The electricity market in Laredo, Texas, is deregulated, which means you have the power to choose your energy provider. Laredo electricity rates average 15.12 cents per kilowatt-hour (kWh), slightly above the 14.8 cents per kWh state average, according to the Energy Information Administration (EIA). The best electricity rates in Laredo start at 11.9 cents per kWh and can go up to 16.5 cents per kWh for our recommended plans.
Based on our research, you are getting a good deal if your rate is between 13.0 and 16.5 cents per kWh on a non-bill credit or time-of-use plan. Read on to learn more about electricity plans and rates in Laredo.
Best Laredo Electricity Rates
Below is a snapshot of some of the best electricity plans with competitive rates available in Laredo right now.
Keep in mind when comparing these electricity rates in Laredo that you should consider bill predictability, not just the advertised rate per kilowatt-hour. The best plans provide competitive rates without sacrificing predictable monthly energy costs. A lower advertised rate might not always translate into cheaper monthly bills due to various factors, such as hard-to-obtain bill credits or variable rates.
Provider | Plan Name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
Frontier Utilities | Frontier Saver Plus 12 Plan | $109 | 10.9 | 30% |
Gexa Energy | Gexa Eco Saver Plus 12 Plan | $109 | 10.9 | 100% |
Frontier Utilities | Frontier Budget Saver 12 | $162 | 16.2 | 30% |
Gexa Energy | Gexa Light Saver 12 | $170 | 17.0 | 100% |
4Change Energy | One Rate 12 | $164 | 16.4 | 9% |
Rhythm Energy | Simply Select 12 | $163 | 16.3 | 100% |
Frontier Utilities | Platinum 12+ | $182 | 18.2 | 30% |
TXU Energy | Simple Rate 12 | $182 | 18.2 | 26% |
Payless Power | 12 Month - Prepaid | $204 | 20.4 | 26% |
Frontier Utilities | Frontier Saver Premier 12 | $206 | 20.6 | 30% |
Rates in the above table are updated daily. Electricity rates for AEP Central service areas are pulled for the zip code 78336. Monthly bill estimates are for 1,000 kWh usage.
Cheapest Electricity Rates in Laredo
Finding a cheaper electricity plan in Texas can help you save significantly on monthly bills. However, watch for plans that advertise extremely low rates through bill credits. You could end up paying more than advertised unless you use an exact amount of power to qualify for the bill credit each month. For the best deal, look for simple fixed-rate plans and always review the electricity facts label (EFL) before signing up.
Provider | Plan name | Est. Monthly Bill | Rate (¢/kWh) | % Renewable |
|---|---|---|---|---|
Frontier Utilities | Frontier Saver Plus 12 | $106 | 10.9 | 30% |
Frontier Utilities | Frontier Saver Plus 24 | $106 | 11.2 | 30% |
Gexa Energy | Gexa Eco Saver Plus 24 | $106 | 11.2 | 100% |
Gexa Energy | Gexa Eco Saver Plus 12 | $106 | 10.9 | 100% |
Express Energy | Flash 24 | $107 | 10.7 | 0% |
Express Energy | Flash 12 | $107 | 10.7 | 0% |
4Change Energy | Maxx Saver Select 24 | $107 | 10.7 | 0.09% |
4Change Energy | Maxx Saver Select 12 | $107 | 10.7 | 0.09% |
Gexa | Gexa Eco Saver Plus 12 Plan | $109 | 10.9 | 100% |
Frontier | Frontier Saver Plus 12 Plan | $109 | 10.0 | 30% |
Rates in the above table are updated daily. Electricity rates for AEP Central service areas are pulled for the zip code 78336. Monthly bill estimates are for 1,000 kWh usage.
Bill Predictability vs. Low-Rate Energy Plans in Laredo
Searching for the lowest rates is not always the best option. Cheap energy plans typically include confusing rate structures with bill credits or time-of-use rates that follow specific usage requirements. You only receive the lowest rate when you match the specific kilowatt-hour requirements, which is challenging as usage generally varies throughout the year for Texas residents.
For example, your energy usage will likely increase during the summer when you need to use your cooling system more. This can make time-of-use plans unpredictable and costly.Meanwhile, your usage can drop precipitously during fall and spring, when the weather is mild. In these months, you’re less likely to qualify for the bill credit, causing your rates to spike.
We suggest searching for energy plans with predictable bills instead. These plans have steady fixed rates that don’t change based on the time of day or how much energy you use. Straightforward plans protect you from market rate spikes during extreme weather and can help you plan your budget without surprises.
How Do You Choose an Energy Plan in Laredo?
We recommend comparing more than just the advertised rates when choosing an electricity plan in Laredo. Check customer reviews, research the provider’s history and consider your energy usage to find the best plan for your needs. But first, assess your energy usage.
Step 1: Identify Your Electricity Usage Needs
Review past electricity bills or use Smart Meter Texas to determine your average energy usage. Then, you can narrow options based on benefits for you. For example, you may benefit from an energy plan with lower rates for high usage if your average household consumption exceeds 2,000 kWh per month.
Step 2: Review Plan Details and Rates
Enter your ZIP code on Home Energy Club and narrow your options based on your energy usage. You’ll still have several options, such as fixed rates, variable rates and prepaid energy plans. Review the EFL to understand the plan type, price breakdown and other terms. We recommend a 12-month fixed-rate plan for predictable bills instead of the cheapest option with bill credits or time-of-use rates.
Step 3: Make the Switch To Your New Provider
Sign up online or over the phone in minutes, and your new Laredo energy provider will handle the transition. Check with your previous electric company about an early termination fee (ETF) if you cancel early or have any remaining bill payments.
The Best Electricity Companies in Laredo
We reviewed dozens of electricity providers in Texas based on customer satisfaction, pricing and plan variety. Texas electricity companies with the highest overall ratings include Green Mountain Energy, TriEagle Energy and Reliant Energy. These companies offer plans with predictable bills, multiple options to fit your needs and solid customer service reputations.
Below are our top picks for Laredo electric companies based on our team’s review, including our star ratings, Public Utility Commission of Texas (PUCT) complaint scorecard ratings and Better Business Bureau (BBB) letter grades.
| Retail Energy Provider | Our Rating | PUCT Rating | BBB Rating |
| Reliant Energy | 4.7 | 5 | NR |
| Green Mountain Energy | 4.7 | 4 | A+ |
| TriEagle Energy | 4.7 | 3 | A+ |
| Rhythm Energy | 4.5 | 2 | NR |
| TXU Energy | 4.4 | 5 | A+ |
| Champion Energy | 4.3 | 5 | A+ |
| Direct Energy | 4.3 | 4 | F |
| Cirro Energy | 4.2 | 2 | A+ |
| Just Energy | 4.2 | 1 | F |
| Frontier Utilities | 4.2 | 4 | NR |
| Gexa Energy | 4.2 | 3 | C |
| Veteran Energy | 4.1 | NR | A+ |
Note: Our ratings and the Public Utility Commission of Texas (PUCT) complaint scorecard ratings are out of 5 stars.
Looking for the cheapest energy rates? On average, we’ve found that 4Change Energy, Gexa Energy and Frontier Utilities advertise the cheapest rates. However, many of the cheapest plans from these companies rely on bill credits to achieve the lowest cost.
What To Know When Moving to Laredo
Understanding key factors about the deregulated energy market in Laredo before moving to the Texas city can simplify the process of choosing a provider. Start by considering your average energy usage, preferred contract length, and if you want features for electric vehicles (EVs) or solar buyback plans to narrow your options.
Electricity Facts Label (EFL)
Each Laredo energy plan includes an EFL explaining the rate structure, plan length and other contract terms. Use this document to compare plans and understand your total cost instead of just the advertised rate. The energy charge is what you’ll pay per kilowatt-hour, while the advertised rate might include assumed savings from bill credits or time-of-use rates. The average rate section also shows what your estimated rate will be at different usage levels: 500, 1,000 and 2,000 kWh.
Early Termination Fees (EFTs)
Canceling your energy plan before its end date may result in an ETF for fixed-rate plans. The fee varies by plan and provider, typically ranging from $150 to $395. Some providers charge $20 for each remaining month of the contract. Review the ETF listed in your plan’s EFL and weigh the amount you would owe against potential savings from switching plans.
Rate Ranges
When reviewing the EFL, check the range in a plan’s rate fro 500 kWh to 2,000 kWh. If the plan has a large range in cost, from 11 cents per kWh to 22 cents per kWh or more, that plan is more likely to cause bill surprise issues. Meanwhile, if the plan’s rate ranges from 13.0 cents per kWh to 16.0 cents per kWh, it should provide more predictable energy costs. Weigh the benefits of predictable monthly bills versus low advertised rates when comparing energy plans.
Variable Rates vs. Fixed Rates
When choosing an electricity plan in Laredo, you can choose between variable and fixed rates. Fixed-rate plans lock in a specific rate for the duration of your contract, providing stability against fluctuating market prices. Variable-rate plans can change month to month based on market conditions, which might lead to lower costs during certain periods but could also result in higher bills when demand spikes, such as warmer summer months that require more air conditioning usage. We almost never recommend variable-rate plans due to how unpredictable they can be.
Renewable Energy Plans
Many top residential electricity suppliers offer 100% green energy plans, often sourced from wind or solar power. These plans not only support environmental efforts but can also come with incentives, such as rebates or tax credits. Switching to a renewable energy plan can offer a positive step toward reducing your carbon footprint while enjoying potential savings on your energy bill.
How Does Deregulated Energy Work in Laredo?
Three key entities work together in Laredo’s deregulated energy market: the transmission and distribution utility (TDU), retail electricity provider (REP) and energy generators. REPs purchase electricity from the generators in wholesale auctions and then sell it to you in the form of energy plans. Energy companies compete to offer you the best prices and services through their plans. TDUs deliver the power to your home and maintain the electrical infrastructure.
The six deregulated transmission and distribution utilities (TDUs) in Texas are:
- AEP Texas Central
- AEP Texas North
- CenterPoint Energy
- Lubbock Power & Light (LP&L)
- Oncor Electric Delivery
- Texas-New Mexico Power (TNMP)
Which TDU Serves Laredo?
AEP Central delivers power to Laredo residents. You’ll find fees from the provider on your electricity bill, including a flat monthly fee and charge per kilowatt-hour. While your energy charge stays the same with fixed-rate plans, your total bill may fluctuate each month due to these TDU fees. If there’s an outage, you can contact AEP Central to restore power.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on results from our 2025 energy survey of 1,600 Texans, scoring providers on customer satisfaction, experience and retention. Here’s how these core factors weighed into our ratings:
- Customer satisfaction (30%)
- Customer retention (30%)
- Online experience (20%)
- Customer experience (20%)
