At Texas grid rates, most electric vehicles cost between 3 and 6 cents per mile to fuel, a fraction of what gasoline costs, but only if the household is on the right electricity plan. The specific rate a driver pays per kilowatt-hour is the single biggest variable in that range. This article shows how to calculate EV cost per mile, how it stacks up against gasoline in Texas, and what to watch for when choosing a plan.
The Core Formula: kWh Per Mile Times Your Rate
Every cost-per-mile calculation starts with efficiency. Electric vehicles are rated in kilowatt-hours consumed per 100 miles (kWh/100 mi), which the EPA publishes for every model. Dividing that figure by 100 gives kWh per mile. Multiply kWh per mile by the electricity rate, and the result is cost per mile.
Formula: (EPA kWh/100 mi) / 100 x (cents/kWh) = cents per mile
A few real examples illustrate the range:
- Tesla Model 3 Long Range: about 25 kWh/100 mi (EPA ratings for recent Long Range variants run from 24 to 26 kWh/100 mi depending on model year, drivetrain, and wheel size). At 14.8 cents/kWh, that is roughly 3.7 cents per mile.
- Ford F-150 Lightning (4WD, standard range): 49 kWh/100 mi (EPA). At 14.8 cents/kWh, that is 7.3 cents per mile.
- Chevrolet Equinox EV (FWD): 31 kWh/100 mi (EPA). At 14.8 cents/kWh, that is 4.6 cents per mile.
The 14.8 cents/kWh figure is the median listed rate at 1,000 kWh across the 122 plans tracked on ChooseMyPower as of August 27, 2026. It is a useful baseline, but a household can do significantly better or worse depending on the plan it chooses.
What the Cheapest Available Rate Does to That Math
Plan selection has an outsized effect on EV economics. Third-party rate listings in late August 2026 put the lowest advertised all-in Texas rates at roughly 5.8 to 6.3 cents/kWh priced at exactly 1,000 kWh, in the lowest-cost utility areas. Rates that low are almost always built on a usage credit that lands in a narrow band around 1,000 kWh, so the effective rate climbs sharply above or below that point. Using 6 cents/kWh as the floor-rate case for the same vehicles above:
- Tesla Model 3 Long Range: 1.5 cents per mile
- Ford F-150 Lightning: 2.9 cents per mile
- Chevrolet Equinox EV: 1.9 cents per mile
That is a dramatic difference. A driver putting 15,000 miles per year on a Model 3 would spend roughly $225 annually on home charging at 6 cents/kWh, compared to roughly $555 at the median rate. The plan, not the car, determines most of that gap.
Rate availability varies by utility service area, and not every plan listed at that price is available to every Texas household. The calculation above is meant to demonstrate how much the rate variable matters, not to guarantee that any specific plan is available at a given address.
EV Charging Cost vs. Gas in Texas
To compare fairly, the same per-mile framework applies to gasoline vehicles. The formula is:
Formula: (price per gallon) / (MPG) = cost per mile
Texas average regular unleaded gasoline was approximately $3.64 per gallon in August 2026 (AAA Texas Weekend Gas Watch, August 20, 2026). Applying that to common vehicles:
- Toyota Camry (2024 gasoline model, 32 MPG combined, EPA): 11.4 cents per mile
- Ford F-150 gasoline (4WD, 20 MPG combined, EPA): 18.2 cents per mile
- Honda CR-V (30 MPG combined, EPA): 12.1 cents per mile
Comparing these to their EV counterparts at the median Texas rate of 14.8 cents/kWh:
| Vehicle class | Gas cost/mile | EV cost/mile (median rate) | EV cost/mile (6 cents/kWh) |
|---|---|---|---|
| Midsize sedan | 11.4 cents | 3.7 cents | 1.5 cents |
| Compact SUV | 12.1 cents | 4.6 cents | 1.9 cents |
| Full-size pickup | 18.2 cents | 7.3 cents | 2.9 cents |
Even at the median Texas electricity rate, an EV is cheaper to fuel per mile than a comparable gas vehicle in every category above. The pickup comparison is particularly notable: the Lightning costs less than half per mile of the gasoline F-150, even before accounting for any time-of-use discount.
Time-of-Use Plans and Overnight Charging
Some Texas retail electric providers offer time-of-use (TOU) rates that price off-peak electricity lower than peak-hour electricity. ERCOT prices are generally lower overnight (roughly 9 p.m. to 6 a.m.), and some plans pass those savings through directly. A household that charges an EV overnight can sometimes access rates well below the standard flat rate.
The tradeoff is that daytime use during peak hours costs more on a TOU plan. A household with heavy daytime consumption from other appliances may find that the overnight EV savings are offset by higher daytime costs. The right approach is to run the numbers for the full household load, not just the EV.
Several providers on ChooseMyPower list plans specifically marketed to EV owners. Comparing the effective all-in rate at the household's actual monthly kWh (including EV charging) gives a more accurate picture than the headline rate alone.
The Bill-Credit Cliff Problem for EV Households
EV charging adds meaningful kWh to a household bill. A vehicle driven 1,250 miles per month (15,000 miles per year) and consuming 30 kWh/100 mi will add about 375 kWh per month on top of existing home usage. For a household that currently uses 750 kWh per month, EV charging could push total consumption to roughly 1,125 kWh.
That matters because of how certain plan structures work. As of August 27, 2026, 18 of the 122 plans listed on ChooseMyPower carry a bill-credit cliff, meaning the bill at 500 kWh runs $25 or more above the bill at 1,000 kWh. These plans are designed to reward higher consumption with a usage-based credit. An EV household that crosses from 500 kWh territory into 1,000 kWh territory because of charging could benefit from that structure, paying less per effective kWh than a non-EV household on the same plan. The reverse is also possible: a household hovering just below a credit threshold might do better on a simpler flat-rate plan.
The correct tool is a side-by-side calculation at the actual projected monthly kWh, not the rate per kWh alone.
What EV Drivers Should Do Before Picking a Plan
Four steps produce a reliable comparison:
- Find the vehicle's EPA efficiency rating. The EPA's fueleconomy.gov lists kWh/100 mi for every model year. Use the combined city/highway figure for typical driving.
- Estimate monthly kWh added by the EV. Divide expected monthly miles by 100, then multiply by the EPA efficiency figure. Add that to current household kWh from a recent bill.
- Use the projected total kWh to compare plans. Most plan comparison tools, including ChooseMyPower's, allow filtering by usage tier. Compare plans at the projected new consumption level, not the old one.
- Check for bill-credit thresholds. Plans with usage-based credits can be advantageous or disadvantageous depending on where consumption lands. Read the Electricity Facts Label (EFL) for each plan, which by PUCT rule must show the effective rate at 500, 1,000, and 2,000 kWh.
When Switching Plans Is Not Worth It
A household locked into a fixed-rate contract with a significant early termination fee should calculate whether projected EV fuel savings over the remaining contract term exceed the fee. If the math does not work, staying put until the contract expires is the better choice. Texas PUCT rules require that the EFL disclose any termination fee clearly. Providers must also notify customers before a contract rolls over to a month-to-month rate, which is often the most expensive option on the market.
EV adoption in Texas is rising steadily. ERCOT already models EV charging as its own load component: the 2025 Long-Term Hourly Peak Demand and Energy Forecast builds its net demand projection from six components, one of which is a dedicated electric vehicle forecast with maximum EV demand broken out by year. That growth will likely bring more EV-specific plan offerings to the market. For now, the practical path to minimizing EV cost per mile is straightforward: find the household's true projected monthly kWh, compare all-in plan rates at that level, and check the EFL before signing.