Compare Texas ElectricityRates and Plans

Understand rates, suppliers, local delivery and plan details before comparing electricity options in Texas.

STATE TX

GUIDE Rates + market

COMPARE ZIP + usage

SECTIONS 8

Texas electricity rates should be compared as a complete service decision, not as a single advertised number. The useful questions are who delivers power at the address, whether supply choice is available, what the current default supply option costs, and how a competing contract behaves at the household’s normal usage.

Texas comparisons work best when the service address comes first. A Houston-area CenterPoint customer, a North Texas Oncor customer and a household served by a municipal utility can face different retail choices even when their annual consumption is similar. The sections below therefore focus on the Texas market rules that actually change a household decision.

Texas electricity market at a glance

Retail choice: Available in deregulated parts of Texas
Regulator: Public Utility Commission of Texas
Utilities represented: AEP Texas, Austin Energy, CenterPoint Energy Houston Electric, CPS Energy, Lubbock Power & Light, Oncor Electric Delivery, Texas-New Mexico Power
EIA residential average: 15.88¢/kWh — July 2026

The EIA figure is a statewide historical monthly average, not a current electricity plan or offer rate.

LOCATION CHANGES THE MATH

Start with your Texas ZIP code

Rates, utilities and available plans can change by service area. Use your ZIP code as the first local filter.

Electricity market in Texas

Texas has a large competitive retail electricity market, but retail choice is not universal. Most customers in competitive ERCOT service areas choose a retail electric provider (REP), while the local transmission and distribution utility (TDU or TDSP) remains responsible for poles, wires, meters and outages. Municipal utilities and electric cooperatives can follow different rules, and some have not opened their service areas to retail competition.

ERCOT covers most of the state’s competitive market, but the map of retail choice does not follow county or city borders cleanly. The meter’s delivery utility determines whether normal REP shopping applies. That is why a ZIP code can narrow the search, but an exact address and utility confirmation are more reliable before enrollment.

How electricity choice works in Texas

In a competitive Texas service area, changing a REP changes the company that sells the retail electricity plan; it does not replace the delivery utility. A shopper should first confirm the service address and TDU territory, then compare offers that are actually available for that location. The Public Utility Commission of Texas operates Power to Choose for eligible residential customers and requires certified REPs to follow state retail-market rules.

Texas shoppers normally interact with a REP for the retail contract and with the TDU for physical delivery. Power to Choose can help eligible customers review offers, while the EFL standardizes key pricing disclosures. Keeping those roles separate makes it easier to compare contracts without confusing provider marketing with utility service responsibilities.

Utilities and electricity providers in Texas

Major delivery utilities in the competitive market include Oncor, CenterPoint Energy Houston Electric, AEP Texas and Texas-New Mexico Power. Lubbock Power & Light participates in retail choice after its transition, while Austin Energy and CPS Energy are examples of municipal systems where the normal competitive REP-shopping model does not apply. This is why a Texas ZIP code or service address must be checked before comparing plans.

Oncor, CenterPoint, AEP Texas and TNMP each operate different delivery territories, and their regulated delivery charges can differ. Austin Energy and CPS Energy use municipal models, while LP&L has its own retail-choice history. The utility on the service address therefore changes both eligibility and the non-REP portion of the bill.

Electricity rates and what affects your bill

Texas advertised prices can depend heavily on usage. A plan may include base charges, TDU delivery charges, bill credits, minimum-usage rules, time-of-use periods or other conditions that change the effective monthly cost. The Electricity Facts Label (EFL) is the key standardized document for understanding the price examples, recurring fees and plan structure. Comparing only one cents-per-kWh headline can produce the wrong result for a household with a different usage pattern.

Texas plans can look inexpensive at one advertised usage level and much less attractive at another. Bill credits, minimum-use conditions and time-of-use pricing are especially important to model with actual household consumption. Comparing the EFL examples at 500, 1,000 and 2,000 kWh can reveal pricing cliffs that a headline rate hides.

Fixed, variable and renewable electricity plans

Fixed-rate contracts are common for customers who value price stability during a defined term. Variable or month-to-month products can change more quickly and require closer monitoring. Renewable products may use renewable energy content or certificates, while time-of-use products can shift value toward nights, weekends or other periods. In Texas, promotional products such as bill-credit or free-period plans should be tested against realistic household usage rather than judged by the promotion alone.

For Texas, a fixed-rate label does not mean every bill component is fixed; regulated delivery charges can still change. Variable and month-to-month products need closer monitoring, while renewable plans should be checked for the stated renewable percentage or REC structure. Contract terms matter more than the marketing category alone.

A strong Texas comparison file includes the EFL, Terms of Service and Your Rights as a Customer document for the chosen offer. Save the version used at enrollment and note the contract end date. That gives you a concrete record if the first bill differs from expectations or the renewal terms later change.

How to compare and choose a Texas electricity plan

Start with the service address, identify the TDU, estimate monthly usage across more than one season, and then compare the same cost components across offers. Read the EFL, Terms of Service and Your Rights as a Customer document before enrollment. Check contract length, early termination terms, deposit requirements, recurring charges and the conditions attached to credits or time-of-use pricing. A plan is competitive only if its complete cost structure fits the household.

When moving within Texas, do not assume the old REP choice or delivery utility follows the customer. A new address can place the household in a different TDU territory or outside normal retail choice. For an existing address, check any early termination terms before switching and continue to report outages to the TDU, not the REP.

Moving, switching and consumer considerations

A move-in is different from a supplier switch at an existing address. In a competitive Texas area, a customer arranging service for a new home selects a REP for the new meter and should coordinate the requested start date with the provider. Existing customers switching at the same home should review the current contract before authorizing a change. Outages, damaged lines and meter-delivery problems remain TDU responsibilities even after the retail provider changes.

Texas shoppers can also use our guides to provider versus utility roles, variable-rate plans and renewable electricity plans when a contract needs more detailed review.

Frequently asked questions

Can every Texas resident choose an electricity provider?

No. Retail choice is available in many competitive Texas service areas, but municipal utilities and electric cooperatives may operate under different rules. Confirm the service address before comparing REPs.

What is the difference between a REP and a TDU?

The REP sells the retail electricity plan and handles the supply contract. The TDU or TDSP operates the local delivery network, meter and outage response for its assigned territory.

What should I compare besides the advertised Texas rate?

Compare the EFL, usage-based price examples, delivery charges, base fees, bill-credit thresholds, contract term, cancellation terms and any time-of-use conditions.

Who should I contact during a power outage?

Contact the local TDU or TDSP because it operates the delivery network. Changing a retail provider does not change the utility responsible for wires and outage restoration.