Texas industrial electricity rates

Analyst note

The Texas industrial price sat above the U.S. average in 0 of 10 years; the gap was -1.32 ¢ in 2015 and -2.01 ¢ in 2024. In the 2024 ranking Texas sits between Tennessee (6.21 ¢) one place above and Oklahoma (5.84 ¢) one place below; the top of the list is 28.01 ¢ away and the bottom 0.69 ¢. Texas was 46th in 2015 with 5.59 ¢ and is 48th now; a fall in the table. Texas industrial prices rose in 5 of 9 years. The largest rise was +20.7% in 2021, and the largest fall -7.4% in 2023. The Texas price peaked at 7.13 ¢ in 2022 and bottomed at 5.07 ¢ in 2020; 2024 is 14.2% below the peak and +20.7% from the low. Compounded, that is +1.01% a year in Texas, -0.81 points against the U.S. Texas buys 17.02% of all U.S. industrial electricity with 33.70% of the accounts, so the average Texas account uses 0.51 times the national average.

Texas industrial customers paid 6.12 ¢ in 2024, which puts the state 48th of 51, a bottom-ten position, 2.01 ¢ under the U.S. Nine years moved the Texas industrial price +9.5% (+1.0% a year), behind the U.S. by 8.2 points. The sharpest year was 2021 at +20.7%; the peak came in 2022.

The latest Texas year moved -7.3%, so prices have cooled. The Texas residential price of 14.94 ¢ sits 8.82 ¢ above. A Texas industrial account uses 39,027 kWh a month; priced at 6.12 ¢ that is about $2,388, and the sector buys 34.8% of Texas's power.

Counting revenue instead of kWh, Texas industrial accounts bring in 21.8% of Texas sector revenue on 34.8% of the kWh, a discount of 13.1 points that comes from the price level: 6.12 ¢ here against 14.94 ¢ for residential and 8.55 ¢ for commercial accounts. The average Texas industrial account uses 39,027 kWh a month, 45 of 51 among states on that measure; a residential account uses 0.03 times as much and a commercial account 0.23 times. Industrial accounts are 2.60% of the 14,481,048 accounts in Texas.