Is electricity deregulated in Texas?

Most of Texas is deregulated, which means you choose the retail electricity provider (REP) that sells you a plan, while your local transmission and distribution utility (TDU) — Oncor, CenterPoint, AEP, TNMP, or Lubbock Power & Light — delivers the power. A few areas served by municipal utilities or co-ops (for example San Antonio's CPS Energy and Austin Energy) are NOT deregulated, so customers there can't choose a provider.

Does Texas have a default electricity rate or a 'price to compare'?

No. Unlike Pennsylvania or Ohio, Texas has no utility default rate, no 'price to compare,' and no standard service offer. Every household in a deregulated area must actively choose a retail provider and plan — there is no regulated default to fall back on. That makes comparing plans the only way to know what you'll pay.

What is the cheapest electricity rate in Texas right now?

The cheapest clean, fixed-rate plan of 3 or more months currently starts around 11.70¢/kWh across the deregulated TDUs. Be careful with plans that look cheaper on the headline — many Texas plans use bill credits that only hit their advertised rate at one exact usage level, so the "cheapest" plan isn't always the cheapest for your home.

Who delivers electricity in Texas, and can I choose them?

Your TDU delivers your electricity, maintains the lines, and restores power after an outage — and you can't choose or switch it; it's assigned by where you live. What you choose is your retail provider and plan. The TDU delivers the same power no matter which provider you pick.

Texas electricity rates & plans

Texas is fully deregulated: you choose the company that sells you electricity, while your local utility delivers it. We track plans across all six deregulated utilities and 84Texas cities — and we'll tell you when the cheapest-looking plan isn't actually the cheapest.

The honest floor right now: 11.70¢/kWh on a clean, fixed-rate plan of 3+ months. (Texas has no utility “default rate” to compare against — you simply choose a plan.)

Live Power to Choose data No paid placements Bill-credit traps flagged

How electricity works in Texas

In Texas, two different companies handle your electricity. Your transmission and distribution utility (TDU)owns the poles and wires, delivers the power, and handles outages — you can't choose it. Your retail electricity provider (REP) is the company you do choose: it sets the rate and sends most of your bill.

Unlike Pennsylvania and Ohio, Texas has no utility “default rate”— no price to compare, no standard service offer. Everyone picks a plan, so the only way to know what you'll pay is to compare. And the cheapest-looking plan often isn't: many Texas plans use bill creditsthat only deliver their headline rate at one exact usage level. We rank on the rate you'd actually pay, not the teaser.

Texas utilities (TDUs)

Your delivery utility depends on where you live. Each one has its own rates and territory.

Texas cities we cover

Local rates and available providers for 84 cities, grouped by delivery utility.

Oncor

CenterPoint Energy

AEP Texas Central

AEP Texas North

Texas-New Mexico Power

Lubbock Power & Light

Lubbock

Texas electricity providers

Independent reviews of the major Texas retail providers — the rate, the fine print, and who each one is actually right for.

Reliant TXU Energy Gexa Energy Rhythm Frontier Direct Energy Green Mountain Cirro Discount Power Payless Power

Want our ranked editorial picks? See the best electricity companies in Texas — winners by lowest rate, green energy, fixed rate, and more.

Shopping with no credit or no deposit? See our honest guide to no-deposit & prepaid electricity in Texas — including why it usually costs more per kWh.

Frequently asked questions

Is electricity deregulated in Texas?: Most of Texas is deregulated, which means you choose the retail electricity provider (REP) that sells you a plan, while your local transmission and distribution utility (TDU) — Oncor, CenterPoint, AEP, TNMP, or Lubbock Power & Light — delivers the power. A few areas served by municipal utilities or co-ops (for example San Antonio's CPS Energy and Austin Energy) are NOT deregulated, so customers there can't choose a provider.
Does Texas have a default electricity rate or a 'price to compare'?: No. Unlike Pennsylvania or Ohio, Texas has no utility default rate, no 'price to compare,' and no standard service offer. Every household in a deregulated area must actively choose a retail provider and plan — there is no regulated default to fall back on. That makes comparing plans the only way to know what you'll pay.
What is the cheapest electricity rate in Texas right now?: The cheapest clean, fixed-rate plan of 3 or more months currently starts around 11.70¢/kWh across the deregulated TDUs. Be careful with plans that look cheaper on the headline — many Texas plans use bill credits that only hit their advertised rate at one exact usage level, so the "cheapest" plan isn't always the cheapest for your home.
Who delivers electricity in Texas, and can I choose them?: Your TDU delivers your electricity, maintains the lines, and restores power after an outage — and you can't choose or switch it; it's assigned by where you live. What you choose is your retail provider and plan. The TDU delivers the same power no matter which provider you pick.

Compare Texas electricity plans

Enter your ZIP to see what's available at your address — ranked on the rate you'd actually pay.