with rates moving sharply lower. TNMP followed with a significant decline. CenterPoint and AEP North also posted decreases, while Oncor was the only territory where average rates moved higher. These territory-level trends provide a more reliable signal than the market-wide average for commercial buyers evaluating their local rate environment.

Is now a good time for Texas commercial buyers to lock in a long-term electricity contract?

Long-term contracts (25 to 36 months) are currently priced roughly 13% below short-term plans, though availability is limited to 12 plans across the market. For businesses that can commit to a longer term, the pricing advantage is meaningful. However, limited selection means fewer negotiation options. Buyers considering long-term commitments should compare available options promptly, as plan inventory has been volatile with 500 plans removed and 340 added in a single week.