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In deregulated energy markets, like most parts of Texas, customers have the power to choose an energy provider. This is different from the system in regulated cities, where residents and business owners are required to buy power from their local utility company.
If you live in a deregulated city in Texas, Choose Texas Power can help you browse and compare electricity rates and plans from dozens of light companies. To see what’s available in your area, enter your ZIP code on this page.
Keep in mind, though, that no matter which energy provider you choose, the utility company in your area will still deliver your electricity. Your utility is also in charge of restoring power during outages, so it’s important to know your Texas utility company and have the contact information available.
Texas electric utilities are responsible for delivering power, monitoring and maintaining electrical infrastructure, and fixing power outages. On the other hand, energy providers sell electricity plans, track your usage, and manage billing. While you’re able to choose your electricity provider in deregulated areas, you can’t select or change your utility company, which is assigned to you based on your address.
Understanding which Texas utility company serves your area is important for a couple of reasons. First, if you’re experiencing a power outage, you’ll need to report it to your utility. And second, your electric bill will include transmission and delivery charges from your utility, so it’s helpful to know which company is setting those fees.
Some Texas cities have several utilities servicing the area. If your city has more than one utility company, you’ll need to confirm which one is yours when browsing rates on Choose Texas Power’s marketplace.
Regardless of which energy company you purchase your electricity from, your utility will charge fees for delivering your energy. Also known as Transmission and Distribution Utility (TDU) charges, these fees consist of two parts: a base charge and a usage-based charge. They’re set by the Public Utility Commission of Texas (PUCT) and vary by utility company.
Currently, the base fees range from $3.21 to $7.85 per month from various Texas utilities, while the usage charges range from 5.3 cents per kilowatt-hour (kWh) to 6.4 cents per kWh. However, these fees can change twice per year, in March and September. These changes account for fluctuations in energy demand throughout the year.
There are five main energy utility companies in Texas, most of which serve several different areas in Texas cities. Take a look at the list to see which one services your area.
Major Areas Served: Corpus Christi, McAllen, Harlingen, Victoria, Laredo
Founded: 1906
Former Names: Central Power and Light
Customers: 1 million+
Major Areas Served: Abilene, Albany, Alpine, Marfa, San Angelo, Vernon
Founded: 1927
Former Names: West Texas Utilities Company
Customers: 1 million+
Major Areas Served: Houston metropolitan area
Founded: 1866
Former Names: Houston Lighting & Power Company, NorAm Energy Corp.
Customers: 2.9 million+
Major Areas Served: Dallas–Fort Worth, Tyler, Waco, Midland, Odessa, Wichita Falls
Founded: 1912
Former Names: TU Electric, Sharyland Utilities, Dallas Power & Light, Texas Electric Service Company (TXU)
Customers: 13 million+
Major Areas Served: Dickinson, Texas City, Fort Stockton, Friendswood, Lewisville, West Columbia, Clifton
Founded: 1934
Former Names: Community Public Service Co.
Customers: 270,000+
You can’t pick your utility company in deregulated parts of Texas because utilities are determined by your location. However, you can choose from many different electricity companies to find a plan that fits your needs. You can also switch energy providers if you’re dissatisfied with your current service or you’re looking for a cheaper rate.
There are several major utility companies in Texas, including Oncor Electric Delivery, CenterPoint Energy, Texas-New Mexico Power, AEP Texas Central, and AEP Texas North. Your utility is dependent on your location within the state.
It depends on where you live in Texas. If you’re unsure which utility serves your home, you can review your last electricity bill, which should list your utility and its transmission charges. Alternatively, you can use your ZIP code in an online search to find your area’s utility, or contact your local government office.
If your city’s energy market is deregulated, you can choose a plan from any of the electricity providers that serve your area. To explore your options, submit your ZIP code on Choose Texas Power’s marketplace and begin comparing plans today.
