Energy Companies in Laredo, TX: Compare Plans, Rates & Providers

Find affordable electricity plans in Laredo with Power Wizard’s comparison tools.

Written by Christine Orlando | Reviewed By Alfred Poindexter
Last updated June 18, 2025

Enter your ZIP code to see plans in your area

Compare Laredo Electricity Rates

Laredo’s electricity rates can shift with the seasons, especially during those long, hot summers when AC usage spikes across Webb County. Local demand, regional supply, and your specific location all influence what rates are available. Power Wizard has gathered electricity rates from Laredo providers below.

Pro Tip

Springtime, especially April, tends to bring some of the best rates due to lower demand, so it’s the perfect season to shop smart and save.

Key Takeaways

  • Laredo electricity rates vary by usage and provider.
  • Fixed-rate, variable, prepaid, time-of-use, bill credit, and green energy plans are available.
  • Power Wizard shows you Laredo electricity plans and rates across various usage levels to help you find a plan that fits your lifestyle.

Top-Rated Electricity Companies Serving Laredo, TX

Whether you live in an established neighborhood off Del Mar Boulevard or in a newer community near Mines Road, Laredo residents can choose from a wide range of electricity providers. Our energy experts have compared the city’s top-rated retail electricity providers (REPs) below to help you find the best fit for your energy needs.

Electricity Company Best Known For Rating (Out of 5)
4Change Energy Low fixed rates + charitable contributions 4.58
Gexa Energy 100% green energy plans + customer rewards 4.28
TXU Energy Legacy provider with bundled perks 4.92
Payless Energy Prepaid + no credit options 3.94
BKV Energy Simple fixed rate plans + lots of perks and rewards 4.83
Green Mountain Energy Green energy plans + sustainability focus 3.55
Frontier Utilities Short-term contracts + aggressive pricing 4.92

Note: Ratings are based on Power Wizard’s internal scoring methodology and customer experience benchmarks. Plan and provider availability may vary based on your ZIP code.

How to Switch Electricity Providers in Laredo

Switching electricity providers in a deregulated area like Laredo is easier than you might think. Power Wizard gives you access to available plans in your ZIP code, so you can review options without jumping from one provider website to another. Once you select a plan that fits your needs, the transition is handled automatically — no service disruptions, no paperwork, no hassle. Here’s how it works:

  • Enter your ZIP code to see the electricity plans offered in your area.
  • Review your options and choose the plan that works best for your budget and lifestyle.
  • Enroll online through Power Wizard’s website.
  • Your new provider takes care of the switch, including notifying your utility.

Who Delivers Your Electricity in Laredo?

In Laredo, AEP Texas Central is the Transmission and Distribution Service Provider (TDSP) responsible for maintaining the infrastructure that delivers electricity to your home or business. Utilities are assigned by location, so it stays the same even if you switch retail electricity providers (REPs).

Your electric bill will include delivery charges known as TDU or TDSP fees. These are set and regulated by the Public Utility Commission of Texas (PUCT) and appear as a separate line item on your electric bill. Switching providers will not change these charges.

Types of Electricity Plans in Laredo

Electricity needs vary across Laredo — a family home near Lamar Bruni Vergara Middle School might use more power than a one-bedroom apartment near Laredo College. Luckily, Texas REPs offer many types of energy plans to match different lifestyles.

Your electric bill will include delivery charges known as TDU or TDSP fees. These are set and regulated by the Public Utility Commission of Texas (PUCT) and appear as a separate line item on your electric bill. Switching providers will not change these charges.

Fixed-Rate Electricity Plans

Fixed-rate electricity plans lock in a consistent price per kilowatt-hour (kWh) for the entire length of your contract, usually ranging from 6 to 36 months. These plans are designed to offer stability, making them a popular choice for homeowners and anyone planning to stay in one place for a while.

Pros:

  • Stable, predictable bills
  • Protection against seasonal price spikes
  • Ideal for long-term residents

Cons:

  • Early termination fees (ETFs) may apply
  • Not flexible for short-term stays
  • Market rates may drop during your contract

Variable-Rate Electricity Plans

Variable-rate plans change based on market conditions. This type of plan might work well for someone who needs short-term electricity service or wants the freedom to change providers as needed. However, monthly bills can fluctuate significantly, especially during periods of high electricity demand, which can make budgeting more difficult.

Pros:

  • No long-term contracts
  • Freedom to switch plans without penalty
  • May offer lower rates during low-demand months

Cons:

  • Rate unpredictability
  • Harder to budget consistently
  • Risk of spikes during high-usage periods

Prepaid / No-Deposit Electricity Plans

Prepaid electricity plans allow customers to pay for their electricity in advance without a credit check or deposit. These plans are often pay-as-you-go and provide same-day service in many cases. They can be a good fit for anyone who has a poor or limited credit history, needs power fast, is in a short-term living situation, or wants more control over their energy spending.

Pros:

  • Accessible for customers with limited or no credit
  • Same-day service in many cases
  • Greater control over electricity costs

Cons:

  • Generally higher per-kWh costs
  • Must monitor account balance closely
  • Risk of disconnection if funds run low

Time-of-Use (TOU) Plans

Time-of-use plans offer different electricity rates depending on when you use power. They typically provide free or low-rate nights and weekends, making them beneficial for households that can shift their energy usage to these time periods.

Pros:

  • Lower rates during nights or weekends
  • Encourages shifting usage to off-peak hours
  • It can benefit those who are away during the day

Cons:

  • Requires smart meter installation
  • Higher rates during peak demand periods
  • It can be hard to manage without close monitoring

Green / Renewable Energy Plans

Green energy plans support investments in renewable energy sources like Texas wind, solar, and hydropower. These plans are often comparable in price to traditional options and can be a good fit for environmentally conscious consumers. They offer a way to contribute to a greener planet without changing your energy habits.

Pros:

  • Supports sustainable energy initiatives
  • Often price-competitive with traditional plans
  • Offered by providers like Gexa Energy and Rhythm

Cons:

  • Availability may vary by ZIP code
  • Some green plans include slight premium costs
  • Infrastructure still relies on the traditional grid

Understanding Deregulated Electricity in Laredo

Laredo residents benefit from Texas’s deregulated electricity market, which gives them more control over their electricity choice and how much they pay. Unlike cities served by a single utility company, deregulation in Laredo separates electricity delivery from electricity supply.

Here’s what that means for you:

  • You’re free to choose from dozens of electricity providers, each offering different rates, contract terms, and plan features tailored to specific needs.
  • Competition among providers creates opportunities for lower prices, better customer perks, and plans that align with your lifestyle.

This competitive model, introduced in Texas in 2002, has allowed Laredo households to shop smarter, avoid long-term overcharges, and make more informed decisions about their electricity usage.

Smart Tips for Comparing Electricity Providers in Laredo

Choosing an electricity provider in Laredo involves more than just selecting the lowest rate. With dozens of plans available at any given time, it’s important to compare providers across multiple factors that can affect your monthly bill, service experience, and energy goals. Compare each of the following before selecting a plan:

  • Rate per kWh: Check whether the rate is fixed or variable and if it includes base charges or tiered pricing.
  • Contract term: Plans may range from month-to-month to multi-year contracts. Choose one that fits your living situation.
  • Cancellation fees: Early termination fees (ETFs) can apply if you leave before your contract ends, so review the terms before making a switch.
  • Green energy mix: Some providers offer plans with partial or full renewable energy content. Before enrolling, make sure you understand your plan’s green energy content.
  • Customer service reputation: Look for reviews and ratings to see how each provider handles billing, support, and outages.

This competitive model, introduced in Texas in 2002, has allowed Laredo households to shop smarter, avoid long-term overcharges, and make more informed decisions about their electricity usage.

Moving To Laredo? What to Consider Before Choosing a Plan

If you’re relocating to Laredo, setting up electricity is one of the first steps to getting settled. Before choosing an electricity plan, consider the following factors:

  • Size of your home: Larger homes often use more electricity, especially in summer months.
  • Typical monthly usage: Some plans offer better pricing at specific usage levels, such as 1,000 or 2,000 kWh.
  • Schedule: Your daily routine may affect whether a time-of-use plan is worth exploring.
  • Credit score or preference for prepaid plans: No-deposit and prepaid options are available for those seeking alternatives to traditional credit checks
  • Electric vehicle or solar buyback plans: Households with EVs or rooftop solar may want plans that align with higher usage or offer renewable energy benefits.

Moving To Laredo? What to Consider Before Choosing a Plan

Managing household utilities doesn’t have to be confusing. In Laredo, different providers handle services like gas, water, and waste collection. Below is a breakdown of who does what, and how to reach them if you need support.

Natural Gas Service

CenterPoint Energy provides natural gas in Laredo. You can contact them at:

Water and Sewer Services

The City of Laredo Utilities Department oversees all residential and commercial water services, including sanitation and sewer infrastructure.

Trash and Recycling Collection

Garbage pickup and recycling services are managed by Laredo Solid Waste Services. Details regarding collection schedules, bulk item pickup, and recycling drop-off locations:

  • Trash Pickup: (956) 796-1098
  • Landfill: (956) 795-2515
  • Administration: (956) 795-2510

FAQs


Yes, you can switch electricity providers at any time in Laredo. However, many plans have early termination fees (ETFs). Read your current plan’s Electricity Facts Label (EFL) to see whether any penalties apply to your situation.


Yes, Laredo businesses can choose from a variety of commercial electricity plans. These plans often differ from residential options in pricing, contract terms, and usage thresholds. Business owners can typically select plans that align with their operating hours and energy demands.


To find the lowest available rate, enter your ZIP code into Power Wizard’s comparison tool to view all current electricity plans offered in your area. Rates vary based on contract length, usage level, and pricing structure. Keep in mind that the cheapest rate on paper may not always be the best fit once you factor in base charges, usage tiers, or promotional terms.


Yes, Laredo has prepaid electricity options that don’t require credit checks or upfront deposits. They can be a good fit for residents with low or no credit, people living in short-term housing, or anyone who wants more control over their energy spending.


When reviewing electricity plans, watch for these common fees:

  • Early termination fees (ETFs) for ending a contract early
  • Monthly base charges regardless of how much energy you use
  • Usage tier pricing, where rates change depending on how much electricity you consume
  • Minimum usage fees if your consumption falls below a set threshold

Always read each plan’s Electricity Facts Label (EFL) to understand exactly what you’ll be charged.

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