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The Texas Power to Choose Model Is Successful

The Texas power to choose model stands as an example of one way to make deregulation functional. Part of what makes Texas' system work is that everyone located within the deregulated areas of the state must choose among Texas electric companies.

Beginning in 2002, thanks to Texas Senate Bill 7, residents and businesses across the state were given the power to choose from Texas electricity rates from among competing energy companies.

Today, while nearly 85% of consumers have the power to choose their own Texas electricity rates, the natural gas market remains regulated.

Not sure if you live in a deregulated area of Texas?

There are six utilities in the state that offer consumers their choice of Texas electricity rates:

  • Oncor (Dallas-Ft. Worth, Midland, Odessa, Plano, Denton, Addison…)
  • CenterPoint (Houston, Galveston…)
  • AEP Central (Corpus Christi, Laredo, McAllen, Victoria…)
  • AEP North (Abilene, San Angelo…)
  • TNMP (Glen Rose, Meridian, Fort Stockton…)
  • Sharyland (Brady, McAllen…)

Enter your ZIP code now to see whether you can get competitive offers from Texas electric companies in your area.

Looking to learn more about deregulation?

No matter how experienced you are with deregulation, it's important to take your time when selecting a new plan from Texas energy companies. Explore the many resources here at SaveOnEnergy.com® and you'll be an expert in no time!

Electricity Deregulation: What are the Best Texas Energy Companies?

Texas took its first steps toward energy deregulation in 1999, when a bill was introduced outlining the restructuring of the electricity market. It wasn't until 2002 that the law was finally enacted, dramatically modifying the utility-dominated electricity process that had existed previously. One of the main reasons for the change was to allow competition to enter the marketplace in hopes that Texas electricity rates would fall for all residents.

If you have never shopped for energy companies in Texas, you were automatically enrolled with a legacy provider when deregulation laws took effect. Essentially a legacy provider is the retail arm of your utility, formed after the restructuring of the Texas energy market.

By sticking with a familiar legacy provider, such as TXU Energy, you don't know whether or not you are paying higher Texas electricity rates than you need to. You need to shop around to find the top energy companies in Texas in order to save money on your electricity bill. Texas electric companies' offers vary by location. You might discover that the company offering the best electricity rates in Dallas, TX, is different than the company offering the best electricity rates in, Houston,TX. Make sure when you compare Texas electric companies you're looking at options in the correct area of the state for the most accurate rates.

Learning how to compare energy companies in Texas is fairly simple. First, decide what features you're looking for. You could base your decision on who has the lowest Texas electricity rates, which energy companies offer the most long-term plan options or even which providers have the best customer service record.

Regardless of which retail electric provider you use your Texas power to choose, your utility will continue to deliver electricity to your home or business. It still owns the power lines in your neighborhood and is in charge of maintaining them. As always, be sure to report any power outages or electrical issues to your utility.

While deregulation affects about 85% of the Texas population, the other 15% of residents fall into a few categories. Those who live under city-owned utilities or cooperatives do not always have the power to choose among energy companies in Texas. In these areas, the utility gets to decide whether customers must continue to pay the rates it sets or have the power to choose among Texas energy companies.

Additionally, the Public Utility Commission of Texas has not yet opened competition to customers of Entergy Gulf States, Southwestern Public Service Company, El Paso Electric and AEP SWEPCO. The PUCT has determined these areas do not have enough competition in the wholesale market and would not be successful as a deregulated areas at this time.

Find Texas electricity rates information for top cities around the state:

AbileneAlvinArlingtonBaytown
BedfordBeltonBig SpringCarrollton
CleburneCopperas CoveCorpus ChristiCypress
DallasDel RioDesotoDickinson
EdinburgEulessFort WorthGarland
Grand PrairieGrapevineHarker HeightsHarlingen
HoustonIrvingKilleenKingsville
LancasterLaredoLeague CityLewisville
McKinneyMesquiteMidlandMission
Missouri CityNacogdochesOdessaParis
PasadenaPearlandPflugervillePharr
PlanoRichardsonRosenbergRound Rock
San AngeloShermanSpringStafford
Sugar LandTempleTexas CityTyler
VictoriaWacoWeslacoWichita Falls


Are You Experiencing a Power Outage in Texas?

If your electricity supply has been interrupted, you need to report the outage to your utility as soon as possible. Without reports from consumers experiencing problems, utilities aren't always able to properly assess outages. Find your utility's outage contact information below:

Oncor
Outage hotline: 1-888-313-4747

CenterPoint
Outage hotline: 1-800-332-7143

AEP (North and Central)
Outage hotline: 1-866-223-8508

TNMP
Outage hotline: 1-888-866-7456

Sharyland
Outage hotline: 1-965-668-9551

Save for your home or business in minutes!

or call us at 1-877-331-0198

How does Texas energy use measure up?

state facts pdf

Ever wonder how much energy the average resident uses each year? How about how much carbon dioxide the state emits or how big the renewable energy industry is? We did the homework for you and created some glance-worthy fact sheets on each state's energy profile.

Check it out