Umair Gaines
Texas has a deregulated energy market, meaning that consumers can choose their electricity provider. There are over 60 retail electricity providers in Texas, with some sources estimating that number to be as high as 300. These companies buy energy on the wholesale market and resell it to consumers. The providers offer a variety of plans and products to meet the unique needs of their customers. Texans can compare electricity rates and select the best option for their households.
| Characteristics | Values |
|---|---|
| Number of electric companies in Texas | Over 100 |
| Number of power generators acting as electricity suppliers | 600 |
| Number of Retail Electric Providers (REPs) | 300 |
| Number of Transmission and Distribution Utilities (TDUs) | 5 |
| Number of customers of CenterPoint Energy Electric | 2.3 million |
| Number of towns served by CenterPoint Energy Electric | 153 |
| Number of counties served by CenterPoint Energy Electric | 48 |
| Number of customers of Oncor | 10 million |
| Number of cities and towns served by Oncor | 400+ |
| Best electricity companies in Texas | Champion Energy, Payless Power, Constellation, Tri-Eagle, and Reliant Energy |
| Cheapest electricity plans in Texas | Gexa Energy, 4Change Energy, and Frontier Utilities |
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What You'll Learn
- Texas has a deregulated energy market, allowing customers to choose their electricity provider
- There are over 100 electricity providers in Texas
- Oncor is the electric utility company delivering power to over 10 million customers in north, central and west Texas
- Centerpoint Energy Electric is the utility company for the Houston area
- Texas Green Electricity companies offer 100% renewable energy plans
Texas has a deregulated energy market, allowing customers to choose their electricity provider
The best electricity plan for an individual depends on their needs. One must understand their electric bill to determine how much energy their home consumes monthly and then find a plan that matches their energy usage. Texans can compare electricity rates across different utility service areas and choose a plan that works for their habits.
In Texas, the local electric utility company delivers power to one's home via wires and poles. While one cannot choose their electric utility in Texas, they can choose their electricity provider. There are over 60 providers in Texas and hundreds of energy plans available.
Transmission and Distribution Utilities (TDUs) manage the infrastructure of power transmission in Texas. The TDSPs maintain the meters, wires, poles, and underground cables that bring electricity from the generators to one's home. The TDSPs are also responsible for reading the meter and providing that information to the Retail Electricity Provider (REP).
Many companies in Texas have invested heavily in renewable energy, offering 100% renewable energy plans to customers.
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There are over 100 electricity providers in Texas
Texas has a deregulated energy market, which means that anyone can create their own retail electric provider (REP). This has resulted in over 100 electricity providers in the state, with almost 300 registered energy providers in total.
Each provider offers different rates and plans, which can change daily, and they may not operate in all parts of the state. Therefore, it is important to use your ZIP code to find the accurate plans and pricing near you.
There are three different kinds of electricity companies in Texas that work together to supply electricity to your home. You will mostly interact with a Retail Electricity Provider, which provides retail electric plans and handles billing and customer service. Behind the scenes, Transmission and Distribution Utilities (TDUs) or Transmission and Distribution Service Providers (TDSPs) maintain the infrastructure that brings the electricity to your home. Finally, the Electricity Generators build and maintain the power plants that feed power into the Texas electricity grid, which is then sold to Retail Electricity Providers.
Some of the best electricity companies in Texas, according to Texas Electricity Ratings in 2024, are Champion Energy, Payless Power, Constellation, Tri-Eagle, and Reliant Energy. The lowest electricity plans across Texas in 2025 are offered by Gexa Energy, 4Change Energy, and Frontier Utilities.
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Oncor is the electric utility company delivering power to over 10 million customers in north, central and west Texas
Texas has a deregulated energy market, meaning that its residents can choose their Retail Electric Provider (REP) based on rates, plans, and customer benefits. There are nearly 600 power generators acting as electricity suppliers in Texas, and many companies in the state have invested heavily in renewable energy.
Oncor is the electric utility company delivering power to over 10 million customers in north, central, and west Texas. It is the utility company for more than 400 cities and towns in Texas and is headquartered in Dallas. Oncor is the largest transmission and distribution utility in the state and was formerly known as TXU Electric Delivery and TU Electric. The company has been working to replace analog meters with digital meters throughout its system, although some old analog meters remain.
Oncor works with private and public utilities throughout the country through Mutual Assistance Groups. The company is a member of the Texas Mutual Assistance Group, Midwest Mutual Assistance Group, and the Southeastern Electric Exchange. These mutual partnerships allow members to quickly access and deploy resources and personnel to communities impacted by severe weather. For example, Oncor crews were sent to Florida and Georgia to assist in the aftermath of Hurricane Matthew in 2016, and to California in 2018 to help restore power to areas affected by wildfires.
Oncor offers a variety of energy efficiency programs for residences and businesses to reduce energy consumption and save money on electric bills. The company has partnered with the Arbor Day Foundation's Energy-Saving Trees Program for nine consecutive years to give away thousands of free trees to customers. Oncor also assists with the adoption of larger, commercial electric vehicles and has helped install and plan locations for charging stations.
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Centerpoint Energy Electric is the utility company for the Houston area
Texas has a deregulated energy market, meaning that there are many different retail electric providers (REP) operating in the state. Texans can choose their electricity provider, selecting from a vast array of companies offering a range of plans and products. There are almost 600 power generators acting as electricity suppliers in Texas, and the state has numerous green energy companies offering 100% renewable energy plans.
CenterPoint Energy Electric is one of these REPs and is the utility company serving the Houston area, including the towns of Katy, Richmond, Humble, and Tomball. CenterPoint Energy is headquartered in Houston and is a Fortune 500 energy utility company. They serve energy markets in multiple states, including Texas, Minnesota, Oklahoma, Arkansas, Louisiana, and Mississippi. Within Texas, they provide electric transmission and distribution and maintain the electric infrastructure within the Houston metropolitan area, covering over 5,000 square miles and serving 2.3 million customers.
CenterPoint Energy's scale and presence in Houston mean that they are responsible for maintaining the wires, poles, and electric infrastructure within the Houston metropolitan area. They also provide natural gas distribution in the region. CenterPoint Energy's coverage extends beyond Houston and includes several towns in Texas. Their large-scale operations in the state ensure reliable service and efficient maintenance of the electric grid.
CenterPoint Energy's role as an REP means they handle customer-facing aspects of the business, such as billing and customer service. Behind the scenes, the TDSPs (Transmission and Distribution Service Providers) work to get power routed safely and reliably to homes. The TDSPs maintain the physical infrastructure, such as meters, wires, and poles, and they read the meters, providing that information to the REP for billing purposes.
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Texas Green Electricity companies offer 100% renewable energy plans
Texas has a deregulated energy market, meaning that anyone can create their own retail electric provider (REP). This has resulted in nearly 600 power generators acting as electricity suppliers in the state. Many of these companies have invested heavily in renewable energy, with some offering 100% renewable energy plans.
Texas Green Electricity companies include Chariot Energy, which has a long history in the solar energy market through its parent company, 174 Power Global. Gexa Energy is another company that offers 100% green energy plans, backed by its parent company, NextEra Energy, the world's largest generator of solar and wind energy. Rhythm is a Houston-based electricity company that offers plans backed by 100% Texas wind, along with a 30-day satisfaction guarantee.
Other notable Texas Green Electricity companies are Green Mountain Energy and TXU Energy. Green Mountain Energy is the longest-serving renewable energy retailer, offering only products with environmental benefits and operating with a zero-carbon footprint. TXU Energy offers plans like TXU Energy Solar Value 12 and TXU Energy Solar Saver 12, which include 25% Texas solar.
When choosing an electricity provider in Texas, it's important to consider your unique needs and preferences. Some companies may offer rewards programs, special products for improving energy efficiency, or simply low rates. By comparing these plans and products, Texans can choose the company and offering that best suits their values and requirements.
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Frequently asked questions
There are almost 300 registered energy providers in Texas, with over 100 electricity providers competing for business. There are 5 major Transmission and Distribution Utilities (TDUs) and nearly 600 power generators acting as electricity suppliers.
Yes, you can choose your electricity provider in Texas. However, you cannot choose your electric utility company, this is determined by your location.
The best electricity plan for you depends on your individual needs. Understand your electric bill to determine how much energy your home consumes monthly, then find a plan that matches your usage. You can compare plans and prices from multiple providers online.
