Why Your Houston Neighbor Might Be Paying Less for the Same Electricity

How Houston's Deregulated Market Really Works

In Houston, two homes on the same block can end up paying very different rates for the exact same electricity — and it comes down to how the market is structured. Houston sits inside a deregulated area, which means the wires that deliver power to your house are handled by one company, and the retailer that sells you the electricity is a completely separate business. You don't get to choose the wires, but you absolutely get to choose the seller.

That's where the price gap comes from. Dozens of retail providers compete for Houston customers, each with their own rates, contract lengths, and fees. Most people sign up once and then stay on that same plan for years, long after the promotional pricing has rolled off. Meanwhile, the neighbor next door might have shopped their plan recently and locked in something cheaper — same grid, same electrons, different bill.

Compare the Real Price, Not the Advertised One

The trick to actually saving money isn't chasing the biggest headline number in an ad. Advertised rates often assume a very specific usage level that doesn't match how most households actually use power. The number that matters is the price at your real usage level, typically around 1,000 kilowatt-hours per month, because that's where the true cost of the plan shows up once base charges and tiered pricing are factored in.

Every retail electricity plan in Texas comes with a standardized document called an Electricity Facts Label. It shows the average price per kWh at 500, 1,000, and 2,000 kWh, along with the contract length, any fees, and how much of the power is renewable. Because every provider has to publish one in the same format, the EFL is what lets you compare plans apples to apples instead of guessing from marketing copy.

If you want to see real Houston plans lined up side by side, sorted by the price you'd actually pay at your usage — not the version dressed up for an ad — that's exactly what 97 Options is built to do.