Texas has the most competitive deregulated energy market in the United States. If you live on the ERCOT (Electric Reliability Council of Texas) grid — which covers the vast majority of the state — you can choose your own Retail Electric Provider (REP) and lock in a rate that beats what your current provider charges. With over 100 licensed REPs competing for your business, Texas deregulated energy shopping gives consumers more choice and more leverage than any other state in the country.

How Texas Energy Deregulation Works

In the Texas deregulated energy market, your local transmission utility — Oncor (Dallas/Fort Worth), CenterPoint (Houston), AEP Texas Central (South Texas), or TNMP (West Texas) — owns the power lines and handles outages and delivery. These utilities do not sell electricity to consumers. Instead, licensed Retail Electric Providers compete to supply electricity at rates they set, creating real competition that benefits you.

Who Can Shop in Texas

Most of Texas is deregulated and eligible for REP shopping. This includes Houston (CenterPoint), Dallas and Fort Worth (Oncor), Corpus Christi and South Texas (AEP Texas Central), Waco, Killeen, Abilene, and hundreds of smaller communities across the ERCOT grid. Notable exceptions where you cannot shop REPs include El Paso (Xcel Energy), Austin (Austin Energy city utility), and San Antonio (CPS Energy city utility).

Understanding the Electricity Facts Label (EFL)

Every licensed Texas REP must provide an Electricity Facts Label (EFL) — a standardized document required by the Public Utility Commission of Texas (PUCT) that shows the true cost of a plan at 500, 1,000, and 2,000 kWh of usage. The most important number to compare is the average price at 1,000 kWh, which represents a typical Texas household’s monthly usage. This is your apples-to-apples comparison number across all plans.

Best Electricity Plan Types in Texas

Fixed-Rate Plans

Fixed-rate plans lock in your supply rate per kWh for the contract term, typically 6, 12, or 24 months. This protects you from wholesale price spikes — especially during Texas summers and winter storm events when demand surges. For most Texas households, a 12-month fixed rate is the recommended starting point. It provides enough stability to budget predictably while giving you flexibility to re-shop when the contract ends.

Free Nights and Weekend Plans

Several Texas REPs offer plans where electricity is free during off-peak hours — typically nights from 9pm to 6am, or all day on weekends. These plans can deliver significant savings for households that run dishwashers, washing machines, electric vehicle chargers, and other high-draw appliances during off-peak hours. The daytime rate is higher, so actual savings depend heavily on your usage pattern.

100% Renewable Energy Plans

Texas has one of the strongest wind and solar energy markets in the country. REPs like Chariot Energy, Green Mountain Energy, and Rhythm Energy offer 100% renewable electricity plans backed by wind or solar generation, often at rates competitive with non-renewable alternatives. If reducing your carbon footprint is a priority, Texas is one of the best states in the country to find green electricity at a fair price.

Prepaid No-Deposit Plans

Texas offers prepaid electricity plans from providers like Payless Power and GridPlus that require no credit check and no deposit. You pay as you go and receive daily or weekly usage alerts. Rates are typically higher than fixed-rate plans, but the flexibility and no-deposit structure make them valuable for households that cannot qualify for standard plans or prefer maximum flexibility.

Texas Electricity Rates by City in 2026

Houston (CenterPoint Energy Delivery)

Houston is the largest deregulated energy market in Texas. CenterPoint handles delivery across the Houston metro, and competition among REPs is intense. Fixed rates for 12-month plans typically range from 10.5 to 13.5 cents/kWh in the Houston market. Top competing REPs include Reliant Energy, TXU Energy, Direct Energy, Gexa Energy, Rhythm Energy, and Chariot Energy. Watch for bill credit plans that offer monthly credits at specific usage levels — they can reduce your effective rate below 10 cents/kWh at high usage.

Dallas and Fort Worth (Oncor Delivery)

The DFW Metroplex is in Oncor’s delivery territory, the largest transmission utility in Texas. Oncor’s delivery charges are among the lowest in the state, meaning competitive REP rates translate more directly into bill savings. Fixed rates in the DFW market typically run 10 to 13 cents/kWh for 12-month plans. TXU Energy is the largest REP in Texas by market share, but Gexa Energy, 4Change Energy, and Green Mountain Energy frequently offer more competitive rates.

Austin Suburbs (on ERCOT Grid)

While the City of Austin is served by Austin Energy (a city-owned utility not on the deregulated ERCOT grid), surrounding communities — Cedar Park, Round Rock, Pflugerville, Kyle, Buda, Georgetown, and others — are on Oncor or Pedernales Electric territory and can shop REPs freely. If you live in the greater Austin area but outside Austin Energy’s service territory, you are eligible for the full Texas deregulated energy market.

Internet Providers in Texas: Compare by Metro

Texas has strong internet competition in its major metros, creating an excellent opportunity to bundle energy and internet savings simultaneously.

Houston Internet Providers

AT&T Fiber is expanding aggressively in Houston with symmetrical speeds and no data caps. Xfinity covers the widest area across the Houston metro with strong cable performance. Frontier Fiber is growing in greater Houston. T-Mobile Home Internet provides a flat-rate, no-contract 5G option. Starlink is available for rural Houston-area households. See our full Houston internet provider comparison guide for current rates.

Dallas and Fort Worth Internet Providers

AT&T Fiber, Xfinity, Frontier Fiber, and T-Mobile Home Internet all compete in the DFW market. Frontier Fiber has strong coverage in parts of the metro and offers competitive gigabit pricing. AT&T Fiber is expanding rapidly in both Dallas and Fort Worth neighborhoods.

Home Security in Texas: Vivint, ADT, and Smart Home Options

Texas is one of Vivint’s strongest markets, with professional installation teams operating across Houston, Dallas, Fort Worth, San Antonio, and Austin. Vivint’s smart home packages include smart thermostats that directly integrate with your electricity usage — a particularly powerful combination in Texas, where air conditioning accounts for a significant portion of summer electricity consumption. By optimizing thermostat settings automatically, Vivint can help reduce your kWh usage, making your competitive REP rate even more effective. ADT also serves Texas statewide with professional monitoring options.

How to Switch Electricity Providers in Texas

  1. Find your ESI ID — The 17-digit Electric Service Identifier on your electric bill, unique to your meter.
  2. Check your contract end date — If you are mid-contract with a current REP, check the early termination fee against your potential savings before switching.
  3. Compare plans by zip code — Enter your Texas zip code at Utility Search Marketplace to see current rates from licensed REPs at your address.
  4. Read the EFL — Compare plans using the average price at 1,000 kWh for apples-to-apples comparison.
  5. Enroll online in minutes — Most REPs complete enrollment in under 10 minutes. Your service is never interrupted.
  6. Best time to shop — Spring (March through May) when wholesale electricity prices are at their seasonal low.

Frequently Asked Questions: Texas Deregulated Energy

What happens to my electricity if my REP goes out of business?

If your REP loses its license or goes out of business, the PUCT automatically moves your account to a Provider of Last Resort (POLR) in your area. Your electricity never goes out. You would then shop for a new REP and switch to a preferred plan, as POLR rates are typically higher than competitive market rates.

Can I switch REPs if I am renting in Texas?

Yes, if the electricity account is in your name. If your landlord pays electricity and includes it in rent, you cannot independently switch. But if you have your own account, you have full access to the Texas deregulated energy market regardless of renter or owner status.

How often should I shop electricity rates in Texas?

Every 12 months — when your fixed-rate contract expires. Set a calendar reminder 60 days before your contract end date so you can shop during the spring (typically the best season for low rates) and enroll before your contract expires and auto-renews, often at a higher rate.

Related Texas Energy and Internet Guides

📖 Cheapest Electricity in Texas 2026: City-by-City Rate Comparison

📖 How to Switch Electricity Providers in Texas: Step-by-Step Guide

📖 Best Internet Providers in Houston TX 2026

📖 Internet Choice in Deregulated Energy States: Complete Bundling Guide

👉 Compare Texas electricity rates, internet providers, and home services at Utility Search Marketplace