When do summer light rates start going up in Texas?

Rates typically start climbing in late May and peak in July and August. If you're on a variable or prepaid plan, you'll see the biggest jumps between June and September. Lock in a fixed rate before June to avoid the worst of it.

How much more does it cost to run your lights in summer vs winter?

The average Texas household spends $150-$200/month on lights in summer compared to $80-$120 in winter. That's roughly 50-80% more, mostly because your AC runs nonstop. On prepaid, daily costs can jump from $4-$5/day to $8-$12/day during heat waves.

Is prepaid or a fixed-rate plan cheaper for summer?

A fixed-rate traditional plan is almost always cheaper for summer. A typical fixed rate runs 10-13 cents per kWh, while prepaid can hit 16-20+ cents during peak months. The catch is that traditional plans require a credit check. If a deposit blocks you, prepaid still gets your lights on - it just costs more.

Can I switch light companies in the middle of summer?

Yes. If you're on prepaid, you can switch anytime with no early termination fee. If you're on a fixed-rate contract, check your terms - most have an early cancellation fee of $100-$200. But if your contract is month-to-month or expired, you're free to switch immediately.

What's the cheapest way to keep my lights on this summer?

Lock in a fixed-rate plan before June if your credit allows it (spring rates are 10-20% lower). If you're on prepaid, set your thermostat to 78, run appliances before noon or after 8 PM, and budget $8-$10/day for July and August instead of the usual $5.

Texas Summer Light Rates 2026: What to Expect This Year

Every summer, the same thing happens in Texas: temperatures climb, AC units run nonstop, and light bills follow right behind. If you’re on a prepaid or no-deposit plan, here’s what 2026 is shaping up to look like - and exactly what you can do to keep costs under control.

Why Summer Rates Go Up Every Year

Texas runs its own power grid through ERCOT. When everyone cranks their AC at the same time, demand spikes. More demand means higher wholesale prices, and those costs get passed down to you - sometimes the same day on prepaid plans.

Summer 2025 was relatively mild compared to the brutal 2023 season. But forecasters are expecting 2026 to bring above-average temperatures across most of the state, which usually means higher rates across the board.

Here’s the basic chain: Heat goes up → AC runs more → grid demand spikes → wholesale prices jump → your light bill climbs. On a fixed-rate plan, you’re shielded from the wholesale price swings. On prepaid or variable-rate plans, you feel every spike.

Summer Rate Expectations by TDU Area

Not every part of Texas pays the same rates. Your TDU (the company that owns the power lines in your area) adds delivery charges on top of whatever your light company charges. Here’s what rates are looking like across Texas heading into summer 2026:

TDU Area	Spring 2026 Avg Rate	Expected Summer Range	Delivery Charges
Oncor (Dallas/Fort Worth)	11.5-13.5¢/kWh	13-17¢/kWh	~3.5-4.0¢/kWh
CenterPoint (Houston)	11.8-14.0¢/kWh	13.5-18¢/kWh	~4.0-4.5¢/kWh
AEP Texas (Corpus Christi, Laredo)	12.0-14.5¢/kWh	14-19¢/kWh	~4.2-4.8¢/kWh
TNMP (parts of DFW, East Texas)	11.0-13.0¢/kWh	12.5-16.5¢/kWh	~3.2-3.8¢/kWh

These are all-in rates at 1,000 kWh usage for traditional plans. Prepaid rates run 2-5 cents higher per kWh on top of these numbers because of the convenience and no-credit-check factor.

What this means in dollars: At 1,500 kWh summer usage (common for a 3-bedroom home running AC), the difference between a 12¢ rate and a 17¢ rate is $75/month. That’s real money.

Month-by-Month: What to Expect From June Through September

Not all summer months hit the same. Here’s how the season typically unfolds in Texas:

June: The Warm-Up

Temperatures: High 80s to mid 90s
Average usage: 1,000-1,200 kWh
Estimated monthly cost: $120-$160 (traditional) / $150-$200 (prepaid)
What happens: Rates start climbing but haven’t peaked yet. This is your last chance to lock in a decent fixed rate if you haven’t already. By mid-June, the best spring deals are gone.

July: Peak Heat, Peak Cost

Temperatures: Mid 90s to 105+
Average usage: 1,300-1,800 kWh
Estimated monthly cost: $160-$230 (traditional) / $200-$300 (prepaid)
What happens: This is when the grid gets stressed. ERCOT may issue conservation appeals on the hottest days. Wholesale prices can spike 10x in a single afternoon, which shows up fast on prepaid bills. Budget your highest costs here.

August: Still Brutal

Temperatures: Mid 90s to 105+
Average usage: 1,300-1,700 kWh
Estimated monthly cost: $155-$220 (traditional) / $190-$280 (prepaid)
What happens: August is almost as bad as July but usually slightly cooler in the second half. Your AC has been running hard for two months straight, so make sure your air filter is clean - a clogged filter can add 15% to your cooling costs.

September: The Cool-Down (Sort Of)

Temperatures: High 80s to mid 90s (drops late month)
Average usage: 1,000-1,400 kWh
Estimated monthly cost: $120-$175 (traditional) / $150-$210 (prepaid)
What happens: Relief starts coming in the second half of September. Rates begin dropping. If you’re on prepaid and want to switch to a traditional fixed-rate plan, late September through November is the sweet spot for signing up.

How Summer Rates Hit Prepaid vs Traditional Plans Differently

This is where the gap between prepaid and traditional plans gets wide.

Traditional Fixed-Rate Plans

Your rate stays the same all summer. That’s the whole point of a fixed rate. Whether it’s 72 degrees or 108 degrees outside, you pay the same per-kWh rate.
Your bill still goes up because you’re using more power (AC running 18 hours a day), but you’re not paying a higher rate for each unit.
Example: At a locked-in rate of 12¢/kWh, using 1,500 kWh in July costs $180. The rate doesn’t change - just your usage.

Prepaid / Pay-As-You-Go Plans

Rates often float closer to wholesale prices. When demand spikes, your cost per kWh can jump on short notice.
Daily costs can double or triple during heat waves. If you’re paying $4-$5/day in spring, expect $8-$12/day during the worst July and August stretches.
The balance drain is real. A $50 top-up that lasted 10 days in April might only last 4-5 days in July. You have to reload more often.
The upside: No contract means you can switch to a cheaper prepaid company anytime, no cancellation fee. For specific plan recommendations, see our breakdown of the cheapest prepaid light plans for Texas summers.

The Dollar Difference Over a Full Summer

Here’s what four months of summer (June-September) typically costs:

Plan Type	Estimated Summer Total	Monthly Average
Traditional fixed-rate (12¢/kWh)	$560-$780	$140-$195
Traditional variable-rate	$600-$900	$150-$225
Prepaid / pay-as-you-go	$690-$1,000+	$175-$250+

That’s a $130-$220 difference over the summer between prepaid and a good fixed-rate plan. If your credit situation allows you to get a traditional plan without a deposit, the savings are significant.

Fixed-Rate vs Variable-Rate: Which Is Better for Summer?

Short answer: Fixed-rate wins for summer, almost always.

Fixed-Rate Plans

Rate locked in for your contract term (usually 6-24 months)
No surprises - same price per kWh whether it’s March or August
Best rates available in spring (February through May)
Early termination fees if you leave before the contract ends ($100-$200 typical)

Variable-Rate Plans

Rate can change monthly based on market conditions
Sometimes cheaper than fixed in spring and fall when demand is low
Dangerous in summer - rates can spike 30-50% in a single month with little notice
No early termination fee (you can leave anytime)

When Variable Rate Makes Sense

The only time a variable rate beats fixed for summer is if wholesale prices stay unusually low - which happens in mild summers. But betting on a mild Texas summer is a gamble. In 2023, variable-rate customers saw bills double compared to the spring.

Our recommendation: If you can get a fixed-rate plan, lock it in before June. The predictability alone is worth it when you’re budgeting tight. Our guide to what counts as a good rate in Texas explains what numbers to look for.

When to Lock In a Rate Before Summer

Timing matters. Here’s the general pattern for Texas light rates:

Month	Rate Trend	Action
January-February	Lowest rates of the year	Best time to sign up for a 12-month fixed plan
March-April	Still low, starting to inch up	Good time - plenty of competitive deals still available
May	Rising fast	Last chance for decent summer rates
June	Summer pricing kicks in	You’re already paying more. Lock in now to protect against July/August
July-August	Highest rates	Worst time to sign up for a new plan
September-October	Dropping	Second-best window to lock in a new rate

Right now (April 2026): You’re in a solid window. Rates haven’t peaked yet, and light companies are still competing for new customers with spring pricing. If your credit situation allows a traditional plan, this is the time to compare and sign up.

If your credit blocks you from a fixed-rate plan: Start with prepaid to get your lights on today, but set a calendar reminder for September to try again. After a few months of on-time prepaid payments, you’re building a track record. And the fall/winter rate window means cheaper plans to switch into.

Seven Ways to Cut Your Summer Light Bill

1. Lock In a Fixed Rate Now (If You Can)

Every week you wait past April, rates inch higher. Compare multiple light companies - different ones have different credit thresholds. One might want a $400 deposit while another approves you at $0 down.

2. Set Your Thermostat to 78 When You’re Home

Every degree below 78 adds 3-5% to your cooling costs. At summer rates, dropping from 78 to 72 can add $30-$50/month. Use fans to make 78 feel cooler - a ceiling fan creates a wind-chill effect that makes it feel 4 degrees cooler.

3. Close Blinds on South and West Windows

Direct sunlight through windows forces your AC to work harder. Cheap blackout curtains ($15-$20 per window) can reduce heat gain by up to 30%. Close them by noon and keep them closed until sunset.

4. Run Appliances Before Noon or After 8 PM

Your dishwasher, washer, and dryer all generate heat. Running them during the hottest part of the day (2-7 PM) forces your AC to work overtime to compensate. Shift to morning or evening and your AC has less to fight.

5. Change Your Air Filter Monthly

A dirty filter makes your AC work 15% harder. Filters cost $3-$8. If you haven’t changed yours since spring, do it now. Check it monthly through September. A gray, clogged filter is literally burning money.

6. Seal Gaps Around Doors and Windows

Hot air leaking in through gaps around doors, windows, and outlets forces your AC to run longer. A $5 roll of weatherstripping can save $10-$20/month by keeping cool air inside.

7. If You’re on Prepaid, Budget $8-$10/Day for July-August

Don’t get caught off guard. If you’re spending $5/day in April, budget for $8-$10/day during peak summer. Set low-balance alerts at $15-$20 so you have time to reload before anything shuts off. Running out of balance on a 105-degree day is dangerous.

The Bigger Picture: Why Texas Rates Stay Volatile

Texas light prices have been unpredictable since the 2021 winter storm exposed weaknesses in the grid. ERCOT has added generation capacity since then - including new solar and natural gas plants - but demand keeps growing too. New data centers, cryptocurrency mining operations, and population growth (Texas added over 470,000 new residents in 2025 alone) mean the grid stays tight during extreme weather.

The state’s heavy reliance on natural gas (about 40% of generation) means that gas price swings affect light rates directly. When natural gas prices rise - whether from heat waves, pipeline issues, or export demand - your rates feel it. Solar helps during peak afternoon hours but drops off right when evening demand kicks in.

None of that means your lights are at risk. It means prices stay unpredictable, and planning ahead gives you a real financial edge.

What You Should Do Right Now

Here’s the move, depending on your situation:

If you don’t have lights yet:

Enter your zip code and compare light companies
We check multiple companies to find one that approves you with no deposit
If that doesn’t work, prepaid gets your lights on the same day - guaranteed

If you’re already on prepaid and want to save this summer:

Compare fixed-rate plans now - spring rates are still available
Many people find a $0 deposit option when we check multiple companies at once
Switching from prepaid to a fixed-rate plan can save $130-$220 over the summer

If you’re already on a fixed-rate plan:

Check when your contract expires - if it’s mid-summer, you’ll get hit with higher renewal rates
If it expires before September, renew now at current spring pricing
Use the tips above to keep your usage down regardless

Get Your Lights On

We check multiple light companies to find you the best option. Many people qualify for traditional plans with $0 deposit. You always have prepaid as a guaranteed fallback.

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).