Slash Your Power Bill: Find the Commercial Electricity Rates Now

Are rising power bills hurting your business? You’re not alone. Many business owners want to save money on electricity. The good news? You can – if you find the commercial electricity rates.

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What Are the Best Commercial Electricity Rates Right Now?

The best commercial electricity rates are low-cost, stable prices from providers you trust. These rates help you save money while giving your business reliable power. In most states, you can compare plans and choose the one that suits your company.

Let’s break it down.

Fixed vs. Variable Rates: Which Is Best?

A fixed rate stays the same each month. A variable rate changes depending on the market.

Fixed Rate: You pay the same for every unit of power (like 10¢ per kWh).
Variable Rate: The cost can go up or down based on demand.

Most businesses pick fixed rates. Why? You can plan your budget. No surprises. In Texas, for example, fixed commercial electricity rates average around 8¢–10¢ per kilowatt-hour (kWh). Variable rates can jump to 15¢ or more when demand is high.

Case Study: A Bakery That Saved Big

Sarah runs a small bakery in Houston. Her old electricity deal had a variable rate around 14¢ per kWh. She switched to a fixed plan with a rate of 9.2¢ per kWh after shopping online.

After six months, she saved over $950. That’s money she used to buy a new fridge for her store. All she did was switch to a cheaper plan. You can too.

How to Compare Commercial Electricity Rates

Know your average usage in kWh. Check your past bills. Write down how much power you use each month.
Shop around. Go online and use electricity marketplace websites. Look for fixed-rate plans from trusted providers.
Read the fine print. Some plans have hidden fees or tricky rules. Make sure you pick one that’s clear and fair.

States like Texas, Pennsylvania, and Ohio have retail electric choice. In 2023, businesses in Texas paid an average of 8.89¢ per kWh—one of the lowest in the U.S.

How Your Location Affects Rates

Electricity prices vary by state and city. Some places generate cheap power from natural gas, wind, or solar. Others rely on older, more expensive energy systems.

Here’s a quick look at average commercial electricity rates (Jan 2024):

Texas: 8.89¢/kWh
Illinois: 9.34¢/kWh
Florida: 10.24¢/kWh
California: 18.12¢/kWh

So, if you’re in California, try harder to shop around. A small difference in rates—just 2¢ less—can save thousands a year.

Real Example: Office Building in Dallas vs. LA

Let’s say your business uses 60,000 kWh per year.

In Dallas (8.9¢): Your power bill is $5,340
In LA (18¢): Your bill is $10,800

That’s a $5,000 difference!

Choosing the Best Electricity Provider

Not all providers are equal. Pick one that offers:

Low fixed rates
Good customer reviews
Clear contract terms

Some popular providers in deregulated states include:

Reliant Energy
Direct Energy
Constellation
TXU Energy

Many of these companies offer online tools to track your usage. This helps you use less power, and save more money.

Hidden Fees to Watch Out For

Before picking a plan, watch out for:

Early termination fees
Minimum usage charges
Delivery and transmission fees

Ask: “What’s the price after all fees?” Some cheap-looking rates end up costing more than you think.

Should You Lock In a Long-Term Rate?

Yes—most of the time. Rates can go up if gas prices rise or demand spikes. By locking in a low rate now, you can protect your business from higher bills later.

In 2022, commercial power rates jumped by over 6% nationwide. Smart business owners who locked in fixed plans saved big.

However, if you think rates will drop soon, go with a shorter-term plan, like 6 months.

Trim Down Costs Even More: Energy Efficiency Tips

Finding the best rate is a great first step. But why stop there? Use less power, and save even more.

Try these:

Switch to LED lights
Replace old AC units with energy-efficient ones
Unplug devices at night
Use power strips to avoid “phantom” power use

A Texas retail store cut its usage by 17% just by changing lighting. That saved them over $1,200 yearly—without changing their electricity plan!

Using a Broker or Consultant—Is It Worth It?

Maybe. If you’re too busy, an energy consultant can help. They know the market and compare many plans at once. But check their fees first. Some charge a flat rate; others get paid by providers.

If your company uses over 100,000 kWh a year, it’s often smart to use a broker. They can even negotiate a custom rate just for you.