The deregulated energy market in Waco allows you to compare low-rate electricity plans and select the best rate for your needs. Whether you’re looking for competitive electricity plans or want to avoid hidden costs with no-surprise plans in Waco, you can use our guide to simplify your decision-making process and help you make informed choices.
The Best Electricity Rates in Waco
Below are some of the best electricity plans in Waco. We chose these plans based on bill predictability and overall energy costs, ensuring your monthly expenses are manageable and transparent. Note that the lowest advertised rate might not always mean the lowest monthly bill, as factors such as hidden fees and fluctuating energy usage can impact the final cost.
Provider | Plan Name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
Frontier Utilities | Frontier Budget Saver 12 | $152 | 15.2 | 30% |
Tri-Eagle Energy | Simple Savings 12 | $152 | 15.2 | 9% |
Rhythm Energy | Simply Select 12 | $161 | 16.1 | 100% |
4Change Energy | One Rate 12 | $157 | 15.7 | 9% |
Veteran Energy | Secure 12 | $157 | 15.7 | 7% |
Gexa Energy | Gexa Light Saver 12 | $160 | 16.0 | 100% |
Frontier Utilities | Platinum 12+ | $171 | 17.1 | 30% |
TXU Energy | Simple Rate 12 | $182 | 18.2 | 9% |
Payless Power | 12 Month - Prepaid | $188 | 18.8 | 26% |
Gexa Energy | Gexa Eco Saver Advantage 12 | $202 | 20.2 | 9% |
Rates in the above table are updated daily. Electricity rates for the Oncor service area are pulled for the 75001 ZIP code. Monthly bill estimates are for a home with 1,000 kilowatt-hours (kWh) of energy usage.
The Cheapest Electricity Rates in Waco
Check out some of the cheapest advertised energy rates in Waco below. Before signing up, note that many of these plans offer low rates through the use of bill credits. You can save money if your energy usage consistently meets the bill credit requirements. However, you could pay a very steep effective energy rate when your usage doesn’t qualify for the bill credit. We don’t typically recommend bill credit plans because they tend to cause unpredictable energy bills.
Provider | Plan Name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
4Change Energy | Maxx Saver Select 24 | $106 | 10.6 | 0.09% |
4Change Energy | Maxx Saver Select 12 | $106 | 10.6 | 0.09% |
Frontier Utilities | Frontier Saver Plus 12 Plan | $106 | 10.6 | 30% |
Frontier Utilities | Frontier Saver Plus 24 Plan | $106 | 10.6 | 30% |
Gexa Energy | Gexa Eco Saver Plus 12 Plan | $106 | 10.6 | 100% |
Gexa Energy | Gexa Eco Saver Plus 24 Plan | $106 | 10.6 | 100% |
Express Energy | Flash 12 | $107 | 10.7 | 0% |
Express Energy | Flash 24 | $107 | 10.7 | 0% |
Veteran Energy | Valor 12 | $128 | 12.8 | 0.07% |
Veteran Energy | Valor 24 | $133 | 13.3 | 0.07% |
Rates in the above table are updated daily. Electricity rates for the Oncor service area are pulled for the 75001 ZIP code. Monthly bill estimates are for a home with 1,000 kilowatt-hours (kWh) of energy usage.
Bill Predictability vs. Low-Rate Energy Plans in Waco
Bill predictability refers to how consistent your monthly energy costs are from one month to the next. Straightforward fixed-rate plans are highly predictable, as you pay a set amount per kilowatt-hour of energy used, so market fluctuations or seasonal changes shouldn’t affect your rate. In contrast, variable-rate plans can be unpredictable because rates may change based on market conditions, causing significant fluctuations in your monthly bill.
Additionally, many low-rate energy plans offer cheap rates through tiered pricing or bill credits. Tiered-rate pans typically offer a percentage off your bill when your energy usage reaches a set kilowatt-hour level. Alternatively, bill credits offer an account credit when you exceed or stay below a preset energy usage level. While these plan types may help some Texans save money, they can also cause unpredictable monthly bills if your monthly energy use varies. We don’t recommend either tiered rates or bill credit plans.
To maintain a steady budget, we recommend a consistent fixed-rate plan to make financial planning easier.
Choosing an Energy Plan in Waco
When choosing a retail electric provider (REP) in Waco, consider more than just the rates. Key factors include a provider’s customer service quality, contract terms, plan types, and any additional fees or incentives.
Follow the steps below to choose an energy plan in Waco.
Step 1: Identify Your Electricity Usage Needs
Determining your energy needs can help you find the best plan for your household. You can review your past utility bills to determine your average monthly consumption. We recommend reviewing energy bills for an entire year to account for seasonal demand changes. Also, consider factors such as the size of your home, the number of occupants and the types of appliances you use, all of which can impact your energy needs.
Step 2: Review Plan Details and Rates
Next, compare energy plans, rates and providers in your area. Simply punch in your ZIP code to shop for the best plans and cheapest rates in your neighborhood. In addition to ensuring your chosen plan is available in your area, ensure it aligns with your usage patterns and budget. When reviewing electricity plans, consider the different types available. Generally, electricity plan types in Waco include:
- Fixed-rate electricity plans
- Variable-rate plans
- Green energy plans
- No-deposit plans (prepaid plans)
- Bill credit plans
We recommend straightforward fixed-rate plans for the predictability this plan type offers.
Explore how different contract lengths, which can range from short-term agreements to long-term commitments, affect your flexibility to change providers, move homes or switch energy plans later.
Step 3: Make the Switch to Your New Provider
Once you identify the provider and plan that best suits your needs, we can help you enroll online or over the phone in just five minutes. Before enrolling, always review a plan’s terms and conditions to ensure everything aligns with your expectations. Check your current energy plan for early termination fees (ETFs) fees before canceling your contract.
The Best Electricity Companies in Waco
Reliant Energy, Green Mountain Energy and TriEagle Energy earned the top three spots in our review of Waco energy providers.
When comparing electricity companies, we recommend looking past the price to assess the quality of service, bill predictability, and plan features and options to determine if it’s the right fit for you. However, if price is top of mind, we found that Gexa Energy, 4Change Energy and Frontier Utilities offer the lowest advertised rates in Waco.
| Retail Energy Provider | Our Rating | PUCT Rating | Better Business Bureau (BBB) Rating |
| Reliant Energy | 4.7/5 | 5/5 | NR |
| Green Mountain Energy | 4.7/5 | 4/5 | A+ |
| TriEagle Energy | 4.7/5 | 3/5 | A+ |
| Rhythm Energy | 4.5/5 | 2/5 | NR |
| Just Energy | 4.4/5 | 2/5 | F |
| Frontier Utilities | 4.4/5 | 3/5 | NR |
| Veteran Energy | 4.4/5 | NR | A+ |
| TXU Energy | 4.3/5 | 5/5 | A+ |
| Cirro Energy | 4.3/5 | 2/5 | A+ |
| Champion Energy | 4.3/5 | 5/5 | A+ |
| Gexa Energy | 4.2/5 | 3/5 | C |
| Direct Energy | 4.2/5 | 4/5 | F |
Note: Ratings by our team and the Public Utilities Commission of Texas (PUCT) are out of 5 stars. Data is accurate as of January 2025.
What To Know About the Energy Market in Waco When Moving
When moving to Waco, note that the electricity market offers a variety of rates, contract lengths, discounts and promotions, and types of electricity plans, all of which can impact your overall energy costs. As a Waco resident, also watch out for ETFs if you decide to switch providers before your current contract ends.
Electricity Facts Label
You’ll find key plan details — including charges, delivery fees, base charges and any applicable discounts — in the electricity facts label (EFL), a state-mandated document.
It also advertises average prices at key usage levels: 500, 1,000 and 2,000 kWh. These average rates can be misleading because they often include assumed discounts, such as bill credits or times of use. To make the best use of the EFL, compare the average rate per kilowatt-hour against the energy charge to see what the plan really charges. The EFL also includes the contract term, whether the plan is fixed-rate or variable-rate, ETFs and the percentage of renewable energy included.
When shopping for an electricity plan, read the EFL carefully to ensure you understand all costs and conditions. Familiarity with the EFL can help you make an informed choice and secure the best possible deal.
Discounts and Promotions
Provider discounts and promotions can significantly impact the overall cost of your energy plan, so keep these in mind when comparing Waco electricity providers. While some discount rates can help you save, many promotional offers may mask higher base rates or less favorable terms. Evaluate the full scope of the plan based on the EFL to spot gimmicky discounts or confusing rate structures that may cause bill surprise issues later on.
Early Termination Fees
Cancellation fees, often called ETFs, are charges imposed by electricity providers for ending your contract before it’s complete. In Texas, ETFs can range from $150 to $395, depending on the contract length. However, some providers charge a flat fee for each month remaining in your contract at the time of cancellation, usually around $20.
You can avoid paying ETFs if you face financial hardship, move permanently, experience a death in the family or if the provider doesn’t meet the contract terms. Also, there’s often no ETF if you switch providers within the last 14 days of your contract.
Rate Ranges and Tiered Rates
Review the EFL to determine how much the rates range from the highest usage level to the lowest usage level so you can avoid unexpected costs. A typical tiered or bill credit plan will have a low rate for a specific usage amount, such as 1,000 kWh per month, but higher rates for 500 kWh. In contrast, more straightforward plans usually feature consistent pricing across all usage levels.
The larger a plan’s rate range across usage levels, the more likely it will lead to unpredictable energy bills. Meanwhile, a plan with a smaller rate range — from 13 cents to 16 cents per kWh, for example — will yield more predictable monthly energy costs.
Tiered-rate plans offer discounted rates when your usage meets or exceeds specific usage levels. Much like bill credits, tiered rates can cause bill surprise issues.
Variable Rates vs. Fixed Rates
Variable-rate plans charge prices that fluctuate based on market conditions, such as changes in supply and demand or shifts in energy prices. Your rate per kilowatt-hour can go up or down with no notice, typically causing significant bill increases. While you have the flexibility to change providers at any time, you’ll be subject to market prices at the time you switch.
In contrast, fixed-rate plans offer a stable price per kilowatt-hour for the duration of your contract, which means predictable monthly energy costs and simplified budgeting. This stability can help protect you from market volatility, as your rate remains constant — even if energy prices rise. However, you won’t be able to take advantage of low rates if market prices fall. We don’t typically recommend variable-rate plans because of the likelihood of unpredictable rate fluctuations.
Renewable Energy Plans
Renewable energy plans, or green energy plans, provide electricity service from the following types of energy sources:
- Wind power uses wind turbines to generate electricity efficiently.
- Solar power converts sunlight into electricity using solar panels.
- Hydropower generates electricity from flowing water, such as rivers or dams.
- Biomass produces energy from organic materials, such as wood and agricultural residues.
- Geothermal energy harnesses heat from the Earth’s core to generate power.
Green energy plans can benefit Texans who want to secure competitive energy rates while reducing their home’s environmental impact. Top renewable energy providers include Green Mountain Energy, Rhythm Energy, Gexa Energy and Chariot Energy.
How Deregulated Energy Works in Waco
Texas created a deregulated energy market in 2002, breaking up local utility monopolies. Before that time, a single utility managed the generation, transmission and retail sales of electricity. Now, separate entities manage all phases of the process: generators, transmission and distribution utilities (TDUs) and retail energy providers (REPs).
In a deregulated electricity market, generators create electricity and sell it in wholesale auctions overseen by the PUCT and the Electric Reliability Council of Texas (ERCOT). Electricity companies purchase that energy and then sell it to businesses and homeowners across the state. Utility companies then deliver that power to you. The utility company manages the local grid and repairs power outages.
Here is a list of the current transmission and distribution utility companies in Texas and corresponding service areas. Note that Oncor Electric Delivery services Waco.
- AEP Texas Central: Corpus Christi, McAllen, Victoria, Laredo and Harlingen
- AEP Texas North: Abilene, San Angelo, Alpine and Vernon
- CenterPoint Energy: Houston, Katy and Beaumont
- Lubbock Power & Light (LP&L): Lubbock
- Oncor Electric Delivery: Dallas, Fort Worth, Irving, Waco, Arlington, Temple, Round Rock, Midland and Odessa
- Texas-New Mexico Power (TNMP): League City, Glen Rose, Pecos, Angleton
Why Electricity Rates Fluctuate in Waco
Deregulation has yielded competitive rates but also opens up the energy sector to the whims of a free market. Electricity rates in Waco fluctuate due to supply and demand, shifting fuel prices, extreme weather events, wholesale energy prices and adjustments in regulatory policies.
For instance, rates increase as demand for energy increases. Similarly, if energy production dips, energy rates come at a premium. Winter Storm Uri in 2021 is a recent example of an extreme weather event causing energy rates to skyrocket. As demand increased, various generation sources failed, causing record-breaking energy rates. The storm caused the largest loss of power in the state, according to the Texas Comptroller.
When To Buy Electricity in Waco
Buying electricity during fall or spring in Waco can help you secure better rates. The mild weather during these seasons leads to low demand and low energy rates as a result. Start shopping for energy early if your contract ends within a few months. You can often schedule a future service start date, letting you lock in low prices before your contract ends. Failing to enroll in a new energy plan before your contract expires may result in you getting automatically enrolled in a holdover energy plan, which typically charges steep variable rates.
Frequently Asked Questions About Waco Electricity Rates
What is a good price per kilowatt-hour in Texas?
For residential customers, a good rate in Texas currently ranges from 13 cents per kWh to 16 cents per kWh when you’re signed up for a straightforward energy plan. You can find energy plans as cheap as 10 cents per kWh. However, these plans often rely on bill credits for the cheapest rates.
What is the cost of a normal Texas electric bill?
In 2023, the average electric bill for residential customers in Texas was $165.82, according to the U.S. Energy Information Administration (EIA). That said, the current average energy bill in Waco is $243. Your actual energy bills will vary based on your energy plan type and the amount of energy you use.
How do I choose an electricity plan in Texas?
Start by evaluating your typical energy usage and comparing plans based on the cost per kilowatt-hour and any additional fees or charges. Check for any added benefits, such as renewable energy or smart home integrations. Read customer reviews online and the plan’s terms of service to ensure it aligns with your lifestyle and financial goals before enrolling.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:
- Plan features (33%)
- Customer satisfaction and brand trust (27%)
- Plan rates and pricing (20%)
- Energy bill predictability (20%)
