Why is my electric bill so high in Texas?

By the BillAnswers team · Updated November 3, 2026 · How we check facts

Usage is the main driver of a Texas electric bill, so first compare the kWh on this bill with earlier months. If usage did not jump, check whether your fixed-rate contract expired and rolled into a month-to-month default plan, whether a usage-based bill credit was missed, whether the bill used an estimated reading, and whether delivery charges changed.

Start with the kWh on your bill

The PUCT says the amount of energy you use is the driving factor behind your total bill, and that weather can affect your usage. Before anything else, find the kWh on this bill and compare it with last month and, if you can, the same month last year. Every Texas bill must show the previous and current meter readings with their dates, the units measured, and the service period (16 TAC 25.479(c)(1)(E) and (N)). A longer service period alone can add kWh.

For scale: the average Texas home used 1,096 kWh a month in 2024 and paid an average bill of $163.72 (EIA Table 5A, 2024 data).

Next, find the line "The average price you paid for electric service this month" (16 TAC 25.479(c)(1)(I)). If that price is close to what your plan promised, the bill is high because usage rose. If the price itself jumped, work through the checklist below.

Checklist: what to look for

If your contract expired

When a fixed-rate contract ends and you take no action, the provider serves you under its default renewal product, which must be month-to-month and cancellable at any time without a fee (16 TAC 25.475(e)(2)(A)). Its price can change between billing cycles, and Power to Choose warns that the month-to-month default price will likely be much higher.

You should have had warning. For residential contracts entered on or after September 1, 2021, the provider must send at least three written expiration notices during the last third of the contract; for contracts longer than four months, the final one must arrive at least 30 days before the end date (16 TAC 25.475(e)(1)(A)). The envelope or email subject reads "Contract Expiration Notice. See Enclosed." If the provider did not give proper notice, it must keep serving you under your fixed-rate terms until it does (16 TAC 25.475(e)(1)(C)).

Compare plans and switch. A month-to-month plan cannot carry a termination fee (16 TAC 25.475(b)(7)), and on a fixed contract with a termination fee, no fee applies in the 14 days before the expiration date (16 TAC 25.475(e)(2)(C)(ii)).

If you missed a bill credit

Some plans subtract a credit only when usage lands in a set range, for example at or above 1,000 kWh. A mild month that drops you just below the range can raise the bill sharply even though you used less. Check the credit terms on your Electricity Facts Label (EFL) and run your real usage through the true-cost calculator before your next renewal.

If the reading was estimated or the bill looks wrong

• If you were overbilled, the correction must cover the entire period of the overbilling (16 TAC 25.480(d)(1)).
• If you were underbilled, you do not owe corrected charges billed more than 180 days after the bill in error (except in cases such as meter tampering), and for $50 or more you must be offered a deferred payment plan (16 TAC 25.480(e)).
• If you dispute a bill, the provider must promptly investigate and report back (16 TAC 25.480(f)). You can get a copy of your billing records free once every 12 months (16 TAC 25.479(g)).

Delivery charges

Your wires company charges for delivery whatever provider you choose, and the PUCT regulates those rates but not the final retail price. A fixed-rate price can move during the contract for actual changes in delivery charges (16 TAC 25.475(b)(5)). Current figures by utility are on the PUCT rates page; see what a good rate is for the November 1, 2026 table.

Protections if you cannot pay

• Payment options. When you say you cannot pay, the provider must tell you about all its payment options and assistance programs (16 TAC 25.480(g)(1)). If you are not behind, it must offer level or average billing (16 TAC 25.480(h)(1)).
• Deferred payment plans. Required on request for bills due during an extreme weather emergency (16 TAC 25.480(j)(1)(A)). For bills due in July, August or September, eligible residential customers can ask for a plan with a first payment of no more than 50% and the rest in equal parts over at least five billing cycles, with no extra deposit (16 TAC 25.480(j)(2)). Deferred plans cannot include a finance charge, and a provider may add a switch-hold, which blocks switching until the balance is paid.
• Late fee cap. One time, no more than 5%, never twice on the same balance (16 TAC 25.480(c)). The due date must be at least 16 days after the bill is issued (16 TAC 25.480(b)).
• Disconnection notice. A notice cannot be issued before the day after the due date, and the disconnection date must be at least 10 days after the notice (16 TAC 25.483(l)).
• Extreme weather. No disconnection for nonpayment in a county with an extreme weather emergency: when the previous day's high did not exceed 32 F and the forecast stays at or below that for 24 hours, or on a day with a National Weather Service heat advisory for the county or either of the two days before (16 TAC 25.483(j)).
• Other limits. No disconnection on weekends or holidays, or the day before, unless staff can take payment and reconnect; never for unpaid non-electric charges (16 TAC 25.483(f), 25.480(k)).

The PUCT disconnection rules do not apply if your power comes from a city-owned utility or an electric co-op. If you cannot resolve a problem with your provider, the PUCT consumer line is 1-888-PUC-TIPS (1-888-782-8477).

Last updated: November 3, 2026