Texas state outline

Power to Choose Texas

7.4¢/kWh lowest rate today across 716 plans

Contract expiring? Just moved to Texas? Paying too much? You're in the right place. In Texas, you get to pick who sells you electricity — and switching takes about 5 minutes. Enter your ZIP code, compare rates from over 100 providers, and find a plan that actually fits your budget. Your utility stays the same. Your lights stay on. Only your rate changes.

All providers are licensed by the Public Utility Commission of Texas. Comparing is free. Switching is free. No account needed.

What's available at your address?

Takes 10 seconds. No signup required.

Compare rates from top Texas providers

Current electricity rates by service area

Texas electricity rates vary by utility service area because each TDU charges different delivery fees. These rates reflect the lowest available plan at 1,000 kWh monthly usage, including all delivery charges.

Rates updated:

What is the Power to Choose?

Power to Choose is not just a website — it's a Texas consumer right. The Texas legislature passed Senate Bill 7 in 1999 and deregulated the state's electricity market on January 1, 2002. Since then, Texans in ERCOT-served areas (85% of the state) can compare rates from dozens of PUCT-licensed providers and switch anytime.

Here's the simple version: your utility company (Oncor, CenterPoint, AEP Texas, or TNMP) still delivers power through the same lines — that doesn't change. But you get to pick which company sells you that electricity and at what rate. Think of it like choosing a phone carrier. The cell towers stay the same. The plan and price are up to you.

Before 2002, Texas households were locked into whichever monopoly utility served their area. No competition. No alternatives. Today, over 100 retail electric providers compete for your business with different rates, contract terms, and renewable energy options. That competition is why Texas residential electricity rates run 12% below the national average.

How Texas electricity deregulation works

Utility: Delivery (You can't choose)

Your utility company owns the power lines and delivers electricity to your home. Your address determines your utility—you cannot switch utilities.

Major Texas utilities: Oncor, CenterPoint, AEP Texas, TNMP

Texas

Provider: Supply (Your choice!)

Your electricity provider sells you electricity. This is where your power to choose comes in—you can switch providers anytime to get a better rate.

Dozens of providers: TXU, Reliant, Gexa, Rhythm, and many more

What happens when you switch?

1

You choose a new provider

Compare rates and pick a plan

2

They handle the switch

No calls to your old provider needed

3

Same power, new rate

No service interruption ever

Types of electricity plans in Texas

Texas Power to Choose options include several plan types. Understanding the differences helps you pick the right one for your budget and lifestyle.

Fixed-rate plans

Your per-kWh rate stays the same for the entire contract term, typically 6-36 months. Fixed-rate plans protect you from wholesale market spikes.

Best for: Budget certainty, especially during summer

Read the guide →

Variable-rate plans

Your rate changes monthly based on wholesale electricity prices. Variable-rate plans have no contract, so you can cancel anytime without a fee.

Best for: Short-term flexibility, low-usage months

Read the guide →

Indexed plans

Your rate is tied to a public index (usually wholesale ERCOT prices) plus a fixed margin. Indexed plans are transparent but unpredictable.

Best for: Experienced shoppers who track market prices

Read the guide →

Prepaid plans

Pay for electricity in advance, similar to a prepaid phone. Prepaid plans require no credit check, no deposit, and no long-term contract.

Best for: No credit check needed, pay-as-you-go budgeting

Read the guide →

Renewable energy plans

100% of your electricity usage is offset by renewable energy credits (RECs) from Texas wind and solar farms. Texas ranks first in the nation for wind power generation and top five for solar — green plans are often price-competitive with conventional options.

Best for: Environmentally conscious consumers

Read the guide →

Free nights & weekends

Some providers offer free electricity during off-peak hours (typically 9 PM - 6 AM) in exchange for a higher daytime rate. Savings depend on when you use the most power.

Best for: Night owls, EV charging, off-peak heavy usage

Read the guide →

Time-of-use (TOU) plans are a broader category that includes free nights and weekends. TOU plans charge different rates based on the time of day — lower rates during off-peak hours (nights and weekends) and higher rates during peak demand (weekday afternoons in summer). Some TOU plans also offer flat-billing tiers where you pay a fixed monthly amount based on a usage bracket.

How to exercise your power to choose

To help Texans navigate dozens of providers and hundreds of plans, there are tools designed to make comparison easier. Here's how two of them stack up:

Power to Choose logo

PowerToChoose.org

Official PUCT Website

The state-run comparison website created by the Public Utility Commission of Texas. PowerToChoose.org lists every registered provider and every available plan.

  • Complete list of all PUCT-licensed providers
  • Official Electricity Facts Labels (EFLs)
  • REP Industry Scorecard (quarterly complaint ratings)
  • × Rates shown only at 500, 1,000, and 2,000 kWh — not your actual usage
  • × Providers can use bill credits to artificially lower displayed rates
  • × Hundreds of plans to sort through with no personalized ranking
  • × Cannot enroll directly — redirects to each provider's website
See all plans on PowerToChoose.org →
Texas

ElectricRates.org

Faster Comparison Tool

A streamlined way to exercise your power to choose. ElectricRates.org shows rates from PUCT-registered providers with actual costs calculated for your home.

  • Same PUCT-registered providers
  • Costs calculated for your energy habits
  • Delivery charges included in total
  • Enroll online in minutes

Both tools access the same market. PowerToChoose.org is the official source with complete regulatory documentation. ElectricRates.org is faster for finding the lowest rate. Use whichever fits how you prefer to shop.

How to read PowerToChoose.org results

PowerToChoose.org lists every electricity plan available in Texas, but the results can be misleading without context. The PUCT requires providers to display rates at three fixed usage levels — 500, 1,000, and 2,000 kWh — but the average Texas home uses about 1,300 kWh monthly. Providers exploit this by structuring bill credits that make rates look artificially low at exactly those thresholds.

Do this

  • Filter by fixed-rate plans first. Variable and indexed plans can spike during summer when demand is highest.
  • Compare the 1,000 kWh column. This is closest to average Texas household usage and the hardest for providers to game.
  • Check the REP complaint scorecard. The PUCT publishes quarterly complaint ratings — five dots means the fewest complaints per customer.
  • Read the full EFL before enrolling. The Electricity Facts Label shows base charges, usage credits, and early termination fees that advertised rates hide.
  • Look at contract length. Match the term to your situation — lease ending in 8 months? Pick a 6-month plan.

Avoid this

  • Don't sort by lowest price and pick the first result. The cheapest advertised rate often relies on bill credits that require exact usage levels to trigger.
  • Don't ignore the base charge. Some plans show a low per-kWh rate but add a $10–$15 monthly base charge that raises the effective cost.
  • Don't skip provider reviews. A company with rock-bottom rates but a history of billing errors and poor customer service will cost you more in frustration.
  • Don't assume "free nights" saves money. Free night plans charge higher daytime rates that often exceed what you save overnight unless most of your usage is after 9 PM.
  • Don't enroll without confirming the contract start date. Some providers start billing immediately, others wait for your next meter read cycle.

5 mistakes to avoid when choosing an electricity provider

The Texas electricity market gives you freedom, but it also puts responsibility on you. Avoid these common pitfalls to get the best deal.

1

Comparing only the advertised rate

Advertised rates often exclude TDU delivery charges, base fees, and usage credits that only kick in at certain thresholds. Always compare the all-in cost at your actual monthly usage level. The Electricity Facts Label (EFL) shows the true rate at 500, 1,000, and 2,000 kWh.

2

Letting your contract expire without shopping

Your provider will send a contract expiration notice at least 30 days before your plan ends. Ignore it and you'll roll onto a variable rate that can be 30-50% higher than what you were paying. Set a calendar reminder and start comparing new plans 2-3 weeks before your end date.

3

Ignoring the early termination fee

Every fixed-rate plan lists its early termination fee (ETF) on the Electricity Facts Label — usually $50-$200. If you're not sure you'll stay at the same address or want flexibility, pick a shorter term (6 or 12 months) or go month-to-month to avoid the ETF entirely.

4

Falling for "free nights" without checking the math

Free nights and weekends plans give you free electricity during off-peak hours, but the daytime rate is usually much higher. Unless you genuinely use most of your electricity at night (EV charging, running pool pumps), a standard fixed-rate plan often costs less overall.

5

Choosing the cheapest plan without checking provider reviews

The lowest rate doesn't always mean the best experience. Check the PUCT REP complaint scorecard — it rates every Texas provider on a five-dot scale based on complaints per customer. A provider with slightly higher rates but five dots on the scorecard (fewest complaints) and excellent billing practices is almost always worth the difference.

Who has the power to choose in Texas?

Deregulated areas (85% of Texas)

Texans in deregulated areas served by ERCOT have the freedom to choose their electricity provider. Deregulated areas include Dallas, Houston, Fort Worth, Corpus Christi, and most cities in North, Central, and Southeast Texas. Lubbock joined the deregulated market in 2023 through LP&L (Lubbock Power & Light), becoming the most recent Texas city to gain electricity choice.

Utilities in deregulated areas: Oncor, CenterPoint, AEP Texas Central, AEP Texas North, TNMP, LP&L (Lubbock)

Municipal & co-op areas (15% of Texas)

Some Texas cities operate their own municipal utilities and did not opt into deregulation. Residents of these areas get electricity from their city-owned utility and cannot switch providers.

Major municipal areas: Austin (Austin Energy), San Antonio (CPS Energy), El Paso (El Paso Electric)

Not sure if your area is deregulated? Enter your ZIP code at the top of this page. If plans are available, you have the power to choose.

Power to Choose for residential customers

Texas residential customers make up the bulk of switching activity in the deregulated electricity market. Homeowners and renters in ERCOT-served areas have access to hundreds of residential electricity plans ranging from 6-month contracts to 36-month fixed rates.

The average Texas household uses about 1,000 kWh per month, according to the U.S. Energy Information Administration. At that usage level, the difference between the cheapest and most expensive plans in the same service area can be $50–80/month. Comparing rates before signing up can save Texas households $600+ per year.

Texas residential plan options include: fixed-rate plans for price stability, variable plans for month-to-month flexibility, prepaid plans with no credit check, renewable energy plans, and specialty plans like free nights and weekends. Use the ZIP code search above to see what's available at your address.

Texas residential customers also benefit from the Texas Smart Meter program — all five major utilities have deployed smart meters that track electricity usage in 15-minute intervals. Customers can download their usage data through the "Green Button" feature, making it easier to choose the right plan based on actual consumption patterns rather than estimates.

Does Power to Choose include natural gas?

Power to Choose covers electricity only — not natural gas. The Power to Choose program and PowerToChoose.org apply exclusively to electricity. Texas does not have a comparable deregulated market for residential natural gas — utilities like Atmos Energy and CenterPoint Gas remain the sole option. Texas households spend 2–3x more on electricity than natural gas, especially during summer, so locking in a competitive electricity rate is the single most effective way to reduce overall energy costs.

Power to Save: reducing your electricity bill beyond switching

Choosing a competitive electricity rate is the fastest way to lower your Texas electricity bill, but the PUCT also operates a Power to Save program that helps Texas consumers reduce overall energy consumption. Power to Save offers:

Savings Calculator

Estimate how much you could save by switching providers or reducing consumption.

Energy Star Tips

Interactive guidance for household energy efficiency — insulation, thermostat settings, appliance upgrades.

ERCOT Grid Status

Real-time grid conditions and conservation alerts during peak demand periods.

Power Partners (Small Business)

Conservation program helping Texas small businesses reduce peak-period electricity demand.

The most effective combination: lock in a competitive fixed rate, then use energy efficiency strategies to reduce the number of kWh you consume each month. Texas households that switch providers and improve efficiency can cut electricity costs by 30% or more.

A brief history of your power to choose

1999

Senate Bill 7 Passes

Texas legislature votes to restructure the electricity market, separating generation, transmission, and retail sales into competitive segments.

2002

Deregulation Takes Effect

At midnight on January 1st, the Texas electricity market opens to competition. Providers immediately offer rates 6% below the previous regulated price.

2002

PowerToChoose.org Launches

The PUCT creates the official comparison website to help consumers navigate the new competitive market.

2021

Winter Storm Uri

In February 2021, a record winter storm caused widespread power outages across Texas. Wholesale electricity prices spiked to the $9,000/MWh cap. Customers on variable and indexed plans saw massive bills. The crisis led to PUCT reforms, new weatherization requirements, and greater consumer awareness about the importance of fixed-rate plans.

2023

Lubbock Joins Deregulation

Lubbock Power & Light (LP&L) completed its transition to ERCOT, making Lubbock the most recent Texas city to join the deregulated electricity market. Lubbock residents gained the power to choose their electricity provider for the first time.

Texas state outlineToday

Competitive Market, 85% of Texas

More than two decades later, Texas has one of the most competitive electricity markets in the nation. When deregulation began in 2002, the average residential rate was 8.05¢/kWh. Today, Texas residential electricity rates are 12% below the national average, according to the U.S. Energy Information Administration. Over 100 retail electric providers now compete across six utility service areas.

Statistics verified:

Find your utility

Your utility determines which providers you can choose from. Select yours to see available plans.

Power to Choose Texas: Common questions

Can I switch electricity providers in my area?

Texas residents in deregulated areas served by ERCOT (about 85% of Texas) can switch providers. Enter your ZIP code above to find out. Austin, San Antonio, and El Paso have municipal utilities that do not participate in retail choice.

What's an EFL and why does it matter?

The Electricity Facts Label is a standardized document Texas requires for every plan. It shows actual rates at 500, 1000, and 2000 kWh usage levels—not just advertised rates. Always compare EFL rates to understand true costs.

How much can I save by switching?

Texas households typically save 10–25% by switching from variable rates or expired contracts to competitive fixed-rate plans. Actual savings depend on the current rate and monthly energy usage. Enter your ZIP code to see current rates in your area.

Is there a fee to switch providers?

Switching electricity providers in Texas is free. Texas customers on a fixed-rate plan who leave before the contract ends may owe an early termination fee (typically $50–$200). Month-to-month and variable-rate plans have no termination fees.

Will my power go out when I switch?

No. The Texas utility company (Oncor, CenterPoint, AEP Texas, or TNMP) continues delivering power throughout the switch. Only the retail electric provider billing for generation changes. There is no truck roll, no new meter, and no service interruption.

Is PowerToChoose.org legit?

PowerToChoose.org is the official electricity comparison website operated by the Public Utility Commission of Texas (PUCT). The PUCT created PowerToChoose.org in 2002 when the Texas electricity market deregulated. Every retail electric provider listed on PowerToChoose.org holds a valid PUCT license.

How long does it take to switch electricity providers in Texas?

Switching Texas electricity providers typically takes 1–3 business days after enrollment. The new retail electric provider coordinates the switch with the local utility (Oncor, CenterPoint, AEP Texas, or TNMP) — no action is needed beyond signing up. Texas customers receive a confirmation email with the start date.

Can renters choose their electricity provider in Texas?

Yes. Texas renters in deregulated areas have the same power to choose as homeowners. Any electricity customer who is the account holder for an address can choose and switch providers. Texas landlords cannot restrict a tenant's choice of electricity provider.

What happens when my electricity contract expires?

When a Texas fixed-rate electricity contract expires, most retail electric providers switch the customer to a month-to-month variable rate that is usually 30–50% higher. Texas law requires providers to send a contract expiration notice at least 30 days in advance. Texas customers should shop for a new plan 2–3 weeks before the end date to avoid overpaying.

Can I cancel my electricity plan without a fee?

Month-to-month and variable-rate plans have no cancellation fee. Fixed-rate contracts may have an early termination fee, typically $50-$200. The exact fee amount is listed on your Electricity Facts Label (EFL).

What is an ESID number in Texas?

An ESID (Electric Service Identifier) is a unique number assigned to your meter by ERCOT. Your ESID identifies your specific electrical connection and determines which utility delivers your power. You can find your ESID on your electricity bill or through the ESID lookup tool.

Can I get electricity in Texas with no credit check?

Yes. Several Texas providers offer prepaid electricity plans with no credit check, no deposit, and no long-term contract. You pay in advance and add funds as needed. Prepaid plans are a good option if you have no credit history or want to avoid a deposit.

What is a good electricity rate in Texas in 2026?

A good electricity rate in Texas in 2026 is between 7¢ and 10¢ per kWh for a fixed-rate plan at 1,000 kWh monthly usage, including all delivery charges. Rates below 8¢/kWh are considered excellent. Rates vary by utility service area — CenterPoint (Houston) and Oncor (Dallas) areas typically have the lowest rates because of higher population density and more provider competition. Check current rates for your ZIP code to see what's available today.

How do I set up electricity when moving to Texas?

Texas residents moving to a deregulated area need to choose an electricity provider before move-in day. Enter your new ZIP code on ElectricRates.org or PowerToChoose.org to see available plans. Select a provider, provide your move-in date and new address, and the provider will coordinate service activation with your local utility (Oncor, CenterPoint, AEP Texas, or TNMP). Most providers can activate service within 1–3 business days. If you're moving from out of state, you do not need a Texas ID to sign up — just your new address and a valid ID.

Does Power to Choose apply to businesses?

Yes, but differently. Texas commercial and industrial customers in deregulated areas can choose their electricity provider, just like residential customers. However, PowerToChoose.org focuses on residential plans. Texas businesses typically get custom rate quotes based on their usage profile, demand patterns, and contract size. Commercial rates in Texas are generally 20–30% lower than residential rates per kWh.

Public Utility Commission of Texas (PUCT)

The PUCT regulates Texas electricity providers and handles consumer complaints:

Phone

(512) 936-7000

Mail

1701 N. Congress Ave, P.O. Box 13326
Austin, TX 78711-3326

How do I file a complaint against my Texas electricity provider?

Texas electricity customers can file complaints with the Public Utility Commission of Texas (PUCT) by calling (512) 936-7000, emailing consumer@puc.texas.gov, or submitting a complaint online at puc.texas.gov. The PUCT investigates complaints about billing disputes, unauthorized switches (slamming), service quality, and deceptive marketing. Texas customers should first attempt to resolve issues directly with their provider, then escalate to the PUCT if unresolved.

What is the PUCT REP complaint scorecard?

The PUCT publishes a quarterly REP Industry Scorecard that rates every retail electric provider in Texas based on complaint volume per customer. The scorecard uses a five-dot system — five dots means the fewest complaints relative to customer count. Texas electricity shoppers should check the scorecard before choosing a provider, since the lowest rate means nothing if the company has a history of billing errors, unauthorized charges, or poor customer service. The scorecard is available on puc.texas.gov.

Texas state outline

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Enter your ZIP to see plans in your area.

Texas electricity guides

Reviews

"Lots of options for my area. Info was clear and helped me pick the right plan."

Kim C.
Houston, TX

"Super easy. So easy I thought I missed a step. Nope, just done."

Lacey S.
Dallas, TX

"Didn't know so many plans existed. Found one with bill credits that works great for us."

Mike W.
Austin, TX
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