Compare Tyler Electricity Rates and Providers

Tyler, Texas, resides in Texas’s deregulated energy market, giving you the power to choose your electricity provider rather than being stuck with a single utility company. This competition among retail electricity providers has created opportunities for significant savings on your monthly energy bills.

Electricity rates in Tyler start at 10.2 cents per kWh and can exceed 24 cents per kWh, depending on your chosen energy plan and provider. The Rose Capital of America offers homeowners access to dozens of competitive energy plans from various providers, which can have an outsized impact on your total energy costs.

Understanding your options can help you secure rates that fit your budget and energy usage patterns while avoiding common pitfalls like teaser rates and hidden fees.

Current Tyler Electricity Rates

Current electricity rates in Tyler reflect typical East Texas market conditions, with competitive options available for budget-conscious homeowners. The key to finding a good rate isn’t just looking at the lowest advertised price but understanding each plan’s full terms and conditions.

Many Tyler residents fall into traps with bill credit plans that require specific usage levels to achieve advertised rates, or variable-rate plans that start low but increase over time. Fixed-rate plans with transparent pricing typically offer the best value for most households, providing predictable monthly bills without gimmicks.

Rates are updated as of June 2025, based on the Oncor service area for the ZIP code 75701. The average rates apply to a home with a monthly usage of 1,000 kWh.

Average Electricity Rates in Tyler

Based on current market data, Tyler electricity rates average around 17.0 cents per kWh for residential customers using 1,000 kWh monthly. However, advertised rates start significantly lower than this. By shopping carefully, you can find energy plans with rates well below the statewide average, which is 15.30 cents per kWh, according to the U.S. Energy Information Administration (EIA).

According to our February 2025 survey of 1,600 Texans living in deregulated areas, 55% of Tyler resident respondents pay between $100 and $200 a month for their energy bills. Additionally, only 48% of respondents believe they’re paying a fair rate for their electricity.

Summer months typically see higher usage due to air conditioning needs, while winter bills remain more moderate thanks to Tyler’s mild climate compared to northern Texas cities.

What Makes a Good Rate in Tyler?

A competitive electricity rate in Tyler for June 2025 ranges from 14.0 to 17.0 cents per kWh, assuming it’s from a no-gimmick energy plan with straightforward pricing.

You’ll find energy plans in Tyler starting at 10.2 cents per kWh, but be cautious with these ultra-cheap energy plans. They typically include bill credits, which can lead to bill surprises when your home’s usage doesn’t meet the strict discount requirements. Our research shows that Tyler’s best electricity rates combine affordability with predictability.

Tyler’s location in East Texas means your rates are affected by regional transmission costs and the mix of power generation sources serving the area. Watch out for plans with high monthly fees, complicated tier structures or introductory rates that increase after a few months, as these can significantly impact your actual costs.

Top Recommended Electricity Companies in Tyler

Tyler is served by Oncor Electric Delivery as the transmission and distribution utility, meaning Oncor maintains the power lines and handles outages. However, you can choose among nearly 140 retail electricity providers approved by the Public Utilities Commission of Texas (PUCT) to supply your electricity service.

To rate providers in Tyler and across the Lone Star State, we gathered firsthand data on Texas light companies using our February 2025 survey of 1,600 Texans, rating providers across key customer categories. According to our review, some of the top-rated Texas electric companies include Reliant Energy, TXU Energy and Green Mountain Energy.

The providers with the cheapest advertised rates include Gexa Energy, 4Change Energy and Frontier Utilities. And for no-deposit lights in Tyler, we recommend Payless Power, which offers fixed rates on its prepaid energy plans.

Check out other top-rated light companies below.

Understanding Tyler’s Energy Market

Texas deregulated its electricity market in 2002, allowing Tyler residents to choose their retail electricity provider (REP) while Oncor continues to handle the physical delivery of power. The Electric Reliability Council of Texas (ERCOT) manages the state’s power grid and wholesale electricity market.

This deregulated system means you can shop for electricity plans just like you would for cable or internet service. Competition among providers has generally led to lower rates and better customer service options than regulated markets.

The system separates electricity generation, transmission and retail sales into different companies. Oncor handles the wires and poles, while retail providers buy electricity wholesale and sell it to you with various pricing structures and service options. Generators produce electricity from various sources, including wind, nuclear, solar and natural gas.

How To Choose the Right Electricity Plan

Selecting the right electricity provider in Tyler requires looking beyond the advertised rate to understand the full cost structure and contract terms. Your monthly usage pattern, preferred contract length and tolerance for rate changes all factor into the best choice for your household.

Start by reviewing 12 months of electricity bills to understand your usage patterns, then compare plans based on your actual consumption rather than hypothetical usage levels. This approach helps you avoid plans that look attractive but don’t match your real energy needs.

Key Considerations for Tyler Residents

• Analyze your annual usage: Tyler’s hot, humid summers mean higher air conditioning costs. However, some plans that charge low rates during those high-usage months may come with extremely high rates during low-usage months. Don’t buy energy for a single season. Consider your usage over a full year.
• Read the electricity facts label (EFL) carefully: This standardized document shows exactly what you’ll pay at different usage levels. Focus on the rate that matches your typical monthly consumption rather than the lowest advertised rate.
• Consider contract length vs. flexibility: Fixed-rate contracts offer price stability but may require early termination fees (ETFs) if you move. Month-to-month plans provide flexibility to leave at any time, but charge high rates that change monthly.
• Evaluate customer service options: Check provider ratings for customer service quality, especially for bill payment options and outage communication. Local responsiveness matters when you need help with your account.
• Understand fee structures: Some plans include monthly service fees, connection charges or other costs that can add to your bill. Factor these into your total cost comparison.
• Review promotional terms: Introductory rates often increase after six to 12 months. Make sure you’re comfortable with the standard rate that will apply for most of your contract term.

Types of Electricity Plans

Tyler residents can choose from several plan types, each with different pricing structures and terms to match various preferences and usage patterns.

• Fixed-rate plans: Lock in a specific rate for the entire contract term, providing predictable monthly bills regardless of market fluctuations.
• Variable-rate plans: Rates change monthly based on market conditions, leading to unpredictable monthly energy costs.
• Bill credit plans: Enjoy discounts if your usage meets a specific threshold, but pay far higher rates when you fail to qualify for the discount.
• Green energy plans: Secure electricity from renewable sources like wind and solar, often available at competitive rates due to Texas’s strong renewable energy sector.
• No-deposit plans: Avoid an upfront deposit and a credit check, but risk higher rates.
• Time-of-use plans: Earn discounts during periods of low demand but face steep rates during high-demand hours.

Some providers also offer apartment-specific energy plans. However, straightforward fixed-rate plans may better match your apartment usage needs.

Green Energy Options in Tyler

Tyler residents have access to numerous 100% renewable energy plans that source electricity from Texas wind farms and solar installations. Some green energy plans offer additional perks, such as solar buyback rates or free electricity at night for charging your electric vehicle (EV).

The city’s commitment to environmental sustainability aligns well with Texas’s position as a national leader in wind energy production. Choosing renewable energy supports the continued development of clean energy infrastructure while often providing stable, competitive rates for your home.

Business Electricity Rates in Tyler

Commercial electricity rates in Tyler typically range from 8.0 to 12.0 cents per kWh for small businesses, with rates decreasing for larger commercial and industrial customers. According to the EIA, the average commercial energy rate in Texas is 9.0 cents per kWh, significantly less than the 15.30 average residential energy rate.

Business rates differ from residential pricing due to different usage patterns, demand charges, and power factor considerations.

Tyler’s diverse economy, including healthcare, education and manufacturing sectors, benefits from competitive commercial electricity options. Many providers offer specialized plans for different business types, including demand response programs that can reduce costs during peak usage periods.

Making the Switch: How To Change Providers

The best time to switch electricity providers in Tyler is typically during spring or fall, when energy usage is moderate and you can better evaluate plan performance. The switching process usually takes one to three business days, and some providers offer same-day service. However, we suggest scheduling your new start date a month in advance for peace of mind.

Review your current contract for ETFs before switching, as these can range from $99 to $395, depending on your provider and remaining contract term. Plan your switch timing to avoid these fees while securing better rates for the upcoming high-usage summer season.

Steps To Switch Providers

• Compare plans in your ZIP code: Punch in your ZIP code on an energy comparison marketplace to compare the best plans, prices and providers in your neighborhood.
• Filter options based on your needs: Assess your usage and preferences (want green energy or free power?) and filter plans based on your ideal plan type and price.
• Sign up for your new energy plan: Once you’ve found the best plan for your needs, you can sign up online or over the phone in just a few minutes.

Tyler Power Infrastructure and Outages

Oncor Electric Delivery maintains the power lines, transformers and other infrastructure that deliver electricity to Tyler homes and businesses. During outages, contact Oncor directly or report outages through their website.

Tyler’s power infrastructure has been strengthened since the February 2021 winter storm, with improvements to weatherization and grid reliability. The city’s location in East Texas typically experiences fewer extreme weather events than coastal areas, contributing to reliable power service throughout the year.

Frequently Asked Questions

Our Rating Methodology

The This Old House Reviews Team supports our energy provider ratings and recommendations with a transparent, research-backed provider review 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.