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Texas electricity prices are up 30% since 2021. Here’s what’s actually driving it

According to a document from 2025, residential electricity prices in the ERCOT competitive market rose about 30% from 2021 to 2025.

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Written by Kyle Aubuchon

Published on Mar 4, 2026

4 min read

Reviewed by Kyle Aubuchon

Texas electricity prices are up 30% since 2021. Here’s what’s actually driving it

Texas electricity prices are up 30% since 2021. Here’s what’s actually driving it

If your electricity bill feels like it’s been doing CrossFit without you, you’re not imagining things.

ERCOT’s Affordability Outlook shows that residential electricity prices in Texas have risen about 30% since 2021. For a typical home using 1,000 kilowatt-hours a month, that is roughly $35–$40 more per month than a few years ago.

Let’s break down what is actually causing this jump. No industry soup. No hand-waving. Just the three real drivers and what you can do about them as a renter or apartment resident.


What “up 30%” means for apartments

Most of Gatby’s customers are in apartments. Apartment usage is typically lower than Texas single-family homes, so here’s a renter-sized example.

  • Typical apartment usage: ~650 kilowatt-hours per month
  • If rates rise 30%: your bill rises ~30% even if your usage is flat

So if your all-in bill was $110/month in 2021, you are now closer to $143/month for the same usage. Ouch.

Important note: your bill is not just “the rate you picked.” It is made of pieces, and one piece is growing faster than the others.


Driver 1: Grid delivery costs are rising fast

Your bill has two big buckets:

  1. Energy charge (competitive. This is where you choose a plan.)
  2. Delivery charges (regulated. Everyone pays them.)

Delivery charges cover transmission (high-voltage lines moving power across Texas) and distribution (local wires, poles, transformers in your neighborhood).

ERCOT is clear that delivery cost growth is the main driver pushing bills up through 2030. Those grid upgrades are necessary for reliability and growth, but they get paid back through your rates.

Translation: even the best plan cannot dodge delivery charges. You can only control the energy side.


Driver 2: Texas demand growth is forcing upgrades

Texas is adding load fast. ERCOT projects enormous growth in electricity demand over this decade, which means more infrastructure, more buildout, and more cost recovery.

You don’t need to be a grid nerd to feel the effect. When demand rises and the grid expands to meet it, delivery charges climb. That shows up in your bill even if your personal usage never changes.


Driver 3: Wholesale costs and policy shifts leak into retail prices

Retail plans ultimately reflect wholesale market reality plus regulated add-ons. ERCOT’s baseline forecast expects retail residential prices to keep rising, reaching roughly 19.8 cents per kilowatt-hour by 2030, up about 29% from today’s ~15.3 cents.

Some of that is energy cost. A lot of it is delivery. And policy decisions about who pays for transmission can shift more of the burden toward residential customers.

Bottom line: the tide is coming in. You still want the best surfboard.


Why Texas is losing its “cheap power” edge

Texas still looks decent compared to many states. But ERCOT points out a worrying trend: Texas prices are rising faster than similar-climate states, which erodes the historic affordability advantage.

So you should not assume “Texas power is always cheap.” That was true. It is less true every year.


What renters can do right now

You cannot lower delivery charges. You can stop overpaying on the energy side. Here is the renter playbook.

1) Choose plans based on your real usage

Many plans look cheap at 1,000 kilowatt-hours but are expensive at 500–800. Apartments live in that zone.

2) Watch out for “minimum use” and tier traps

If a plan gives you a “credit” only above a threshold you rarely hit, you are paying a penalty disguised as a perk.

3) Re-shop on a schedule

In a rising-rate world, stale plans rot faster. Put rate checks on repeat.

4) Make small usage moves that work in apartments

  • Keep the air filter clean (ask maintenance if needed)
  • Use fans first, air conditioning second
  • Drop your thermostat 1–2 degrees at night instead of all day
    Small changes matter when prices rise.

How Gatby helps

Gatby compares plans using your actual usage patterns, not marketing math. With the Bill Analyzer, you can see:

  • your real all-in rate
  • how much of your bill is delivery vs energy
  • which plan types fit apartment usage best

Power Move: Email a PDF copy of your bill to bill@gatby.com. We will show what is growing fastest and how to counter it.


TLDR for renters

  • Texas residential prices are up ~30% since 2021.
  • Delivery charges and grid investment are the main engine of future increases.
  • You cannot control delivery prices, but you can pick better plans for apartment usage.
Table of Contents
What “up 30%” means for apartments
Driver 1: Grid delivery costs are rising fast
Driver 2: Texas demand growth is forcing upgrades
Driver 3: Wholesale costs and policy shifts leak into retail prices
Why Texas is losing its “cheap power” edge
What renters can do right now
1) Choose plans based on your real usage
2) Watch out for “minimum use” and tier traps
3) Re-shop on a schedule
4) Make small usage moves that work in apartments
How Gatby helps
TLDR for renters
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Written By
Kyle Aubuchon
Chief Operating Officer
Kyle Aubuchon is the Chief Operating Officer at Gatby, helping residents navigate the state’s competitive power market with clarity and confidence. He leads product, customer experience, enrollments, partner onboarding, and marketplace operations, bringing a data-driven, execution-first approach to scaling the business alongside major property management partners across Texas.