Best Electricity Rates in San Antonio, TX: What You Actually Need to Know in 2026

Last Updated: March 9, 2026

If you searched for "best electricity rates in San Antonio TX," you are probably hoping to compare plans and pick the cheapest provider. Here is the reality most sites will not tell you upfront: the overwhelming majority of San Antonio residents are served by CPS Energy, a city-owned municipal utility, and you cannot switch providers. That does not mean you are stuck paying high prices, though. San Antonio's electricity rates are among the lowest of any major Texas city, and there are concrete steps you can take to push your bill even lower.

This guide covers everything you need to know about San Antonio electricity in March 2026 — current CPS Energy rates, the small deregulated pockets where you actually can shop for plans, how the city compares to Houston and Dallas, and practical money-saving strategies that work within the municipal utility structure.

---

San Antonio Electricity at a Glance (March 2026)

---

Why Most San Antonio Residents Cannot Switch Providers

San Antonio's electricity market is fundamentally different from Houston, Dallas, and most other major Texas cities. When Texas deregulated its electricity market through Senate Bill 7 in 1999, municipal utilities and electric cooperatives were given the choice to opt in or stay out. CPS Energy chose to remain a regulated municipal utility — and that decision still stands today.

What this means for you:

• CPS Energy is your sole electricity provider. There is no provider comparison shopping.
• Rates are set by the CPS Energy Board of Trustees, with oversight from San Antonio City Council.
• You cannot go to Power to Choose and find plans for your address (unless you are in one of the rare deregulated ZIP codes discussed below).

This is not necessarily bad news. CPS Energy's rates are substantially lower than what residents pay in Houston and Dallas, where the deregulated market offers choice but does not always deliver savings.

CPS Energy operates as a cost-of-service utility. The Board of Trustees sets rates based on the actual cost of generating, transmitting, and distributing electricity — plus a contribution to the City of San Antonio's general fund. Rate changes require board approval and public hearings.

The last rate increase was 4.25%, effective February 1, 2024. No increase was implemented for FY 2025-26. However, a $50 million budget gap looms for FY 2026-27. As of early March 2026, San Antonio City Council — led by Mayor Gina Ortiz Jones — is pushing CPS Energy to find alternatives to a rate hike, leveraging the political accountability that comes with municipal utility ownership.

---

CPS Energy Rate Breakdown: What You Are Actually Paying

Understanding the components of your CPS Energy bill helps you identify where savings are possible. If you are not sure how to read your statement, our guide on reading your Texas electric bill walks through each line item in detail.

Energy Charge: This is the per-kWh charge for the electricity you consume. At the current projected average of 13.6¢/kWh, a household using 1,125 kWh in March would pay approximately $153 in energy charges alone.

Winter Storm URI Recovery Factor: CPS Energy still carries a small surcharge of $0.00080/kWh to recover costs from the February 2021 winter storm. On a 1,125 kWh bill, this adds roughly $0.90 per month — a minor but notable reminder of the storm's lasting financial impact.

Fuel Adjustment: This variable charge reflects the actual cost of natural gas and other fuels used to generate electricity. February 2026 saw bill spikes for many CPS Energy customers due to winter storm-driven natural gas price increases, a pattern familiar to anyone who lived through URI.

Fixed Charges and Fees: These include a base customer charge and various regulatory assessments that appear regardless of how much electricity you use.

According to Watt Owl data, the average CPS Energy residential customer pays between $149 and $179 per month at approximately 1,125 kWh of usage. Bills are highest during the summer cooling season (June through September) when San Antonio temperatures regularly exceed 100 degrees and air conditioning demand peaks.

---

The Deregulated Pockets: Where You CAN Shop for Plans

While the vast majority of San Antonio falls under CPS Energy's exclusive territory, a small number of ZIP codes on the city's periphery are served by AEP Texas rather than CPS Energy. These areas fall within the deregulated ERCOT market, meaning residents there can shop for competitive electricity plans.

• 78227 — served by AEP Texas North
• 78202 — served by AEP Texas Central

If your address falls in one of these ZIP codes, you can visit PowerToChoose.org to compare plans from competing retail electricity providers.

For residents in the AEP Texas North service territory, here are the most competitive plans available as of March 2026:

Important: These rates are displayed before TDU delivery charges. The AEP Texas North TDU adds $3.24/month plus 5.9262¢/kWh in delivery fees. A plan advertised at 8.2¢/kWh will cost closer to 14.1¢/kWh all-in — very close to what CPS Energy customers pay. The "cheap" deregulated rates look attractive until you add TDU fees.

If you live in communities adjacent to San Antonio, you may assume you have provider choice. In most cases, you do not:

• New Braunfels: Served by New Braunfels Utilities (NBU), a municipal utility. Average rate of approximately 10.29¢/kWh with an average monthly bill around $146 at 1,200 kWh. You cannot switch providers.
• Schertz and Cibolo: Served by Guadalupe Valley Electric Cooperative (GVEC) at approximately 13.46¢/kWh. As a co-op, GVEC is not part of the deregulated market.

---

How San Antonio Compares to Other Major Texas Cities

Here is how San Antonio stacks up against the rest of the state:

Sources: CPS Energy 12-month average, EIA 2025 state data, city-level market data

San Antonio residents pay 34% less than the national average — an often-overlooked benefit of the municipal utility model. Without shareholder profit requirements and marketing expenses, CPS Energy passes lower costs to ratepayers. For more context, see our Texas electricity market guide.

---

Grid Reliability: What CPS Energy Is Doing to Prevent Outages

After the devastating impacts of Winter Storm URI in February 2021, grid reliability is top of mind for San Antonio residents. CPS Energy and ERCOT have been investing heavily in infrastructure improvements.

Mobile Generator Deployment: ERCOT approved a $54 million plan to station mobile generators at CPS Energy's Braunig Power Station, providing rapid-deployment backup generation during extreme weather events.

Battery Storage Expansion: A combined 350 megawatts of battery storage is scheduled to come online by mid-2026 through the Ferdinand (200 MW) and Padua 2 (150 MW) projects. These systems charge during low demand and discharge during peak hours or emergencies, reducing the risk of rolling blackouts.

Transmission and Distribution Upgrades: CPS Energy is planning 3 new substations and 15 transmission line upgrades to handle growing data center demand, strengthening the grid backbone for all ratepayers.

Some CPS Energy customers saw higher-than-expected bills in February 2026 due to winter storm-driven natural gas price increases. The fuel adjustment component of your bill reflects these real-time market conditions — a reminder to budget for seasonal variability.

---

7 Practical Ways to Lower Your CPS Energy Bill

Since you cannot switch providers, your path to savings runs through efficiency and usage management. These strategies are specific to the San Antonio climate and CPS Energy's rate structure.

San Antonio's climate demands heavy air conditioning from May through October. A programmable or smart thermostat is the single highest-impact investment most households can make.

• Set your thermostat to 78 degrees F when you are home and 85 degrees F when you are away
• Every degree below 78 adds roughly 3-5% to your cooling costs
• Pre-cool your home before peak demand hours (3 PM - 7 PM) to avoid running your AC at maximum during the hottest part of the day

For detailed thermostat strategies tailored to the Texas climate, see our guide on smart thermostat strategies.

San Antonio summers punish poorly insulated homes. Upgrading attic insulation to R-38 or higher can reduce cooling costs by 15-25%. Add reflective window film on south- and west-facing windows to block solar heat gain, and seal air leaks around doors, windows, and plumbing penetrations.

Standby power from electronics and chargers accounts for 5-10% of the average household's electricity use. Use switched power strips and unplug infrequently used devices. Our guide on hidden energy vampires identifies the biggest offenders.

Water heating is typically the second-largest energy expense after cooling. Lower your water heater to 120 degrees F, insulate the tank and hot water pipes, and consider a heat pump water heater at replacement time — they use 60% less electricity than conventional models.

Affordability Discount Program: If your household qualifies as low-income, you may be eligible for a $18.36/month credit. More than 80,000 CPS Energy customers currently receive this discount. Check eligibility at cpsenergy.com.

Casa Verde Weatherization Program: CPS Energy's weatherization program provides free home energy improvements to qualifying customers, including insulation, weather-stripping, and HVAC tune-ups.

Budget Billing: CPS Energy offers a level-pay plan that averages your annual costs across 12 monthly payments, eliminating the summer bill spikes that catch many families off guard.

While CPS Energy does not currently offer a formal time-of-use rate, shifting heavy electricity use away from peak afternoon hours (3 PM - 7 PM) reduces grid strain and positions you well if time-of-use pricing is adopted in the future. Run dishwashers and laundry in the evening, charge EVs overnight, and avoid oven use during summer afternoons.

CPS Energy offers home energy assessments that typically reveal 10-30% savings potential through targeted improvements. This is especially valuable for older San Antonio homes with outdated HVAC systems or poor duct sealing. For more strategies, see our guide on lowering your Texas electric bill.

---

What Is Coming Next for San Antonio Electricity

The biggest near-term issue for CPS Energy customers is whether rates will increase for FY 2026-27. The $50 million budget gap is real, but political pressure from City Council may result in CPS Energy absorbing costs through operational efficiencies rather than raising rates. Watch for updates from CPS Energy Board meetings through the spring and summer of 2026.

The 350 MW of battery storage coming online by mid-2026 will reduce reliance on expensive peaker plants and help moderate the fuel adjustment charges that drive summer bill increases. Meanwhile, San Antonio's growing data center market is driving the need for 3 new substations and 15 transmission line upgrades — infrastructure that benefits all ratepayers by spreading fixed costs across a larger customer base.

---

Frequently Asked Questions

No. Most of San Antonio is served exclusively by CPS Energy, a municipal utility. ZIP codes 78227 and 78202 are exceptions — they fall under AEP Texas and can shop for plans on PowerToChoose.org.

CPS Energy's projected March 2026 rate is 13.6¢/kWh, with a 12-month rolling average of 12.9¢/kWh — roughly 34% below the national average.

No rate increase was implemented for FY 2025-26. A $50 million budget gap for FY 2026-27 may require an adjustment, but City Council is pushing CPS to find alternatives. The last increase was 4.25%, effective February 1, 2024.

CPS Energy's 12.9¢/kWh average is 25-29% lower than Houston (~16.67¢/kWh) and Dallas (~16.13¢/kWh), and well below the Texas statewide average of 15.39¢/kWh (EIA).

A $18.36/month credit for qualifying low-income households. Over 80,000 customers receive this discount. Check eligibility at cpsenergy.com.

ZIP codes 78227 and 78202 are served by AEP Texas and fall within the deregulated market. Nearby New Braunfels (NBU) and Schertz/Cibolo (GVEC) are not deregulated.

Between $149 and $179 at roughly 1,125 kWh/month, with summer bills being the highest due to air conditioning demand.

ERCOT approved $54 million for mobile generators at Braunig Power Station. 350 MW of battery storage (Ferdinand + Padua 2) comes online mid-2026. Three new substations and 15 transmission line upgrades are planned for data center demand growth.

---

Bottom Line

San Antonio's electricity market is not what most people expect. You cannot shop for providers the way you can in Houston or Dallas — but that is not the disadvantage it might seem. At a 12-month average of 12.9¢/kWh, CPS Energy delivers rates that are 25-29% lower than what deregulated market customers in those cities typically pay and 34% below the national average.

If you live in one of the rare deregulated ZIP codes (78227 or 78202), you have the option to shop for plans as low as 8.2¢/kWh before TDU charges — though the all-in cost after adding AEP Texas North delivery fees often lands close to CPS Energy's rate anyway.

For the vast majority of San Antonio residents, the path to the "best electricity rate" is not switching providers — it is optimizing what you have:

• Invest in insulation and air sealing to fight the summer heat efficiently
• Use a smart thermostat set to 78 degrees F or higher when home
• Apply for the Affordability Discount ($18.36/month) if you qualify
• Shift heavy usage away from peak afternoon hours
• Monitor your bill for fuel adjustment spikes, especially during winter storm events
• Stay engaged with CPS Energy Board and City Council decisions on the potential FY 2026-27 rate increase

San Antonio's municipal utility model may not give you provider choice, but it consistently delivers some of the most affordable electricity in Texas. That is a trade-off most residents benefit from every month.

---

Sources:

• CPS Energy — Rate schedules, customer programs, and infrastructure plans
• Public Utility Commission of Texas (PUCT) — Regulatory oversight and market structure data
• ERCOT — Grid reliability projects and generation approvals
• U.S. Energy Information Administration (EIA) — State and national electricity rate data
• Power to Choose — Deregulated market plan comparison (AEP Texas territory)
• Watt Owl — San Antonio average bill analysis and consumption data

Disclaimer: Electricity rates and program details are subject to change. Rate information is current as of March 9, 2026. For the most current rates and service information, contact CPS Energy directly at 210-353-2222 or visit cpsenergy.com.