This rate-versus-consumption paradox explains why July electric bills in North Texas can exceed $300 even though Texas homeowners pay less per kilowatt-hour than homeowners in California, New York, or New England.
The U.S. Energy Information Administration tracks electricity prices, consumption, and bills for every state. Here's what the data reveals about why North Texas summer bills reach the levels they do.
Texas Electricity Rates: Below Average
Texas ranks 42nd of 50 states in electricity rates — meaning only 8 states have cheaper power.
| State | Rate (¢/kWh) | vs. National Avg |
|---|---|---|
| Hawaii | 42.76¢ | +160% |
| California | 31.12¢ | +89% |
| New York | 24.31¢ | +48% |
| U.S. Average | 16.48¢ | Baseline |
| Texas | 14.94¢ | -9% |
| Oklahoma | 11.52¢ | -30% |
Source: U.S. Energy Information Administration Electric Power Monthly, Table 5.6.a
Texas Consumption: Far Above Average
| State | Monthly kWh | vs. National Avg |
|---|---|---|
| Louisiana | 1,202 | +39% |
| Texas | 1,096 | +27% |
| Florida | 1,104 | +28% |
| U.S. Average | 863 | Baseline |
| California | 532 | -38% |
Texas households use 233 more kWh per month than the national average, consuming 27% more electricity than typical American homes.
Peak summer months can see consumption 50-100% higher than spring or fall — driven almost entirely by air conditioning.
The Math: Why Low Rates Still Mean High Bills
The Texas electricity cost paradox emerges from simple arithmetic: rate multiplied by consumption.
| State | Rate | × Consumption | = Monthly Bill |
|---|---|---|---|
| Hawaii | 42.76¢ | 508 kWh | $217.22 |
| California | 31.12¢ | 532 kWh | $165.56 |
| Texas | 14.94¢ | 1,096 kWh | $163.74 |
| U.S. Average | 16.48¢ | 863 kWh | $142.26 |
Despite Texas rates running 9% below national average, Texas electric bills run 15% above national average because Texas consumption runs 27% higher.
Air Conditioning: The Dominant Cost Driver
AC Share of Home Energy by Region
| Region | AC % | Annual Cost |
|---|---|---|
| Pacific Northwest | 2% | ~$75 |
| Northeast | 4% | ~$180 |
| U.S. National | 6% | $265 |
| Texas | 18% | ~$525 |
| Florida | 28% | $540 |
AC Share by Month (Texas)
| Month | AC % of Electricity |
|---|---|
| April | 15-25% |
| May | 30-40% |
| June | 45-55% |
| July | 50-60% |
| August | 50-60% |
| September | 35-45% |
In July and August, air conditioning alone consumes more than half of total household electricity in most North Texas homes.
SEER Efficiency: The Equipment Variable
An AC system's SEER rating directly determines how much electricity the system consumes for cooling. Higher SEER ratings mean less electricity consumption for the same cooling output.
| SEER Rating | Relative Efficiency | Annual Operating Cost* |
|---|---|---|
| SEER 10 | Baseline (old) | $481 |
| SEER 13 | +30% vs. 10 | $370 |
| SEER 16 | +60% vs. 10 | $301 |
| SEER 18 | +80% vs. 10 | $267 |
| SEER 20 | +100% vs. 10 | $240 |
*Based on 3-ton unit, 2,000 operating hours, $0.15/kWh. Texas operating hours typically run 2,300+, increasing savings proportionally.
Considering an upgrade? See our SEER ratings guide to understand efficiency standards and our repair vs. replace calculator to determine if it's time.
Realistic Bill Expectations by Home Profile
| Home Profile | Typical Summer Bill |
|---|---|
| 1,500 sq ft, efficient AC, 78°F | $150-200 |
| 2,000 sq ft, average AC, 75°F | $200-275 |
| 2,500 sq ft, older AC, 72°F | $275-350 |
| 3,000+ sq ft, inefficient AC, 72°F | $350-450+ |
Summer bills 50-100% higher than spring/fall bills are normal in North Texas — driven by physics, not price gouging.
What North Texas Homeowners Control
High Control
- • Electricity rate (shop annually at PowerToChoose.org)
- • Thermostat settings
- • Usage timing
Medium Control
- • Equipment efficiency (at replacement time)
- • Home insulation (major project)
Weather: None. Plan for it, don't fight physics.
Data Sources
- • U.S. Energy Information Administration (eia.gov)
- • U.S. Department of Energy (energy.gov)
- • ENERGY STAR (energystar.gov)
- • Electric Reliability Council of Texas (ercot.com)
- • Oncor Electric Delivery (oncor.com)