Texas Deregulated Electricity Map​ (2025)

Written by Christine Orlando | Reviewed By Alfred Poindexter
Last updated August 28, 2025

Texas is unique in the U.S. electricity landscape. Rather than being locked into a vertically integrated utility, most Texans can choose their electricity supplier. Deregulation has spurred competition among dozens of retail electric providers (REPs), encouraged green-energy innovation and kept prices below the national average.

However, the state’s power market can be confusing because it contains a mixture of deregulated and regulated territories. This guide breaks down how the market works in 2025, where deregulation applies, recent changes such as Lubbock joining the competitive market, and how to choose the right electricity plan.

Texas Deregulation Map

The map below illustrates the split between deregulated and regulated territories. Counties highlighted in color represent deregulated service areas and show which TDU serves that county. Areas shown in grey are regulated. Because municipalities can vote to opt in to deregulation—Lubbock being the most recent example—residents should check their ZIP code on a comparison site or with the PUCT to confirm their status.

Texas deregulation map

What Does Electricity Deregulation Mean?

Electricity deregulation separates the generation, transmission and distribution functions of a vertically integrated utility. In Texas, Transmission and Distribution Utilities (TDUs) maintain the poles and wires that deliver power to your home, while REPs sell the electricity and handle billing and customer service. TDUs are regulated by the Public Utility Commission of Texas (PUCT) and charge a fixed monthly (base) fee and a per‑kilowatt‑hour delivery fee. Those charges appear on your bill as “TDU Delivery Charges” and are the same no matter which REP you choose (the fees change based on the TDU). The REPs (who are also regulated by the PUCT) set your energy rate and plan structure.

This separation allows competition among REPs, giving consumers more options and the freedom to choose plans that fit their lifestyle. According to the PUCT, Texas’s deregulated market is now the largest mandatory retail‑choice program in the country; roughly 85–90 % of Texans can shop for electricity

How Did Texas Get Here? A Brief History of Deregulation

The history behind Texas’ switch to a competitive retail electricity market is long, full of politics, corporate bureaucracy, and varied claims of what was best for the consumer. Those pushing for deregulation of the retail electricity market believed that large investor-owned utilities had a monopoly on the market.

There was no competition in the pricing of rates per kWh. The utility companies set the price, and the consumer paid it.

Supporters of deregulation argued that consumers would pay a lower price for electricity if individual providers were allowed to purchase electricity at a wholesale price and then sell it to consumers for a profit. Ultimately, the argument was: that multiple providers competing for the same customers would drive prices down. 

Below is a timeline of how things played out.

  • Pre‑1990s: Texas utilities were vertically integrated monopolies that generated, transmitted and sold electricity. High prices and a lack of competition prompted calls for reform.
  • 1995 – Senate Bill 373: The Legislature began restructuring the wholesale market by requiring utilities to give independent generators access to transmission lines and encouraging competition.
  • 1999 – Senate Bill 7: Governor George W. Bush signed Senate Bill 7, introducing retail competition in areas served by investor‑owned utilities. The bill also created the “Price to Beat” mechanism to prevent incumbent utilities from undercutting new entrants.
  • Jan 1 2002 – Retail market opens: Deregulation took effect statewide. Customers in eligible areas could select any REP, while TDUs continued to deliver electricity. Municipal utilities and electric cooperatives were allowed to opt out of the program.
  • 2002–2024 – Expansion: Over time, participation grew. By 2025, more than 173 of Texas’s 254 counties are fully or partially deregulated, giving more than 800 cities the power to choose. However, roughly 10 to 15% of Texans still live in regulated areas—mostly those served by municipal or cooperative utilities.
  • 2024 – Lubbock joins deregulation: Lubbock Power & Light became the first large municipal utility to opt into deregulation. Residents were allowed to shop for providers between Jan 5 and Feb 15 2024. Those who didn’t choose were assigned a default provider in late February. The physical switch from LP&L to the selected REP occurred between March 4 and April 4 2024. By April 2024, Lubbock customers received their final municipal bill and began receiving bills from their chosen provider.

Does Texas Deregulation Look Different Than Other Deregulated States?

Although several states have active retail choice programs, no other state has adopted as large or widespread a program like Texas. Unlike other deregulated states, “electrical retail choice is mandated in Texas.” Because of this, close to 90% of residential customer sales are provided by competitive suppliers.

Compare this number to the three states with the next highest levels of participation in a retail choice program:

  • Ohio: 46%
  • Illinois: 35%
  • Massachusetts: 34%

Where Is Electricity Deregulated in Texas?

Texas is served by six TDUs:

  1. Oncor
  2. CenterPoint Energy
  3. AEP Texas North
  4. AEP Texas Central
  5. Texas‑New Mexico Power (TNMP)
  6. Lubbock Power & Light

These companies manage the delivery infrastructure across deregulated zones. In total, 173 counties are fully or partially deregulated, meaning residents in those counties can choose from a large pool of REPs. More than 800 cities fall under these TDUs. Examples include large cities such as Houston, Dallas, Fort Worth, Corpus Christi and Waco, as well as smaller towns like Abilene, Brenham and Laredo. Because TDU boundaries do not follow county or city limits, some municipalities (e.g., Garland or Bryan) are partially deregulated; most of the time, specific ZIP codes determine whether you can choose your provider, but to be 100% sure, you would need search your full address. Below you can find a list of deregulated cities under their own TDU.

Pro Tip:

Keep in mind, that some locations in Texas are only partially-deregulated. Zip codes or full addresses are very important when researching deregulated areas of Texas.

Complete List of Deregulated Cities in Texas By TDU


Abbott Ackerly Addison Aledo Allen
Alto Alvarado Alvord Andrews Anna
Annona Archer City Argyle Arlington Arp
Arthur City Athens Austin Avalon Avery
Axtell Azle Bangs Bardwell Barry
Bartlett Bedford Bellevue Belton Ben Franklin
Ben Wheeler Big Spring Blanket Blooming Grove Bonham
Boyd Brady Brandon Brashear Breckenridge
Bridgeport Briggs Brookesmith Brookston Brownsboro
Brownwood Bruceville Buckholts Buffalo Bullard
Burkburnett Burleson Burlington Bynum Caddo
Caddo Mills Cameron Campbell Canton Carbon
Carrollton Cayuga Cedar hill Celeste Celina
Centerville Chandler Chico Chilton China Spring
Chireno Clarksville Cleburne Coahoma Colleyville
Collinsville Colorado City Comanche Commerce Como
Coolidge Cooper Copeville Coppell Copperas Cove
Corsicana Coupland Crandall Crane Cresson
Crockett Crowley Cumby Cushing DFW Airport
Dallas Dawson De Leon Decatur Denison
Denton Desdemona Desoto Diboll Dike
Dodd City Doole Douglass Dublin Duncanville
Early Eastland Ector Eddy Edgewood
Electra Elgin Elkhart Elm Mott Enloe
Ennis Euless Eustace Fairfield Farmersville
Fate Ferris Flint Florence Flower Mound
Forney Forreston Forsan Fort Worth Frankston
Frisco Frost Gail Gainesville Gallatin
Garden City Gardendale Garland Georgetown Godley
Goldsmith Goldthwaite Gorman Graford Graham
Granbury Grand Prairie Grand Saline Grandfalls Grandview
Granger Grapeland Grapevine Greenville Groesbeck
Gunter Haltom City Harker Heights Haslet Henderson
Henrietta Hermleigh Hewitt Hext Hillsboro
Holland Holliday Honey Grove Howe Hubbard
Huntington Hurst Hutchins Hutto Imperial
Iowa Park Ira Irene Irving Italy
Itasca Ivanhoe Jacksboro Jacksonville Jarrell
Jewett Josephine Joshua Justin Kaufman
Keene Keller Kemp Kempner Kennedale
Kerens Killeen Klondike Knott Krum
Ladonia Lake Dallas Lamesa Lancaster Laneville
Larue Latexo Lavon Lenorah Leona
Leroy Lindale Lindsay Lipan Little Elm
Little River Lohn Loraine Lorena Lott
Lovelady Lufkin Mabank Malakoff Malone
Manor Mansfield Marlin Marquez Mart
Maryneal Maypearl Mc Dade Mc Gregor Mc Kinney
McKinney Melissa Melvin Mentone Merit
Mertens Mesquite Mexia Midkiff Midland
Midlothian Milano Milford Millersview Millsap
Mineola Mineral Wells Monahans Montalba Moody
Mount Calm Muenster Mullin Murchison Myra
Nacogdoches Naval Air Station Joint Reserve Base Fort Worth Neches Nevada New Summerfield
Newark Nolanville Normangee North Richland Hills Notreess
O’Donnell Oakwood Odessa Oglesby Olden
Orla Overton Palestine Palmer Palo Pinto
Paradise Paris Pecan Gap Pendleton Penelope
Penwell Perrin Petty Pflugerville Plano
Pollok Ponder Poolville Potosi Pottsboro
Powderly Powell Poynor Prairie Hill Prosper
Purdon Pyote Quinlan Ranger Ravenna
Reagan Red Oak Rhome Rice Richardson
Richland Richland Springs Riesel Roanoke Rochelle
Rockdale Rockwall Rogers Roscoe Rosebud
Rosser Round Rock Rowlett Roxton Royse City
Rusk Sachse Sadler Salado San Saba
Sandy Satin Savoy Scotland Seagoville
Seymour Sheppard Air Force Base Sherman Slidell Snyder
Southlake Southmayd Springtown Stanton Stephenville
Streetman Sulphur Bluff Sulphur Springs Sumner Sunnyvale
Sunset Sweetwater Tarzan Taylor Teague
Tehuacana Telephone Temple Tennessee Colony Terrell
The Colony Thorndale Thornton Thrall Trinidad
Troup Troy Tyler Valley View Van
Van Alstyne Venus Voca Waco Waxahachie
Weatherford Weir Wells West Westbrook
Whitehouse Whitesboro Whitt Wichita Falls Wills Point
Wilmer Windom Wink Wolfe City Woodway
Wortham Wylie Yantis Zavalla Zephyr


Abilene Afton Agua Dulce Alamo Albany
Alice Alleyton Alpine Anson Aransas Pass
Asherton Aspermont Austwell Avoca Baird
Ballinger Balmorhea Barksdale Barnhart Bay City
Bayside Beeville Belmont Benavides Benjamin
Berclair Big Lake Big Wells Bigfoot Bishop
Blackwell Blessing Bloomington Brackettville Bronte
Brownsville Bruni Buffalo Gap Burkett Camp Wood
Carlsbad Carrizo Spring Catarina Charlotte Childress
Chillicothe Christine Christoval Cisco Clyde
Columbus Combes Comstock Concepcion Corpus Christi
Cotulla Cross Plains Crowell Crystal City D Hanis
Del Rio Devers Devine Dickens Dilley
Donna Driscoll Eagle Lake Eagle Pass Edcouch
Eden Edinburg Edna Edroy El Campo
El Indio Eldorado Elmaton Elsa Encinal
Encino Eola Falfurrias Flomot Fort Davis
Freer Fulton Ganado Garciasville Garwood
George West Gillett Girard Glidden Goliad
Gonzales Goree Gregory Grulla Hamlin
Hargill Harlingen Harrold Haskell Hawley
Hebbronville Hidalgo Inez Ingleside Iraan
Jayton Jourdanton Junction Karnes City Kenedy
Kingsbury Kingsville Knickerbocker Knippa Knox City
La Blanca La Feria La Joya La Pryor La Villa
Laredo Lawn Leakey Leesville Leming
Lockhart Lolita Los Ebanos Los Fresnos Los Indios
Louise Lozano Lueders Luling Lyford
Lytle Marathon Marfa Markham Matador
Matagorda Mathis May Mc Camey Mc Caulley
McAdoo McAllen Menard Mercedes Mereta
Merkel Mertzon Midfield Miles Mirando City
Mission Moore Moran Munday Nada
Natalia Nixon Nordheim Normanna Norton
O Brien Oakville Odell Odem Oilton
Oklaunion Old Glory Olmito Ovalo Ozona
Paducah Paint Rock Palacios Pawnee Pearsall
Penitas Pettus Pharr Placedo Pleasanton
Point Comfort Port Aransas Port Isabel Port Lavaca Port Mansfield
Portland Poteet Premont Presidio Progreso
Putnam Quanah Quemado Quitaque Rankin
Raymondville Realitos Redford Refugio Rio Grande City
Rio Hondo Rising Star Roaring Springs Robert Lee Roby
Rochester Rockport Rocksprings Roma Rotan
Rowena Rule Runge Sabinal San Angelo
San Benito San Diego San Isidro San Juan San Ygnacio
Sandia Santa Anna Santa Maria Santa Rosa Saragosa
Seadrift Sebastian Sheffield Sinton Skidmore
Smiley Sonora South Padre Island Spring Branch Spur
Stamford Sterling City Sullivan City Sylvester Taft
Talpa Three Rivers Throckmorton Tivoli Trent
Tuleta Turkey Tuscola Tye Tynan
Uvalde Valentine Valera Veribest Vernon
Victoria Wadsworth Wall Water Valley Weesatche
Weinert Weslaco Westhoff Wingate Winters
Woodsboro Woodson Yorktown Zapata


Alvin Angleton Aubrey Bagwell Bailey
Barstow Bells Blossom Blue Ridge Bluff Dale
Blum Bogata Brazoria Bryson Byers
Carlton Clifton Covington Coyanosa Crawford
Cunningham Deport Detroit Dickinson Emory
Fort Stockton Friendswood Gatesville Glen Rose Gordon
Gustine Hamilton Hico Iredell Jermyn
Jonesboro Kermit Kopperl La Marque League City
Leonard Lewisville Lone Oak Loving Megargel
Meridian Mingus Montague Morgan Nemo
Newcastle Nocona Old Ocean Olney Pattonville
Pecos Petrolia Pilot Point Point Princeton
Purmela Rainbow Randolph Ringgold Rio Vista
Saint Jo Sanderson Santo South Bend Strawn
Sweeny Talco Texas City Tioga Tolar
Tom Bean Toyah Trenton Valley Mills Walnut Springs
West Columbia Westminster Whitewright Whitney Wickett


Column 1 Column 2 Column 3 Column 4 Column 5
Bacliff Banquete Baytown Beasley Bellaire
Bellville Boling Brookshire Channelview Clute
Conroe Crosby Cypress Damon Danbury
Dayton Deer Park East Bernard Freeport Fresno
Fulshear Galena Park Galveston Guy Hempstead
Highlands Hitchcock Hockley Houston Huffman
Humble Hungerford Katy Kemah Kendleton
La Porte Lake Jackson Liverpool Magnolia Manvel
Missouri City Montgomery Needville Orchard Pasadena
Pearland Pinehurst Pledger Porter Richmond
Rosenberg Rosharon Santa Fe Seabrook Sealy
Simonton South Houston Spring Stafford Sugar Land
Thompsons Tomball Waller Wallis Webster
Wharton


Why Some Areas Remain Regulated?

There are two groups of consumers who are excluded from mandatory deregulation in Texas:

  1. Customers in investor-owned utility service areas outside the ERCOT Regional Transmission Organization, for example, Entergy Texas, Southwestern Electric Power Company (SWEPCO), Southwestern Public Service Company (SPS), and El Paso Electric Company
  2. Customers in areas serviced by municipal or cooperative utilities (even those within ERCOT) who have chosen to opt-out of the retail choice program. For example, Austin Energy or Bluebonnet Electric Cooperative.

Senate Bill 7 allowed municipal utilities and electric cooperatives to decide whether to participate in deregulation. Many opted to remain regulated because they are not‑for‑profit entities whose mission is to provide value to their communities. Revenues are reinvested locally and rates are set by city councils or member boards. Once a municipal utility opts in to deregulation the decision is irrevocable, so utilities weigh the potential benefits carefully. As of 2025, only a handful of cooperatives (such as Nueces Electric Co‑op) and LP&L have opted in.

How Does the Market Work in These Areas?

Usually, the utilities’ rates are regulated and set by the PUCT, which ensures that the rates reflect the “overall” costs the utility incurs and provide a reasonable return on investment. Whenever a utility seeks a rate adjustment, it must inform its customers. Those customers and any impacted groups have the right to participate in the rate case and share their input about the proposed changes.

For example, let’s say you are moving from Houston to El Paso. In Houston, you had several options for purchasing your electricity. You could shop around for rates and plan types that best fit your needs. All that changes in El Paso where the only option for electricity service is El Paso Electric.

El Paso Electric is a public-owned utility company (therefore exempt from deregulation). It is the sole electricity provider in the area and has been operating since 1901. Because there is no electric choice available in El Paso, all residents must purchase their electricity directly from El Paso Electric.

El Paso manages all generation, transmission, and distribution for the area it serves. And, the rates are also managed by El Paso Electric.

Did You Know?

The Electric Reliability Council of Texas (ERCOT) runs the state’s independent power grid, delivering power to more than 27 million people—about 90% of the state’s electricity demand. As the first independent system operator (ISO) in the U.S., ERCOT manages over 54,000 miles of transmission lines and 1,200 generation units while coordinating with TRE and NERC to maintain grid reliability. Beyond scheduling power flow, ERCOT also settles wholesale transactions and oversees retail switching for millions of competitive choice customers. A nonprofit membership-based corporation, it operates under the oversight of the Public Utility Commission of Texas and the Texas Legislature, with members that include utilities, co-ops, generators, retailers, and consumers.

Regulated Areas (No Choice of Provider)

Municipal utilities and electric cooperatives that opted out of deregulation continue to control generation, transmission and distribution in their service areas. Large regulated cities include Austin (Austin Energy), San Antonio (CPS Energy), El Paso (El Paso Electric) and Brownsville (Magic Valley Electric Co‑op). Other regulated communities include Bryan (Bryan Texas Utilities), Burnet, College Station, Denton, Georgetown, Kerrville, New Braunfels, San Marcos and parts of Garland and The Woodlands. In these areas, residents buy electricity directly from the municipal or cooperative utility and cannot switch providers.

Texas regulated cities

How to Choose the Best Retail Electricity Plan

Having dozens of providers and hundreds of plans can be overwhelming. The good news is that you do not have to navigate the market blind. Here are evidence‑based strategies for making a smart choice:

Match the plan to your usage

Electricity plans advertise a price at 500 kWh, 1,000 kWh or 2,000 kWh of monthly usage. Choose a plan that aligns with your actual consumption to avoid unexpected charges. Many providers offer bill‑credit or tiered‑rate plans that look cheap at a specific usage level but can cost more if your usage is higher or lower. If you’re unsure, a basic fixed‑rate plan is usually safest.

Understand plan types

Texas offers several plan structures:

  • Fixed‑rate plans: Lock in your price per kWh for a set term. Ideal for predictable budgeting.
  • Variable‑rate plans: Rates change monthly with market prices; riskier because costs can spike.
  • Tiered/bill‑credit plans: Provide bill credits when usage falls within certain ranges; rates may jump outside those ranges.
  • Prepaid (no‑deposit) plans: Require an upfront payment; convenient if you have credit challenges.
  • Green/renewable plans: Offset your usage with renewable energy certificates or supply power from renewable sources.
  • Time‑of‑use plans: Offer free or reduced rates during off‑peak hours or weekends. Good for households that can shift usage.

Read the Electricity Facts Label (EFL)

Every plan comes with an Electricity Facts Label that details the rate structure, contract term, fees and early termination penalties. Experts recommend reading the EFL like a nutrition label to spot hidden fees and understand the true cost. Pay attention to the base charge, energy charge, TDU delivery fees and whether the rate is indexed to market prices.

Consider contract length and seasonality

Market rates fluctuate with demand. Shopping in spring and fall—when demand is lower—can yield better prices. Longer contracts often offer price stability, while shorter terms let you re‑shop sooner if rates fall. Balance the desire for stability with the flexibility to switch when better deals arise.

Check deposits, credit requirements and cancellation fees

Many REPs require a deposit based on your credit score. Prepaid plans allow you to avoid credit checks but usually charge higher rates. Early termination fees can vary widely; choose a contract length you can realistically keep.

Try an Electricity Comparison site like Power Wizard

Since the electricity market in Texas is big and at times complicated, there are marketplaces that aim to make the life of Texans a little easier but offering in one place a way to search and sign up for a plan that fits their needs. Try Power Wizard, were you can filter and compare electricity plans baased on your preferences and needs.

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