Umair Gaines
Texas electric utilities are responsible for delivering power to homes and businesses, monitoring and maintaining electrical infrastructure, and restoring power during outages. There are five major Transmission and Distribution Utilities (TDUs) in Texas, including Oncor, the largest electric utility provider in the state, serving over 10 million customers in north, central and west Texas. CenterPoint Energy, AEP Texas, and Texas-New Mexico Power (TNMP) are also among the major utility companies in Texas. It's important to note that Texas residents can choose their electricity provider in deregulated areas, but not their utility company.
| Characteristics | Values |
|---|---|
| Number of major TDUs | 5 |
| Ability to choose your utility company | No, but you can choose your electricity provider in deregulated areas |
| Types of utility companies | Municipal Utility, Cooperative Utility |
| Examples of utility companies | AEP Texas, CenterPoint Energy, Oncor Electric Delivery, Texas-New Mexico Power (TNMP), Austin Energy |
| Oncor's number of customers | Over 10 million |
| CenterPoint Energy's number of customers | 2.2 million+ |
| AEP Texas Central's service area | Southern part of Texas |
| AEP Texas North's service area | 153 towns and 48 counties in Texas |
| AEP Texas North's number of customers | 200,000 |
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What You'll Learn
Transmission and Distribution Utilities (TDUs)
Texas has five major Transmission and Distribution Utilities (TDUs) that deliver electricity to the vast majority of the state. These are AEP Texas, CenterPoint Energy, Oncor Electric Delivery, Texas-New Mexico Power (TNMP), and Sharyland Utilities.
AEP Texas is comprised of two subsidiaries: AEP Texas Central, which serves the southern part of the state, and AEP Texas North, which serves approximately 200,000 customers in 153 towns and 48 counties. CenterPoint Energy, a Fortune 500 energy utility, provides electric transmission and distribution as well as natural gas distribution. They serve over 2 million customers in the greater Houston area and maintain the wires, poles, and electric infrastructure within the Houston metropolitan area. Oncor is the largest electric utility provider in Texas, delivering power to over 10 million customers in north, central, and west Texas. They serve as the utility company for more than 400 cities and towns in the state. Texas-New Mexico Power (TNMP) is an electricity transmission and distribution provider that serves regions in far west, north-central, and gulf coast areas of Texas. Sharyland Utilities, headquartered in Dallas, is the largest transmission and distribution utility in the state and was acquired by Oncor in January 2018.
In addition to the five major TDUs, Texas also has municipal and cooperative utilities. Municipal utilities are owned and operated by cities, such as Austin Energy. Cooperative utilities are owned by the customers they serve and primarily operate in rural areas.
It is important to note that Texas residents can choose their electricity provider in deregulated areas, but not their utility company. The utility company is responsible for delivering power, monitoring and maintaining electrical infrastructure, and restoring power during outages. Transmission and distribution fees can make up a significant portion of a customer's monthly electricity bill.
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Municipal Utility companies
- Austin Energy
- Weatherford Municipal Utility System
- City of Weimar
- City of Whitesboro
- City of Yoakum
- Texas Municipal Power Agency Bryan
- West Texas Municipal Power Agency Floydada
- Sam Rayburn Municipal Power Agency Liberty
- Granbury Municipal Electric Dept.
- Brownsville Public Utilities Board Brownsville
- Bryan Texas Utilities Bryan
- City of Burnet
- City of Garland
- Georgetown Utility Systems
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Cooperative Utility companies
In Texas, there are over 70 electricity cooperatives operating across the state, providing power to more than 3 million people. These cooperatives are a key part of the Texas electricity market, especially in rural areas. They are owned by their members, typically farmers and ranchers, rather than being government-owned, and are separate entities from the Transmission Distribution Utilities (TDUs) that serve deregulated areas.
The history of electric cooperatives in Texas dates back to the early years of electrification when private companies focused on serving populous areas as they were more profitable. This changed with the Rural Electrification Administration program in 1935, which provided federal financing for member-owned cooperatives in rural areas. The Bartlett Electric Cooperative in Central Texas was the first of its kind in the nation.
Today, cooperatives like Brazos Electric, the largest in Texas, provide wholesale power to member-owned distribution cooperatives. The Texas Electric Cooperatives (TEC) association, based in Austin, advocates for cooperatives in the Texas Legislature and Congress. It also provides professional development and safety training for cooperative employees and publishes Texas Co-op Power, a monthly magazine reaching 1.8 million cooperative members.
While cooperatives serve a large land area in Texas, when considering population, most Texans live within deregulated areas served by TDUs such as Oncor and CenterPoint Energy. These for-profit TDUs provide power to customers of Retail Electricity Providers (REPs) and allow for energy choice, which cooperatives generally do not offer.
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Choosing your electricity provider
Texas is a deregulated electricity market, which means that as a Texas resident, you can choose your electricity provider. The local utility company for your area will distribute the electricity to your home, but you can choose your provider, known as a Retail Electric Provider (REP), who buys electricity wholesale from utility companies.
There are two types of utility companies in Texas: Municipal Utility and Cooperative Utility. Municipal Utilities are owned and operated by the city, for example, Austin Energy. Cooperative Utilities are owned by the people they serve and primarily serve rural areas.
When choosing an electricity provider, it is important to do your research and understand the different plans and rates on offer. You can compare rates with your kWh usage history. You can also use a website like ChooseTexasPower.org, where you can enter your ZIP code and filter based on your preferences to find the perfect energy plan for you.
There are a variety of usage terms and conditions to fit your electricity habits and budget. For example, you can choose between variable and fixed rates, plans that offer discounts during the evening and on weekends, and plans that focus on renewable energy.
It is worth shopping around and comparing the different options before choosing an energy plan in Texas.
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Reporting power outages
In Texas, four utility companies deliver electricity to most of the state: AEP Texas, CenterPoint Energy, Oncor Electric Delivery, and Texas-New Mexico Power (TNMP). Oncor is the largest electric utility provider in Texas, serving over 10 million customers. CenterPoint Energy delivers electricity to 2.2 million+ customers in the greater Houston area. AEP Texas Central serves predominantly southern Texas.
If you experience a power outage, you can report it to your utility company. Each company has different methods for reporting outages, such as through their website or mobile app. You can usually find information about power outages in your area and estimated restoration times on their website or app as well.
For example, Entergy, a utility company in Texas, allows customers to report outages and view restoration updates through their mobile app. They can also send alerts via text or email when your power goes out. You can also call Entergy at 1-800-9OUTAGE to report emergencies like downed power lines, smoke, fire, or gas leaks.
It's important to note that you may not be able to choose your utility company in Texas, but you can choose your electricity provider in deregulated areas. When you select an electricity provider, they supply the electricity, and the local utility company distributes it to your home.
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Frequently asked questions
There are five major Transmission and Distribution Utilities (TDUs) in Texas: AEP Texas, CenterPoint Energy, Oncor Electric Delivery, Texas-New Mexico Power (TNMP), and Sharyland Utilities.
Energy providers sell electricity plans, track your usage, and manage billing. Electric utilities are responsible for delivering power, monitoring and maintaining electrical infrastructure, and fixing power outages.
Your service address determines your utility company. If you live in a deregulated city in Texas, you can choose your electricity provider, but not your utility company.
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