Texas offers a wide range of electricity plans to fit just about every type of household or business. Whether you live in a high-rise in Dallas or a single-family home in Houston, there’s a plan that fits your usage habits, budget, and risk tolerance. From short-term contracts to multi-year fixed-rate options, the Texas market gives you the flexibility to choose what works best for you.
Texas deregulated its electricity market in 2002, allowing residents in most areas to choose their retail electricity provider (REP). That means you’re not locked into one utility—you can shop around for the best rate and plan for your needs.
Deregulation brings benefits like more plan options, competitive pricing, and the ability to switch providers. However, it also means rates can change, especially during high-demand seasons such as summer and winter.
Today’s trends indicate an increasing emphasis on green energy options, time-of-use plans, and smart technology upgrades. With so many choices, using a tool like Power Wizard can help you avoid overpaying and find a plan that fits your home and habits.
Electricity rates in Texas are shaped by a mix of usage habits, market dynamics, and where you live. That means rates can vary between households and businesses across the state.
Residential electricity rates are usually based on total kilowatt-hour usage and include fixed fees from your TDU. These rates are designed for homes, which often have variable usage patterns that change from month to month. Homeowners can benefit from fixed-rate plans that offer pricing stability over the term of their contract, even when market prices fluctuate.
Commercial electricity rates work a little differently. Businesses often use more electricity on a consistent schedule, which allows providers to offer lower rates per kilowatt-hour. However, commercial plans may include additional charges based on peak demand usage. The more energy a business uses during high-demand times, the higher those charges can be.
Every electricity plan has an Electricity Facts Label (EFL) that outlines its pricing structure and details. Carefully review the EFL before enrolling to make sure you understand what you’re signing up for.
There’s no shortage of REPs for Texas residents and businesses to choose from. With dozens of providers competing in the market, you’ve got plenty of options when it comes to rates, contract terms, and plan features. Below is a list of active REPs serving deregulated areas of Texas, so you can get a feel for who’s out there before comparing plans.
Want to know which providers are available in your area? Enter your ZIP code into Power Wizard’s comparison tool!
In Texas, your electricity service comes from two separate players: the utility and the provider. Your utility, also called a Transmission and Distribution Utility (TDU), owns and maintains the power lines, poles, and meters. They’re responsible for delivering electricity to your home and handling outages, no matter which plan or provider you choose.
Retail Electric Providers (REPs), on the other hand, sell you the electricity. They set your rate, offer contract terms, and send your monthly bill. You can shop around and switch providers, but your utility stays the same based on where you live.
Utilities charge separate fees for their services that will appear on your monthly electricity bill as TDU or TDSP (Transmission and Distribution Service Provider) fees. These are set by the utility and will not change if you switch to a different REP. However, they may be updated throughout the year, so don’t be surprised if they change.
The Public Utility Commission of Texas (PUCT) oversees the state’s electric, water, and telecommunications utilities. They monitor providers, handle complaints, and make sure companies are clear about pricing and contract terms. If a provider breaks the rules, the PUCT can issue fines, revoke licenses, or take legal action.
ERCOT, or the Electric Reliability Council of Texas, manages the flow of power on the Texas grid. It balances electricity supply and demand in real-time and ensures the grid remains stable and reliable. Together, the PUCT and ERCOT keep the lights on and the market fair.
The deregulated electricity market in Texas offers consumers more choice, but it also comes with regulations to ensure fairness and transparency. The PUCT is the agency that oversees these regulations.
Texas electricity customers have several built-in protections, including but not limited to:
For a complete list of all regulations and protections, visit the Public Utility Commission of Texas website.
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Here’s how it works:
With Power Wizard, you get all the information you need up front, so you can shop smarter and lock in an electricity plan with confidence.
