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Houston electricity rates and the hot-weather load curve

State spotlight

Houston electricity demand peaks at 5 to 7 pm in August. Time-of-use plans punish that window. The load-shift strategy plus the 2026 rate outlook.

Featured infographic

Houston August hourly load curve

Demand peaks at 5 to 7 pm. AC compressor runtime stacks into the 1 to 8 pm block. TOU plans price peak hours 3 to 5x more than off-peak.

Open graph image · /og/tou-clock.png

Houston electricity demand peaks 5 to 7 pm in August driven by air conditioning load. Time-of-use plans charge 3 to 5x more during this window. Centerpoint Energy delivers electricity in Houston. REPs compete on the supply line through the PUCT Power-to-Choose program. For households that can pre-cool before 5 pm and ride deadband through 7 pm, TOU savings can hit 15 to 22 percent. For households that cannot shift, flat-rate REPs are safer.

Houston August hourly load curve

A typical Houston household uses roughly 1,800 kWh per month in August (vs 900 kWh in May). Of the August kWh, 40 to 55 percent is air conditioning load.

AC compressor runtime concentrates during 1 to 8 pm when outdoor temperatures peak. The 5 to 7 pm peak window combines AC plus dinner cooking, plus dishwasher, plus TV. Total household kW peak typically hits at 6 pm.

TOU plan decision for Houston households

TOU plans in Texas typically charge 18 to 26 cents per kWh during 4 to 9 pm and 4 to 8 cents per kWh during off-peak hours. The ratio is 3:1 to 5:1.

For Houston households who can pre-cool to 72 F before 4 pm and ride deadband to 78 F through 9 pm: TOU savings 15 to 22 percent. For stay-at-home families with AC running through dinner-prep: TOU loses 5 to 12 percent vs flat-rate.

Centerpoint TDU charges

Centerpoint Energy delivers electricity in Houston. TDU charges run roughly 3.8 to 4.4 cents per kWh and are identical across all REPs. The TDU charge appears separately on the bill from the supply rate.

Centerpoint also bills a small fixed monthly customer charge ($4 to $6) regardless of usage. This is separate from any REP monthly fixed fee.

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Common questions

Quick answers from the editorial desk

What is the best Houston REP for a stay-at-home family?
A flat-rate fixed REP at 12 to 14 cents per kWh on a 12 to 24 month contract. Avoid TOU and free-nights plans which punish daytime AC usage. Sort PowerToChoose by 1,000-kWh average price; pick a clean fixed-rate offer.
Does TOU work in Houston for everyone?
No. TOU works for households who can shift load away from 4 to 9 pm. EV-owning remote workers, snowbird households, and homes with battery storage benefit. Stay-at-home families with kids and AC tend to lose on TOU.
What is the Centerpoint TDU charge?
The Transmission and Distribution Utility (TDU) charge is what Centerpoint Energy bills for delivering electricity to your meter. Roughly 3.8 to 4.4 cents per kWh plus a small fixed monthly charge. Identical across all REPs in Centerpoint territory.
Can I get rooftop solar buyback through my Houston REP?
Yes. Several REPs offer solar buyback plans that credit exported kWh at retail-equivalent rates. The buyback rates vary; compare on PowerToChoose under solar plans. Solar payback in Houston runs 7 to 9 years with a good REP buyback contract.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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