Since 2002, Laredo residents have enjoyed the benefits of Texas’s deregulated energy market, which allows them to choose from dozens of Texas electricity companies instead of being locked into a single utility company. This freedom of choice is particularly valuable in a border city like Laredo, where hot summers drive up air conditioning usage and energy bills.
As the Gateway City experiences temperature extremes that can push energy bills higher than other parts of Texas, finding the right electricity provider can save you hundreds of dollars annually. However, comparing electricity rates in Texas comes with challenges. Dozens of light companies offer energy services in Laredo, and you may have hundreds of energy plans to choose from.
With competition driving innovation, Laredo homeowners can now select from various plans tailored to different usage patterns, preferences for renewable energy and budget requirements. We’ve compiled this guide to help you narrow down your options to choose the best provider and plan for your home.
Current Laredo Electricity Rates
When evaluating Laredo electricity rates, look beyond the advertised price per kWh. Some providers offer seemingly low rates but include complicated tiered pricing structures or bill credits that only benefit customers who use exact amounts of electricity each month.
For example, many bill credit plans promise a discount when your usage meets or exceeds 1,000 kWh. You may enjoy rates below 11 cents per kWh if your usage meets the required threshold. However, if your usage falls below it, your effective energy rate can more than double.
The most transparent electricity plans clearly state their rates without relying on gimmicks or hidden fees.
| Provider | Plan name | Term | Rate (¢/kWh) |
|---|---|---|---|
|
Frontier Utilities |
Frontier Saver Plus 12 |
12 months |
11.1 |
|
Express Energy |
Flash 12 |
12 months |
11.2 |
|
Gexa Energy |
Gexa Eco Saver Plus 12 |
12 months |
11.2 |
|
Express Energy |
Flash 24 |
24 months |
11.2 |
|
4Change Energy |
Maxx Saver Select 24 |
24 months |
11.2 |
|
4Change Energy |
Maxx Saver Select 12 |
12 months |
11.2 |
|
Gexa Energy |
Gexa Eco Saver Plus 24 |
24 months |
11.2 |
|
Frontier Utilities |
Frontier Saver Plus 24 |
24 months |
11.2 |
|
Cirro Energy |
Simple Bill Credit 24 |
24 months |
12.5 |
|
Cirro Energy |
Simple Bill Credit 12 |
12 months |
12.5 |
|
Frontier Utilities |
Frontier Budget Saver 12 |
12 months |
15.7 |
|
Tri-Eagle Energy |
Simple Savings 12 |
12 months |
15.8 |
|
TXU Energy |
Clear Deal 12 |
12 months |
15.9 |
|
4Change Energy |
One Rate 12 |
12 months |
16.9 |
|
Veteran Energy |
Secure 12 |
12 months |
17.3 |
|
Gexa Energy |
Gexa Light Saver 12 |
12 months |
16.5 |
|
Frontier Utilities |
Platinum 12+ |
12 months |
18.2 |
|
TXU Energy |
Simple Rate 12 |
12 months |
19.2 |
|
Payless Power |
12 Month – Prepaid |
12 months |
19.4 |
|
Gexa Energy |
Gexa Eco Saver Advantage 12 |
12 months |
20.3 |
Rates are updated as of June 2025, based on the AEP Central service area for the ZIP code 78336. The average rates apply to a home with a monthly usage of 1,000 kWh.
Average Electricity Rates in Laredo
The average electricity rate in Texas is 15.30 cents per kWh, according to the latest data from the U.S. Energy Information Administration (EIA). Based on our most recent rate data, the average electricity rate in Laredo is around 17 cents per kWh. While that rate is somewhat higher than the statewide average, you can still find energy plans with prices as low as 10.7 cents per kWh.
Due to Laredo’s location in the AEP Texas Central utility region, you’ll pay slightly higher delivery fees than in other utility service areas.
According to our February 2025 energy survey of 1,600 Texans living in deregulated areas, 75% of respondents living in Laredo pay between $150 and $300 a month for their energy bills.
What Makes a Good Rate in Laredo?
In Laredo’s energy market, a good energy rate ranges from 15 to 18 cents per kWh from a no-gimmick energy plan with fixed rates. AEP Central’s delivery charges, typically higher than those in Oncor or CenterPoint regions, are included in the per-kWh cost.
Laredo’s location near the Mexican border and as a trade hub impacts its energy infrastructure and costs. The city faces transmission congestion during peak usage, affecting electricity prices in extreme weather. Its distance from major power generation facilities also leads to slightly higher transmission costs.
Beware of plans with very low rates (below 13 cents/kWh) that depend on bill credits or usage requirements, as they can lead to higher effective rates if usage thresholds aren’t met—a notable concern in Laredo due to significant monthly usage fluctuations during seasonal temperature changes.
Top Recommended Electricity Companies in Laredo
According to the Public Utility Commission of Texas (PUCT), Laredo residents can choose from about 45 retail providers offering hundreds of plan options. When considering light companies in Laredo, we recommend considering aspects beyond the advertised rate. To help, you gathered firsthand customer data in our February 2025 survey, gathering detailed insight into dozens of energy companies’ performance in key customer-focused categories, including customer service, online experience, retention and satisfaction.
Notable providers include TriEagle Energy, Reliant Energy and TXU Energy. These providers scored a 4.8 out of 5 stars or higher in our review, scoring well for customer satisfaction and customer service.Other providers shine for niche offerings, such as Payless Power, which is our top recommendation for no-deposit energy plans, or Green Mountain Energy, which specializes in 100% renewable energy.
| Provider | Top Recommended Plan | Our Score | PUCT Rating |
|---|---|---|---|
|
Green Mountain Energy |
Pollution Free e-Plus 24 |
4.9 |
4 |
|
Reliant Energy |
Power Savings 12 |
4.9 |
4 |
|
Champion Energy |
Champ Saver-24 |
4.9 |
5 |
|
TXU Energy |
Simple Rate 12 |
4.9 |
5 |
|
TriEagle Energy |
Simple Savings 12 |
4.8 |
3 |
|
Express Energy |
Express 12 |
4.8 |
N/R |
|
4Change Energy |
One Rate 24 |
4.7 |
N/R |
|
Discount Power |
Wise Buy 12 |
4.7 |
2 |
|
Gexa Energy |
Gexa Light Saver 12 |
4.6 |
3 |
|
Direct Energy |
Live Brighter Lite 24 |
4.6 |
4 |
|
Frontier Utilities |
Frontier Budget Saver 24 |
4.5 |
3 |
Understanding Laredo’s Energy Market
Laredo’s electricity market has operated under Texas’s deregulation framework since the implementation of Texas Senate Bill 7 in 2002. This legislation broke up energy monopolies and introduced competition among providers, giving Laredo residents the power to choose their electricity company rather than being tied to a single utility.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electricity to Laredo homes and businesses, coordinating generation and transmission across most of the state’s grid. While ERCOT oversees the market, AEP Texas Central is Laredo’s local utility company, maintaining the infrastructure that delivers power to your home regardless of which retail provider you choose.
For Laredo residents, deregulation has generally brought positive changes. With the city’s intense summer heat driving high air conditioning usage, the ability to shop around for lower rates has become especially valuable. The competitive market has also pushed providers to improve customer service and introduce innovative plans tailored to border city living patterns, including bilingual customer support that serves Laredo’s predominantly Hispanic population.
As a major Texas-Mexico border city, Laredo sometimes faces unique energy challenges related to cross-border infrastructure coordination and rapidly growing commercial demand from international trade activities. However, the deregulated market has generally allowed the city’s energy offerings to adapt to these specialized needs.
How To Choose the Right Electricity Plan
Finding the right electricity plan in Laredo requires looking beyond the advertised rate. The city’s extreme summer temperatures and varying seasonal usage patterns make matching your plan to your specific needs especially important.
- Understand your usage history: Review your past 12 months of electricity bills to identify usage patterns. Laredo residents often consume two to three times more electricity in summer than in winter. A plan that saves you money in July may cost you in December if you no longer qualify for the high-usage discount.
- Check for hidden fees: Some Laredo providers charge additional fees not obvious in advertised rates. Watch for minimum usage fees, bill credit thresholds and disconnection/reconnection fees.
- Evaluate bilingual support: With Laredo’s mostly Spanish-speaking population, ensure the provider offers customer service in Spanish to facilitate resolving issues.
- Consider border city factors: If you split time between the U.S. and Mexico or have vacation properties across the border, seek providers with flexible payment options and account management for international lifestyles.
Types of Electricity Plans
Laredo’s energy market offers several electricity plans to meet diverse needs. Understanding each option will help you make the best choice for your household.
- Fixed-rate plans
- Variable-rate plans
- Bill credit plans
- Time-of-use plans
- Green energy plans
- No-deposit plans
Fixed rates tend to provide the most flexibility. However, some plans fall under multiple categories. For example, many green energy plans also provide fixed rates, and some providers offer time-of-use plans with clean energy.
Because energy usage in Texas varies so much from season to season, be wary of bill credit or time-of-use offerings. These plan types promise usage-based discounts that you may not always be able to count on if your usage varies significantly on a seasonal basis.
Many customers in Lardeo want no-deposit lights. While we understand the desire to avoid a large upfront deposit or a credit check, note that prepaid, no-deposit plans often charge slightly higher rates.
Green Energy Options in Laredo
Laredo is making significant strides toward renewable energy adoption, with an increasing number of providers offering partially or fully renewable electricity plans. These green energy options typically source power from Texas wind farms and solar operations, with minimal price premiums compared to conventional plans.
Popular green energy providers include Green Mountain Energy, Rhythm Energy and Gexa Energy.
The Gateway City supports green initiatives through the Laredo Clean Energy Program, which aims to increase renewable energy usage in municipal operations. For environmentally conscious Laredo residents, green energy plans not only reduce their carbon footprint, but they can also provide protection against fossil fuel price volatility in a region where natural gas prices have historically fluctuated based on industrial and cross-border demand.
Business Electricity Rates in Laredo
Laredo businesses benefit from commercial electricity plans tailored to their needs, with rates usually lower than residential ones due to higher usage patterns. According to the EIA, the average commercial energy rate in Texas is 9 cents per kWh, which is lower than the 15.30 average residential energy rate.
As a key trade hub with Mexico, Laredo’s energy market caters to international shipping companies, warehouses and retail operations with distinct energy requirements.
Commercial energy rates vary based on usage volume, load factor and contract length. The City of Laredo Economic Development Department offers resources to help local businesses optimize energy costs, and many providers have specialized plans for border businesses operating on international schedules or spanning both sides of the border.
Making the Switch: How To Change Providers
For Laredo residents wanting to switch electricity providers, timing can impact savings. The best time to switch is early spring or late fall when moderate temperatures create lower demand and competitive offers.
The process can take several business days, although some providers specialize in same-day energy plans. However, we recommend comparing providers and scheduling your new service 30 days before for peace of mind.
Check your current contract for early termination fees, which range from $99 to $395, depending on your provider and remaining contract length.
Steps To Switch Providers
- Compare available plans in your ZIP code: Use a comparison marketplace, such as Home Energy Club, to evaluate plans in your Laredo neighborhood.
- Filter plans and providers by your needs: Use the filtering tools to compare plans based on your usage and energy needs. From green energy to prepaid offerings, your home’s usage will dictate which plan best meets your needs. Look beyond just the advertised rate to understand all fees and conditions.
- Sign up with your new provider: Complete the enrollment process online or by phone. Most Laredo providers offer Spanish-language enrollment options for the city’s bilingual population.
Switching energy providers usually takes just a few minutes. You shouldn’t experience any service interruptions.
Laredo Power Infrastructure and Outages
Laredo’s electricity infrastructure is managed by AEP Texas Central, which maintains the poles, wires and transformers that deliver power to homes and businesses throughout the city. The utility has invested significantly in grid improvements following challenges exposed during the 2021 Texas freeze. However, Laredo’s southern location meant it experienced fewer prolonged outages than some northern parts of the state.
When outages occur in Laredo, typically during summer thunderstorms or rare winter events, report them directly to AEP Texas. Your retail electricity provider (REP) can’t assist with outages, as they don’t maintain the physical infrastructure.
Frequently Asked Questions
What company has the cheapest electricity rates in Laredo?
Gexa Energy, 4Change Energy and Frontier Utilities typically offer the lowest rates in Laredo. However, these ultra-cheap energy plans typically include bill credits. Assess your energy usage to ensure you can benefit from the usage-based discount before signing up for a bill credit energy plan.
How much does electricity typically cost in Laredo?
According to our February 2025 survey, 75% of Lardeo respondents pay between $150 and $300 on their monthly energy bills. Our most recent rate data indicates that the average energy rate in Lardeo is 17 cents per kWh. However, your actual energy costs will vary based on your energy usage, as well as the provider and plan you select for your home.
Laredo’s hot climate means summer electricity bills can be substantially higher than winter bills, sometimes doubling or tripling due to air conditioning usage during extreme heat.
What’s the best electricity company in Laredo for homeowners?
The best electricity company for Laredo homeowners depends on your priorities and needs. The highest-rated providers in our review include Reliant Energy, Green Mountain Energy, TXU Energy and TriEagle Energy. Ultimately, the best provider combines competitive rates, plan structures that match your usage patterns and customer service that meets your language preferences and support needs.
When is the best time to switch electricity providers in Laredo?
The optimal time to switch electricity providers in Laredo is typically during spring and fall when mild weather causes demand to drop and prices to decrease. Switching during these shoulder seasons allows you to lock in better rates before the summer price increases that frequently affect the Laredo market. Additionally, if your current contract is ending, you should begin shopping for a new plan about 30 to 60 days before your end date to avoid being automatically placed on a higher-rate month-to-month plan.
Our Rating Methodology
The This Old House Reviews Team supports our energy provider ratings and recommendations with a transparent, research-backed methodology. Our process includes surveying electricity customers in deregulated markets like Texas, analyzing customer review trends, conducting mystery shopping, and consulting with energy experts. Each provider is scored based on performance in customer satisfaction, loyalty, digital experience, and service quality to produce a final rating on a 5-point scale.