Texas state outline Texas Deregulated Electricity Market

Compare Texas Electricity Providers, Plans & Rates

Compare 100+ electricity plans from dozens of Texas providers. Texas residents can see rates for Oncor, CenterPoint, AEP Texas, and TNMP service areas—enter a ZIP code to get started.

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Texas state outline 100+ Electricity Plans

Texas Average

15.8¢

per kWh

Source: EIA.gov

Lowest Rate

6.5¢

9.3¢ lower

Potential Savings59% lower
Best rate fromJust Energy
Live rates
PUC licensed

Quick Answer

Texas electricity is deregulated—Texas customers choose their retail provider (TXU Energy, Reliant, Gexa Energy, etc.) while the local utility (Oncor, CenterPoint, AEP Texas, or TNMP) delivers the power. PUCT-licensed providers compete for customers, so comparing rates can save Texas households hundreds per year.

Verified January 8, 2026 · Reviewed by Enri Zhulati

What is the average Texas electricity rate?

The average Texas electricity rate is 15.8¢/kWh according to EIA.gov (January 2026). Competitive fixed-rate plans start as low as 6.5¢/kWh from Just Energy. A good electricity rate in Texas is anything below 12¢/kWh for a fixed-rate plan at 1,000 kWh monthly usage.

Rate data verified January 8, 2026 from EIA.gov and ComparePower · Reviewed by Brad

How Texas Electricity Choice Works

Texas electricity is deregulated under Senate Bill 7 (2002). You choose your retail electricity provider (REP)—TXU Energy, Reliant, Gexa, Constellation, or others—while your utility (Oncor, CenterPoint, AEP Texas, TNMP) delivers the power.

1

Enter Your ZIP Code

We'll identify your utility and show all available electricity plans from certified providers in your area.

2

Compare Rates & Plans

See your true monthly cost based on your usage. Compare fixed rates, green energy plans, and contract terms.

3

Switch & Save

Enroll in minutes through Compare Power. Your new rate starts within 1-2 billing cycles—no service interruption.

Texas Electric Utility Companies (TDUs)

Oncor, CenterPoint, AEP Texas, and TNMP are transmission and distribution utilities (TDUs) that deliver electricity to Texas homes. Your TDU is determined by your address—you can't change it, but you can choose your retail electricity provider.

Delivery charges make up about 40% of your bill. You can't control these fees—only your energy rate is something you can shop for. Delivery charges change March 1 (usually down) & September 1 (usually up).

Texas TDU Delivery Charges Compared

Oncor vs CenterPoint vs AEP Texas vs TNMP vs LP&L delivery rates

Rates effective Sep 2025
TDU Service Area Delivery Rate Customers
Oncor Dallas-Fort Worth, Central Texas, West Texas 5.60¢/kWh 3.7M+
CenterPoint Greater Houston, Galveston, Coastal Texas 6.00¢/kWh 2.6M+
AEP Texas Central South Texas, Corpus Christi area 6.06¢/kWh 230K+
AEP Texas North West Texas, Abilene, San Angelo area 5.92¢/kWh 220K+
TNMP Various regions across Texas 7.21¢/kWh 250K+
LP&L Lubbock and surrounding area 6.31¢/kWh 110K+
Note: TDU delivery charges are set by the PUCT and apply regardless of which electricity provider you choose. Your TDU is determined by your address—you cannot switch TDUs.

Current Texas Electricity Rates

Live data

Texas electricity rates average 15.8¢/kWh according to EIA.gov. The lowest available rate is 6.5¢/kWh from Just Energy in the AEP Texas service area. Plans shown are priced at 1,000 kWh/month (typical Texas usage). Adjust the slider to see costs for your actual usage.

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Comparing 100+ plans from dozens of PUCT-licensed providers to find you the best rate.

Top Texas Electricity Plans

These are the lowest-priced plans in each service area right now. Rates include all charges—energy and delivery—at 1,000 kWh/month. Enter your ZIP code above for plans specific to your address.

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Top Texas Electricity Providers

Compare the largest and most trusted retail electric providers (REPs) in Texas. All providers are PUCT-licensed.

Texas Electricity Providers Compared

Side-by-side comparison of the top 4 Texas REPs

Verified Jan 2026
Provider Best For Rating Green Energy Satisfaction Guarantee
TXU Energy Plan variety & support 4.2 Options available 60 days
Reliant Energy Rewards & guarantees 4.4 Options available 90 days
Gexa Energy Low rates + green energy 4.5 100% renewable 60 days
Green Mountain Energy 100% renewable since 1997 4.3 100% renewable 90 days
Recommendation: Choose Reliant Energy or Green Mountain Energy for the longest satisfaction guarantee (90 days), Gexa Energy for competitive rates with 100% renewable energy, or TXU Energy for the widest plan selection.

Understanding Texas Electricity Deregulation

What is Texas electricity deregulation?

Texas electricity deregulation began in 2002 under Senate Bill 7, allowing Texas residents to choose their retail electricity provider. The ERCOT (Electric Reliability Council of Texas) grid covers 90% of Texas electric load, overseen by the Public Utility Commission of Texas (PUCT). Note: Some areas—municipal utilities like Austin Energy and CPS Energy—opted out of deregulation and don't offer provider choice.

What's on a Texas electricity bill?

Texas electricity bills have two main components:

  • Energy Charge: Set by the electricity provider—Texas customers can shop for this rate
  • Delivery Charge: Set by the utility (Oncor, CenterPoint, etc.) and regulated by PUCT—about 40% of the total bill

When do Texas delivery rates change?

Texas utility delivery rates change twice per year: March 1 (rates usually decrease) and September 1 (rates usually increase). When Texas customers switch electricity providers, only the energy charge changes—the utility continues delivering power and responding to outages exactly as before.

Texas Market Quick Facts

100+ plans to choose from

Dozens of providers in the largest competitive market

6 Major Utilities

Oncor, CenterPoint, AEP Central, AEP North, TNMP, LP&L

Free to compare plans

Check contract terms for early termination fees

PUCT

PUCT regulated

All providers licensed by Public Utility Commission of Texas

Market data verified:

Enri Zhulati
Written by , Consumer Advocate
Reviewed by Han Hwang ·

Power to Choose Texas

While Power to Choose is the official Texas comparison site run by the PUCT, it only shows rates at 500, 1000, and 2000 kWh usage levels. ElectricRates.org calculates your actual monthly cost based on your real usage, including all fees and delivery charges.

Our Advantages

  • Custom usage-based cost calculations
  • All-in pricing including delivery charges
  • Side-by-side annual cost comparison
  • Filter by green energy, contract term

Texas state outline Texas Savings

  • Find lowest total cost, not just lowest rate
  • Usage estimation tools for new movers
  • Rate alerts for price drops
  • Easy enrollment through Compare Power

Texas Electricity Calculators & Tools

Use our free calculators to estimate your usage, check if your rate is competitive, and calculate your monthly costs.

Texas Electricity Guides

In-depth guides to help you navigate the Texas electricity market, save money, and make informed decisions.

Texas Electricity FAQs

Free to compare
Texas
100+ plans
PUCT licensed

Same-day or next-day service is available in most Texas deregulated areas. Enroll before 2 PM CT for same-day connection. You'll get an account number instantly—no waiting, no phone calls, no technician visit required.

Many landlords require proof of electricity service before handing over keys. When you enroll online, you'll receive an account number immediately that you can provide to your leasing office. No more waiting on hold.

Advertised rates are typically shown at 2,000 kWh usage, but most Texans use around 1,200 kWh. Due to tiered pricing, base charges, and usage credits that only kick in at high usage, your actual rate may be 25-40% higher than advertised. Always compare plans at YOUR usage level, not the advertised rate.

Enter your ZIP code and monthly usage to see what you'd actually pay on available plans. We show all-in pricing including energy charges, TDU delivery fees, and base charges—so you can compare apples to apples. No more guessing from confusing EFL documents.

Compare your renewal offer to current market rates before deciding. Sometimes staying put is the right call. We'll show you how your renewal rate stacks up against 100+ available plans so you can make an informed choice.

No, your power won't be shut off. If your contract expires without action, you'll typically be moved to a month-to-month variable rate—which is often expensive. That's why it's smart to compare options before your contract ends.

Prepaid electricity plans can get your power back on the same day. These plans typically have no credit check and no deposit required. Pay-as-you-go lets you start service immediately and manage your usage.

Yes—prepaid plans typically don't require credit checks or deposits. Some traditional plans may require deposits based on credit history, but prepaid options are available for everyone. Note: some providers may still run a soft credit check even for prepaid plans.

Texas separates electricity into delivery (your TDU like Oncor or CenterPoint) and supply (your REP). Your TDU is determined by your address and handles the power lines and outages. Your REP is who you choose and pay for the electricity itself. When you 'switch providers,' you're switching REPs while your TDU stays the same.

When you find a plan you like, click 'Select Plan' to complete checkout on ComparePower.com, our Texas enrollment partner. You'll enter your service address and information, and your new provider handles the switch. It takes about 5 minutes.

A switch hold means a previous provider has blocked your ability to switch due to an unpaid balance. Options to get power: 1) Pay the outstanding balance in full, 2) Set up a payment arrangement with the provider that placed the hold, 3) Sign up for prepaid electricity (most prepaid plans work even with a switch hold), 4) Wait for the hold to expire (typically 4 years in Texas). Prepaid plans are often the fastest solution—you can get same-day service without resolving the original debt.

A switch hold is placed by your previous Retail Electric Provider (REP) when you owe them money. It prevents you from switching to another traditional provider until the debt is resolved. In Texas, switch holds typically last up to 4 years or until you pay the balance. Switch holds are registered with ERCOT and apply statewide—you can't avoid it by trying a different provider. Your options are: pay the balance, negotiate a payment plan, use prepaid electricity, or wait it out.

Free nights and weekends plans can save money IF you shift heavy usage to off-peak hours (typically 8 PM–6 AM weekdays and all weekend). However, daytime rates are higher to compensate—often 15-20¢/kWh vs. 10-12¢ on standard plans. Best for: night owls, remote workers with flexible schedules, EV owners who charge overnight, or households that can run appliances at night. Not ideal for: families home during the day, daytime A/C users, or anyone who can't shift usage. Calculate based on your actual schedule, not wishful thinking.

Free hours vary by provider but typically start between 8 PM and 10 PM and end between 5 AM and 7 AM on weekdays. Weekend free hours usually run all day Saturday and Sunday. Popular examples: TXU Free Nights (9 PM–6 AM + weekends), Reliant Free Weekends (all day Saturday and Sunday). Always check the Electricity Facts Label (EFL) for exact hours—'free' periods differ significantly between plans and providers.

For a typical Texas home using 1,000-1,200 kWh/month: Under 12¢/kWh all-in is competitive, under 10¢/kWh is excellent, under 9¢/kWh is exceptional. 'All-in' means the total cost including energy charges, TDU delivery fees, and any base charges—divided by your usage. Rates vary by TDU territory: Oncor (Dallas) and CenterPoint (Houston) typically have similar rates, while TNMP and AEP areas may differ. Compare at YOUR actual usage level since advertised rates are often shown at 2,000 kWh where per-kWh costs look lower.

The 'cheapest' provider changes weekly as rates fluctuate. Low-rate providers often include: 4Change Energy, Frontier Utilities, Pulse Power, and Rhythm Energy. However, the cheapest option depends on your usage—a plan cheap at 2,000 kWh might be expensive at 1,000 kWh due to usage credits and tiered pricing. Enter your ZIP code and actual monthly usage to find your personalized cheapest option. Be wary of ultra-low advertised rates that require exact high usage to achieve.

Reviews

"The content found for my zip code was so helpful in making a decision about switching service. There were lots of options and each had detailed info on terms, how bills are calculated. The choice for size of home was particularly helpful."

Kim C.
Houston, TX

"Everything was exceptionally easy, from signing up to getting a quote and to getting connected. In fact, it was so easy I thought for sure I had missed a step. Super easy and quick."

Lacey S.
Dallas, TX

"Before I never knew this many providers and plans with bill credits and free nights/weekends existed! Adding the ability to use last year's monthly usage to find the best new plan makes this perfect for saving money."

Mike W.
Austin, TX
Texas

Texas City Directory

Browse electricity rates for 875 Texas cities in deregulated areas

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875 cities
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Only cities in ERCOT deregulated areas are shown. Some Texas cities (Austin, San Antonio, El Paso) have municipal utilities.

All Texas Cities

Texas Counties

Sources & References

Government & Regulatory

Utility Companies (TDUs)

Last verified: . Rate data sourced from EIA.gov and licensed electric providers.

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