Living in Texas comes with a mix of lively cities, wide-open spaces, and plenty of housing options. But one thing that often catches newcomers off guard is how much utility costs can vary. Whether it’s electricity, water, trash pickup, or internet, what you pay can change a lot depending on where you live and the options in your area.
For example, did you know that the average utility bill in Texas for a 2,500-square-foot home can range from $100–$150 in cooler months to $250–$350 during the summer? Or that the average water bill in Texas often includes sewer charges that can make up 50% or more of your total bill? Understanding these nuances is key to managing your budget effectively.
In this guide, we’ll break down the typical utility costs you can expect in Texas, explore the factors that influence these costs, and share practical tips for managing them. Whether you’re a new resident or a long-time Texan looking to optimize your expenses, this guide has you covered.
1. Water Costs in Texas: City Water, MUDs, and Wells
Water costs in Texas vary widely depending on your location and the type of water system servicing your home. Here are the three main ways water is provided in Texas:
City Water
If you live within city limits, such as in Houston or Tomball, your water bill will typically come directly from the city. In many cases, this bill may also include charges for sewer services. For example:
- In Houston, the average water bill in Texas for a family of four is approximately $70–$80, depending on usage.
- In smaller cities like Tomball, you might pay closer to $50–$60.
Municipal Utility Districts (MUDs)
In suburban and master-planned communities, water is often managed by a Municipal Utility District (MUD). Each MUD has its own rates and fees, which can vary significantly. For example:
- In The Woodlands, MUD #386 charges a base rate of $25 per month, with additional fees based on water usage. If you use 10,000 gallons of water, your bill could be around $75–$100.
Well Water
For those living on larger plots of land, installing a private well can be an attractive option. While the upfront cost of installing a well ranges from $7,000 to $11,000, it eliminates monthly water bills. However, in counties like Harris County, new regulations require wells to be metered. If you use more than 10,000 gallons per month, you might pay an additional $10–$20 in fees.
2. Electricity Costs: Navigating Texas’ Deregulated Market
Texas is unique in its approach to electricity, operating within a deregulated market that gives most residents the freedom to choose their energy provider. While this flexibility can lead to cost savings, it also requires some research to find the best deal.
Deregulated Energy Market
In deregulated areas, you can choose from providers like Reliant Energy, TXU Energy, or Green Mountain Energy. A typical 12-month fixed-rate plan might cost 10–12 cents per kWh, while variable-rate plans can fluctuate between 8–15 cents per kWh. Tools like Energy Ogre can simplify the process by finding the lowest rates and managing your contracts for a small monthly fee.
Restricted Providers
In some neighborhoods, such as Woodforest, residents are limited to a single electricity provider. While this may seem restrictive, it can have its advantages. For example, during the 2021 winter freeze, neighborhoods with restricted providers experienced fewer outages due to their unique grid setup.
Seasonal Costs
Electricity bills in Texas vary based on factors like home size, thermostat settings, and the time of year. Here’s a rough breakdown:
- Small Homes (1,500 sq. ft.): $50–$150 per month.
- Large Homes (4,400 sq. ft.): $175–$400 per month, with higher costs during summer.
If you’re wondering, “How much is gas and electricity per month?” In Texas, the combined cost for an average household typically ranges from $150 to $400, depending on the season and energy usage.
3. Gas Costs: What to Expect
Natural gas is commonly used in Texas for heating, cooking, and hot water. Unlike electricity, gas providers are usually predetermined by the neighborhood, leaving residents with little choice in their provider.
Typical Costs
For households that don’t rely heavily on gas heating, monthly gas bills are generally modest, ranging from $60 to $100. However, if you use gas heat extensively during the winter, your bills may increase significantly. For example, in colder months, a gas-heated home in Dallas might see bills closer to $150–$200. The average gas bill in Texas is around $80 per month, but this can vary based on usage and the time of year.
4. Trash Collection and Recycling Costs
Trash collection in Texas is typically handled in one of two ways:
HOA-Included Services
In many suburban neighborhoods, trash and recycling services are included in the Homeowners Association (HOA) fees. For example:
- In Woodforest, the HOA fee of approximately $100 per month covers trash and recycling pickup.
City-Managed Services
If you live within city limits, trash collection is often managed by the city and included in your utility bill. For example:
- In Houston, trash and recycling services cost around $25–$30 per month.
- In rural areas, residents may need to hire private trash removal services, which can vary in cost depending on the provider.
5. Internet and TV Services: Finding the Best Options
Internet and TV options in Texas depend largely on the providers available in your neighborhood. Here’s what you need to know:
Internet Providers
In suburban areas like The Woodlands, popular internet providers include AT&T, Xfinity, and Consolidated Communications. A basic internet plan with speeds of 100 Mbps might cost around $50–$60 per month, while high-speed fiber plans can range from $70–$100 per month.
TV and Streaming
Many Texans are moving away from traditional cable and satellite TV in favor of streaming services. For example:
- A household might pay $15.99 for Netflix, $7.99 for Disney+, and $9.99 for Hulu, totaling around $34 per month.
- If you rely heavily on streaming, investing in a high-speed internet plan is essential.
6. Managing Utility Costs in Texas: Practical Tips
Managing utility costs in Texas doesn’t have to be overwhelming. Here are some practical tips to help you save money:
Shop for the Best Rates
Take advantage of Texas’ deregulated electricity market by shopping around for the best rates. Use tools like Power to Choose to compare providers in your area.
Improve Energy Efficiency
Simple upgrades like sealing windows and doors, installing a programmable thermostat, and using energy-efficient appliances can significantly reduce your electricity bills. For example, a smart thermostat like Nest or Ecobee can save you 10–15% annually on heating and cooling costs.
Budget for Seasonal Variations
Electricity bills can spike during the summer. Set aside extra funds during cooler months to cover higher costs in July and August.
Common Questions About Utility Costs in Texas
How Do I Find Out if My Area Is Deregulated for Electricity?
Visit the Power to Choose website and enter your ZIP code to see if you have multiple provider options.
Are There Any Government Programs for Energy Efficiency?
Yes! Programs like the Weatherization Assistance Program (WAP) provide free home upgrades for low-income households, while many electricity providers offer rebates for energy-efficient appliances.
To Wrap Up
Utility bills in Texas can vary quite a bit depending on where you live, the size of your home, and the services available in your area. By understanding what drives these costs and taking steps to manage them, you can keep your monthly expenses under control.
Whether you’re new to Texas or have been here for years, staying informed about your utility options is key to managing your budget. And if you’re planning a move—whether it’s across town or across the state—Mighty Might Moving is here to help with all your moving-related needs.
From packing and transportation to settling into your new home, we’ve got you covered. If you have questions about utilities or need advice for your move, feel free to reach out. With the right strategies and a reliable moving partner like Mighty Might Moving, you can focus on enjoying life in the great state of Texas!
