Molly Ayala
Texas has a deregulated energy market, meaning residents can choose their electricity provider from a list of available options. However, the company that transmits and delivers electricity to your home, known as the Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP), is determined by your address. There are five TDSPs in Texas, each servicing a specific area of the state's deregulated energy grid. The two largest TDSPs in the state are Oncor and CenterPoint, with service areas that include Dallas, Fort Worth, and Houston.
| Characteristics | Values |
|---|---|
| Number of electricity companies in Texas | Over 40 |
| Choice of electricity provider | Yes, for around 85% of residents |
| Choice of company that transmits and delivers electricity | No |
| Companies that transmit and deliver electricity known as | Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP) |
| Number of TDUs in Texas | 5 |
| TDU for central, eastern or western Texas | Oncor |
| TDU for Dallas/Fort Worth metropolitan area | Oncor |
| TDU for Houston | CenterPoint |
| TDU for Lubbock area | LP&L |
| TDU for Abilene and surrounding areas | AEP North |
| TDU for Corpus Christi and the Rio Grande Valley | AEP Central |
| TDU for Lewisville and many Gulf Coast communities | TNMP |
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What You'll Learn
- Deregulation in Texas means consumers can choose their electricity provider
- The utility company is responsible for delivering electricity to your home
- You can find your utility company by using an ESID Lookup Tool
- AEP Electricity is a subsidiary of American Electric Power
- Oncor is the largest utility company in Texas
Deregulation in Texas means consumers can choose their electricity provider
Deregulation in Texas means that consumers can choose their electricity provider. In 1999, Senate Bill 7 was signed into law in Texas, paving the way for a deregulated energy market. This meant that old monopolies were broken up, and a new system was created, allowing retail electricity sales to be opened to competition.
Since 2002, Texas has had the largest deregulated market in the nation, with over 26 million people (more than 85% of the state's population) able to select their electricity provider. This figure has risen to over 20 million as of 2024. Deregulation has also incentivized retail electric providers to continuously innovate to stay competitive, and renewable energy sources have been encouraged.
There are two companies involved in the sale of electricity in Texas. The Retail Electricity Provider (REP) sells energy plans to homes and businesses, and the Transmission and Distribution Utility (TDU) delivers that energy to the point of use with power lines and transformers. You can choose your REP, but your TDU is determined by your address, as only one company is in charge of the power grid for a given area. TDUs are also called TDSPs (Transmission and Distribution Service Providers).
There are five TDSPs in Texas, and they are responsible for operational tasks such as delivering electricity, reading meters, and addressing outages. They do not sell electricity products directly to customers. The five TDSPs in Texas are CenterPoint, AEP Texas, Texas-New Mexico Power, and ONCOR. AEP Texas is further divided into AEP Texas Central and AEP Texas North, which cover different areas of the state.
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The utility company is responsible for delivering electricity to your home
Texas has a deregulated energy market, which means that residents can choose their electricity provider from a list of available options. However, you cannot choose the company that transmits and delivers electricity to your home. This company is known as the Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP). There are five TDUs in Texas, each servicing a specific area of the state's deregulated energy grid.
The TDU for your area is determined by your address, as only one company manages the power grid for a given area. You can find out which utility company serves your address by using an ESID Lookup Tool (Electricity Service Identifier). You can also check your electricity bill, as your provider's name and contact information should be listed on the bill. If you don't have a bill or are unsure, you can contact the Public Utility Commission of Texas (PUCT) or use online search tools.
The largest TDU in Texas is Oncor, which serves over 10 million residential and commercial customers and manages over 119,000 miles of transmission and distribution lines. Oncor's service area includes major cities such as Dallas, Fort Worth, Odessa, Killeen, Midland, Waco, Tyler, and Wichita Falls. Other TDUs in Texas include CenterPoint, AEP Texas North, AEP Texas Central, TNMP, and LP&L.
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You can find your utility company by using an ESID Lookup Tool
Texas has had a deregulated energy market for over two decades, which means that most residents can choose their electricity provider. However, the company that transmits and delivers electricity to your home—known as the Transmission and Distribution Utility (TDU) or Transmission and Distribution Service Provider (TDSP)—is determined by your address. There are five TDUs in Texas, each servicing a specific area of the state's deregulated energy grid.
There are several ESID Lookup Tools available online. One tool specifically for commercial businesses will provide you with your ESID, the name of the local utility, and confirmation that it is a commercial meter. Another tool is for commercial ESID lookup only and will identify ESID numbers for both residential and business addresses. A third tool will provide you with your Texas-New Mexico Power ESID by entering your address.
If you are unable to find your ESID number using an ESID Lookup Tool, it may be because your service location or meter is new and hasn't been set up yet. In this case, you should contact your local utility company to schedule a new meter set.
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AEP Electricity is a subsidiary of American Electric Power
In Texas, there are two companies involved in the sale of electricity to consumers. The Retail Electricity Provider (REP) sells energy plans to homes and businesses, while the Transmission and Distribution Utility (TDU) delivers the energy to the point of use. Also called the Transmission and Distribution Service Provider (TDSP), the TDU is responsible for delivering electricity to your home, reading your meter, and addressing outages.
The company is divided into two business units in Texas: AEP Texas Central and AEP Texas North. AEP Texas Central covers many southern areas near the US-Mexico border, including Corpus Christi, McAllen, and Laredo. AEP Texas North covers many areas in the center and west of the state, including Abilene, San Angelo, and Alpine, as well as some northern areas south of Amarillo.
AEP Electricity offers a range of energy-saving products and services to its customers. Their ECO-Advantage® plans provide environmentally-friendly options for residential, small business, commercial, and industrial customers, matching up to 100% of electricity usage with Green-e® Energy Certified Wind Renewable Energy Certificates (RECs). AEP Energy also has an online Reward Store, where customers can shop for energy-efficient products and earn Reward Dollars each month for being an AEP Energy customer.
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Oncor is the largest utility company in Texas
In Texas, there are two companies involved in the sale of electricity. The Retail Electricity Provider (REP) sells energy plans to homes and businesses, while the Transmission and Distribution Utility (TDU) delivers that energy to the point of use with power lines and transformers. While you can choose your electricity provider, your TDU is determined by your address, as only one company manages the power grid for a given area.
Oncor is the largest TDU in Texas, delivering electricity to more than 10 million residential and commercial customers. With its main offices located in Dallas, Oncor has a service area of over 400 communities across Texas, including major cities like Dallas, Fort Worth, Odessa, Killeen, Midland, Waco, Tyler, and Wichita Falls. Oncor owns, powers, and maintains more than 420,000 streetlights across Texas, responding to more than 70,000 streetlight outage reports annually.
Oncor is also a member of the Texas Mutual Assistance Group, Midwest Mutual Assistance Group, and the Southeastern Electric Exchange. The mutual partnerships are part of a larger network of utilities that meet throughout the year to share best practices and improve safety methods. Oncor crews were sent to Florida and Georgia to assist in the aftermath of Hurricane Matthew in 2016, to California in 2018 to help restore power to areas affected by wildfires, and to Florida in 2019 to help prepare for Hurricane Dorian.
Oncor has also been working to improve energy efficiency and reduce energy usage. Its Take A Load Off program has helped more than 250,000 customers reduce their energy usage, and the company has also been involved in planning and installing charging stations for electric vehicles. Oncor has also partnered with the Arbor Day Foundation's Energy-Saving Trees Program, giving away thousands of free trees to customers.
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Frequently asked questions
You can find your local electric company in Texas by using an ESID Lookup Tool (Electricity Service Identifier). You can also determine your electric utility company by your address or zip code.
In Texas, the utility company and the electricity provider are separate companies. The utility company, also known as the power company, delivers power to your home and handles emergencies. The electricity company provides power, handles customer service, sends your bill and coordinates with the utility company.
Oncor is the largest electricity company in Texas, serving over 10 million people in the state. CenterPoint Energy is another major electricity company in Texas, serving over 2.5 million customers in Houston.
There are five utility companies in Texas that service the deregulated areas: Oncor, CenterPoint, AEP Texas North, AEP Texas Central, TNMP and LP&L.
