Texas has the biggest electricity market in the US where you can pick your own power company. Since 2002, people in 173 out of 254 Texas counties can choose who sells them electricity. You are not stuck with just one utility company. This means many companies compete for your business. They offer hundreds of different plans.
The average home electricity rate in Texas is about 15.37 cents per kWh as of late 2025. This comes from Energy Information Administration data. Rates change a lot based on your utility service area. For example, Oncor customers pay about 16.14 cents per kWh. CenterPoint Energy customers pay around 16.67 cents per kWh whileAEP Texas Central customers pay about 16.62 cents per kWh.
Complete list of top energy providers in texas
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- 1. TXU Energy
- 2. Reliant Energy
- 3. Gexa Energy
- 4. Green Mountain Energy
- 5. Direct Energy
- 6. Cirro Energy
- 7. Rhythm Energy
- 8. Champion Energy
- 9. APG&E
- 10. 4Change Energy
- 11. Frontier Utilities
- 12. Pulse Power
- 13. Veteran Energy
- 14. Discount Power
- 15. TriEagle Energy
- 16. Chariot Energy
- 17. Constellation Energy
- 18. Octopus Energy
- 19. Payless Power
- 20. Express Energy
- 21. BKV Energy
- 22. CleanSky Energy
- 23. Flagship Power
- 24. Energy Texas
- 25. OnPoint Energy

How Texas Electricity Works
The Texas electricity market splits power generation and delivery into two separate jobs. Retail Electric Providers (REPs) buy electricity on the wholesale market. They sell plans directly to you. Transmission and Distribution Utilities (TDUs) like Oncor, CenterPoint Energy, and AEP Texas keep up the physical stuff. This includes power lines, poles, and meters.
You pick your REP and electricity plan. But your TDU is assigned based on where you live. The TDU charges delivery fees. These fees show up on your bill no matter which provider you pick. Delivery charges usually add 3.2 to 6.3 cents per kWh. This depends on your service area. They also add a monthly base charge between $3.42 and $9.00.
The Electric Reliability Council of Texas (ERCOT) manages electricity flow across the state grid. They serve more than 26 million customers. ERCOT runs on its own. It is not connected to the national power grid. This makes Texas unique among US states.
25 Texas Electricity Providers: Complete List
1. TXU Energy

Website: txu.com
Phone: 1-866-278-4898
Founded: 1882 (as Dallas Electric Lighting Company)
Headquarters: Irving, Texas
Customers Served: 2+ million
TXU Energy is the oldest and biggest electricity provider in Texas. It started 140 years ago. The company runs under Vistra Energy. It serves homes and businesses in deregulated areas. TXU sees itself as a premium provider. They charge higher rates. But they give you loyalty rewards, usage tools, and flexible plan features.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Simple Rate 12 | 12 months | 15.48¢ – 17.63¢ | Straightforward fixed rate |
| Free Nights & Solar Days | 12 months | 15¢ – 18¢ | Free electricity 8pm-4:59am |
| Solar Club | 12 months | 16¢ – 18¢ | 500 kWh solar offset monthly |
Pros: 24/7 customer service, mobile app tracks usage, 3% cash back rewards, satisfaction guarantee, longest history in Texas
Cons: Premium pricing costs 10-20% more than budget providers, complex plan structures with tiered credits, TDU delivery fees not itemized on EFL
2. Reliant Energy

Website: reliant.com
Phone: 1-866-222-7100
Founded: 2001
Headquarters: Houston, Texas
Parent Company: NRG Energy
Customers Served: 1+ million
Reliant Energy is one of Texas’s most well-known electricity brands. NRG Energy owns it. Reliant is known for new plan types. These include free nights, free weekends, and Pick Your Free options. The company only works in Texas. It keeps high customer satisfaction ratings.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Secure Advantage 12 | 12 months | 12.45¢ – 13.86¢ | Standard fixed rate |
| Power Savings 12 | 12 months | 12¢ – 15¢ | $50 credit at 1,000+ kWh |
| Pick Your Free Nights | 12-24 months | 14¢ – 17¢ | Free 8pm-6am, 100% solar |
| Pick Your Free Weekends | 12-24 months | 14¢ – 17¢ | Free Friday 8pm-Monday midnight |
Pros: 90-day satisfaction guarantee, mobile app, airline miles programs (American, United, Southwest), same-day service available, strong customer service reputation
Cons: Higher rates than budget providers, early termination fees up to $395 on 36-month plans, only 24% renewable on standard plans
3. Gexa Energy

Website: gexaenergy.com
Phone: 1-866-961-9399
Founded: 2002
Headquarters: Houston, Texas
Gexa Energy has served Texas customers since deregulation started. Every Gexa plan uses 100% renewable energy. This makes it a great choice for people who care about the environment. The company offers competitive rates. These rates often beat larger providers.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Eco Saver Plus 12 | 12 months | 11.5¢ – 13¢ | $125 credit at 1,000+ kWh, 100% renewable |
| Gexa Choice 24 | 24 months | 12¢ – 14¢ | 100% renewable, rate lock |
| Free Nights 12 | 12 months | 13¢ – 15¢ | Free electricity at night |
Pros: All plans 100% renewable energy, competitive pricing, transparent billing, usage tracking tools, annual cashback on select plans
Cons: Early termination fees $150-$295, PUCT complaint score of 3/5 stars, some bill credit plans require specific usage
4. Green Mountain Energy

Website: greenmountainenergy.com
Phone: 1-866-301-3120
Founded: 1997
Headquarters: Houston, Texas
Parent Company: NRG Energy
Green Mountain Energy is the oldest renewable retail electricity provider in the United States. It started in Vermont and now runs from Houston. The company has helped customers avoid nearly 100 billion pounds of carbon emissions. This happened through its 100% renewable plans.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Pollution Free e-Plus 12 | 12 months | 13.05¢ – 14.46¢ | 100% wind power |
| Pollution Free e-Plus 24 | 24 months | 13¢ – 14¢ | 100% wind power, longer term |
| Solar Buyback | Variable | Market-based | Sell excess solar back |
Pros: Pioneer in renewable energy, 100% green on all plans, serves multiple states, strong environmental mission, solar buyback available
Cons: Slightly higher rates than non-green competitors, no satisfaction guarantee, ETF of $150-$295
5. Direct Energy

Website: directenergy.com/texas
Phone: 1-800-221-7143
Headquarters: Houston, Texas
Parent Company: NRG Energy
Customers Served: 4+ million (North America)
Direct Energy is one of North America’s largest retail electricity and natural gas providers. It serves over 4 million homes and 240,000 business customers. The company offers many plan options. It has a strong customer service reputation.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Live Brighter 12 | 12 months | 12.35¢ – 13.75¢ | Standard fixed rate |
| Live Brighter 36 | 36 months | 17¢ – 20¢ | 20% renewable, long-term lock |
Pros: Large established company, online account management, serves residential and commercial, 4-star customer rating
Cons: Customer service score below competitors, fewer plan innovations than sister companies
6. Cirro Energy

Website: cirroenergy.com
Phone: 1-800-692-4776
Founded: 2001
Headquarters: Dallas, Texas
Parent Company: NRG Energy
Customers Served: 150,000+
Cirro Energy was built on simplicity. The company’s slogan is “Fair prices, simple plans, no surprises.” This shows its focus on simple electricity without complex gimmicks. Cirro serves over 150,000 homes and businesses across Texas.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Simple 12 | 12 months | 12.30¢ – 15¢ | No-frills fixed rate |
| Saver Select 12 | 12 months | 11¢ – 14¢ | $125 credit at 1,000+ kWh |
| Simple 24 | 24 months | 14¢ – 16¢ | Two-year rate lock |
Pros: Simple plan structures, 30-day satisfaction guarantee on select plans, competitive rates, mobile app, average billing option
Cons: Limited renewable energy options (15%), fewer plan features than competitors, mixed customer service reviews
7. Rhythm Energy

Website: gotrhythm.com
Phone: 1-888-774-9846
Founded: 2021
Headquarters: Houston, Texas
Rhythm Energy is a newer provider. It bought Inspire Energy’s assets from Shell Energy in 2025. Despite its short history, Rhythm has built a strong reputation. It offers 100% renewable plans and transparent pricing. It also has new features like EV charging plans and smart thermostat integration.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Digital Discount 12 | 12 months | 14¢ – 16¢ | $5 credit for autopay/paperless |
| Simply Green Flex | Month-to-month | Variable | 100% renewable, no ETF |
| PowerShift | 12 months | Varies by time | Lowest daytime rates in Texas |
Pros: 100% renewable on all plans, 30-day satisfaction guarantee, flat rate plans (same rate at all usage levels), EV charging options, smart thermostat programs, solar buyback
Cons: Newer company with limited track record, 2-star PUCT rating, residential only
8. Champion Energy

Website: championenergyservices.com
Phone: 1-877-653-5090
Founded: 2005
Headquarters: Houston, Texas
Parent Company: Calpine Corporation
Champion Energy has won many J.D. Power awards for customer satisfaction. It keeps an A+ BBB rating. The company is known for transparent pricing with no hidden fees. It also has 24/7 customer service.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Champ Saver 12 | 12 months | 14¢ – 16¢ | Flat rate all usage levels |
| Champ Saver 18 | 18 months | 16.1¢ | Consistent rate across tiers |
| Green Champion | 12-24 months | 15¢ – 17¢ | 100% renewable option |
Pros: J.D. Power award winner, A+ BBB rating, 24/7 customer service, Smart Track weekly usage reports, transparent billing, referral program
Cons: Higher rates than budget providers, limited plan variety compared to larger competitors
9. APG&E (AP Gas & Electric)

Website: apge.com/texas
Phone: 1-866-824-4592
Founded: 2004
Headquarters: Houston, Texas
APG&E is a privately-held electricity provider. It serves homes and businesses across Texas and several northeastern states. The company makes simple, transparent pricing a priority. It has built a reputation for billing accuracy and responsive customer service.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Simple Choice 12 | 12 months | 15¢ – 16¢ | No usage minimums or fees |
| SimpleSaver 12 | 12 months | 14¢ – 16¢ | Credit at 1,000+ kWh |
| Simple Choice Green | 12-36 months | 15¢ – 17¢ | 100% renewable |
Pros: Privately held (customer-focused), same-day electricity by 3pm CST, 100% renewable options, serves multiple states, straightforward plans
Cons: Customer service score of 2.8/5 in reviews, some reports of confusing renewal rates, smaller market presence
10. 4Change Energy

Website: 4changeenergy.com
Phone: 1-855-784-2426
Founded: 2012
Headquarters: Dallas, Texas
Parent Company: Value Based Brands
4Change Energy mixes affordable electricity with charitable giving. The company gives 4% of profits to charity. These include American Red Cross, American Cancer Society, Feeding Texas, and Heroes for Children.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Maxx Saver 12 | 12 months | 11.8¢ – 14¢ | $100+ bill credits |
| Maxx Saver 24 | 24 months | 15¢ – 17¢ | 6% renewable, charity donation |
Pros: Charitable mission (4% of profits donated), competitive rates, simple plans, same-day service available
Cons: Lower renewable content (6%), bill credit plans require specific usage, limited plan variety
11. Frontier Utilities
Website: https://www.frontierutilities.com/
Phone: 1-866-926-8192
Headquarters: Houston, Texas
Frontier Utilities offers competitive electricity rates with big bill credit plans. The Houston-based company gives you simple fixed-rate options. They also have more complex plans with usage incentives.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Saver Plus 12 | 12 months | 11.2¢ – 13¢ | $100 bill credit |
| Basic 12 | 12 months | 13¢ – 15¢ | Simple fixed rate |
Pros: Among lowest rates available, generous bill credits, simple enrollment, competitive in all service areas
Cons: Bill credit plans can be confusing, lower renewable content than green competitors
12. Pulse Power

Website: pulsepowertexas.com
Phone: 1-833-785-7797
Headquarters: Houston, Texas
Pulse Power calls itself “powered by Texans, for Texans.” The company offers fixed-rate plans. Terms range from 12 to 36 months. This gives options to customers who want long-term rate stability.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Texas Fixed 12 | 12 months | 14¢ – 16¢ | Standard fixed rate |
| Texas Fixed 36 | 36 months | 11.6¢ – 12¢ | 3-year price lock |
Pros: Long-term contracts available (36 months), 19% renewable content, Texas-focused company, competitive 36-month rates
Cons: Higher early termination fees on long contracts, less plan variety than larger competitors
13. Veteran Energy
Website: veteranenergyusa.com
Phone: 1-888-367-7470
Founded: 2010
Headquarters: Dallas, Texas
Parent Company: Value Based Brands
Veteran Energy mixes competitive electricity rates with a mission to support US veterans. The company gives part of its profits to veteran charities. These include Paws for Heroes, Combined Arms, and Fisher House. Anyone can sign up. You do not have to be a veteran.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Valor 12 | 12 months | 14¢ – 16¢ | $50 credit at 1,000+ kWh |
| Basic 24 | 24 months | 15¢ – 17¢ | 100% renewable option available |
| Basic 36 | 36 months | 16¢ – 18¢ | Waived base charge at 1,000+ kWh |
Pros: Mission-driven (supports veteran charities), 60-day satisfaction guarantee, 100% renewable options, competitive rates, strong customer loyalty
Cons: ETF of $20 per remaining month, fixed-rate plans only, bill credit structures can be complex
14. Discount Power

Website: discountpowertx.com
Phone: 1-877-455-4674
Headquarters: Houston, Texas
Parent Company: NRG Energy
Discount Power focuses on giving you low-cost electricity with little complexity. The company joined with Pennywise Power in 2019. It now runs under NRG Energy.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Wise Buy 12 | 12 months | 11.35¢ – 14.75¢ | Simple fixed rate |
| Bill Credit 24 | 24 months | 11.9¢ – 14¢ | $125 credit at 1,000+ kWh |
Pros: Among lowest rates in Texas, straightforward plans, established company (NRG backing), same-day setup
Cons: No renewable energy options, limited plan variety, ETF $150-$295
15. TriEagle Energy

Website: trieagleenergy.com
Phone: 1-877-933-2453
Headquarters: Dallas, Texas
TriEagle Energy has almost 20 years of experience in Texas electricity. The company offers fixed-rate plans with different contract lengths. It includes programs like PrimeTime usage tracking and Connect & Conserve thermostat management.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Real Deal 12 | 12 months | 14.9¢ – 16¢ | $50 credit at 1,000+ kWh |
| Bronze Eagle 24 | 24 months | 15¢ – 17¢ | No hidden fees |
| Green Eagle | 12-36 months | 16¢ – 18¢ | 100% renewable |
Pros: 60-day satisfaction guarantee, usage credits, weekly usage updates, Triple Price Protect program, 100% green options
Cons: Higher starting rates than budget providers, fixed-rate only, ETF of $20 per remaining month
16. Chariot Energy

Website: chariotenergy.com
Phone: 1-844-383-6637
Headquarters: Houston, Texas
Chariot Energy focuses on 100% Texas solar energy plans. The company offers competitive solar buyback rates. This is for homeowners with solar panels. It makes them a good choice for solar users.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| GridEdge 12 | 12 months | 13¢ – 15¢ | 100% Texas solar |
| GridEdge 36 | 36 months | 11.0¢ – 13¢ | Long-term solar lock |
| Solar Buyback | Variable | Market-based | Competitive solar credits |
Pros: 100% Texas solar energy, excellent solar buyback program, long-term rate stability, competitive 36-month rates
Cons: Premium pricing on shorter terms, solar-focused (may not appeal to all customers)
17. Constellation Energy
Website: constellation.com
Phone: 1-855-465-1244
Headquarters: Baltimore, Maryland (Texas operations)
Customers Served: 2.5+ million (nationwide)
Constellation is the nation’s top provider of carbon-free energy. It promises to be 100% carbon-free by 2040. The company serves over 2.5 million homes and businesses across the United States.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Constellation 12 | 12 months | 14¢ – 16¢ | Usage alerts included |
| Constellation Green | 12-24 months | 15¢ – 17¢ | Carbon-free energy |
Pros: #1 producer of clean energy in U.S., 20+ years experience, excellent customer service, charitable giving ($18.7M in 2023)
Cons: Not Texas-exclusive, may have higher rates than local competitors
18. Octopus Energy

Website: octopusenergy.com
Phone: 1-833-628-6787
Founded: 2016 (UK), 2021 (Texas)
Headquarters: Houston, Texas (U.S. operations)
Global Customers: 9+ million
Octopus Energy is a UK-based company. It came to Texas with a mission to bring affordable, green energy using tech and new ideas. The company has brought unique programs like Intelligent Octopus and Octo GridBoost. These help you use energy better and stabilize the Texas grid.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Octo 12 | 12 months | 14¢ – 16¢ | 100% renewable, solar buyback |
| OctoPrepay 12 | 12 months (prepaid) | 15¢ – 17¢ | No deposit, autopay required |
Pros: 100% renewable, innovative smart grid technology, transparent pricing, global reputation, competitive solar buyback
Cons: Newer to Texas market, $150 ETF, limited service area coverage
19. Payless Power

Website: paylesspower.com
Phone: 1-866-963-9353
Headquarters: Dallas, Texas
Payless Power focuses on prepaid electricity plans. You do not need a deposit or credit check. The company serves customers who may have credit challenges. It also helps people who prefer pay-as-you-go billing.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Prepaid Plan | No contract | 16¢ – 19¢ | No deposit, no credit check |
| 12 Month Prepaid | 12 months | 15¢ – 17¢ | Fixed rate prepaid |
Pros: No credit check, no deposit required, daily balance notifications, mobile app, same-day activation, residential and commercial
Cons: Higher rates than traditional postpaid plans, must maintain balance to avoid disconnection
20. Express Energy
Website: myexpressenergy.com
Phone: 1-800-332-7143
Headquarters: Dallas, Texas
Parent Company: Value Based Brands
Express Energy offers low-cost electricity with simple plans. They have quick setup. The company gives a 60-day satisfaction guarantee. They also have same-day service options.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Express 12 | 12 months | 14¢ – 16¢ | Simple fixed rate |
| Express 24 | 24 months | 17.3¢ | 6% renewable |
Pros: Low-cost plans, 60-day guarantee, same-day setup, usage credits available, simple enrollment
Cons: Lower renewable content (6%), fewer plan options than competitors
21. BKV Energy

Website: bkvenergy.com
Phone: 1-888-428-2353
Headquarters: Denver, Colorado
BKV Energy is a newer company. It focuses on transparent, no-gimmick pricing. The company offers customizable Bluebonnet plans. These let you choose your term length and renewable energy percentage.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Bluebonnet 12 | 12 months | 14¢ – 16¢ | No base fees, customizable |
| Bluebonnet 13 | 13 months | 14.6¢ | 100% renewable, no gimmicks |
Pros: No base charges, no usage fees, customizable term and renewable %, Reduce Your Rate program, ElectroShare rewards
Cons: Newer company, smaller customer base, limited brand recognition
22. CleanSky Energy

Website: cleanskyenergy.com
Phone: 1-888-355-6205
Headquarters: Houston, Texas
CleanSky Energy offers 100% renewable electricity plans. It focuses on environmental sustainability. All plans offset usage with renewable energy certificates.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| CleanSky 12 | 12 months | 14¢ – 16¢ | 100% renewable |
| CleanSky Flex | Month-to-month | Variable | No contract, 100% green |
Pros: 100% renewable on all plans, flexible contract options, environmentally focused
Cons: Higher rates than non-green competitors, smaller market presence
23. Flagship Power

Website: flagshippower.com
Phone: 1-866-322-4524
Headquarters: Houston, Texas
Flagship Power was founded by energy industry veterans. They have decades of Texas experience. The company offers fixed rate, green energy, refund, and free time electricity plans.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Flagship Fixed 12 | 12 months | 14¢ – 16¢ | Standard fixed rate |
| Flagship Green | 12-24 months | 15¢ – 17¢ | 100% renewable option |
Pros: Founded by industry veterans, refund programs available, green energy options
Cons: Smaller company, limited plan variety
24. Energy Texas

Website: energytexas.com
Phone: 1-855-461-1129
Headquarters: Houston, Texas
Parent Company: Rhythm Energy (relaunched 2025)
Energy Texas first started in 2021. It relaunched in 2025 under Rhythm Energy ownership. The company offers 100% renewable fixed-rate plans. It also has a 30-day satisfaction guarantee.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| Energy Texas 12 | 12 months | 14¢ – 16¢ | 100% green, $5 autopay credit |
Pros: 100% renewable, 30-day satisfaction guarantee, simple plans, Texas-based service
Cons: Complex history (sold in 2024), limited track record under new ownership
25. OnPoint Energy
Website: onpointenergy.com
Phone: Contact via website
Headquarters: Texas
OnPoint Energy is a leading energy company. It provides reliable and sustainable energy solutions. The company focuses on innovation and customer satisfaction.
| Plan Type | Contract Length | Rate Range (per kWh) | Key Features |
|---|---|---|---|
| OnPoint Fixed | 12-24 months | 14¢ – 17¢ | Reliable fixed rates |
Pros: Focus on reliability and sustainability, customer-focused approach
Cons: Smaller market presence, limited plan information available
Texas Electricity Rate Comparison Table
This table compares average electricity rates at 1,000 kWh monthly usage. It covers major Texas providers as of December 2025. Rates include all recurring fees and TDU delivery charges.
| Provider | Lowest Rate (per kWh) | Average Rate (per kWh) | Renewable % | Contract Terms |
|---|---|---|---|---|
| Frontier Utilities | 11.2¢ | 13.0¢ | Varies | 12 months |
| Gexa Energy | 11.5¢ | 13.5¢ | 100% | 8-36 months |
| 4Change Energy | 11.8¢ | 14.0¢ | 6% | 12-24 months |
| Discount Power | 11.9¢ | 13.5¢ | 0% | 12-24 months |
| Pulse Power | 11.6¢ | 14.0¢ | 19% | 12-36 months |
| Chariot Energy | 11.0¢ | 14.0¢ | 100% | 12-36 months |
| Cirro Energy | 12.3¢ | 15.0¢ | 15% | 12-24 months |
| Reliant Energy | 12.5¢ | 15.0¢ | 24% | 12-36 months |
| Champion Energy | 14.0¢ | 16.0¢ | Varies | 12-24 months |
| Green Mountain Energy | 13.0¢ | 14.5¢ | 100% | 12-24 months |
| Rhythm Energy | 14.0¢ | 16.4¢ | 100% | 12-36 months |
| TXU Energy | 15.5¢ | 17.0¢ | Varies | 12-36 months |
| Veteran Energy | 14.0¢ | 16.0¢ | 100% option | 12-36 months |
| TriEagle Energy | 14.9¢ | 16.5¢ | 100% option | 12-36 months |
| Octopus Energy | 14.0¢ | 16.0¢ | 100% | 12 months |
Source: Compiled from Power to Choose and provider websites. Rates are accurate as of December 2025 and may change.

Texas Utility Service Areas Explained
Your utility service area decides which providers you can use. It also affects your delivery charges. Texas has six main Transmission and Distribution Utilities (TDUs) in deregulated areas.
| Utility (TDU) | Service Area | Major Cities | Delivery Rate (per kWh) | Monthly Base Charge |
|---|---|---|---|---|
| Oncor | North, Central, West Texas | Dallas, Fort Worth, Waco, Midland, Odessa, Tyler | 4.19¢ | $3.42 |
| CenterPoint Energy | Greater Houston | Houston, Sugar Land, Baytown, Galveston, Pasadena | 6.00¢ | $5.47 |
| AEP Texas Central | South Texas | Corpus Christi, Laredo, McAllen | 4.50¢ | $5.31 |
| AEP Texas North | West/North Texas | Abilene, San Angelo, Alpine | 4.80¢ | $5.65 |
| Texas-New Mexico Power (TNMP) | Various regions | Lewisville, Texas City, Dickinson | 5.20¢ | $7.85 |
| Lubbock Power & Light | Lubbock area | Lubbock | 6.31¢ | $0 (no base fee) |
Source: Public Utility Commission of Texas. Delivery rates were updated in January 2026.
CenterPoint Energy recently put in place a $2.9 billion “Resiliency Plan.” This plan raised delivery rates. The money funds infrastructure improvements. This includes replacing wooden poles with steel and aggressive tree trimming. Oncor serves the biggest deregulated market. It has over 10 million customers across 400+ cities.
Types of Electricity Plans in Texas
Fixed-Rate Plans: You lock in one rate per kWh for 12, 24, or 36 months. Your energy charge stays the same no matter what happens in the market. But your bill changes based on how much you use. Most providers charge early termination fees ($150-$395) if you cancel before the contract ends.
Variable-Rate Plans: Rates change each month based on wholesale electricity prices. These plans give you flexibility with no long-term commitment. But you risk price spikes during extreme weather. These are best for short-term needs or customers who watch rates closely.
Indexed Plans: Rates are tied to a specific wholesale price index. These are like variable plans but have clearer pricing formulas. You can see exactly how your rate is calculated each month.
Time-of-Use Plans: You pay different rates based on when you use electricity. “Free Nights” plans charge nothing from evening to early morning. “Free Weekends” cover Friday evening through Sunday. These are best for customers who can move usage to off-peak hours.
Prepaid Plans: You pay in advance. No deposit or credit check is needed. Rates are usually 2-4 cents higher than traditional plans. You get daily balance notifications. You must keep a positive balance to avoid disconnection.
Bill Credit Plans: These give you credits when you use a set amount of electricity. This is typically 1,000-2,000 kWh. These plans show low advertised rates. But they can cost more if your usage falls outside the credit threshold.
Solar Buyback Plans: These let homeowners with solar panels sell extra electricity back to the grid. Credits show up on your monthly bill. Providers like Chariot Energy and Octopus Energy offer competitive buyback rates.
How to Switch Electricity Providers
Switching providers in Texas is simple. It usually takes 2-7 business days. Your power stays on the whole time. There is no interruption.
Step 1: Know Your Current Contract Check your plan’s end date and early termination fee. Most fixed-rate contracts charge $150-$395 for early cancellation. The fee is usually waived if you move outside the service area.
Step 2: Check Your Usage Look at your past 12 months of electricity bills. Note your highest and lowest usage months. The average Texas home uses 1,100-1,200 kWh monthly. Peaks hit around 1,400 kWh in summer. Lows are 700-900 kWh in spring/fall.
Step 3: Compare Plans at Your Usage Level Use comparison sites like Power to Choose or other marketplaces. Enter your ZIP code. Filter by usage level, contract length, and renewable content. Read the Electricity Facts Label (EFL) for each plan. This helps you understand all charges.
Step 4: Enroll Online or by Phone Sign up directly with your chosen provider. You will need your service address, start date, and ID. Most providers offer same-day activation if you enroll before their cutoff time. This is typically 3-6pm CST.
Step 5: Your New Provider Handles the Switch The new provider tells your old one about the switch. They coordinate with your utility. You keep getting power from the same TDU. The only change is who bills you for electricity.
Frequently Asked Questions
What is the cheapest electricity provider in Texas?
Rates change daily. But providers like Frontier Utilities, Discount Power, and Gexa Energy often offer rates below 12 cents per kWh at 1,000 kWh usage. The cheapest plan depends on your usage level, location, and contract preferences. Bill credit plans may show lower advertised rates. But they can cost more if you don’t meet usage thresholds.
Can I switch electricity providers if I’m renting?
Yes. Tenants can choose their electricity provider in deregulated Texas areas. This works as long as the electric meter is in their name. If utilities are included in rent, your landlord picks the provider. Contact your landlord or property manager to confirm who pays the electric bill.
How long does it take to switch electricity providers?
Standard switches take 2-7 business days. Same-day service is available from most providers. You must enroll before their cutoff time. This is usually 3-6pm CST. Your power stays on throughout the transition. There is no interruption.
What happens if I move within Texas?
You can take your current plan to a new address within the same TDU service area. Contact your provider to transfer service. If you move to a different TDU territory, you will need to sign up with a provider serving that area. Early termination fees are usually waived for moves outside your current service territory.
What is the average electricity bill in Texas?
The average Texas home uses about 1,100-1,200 kWh monthly. This leads to bills between $150-$200 at current rates. Bills peak in summer (July-August) when air conditioning pushes usage above 1,400 kWh. Winter bills can also spike during cold snaps.
Are renewable energy plans more expensive?
Not always. Several 100% renewable providers like Gexa Energy and Rhythm Energy offer rates that compete with or beat non-green competitors. Green plans usually cost 1-3 cents more per kWh. But competition has narrowed this gap a lot.
What is the Power to Choose website?
Power to Choose is the official electricity comparison website. The Public Utility Commission of Texas runs it. It lists plans from all certified providers in the state. Third-party comparison sites like Compare Power and Texas Electricity Ratings may offer extra filtering tools and recommendations.
Do I need to contact my utility company to switch?
No. Your new electricity provider handles all communication. They talk to your old provider and your TDU (utility). You just sign up with your chosen provider. They manage the rest.
What is an Electricity Facts Label (EFL)?
The EFL is a standardized disclosure document. The Public Utility Commission requires it. It shows the average price per kWh at 500, 1,000, and 2,000 kWh usage levels. It also shows all fees, renewable content percentage, and contract terms. Always review the EFL before signing up for any plan.
Can businesses choose their electricity provider in Texas?
Yes. Commercial customers in deregulated areas have the same right to choose as home customers. Many providers offer special business plans. These have custom pricing based on usage patterns, demand profiles, and contract terms. Business rates are often 20-30% lower than home rates.