What do commercial electricity rates cost in Texas?
Texas businesses paid an average of 8.47¢ per kWh in July 2026. That average also includes areas without retail choice, such as city-owned utilities and co-ops, so it is not a shopping-market price. The U.S. average was 14.53¢. Both figures come from the U.S. Energy Information Administration (EIA), Electric Power Monthly, Table 5.6.A.
That is an average across every kind of commercial account. Your price depends on your size, your delivery utility and your contract.
What the average tells you
The EIA divides what commercial customers paid in total by the kWh they used. That total includes energy charges, demand charges and other charges on the bill.
Over January to July 2026 the Texas average was 8.56¢, against 13.97¢ for the U.S. (EIA Table 5.6.B). In July 2025 Texas was 8.85¢. Prices move from month to month, so check the date on any number you see.
What is in the price
A commercial bill has four parts:
- Energy. The part you shop for. Providers set it, and it is the main thing that differs between plans.
- Delivery. Charged by your local utility for the poles and wires. The Public Utility Commission of Texas (PUCT) approves it. It is the same whichever provider you pick.
- Fees and taxes. Meter charges, state fees and sales tax.
- Demand charges. Billed per kW or kVA of your highest power use, not per kWh. They apply once your peak is above your utility's threshold.
On AskTexasEnergy, a price for an account under the demand threshold is all-in: energy plus delivery plus fees. For an account over the threshold, we show energy plus delivery and note that demand charges come on top.
Where demand charges start
In CenterPoint territory (Houston area), the line is 10 kVA. kVA is close to kW; it is how CenterPoint measures your peak. One month above it moves you to the higher rate schedule for at least 12 months. In Oncor territory (Dallas–Fort Worth area), the line is 10 kW, but one high month does not move you: it takes three months above 10 kW in a rolling year, or a single reading above 12 kW. Both utilities measure your highest 15-minute peak in the month.
Check your bill for a line showing peak demand before you compare plans.
Why the advertised rate is not the bill
An advertised rate is one number at one sample usage. Your bill can differ for three reasons:
- Your real usage is not the sample usage.
- The number may leave out demand charges.
- Fees and taxes are added after the rate.
For small commercial customers, a plan's Electricity Facts Label (EFL) must show the average price at 1,500, 2,500 and 3,500 kWh a month. If demand charges apply, the label assumes a 30 percent load factor. Pick the usage level closest to yours and see whether demand charges are in the number.
Today, business plans in the Houston area at 5,000 kWh a month show 10.0¢ to 13.1¢ per kWh all-in (energy, delivery and fees), checked October 14, 2026.
If your business peaks above 10 kVA, CenterPoint demand charges are extra.
How much power does a business use?
The EIA's Commercial Buildings Energy Consumption Survey (CBECS) measures electricity use per square foot. We converted the 2018 national figures to kWh per month for each 1,000 square feet. Multiply by your floor area divided by 1,000. A 2,500 sq ft office at the median would use about 2,100 kWh a month.
| Business type | Lower quarter | Median | Upper quarter |
|---|---|---|---|
| Office | 508 | 842 | 1,308 |
| Retail store | 383 | 700 | 1,000 |
| Restaurant or cafeteria | 1,725 | 3,058 | 4,383 |
| Health care | 700 | 1,183 | 1,650 |
| Lodging | 683 | 1,208 | 2,042 |
| Warehouse | 133 | 292 | 658 |
Buildings in the region that includes Texas ran above the national average. The 2018 figure was 13.7 kWh per sq ft a year, against 12.6 for the U.S. (EIA CBECS Tables C19 and C22). Your own bills are the most reliable guide.
Frequently asked questions
Q: What is the average commercial electricity rate in Texas?
A: 8.47¢ per kWh in July 2026, according to the EIA. The U.S. average was 14.53¢.
Q: Is the average my price?
A: No. It averages many accounts of different sizes and contracts. Your price depends on your usage, your delivery utility and the plan you choose.
Q: What is a demand charge?
A: A charge based on your highest power use in a billing month, measured in kW or kVA. It is separate from the per-kWh price. It applies above 10 kVA at CenterPoint and 10 kW at Oncor.
Q: Why is my bill higher than the rate I was quoted?
A: A quoted rate is usually a per-kWh figure at a sample usage. Demand charges, fees, taxes and your real usage change the total. Ask whether the number includes delivery and demand charges.
Q: How much electricity does my business use?
A: Look at 12 months of bills first. If you have none, use the table above as a rough guide. It is national data, so expect some difference.
Q: Do commercial rates change during the year?
A: Yes. The EIA's Texas average was 8.85¢ in July 2025 and 8.47¢ in July 2026. A fixed-rate plan holds your energy price for its term, but delivery charges can change.
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