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Texas: the only US state where you buy power from a REP, not a utility.

Texas opened residential retail electricity choice in January 2002 after the legislature passed Senate Bill 7 in 1999. Roughly 85% of Texans can pick a REP; the rest live in municipal or cooperative territory. Five TDUs (Oncor, CenterPoint, AEP Texas, TNMP, Sharyland) maintain the wires for the deregulated zone. The grid is run by ERCOT, an energy-only wholesale market that sits outside the eastern and western interconnections. Residential electricity averaged 14.92 ¢/kWh in March 2026 YTD (EIA), about 17% below the US average of 17.91 ¢/kWh — but Texas households also consume about 1,176 kWh/month, the highest in the lower 48.

14.92¢
Avg ¢/kWh, Mar 2026 YTD
5 TDUs
+ munis & co-ops
2002
Retail choice opened
ERCOT
Wholesale market

Who serves your address

Five TDUs cover the deregulated zone. Munis and cooperatives keep their own bundled service across the rest of Texas.

Transmission & distribution · TDU

Oncor Electric Delivery

Sempra Infrastructure subsidiary

DFW metroplex, east Texas, west Texas, parts of central + south Texas

~13M Texans Largest TDU
1-888-313-4747 Open profile

Transmission & distribution · TDU

CenterPoint Energy

CenterPoint Houston Electric

Houston metro + surrounding Gulf Coast counties

~2.8M meters Houston-area TDU
1-800-332-7143 Open profile

Transmission & distribution · TDU

AEP Texas

AEP Texas Central + AEP Texas North

Corpus Christi, Laredo, Rio Grande Valley, Abilene, San Angelo

~1M meters Two service zones
1-866-223-8508 Open profile

Transmission & distribution · TDU

Texas-New Mexico Power

TNMP · PNM Resources

85 scattered Texas communities (Lewisville, Texas City, Friendswood, Sweetwater)

~265K meters Scattered footprint
1-888-866-7456 Open profile

Transmission & distribution · TDU

Sharyland Utilities

Oncor-affiliated, McAllen area

McAllen + adjacent Rio Grande Valley communities

~50K meters Smallest TDU
1-956-668-9551 Open profile

Municipally owned · bundled

Denton Municipal Electric

DME · City of Denton

City of Denton (north of DFW)

~62K meters Bundled muni
1-940-349-8700 Open profile

Member-owned cooperative

Pedernales Electric Coop

PEC · largest distribution co-op in the US

24 Hill Country + Edwards Plateau counties (Cedar Park, Marble Falls, Fredericksburg)

~370K members Largest US co-op
1-888-554-4732 See office

Member-owned cooperative

Bluebonnet Electric Coop

Bluebonnet · Bastrop HQ

14 central Texas counties between Austin and College Station

~110K members Central TX co-op
1-800-842-7708 See office

Member-owned cooperative

Magic Valley Electric Coop

MVEC · Mercedes HQ

Hidalgo, Cameron, Willacy, Starr counties (Rio Grande Valley)

~110K members Rio Grande Valley co-op
1-866-225-5683 See office

See the full Texas utility directory with every TDU service zone and the major munis (Austin Energy, CPS Energy, Garland, Bryan, New Braunfels).

What SB 7 changed

Three flavors of Texas electricity

Senate Bill 7 (1999) split the deregulated zone into TDU wires + REP supply. Most of Texas runs that way, but munis and co-ops still bundle the whole stack.

Deregulated (REP-led)

You sign up with a Retail Electric Provider on powertochoose.org or a comparison directory. The REP bills you for both energy + TDU pass-through.

Fixed-rate, variable-rate, prepay and green plans on offer.
Bill-credit cliffs at 1,000 / 2,000 kWh can flip the winning plan.

Municipally owned

If you live in Austin, San Antonio, Denton, Garland, Bryan or one of the other muni cities, your city-owned utility is also your supplier — a single bundled bill, rates set by the city council.

Muni rates often beat the deregulated headline by 1 to 3 ¢/kWh.
No retail choice — the city is the only option at your address.

Cooperative

More than 60 rural distribution co-ops (Pedernales, Bluebonnet, Magic Valley, Nueces, Deaf Smith and others) own the wires AND sell the power. Member-elected boards approve rates.

Capital credit returns can refund a portion of your annual bill.
No supplier shopping; smaller storm-response crews than the big TDUs.

Compare carefully: always read the Electricity Facts Label column that matches your typical monthly use, not the headline ¢/kWh in the ad. Texas electricity 101 →

Save these

Texas emergency phone lines

For outages, always call your TDU, muni or co-op — never your REP. Downed line? Dial 911 first.

Oncor outage · 24/7

1-888-729-9266

DFW + east + west Texas. Text OUT to 66267.

CenterPoint outage · 24/7

1-800-332-7143

Houston metro + Gulf Coast counties.

AEP Texas outage · 24/7

1-866-449-7398

Corpus Christi, Laredo, Abilene, San Angelo.

TNMP outage · 24/7

1-888-866-8968

85 scattered service zones across Texas.

Austin Energy outage · 24/7

512-322-9100

City of Austin (muni). Gas leaks: Texas Gas Service.

CPS Energy outage · 24/7

210-353-4357

San Antonio (muni). Largest muni in the US.

PUCT (regulator)

1-888-782-8477

File a complaint, check REP licensing, lookup powertochoose.

211 Texas

211

CEAP, weatherization, emergency utility assistance.

ERCOT public lookup

ercot.com/gridmktinfo

Grid conditions, weather alerts, prices.

Quick answers

The questions Texas households ask before signing.

If your address sits inside the ERCOT retail-choice area (most of the state), you do not call your utility. You sign up directly with a REP through powertochoose.org or a directory like ours. The REP coordinates the meter activation with your TDU (Oncor, CenterPoint, AEP Texas, TNMP or Sharyland). If you live in Austin, San Antonio, Denton, El Paso or one of the co-op territories, call your bundled provider directly — no REP shopping needed. Full move-in walkthrough.

Roughly 85% of Texans can shop a REP. The other 15% live in municipally owned utility territory (Austin Energy, CPS Energy in San Antonio, Denton Municipal Electric, Garland, Bryan, New Braunfels), in electric cooperative territory (Pedernales, Bluebonnet, Magic Valley and dozens more) or in the El Paso Electric service area outside ERCOT. Those providers run as bundled utilities under PUCT and local oversight, with no separate REP choice.

Texas Senate Bill 7 (1999) split the old vertically integrated utilities in 2002. Generation, retail and delivery were separated. The TDU keeps the wires, the meters and the outage trucks but cannot sell you electricity. A licensed Retail Electric Provider buys wholesale energy on ERCOT, layers in the TDU pass-through and bills you a single monthly invoice. That is why outages, downed lines and gas-emergency calls still go to the TDU (or the muni / co-op), while billing questions go to your REP.

The Electric Reliability Council of Texas runs the grid that serves about 90% of Texas load — Houston, DFW, Austin, San Antonio, the Rio Grande Valley and most of the rest. ERCOT is unusual because it sits outside the eastern and western US interconnections, so federal FERC oversight is limited and Texas runs an energy-only wholesale market (no separate capacity payments). When demand spikes, prices can swing from about $30 to the $5,000 per MWh systemwide cap, which is what generated the bill shock during Winter Storm Uri in February 2021. El Paso Electric and parts of east Texas sit outside ERCOT on the WECC and SPP grids respectively.

The EFL is the PUCT-mandated one-page disclosure that lists the all-in average price at 500 kWh, 1,000 kWh and 2,000 kWh, plus the fixed base charge, the TDU delivery pass-through, the term length, the early termination fee and any bill credits or minimum-usage fees. A plan that wins at 500 kWh often loses at 2,000 kWh, and vice versa — always read the column that matches your typical use. The flashy headline ¢/kWh on a marketing page is not the regulated number; the EFL is.

Always your TDU, muni or co-op — never your REP. Oncor: 1-888-729-9266. CenterPoint Houston: 1-800-332-7143. AEP Texas: 1-866-449-7398. TNMP: 1-888-866-8968. Austin Energy: 512-322-9100. CPS Energy (San Antonio): 210-353-4357. Wire on the ground? Dial 911 first, then the TDU.

The Public Utility Commission of Texas (PUCT), a three-member governor-appointed body, regulates TDU rates, licenses REPs, runs powertochoose.org and oversees ERCOT. The Office of Public Utility Counsel (OPUC) represents residential and small-commercial ratepayers in rate cases. Cooperatives are regulated by their member-elected boards. Municipally owned utilities are regulated by their city council. The Railroad Commission of Texas separately regulates natural-gas distribution and pipelines.

Yes. CEAP (Comprehensive Energy Assistance Program) is the Texas LIHEAP-funded benefit administered by the TDHCA and local community action agencies — eligibility runs up to 150% of the federal poverty level. 211 Texas is the statewide intake line for emergency utility assistance, weatherization and food. Many REPs also offer Average Monthly Billing and deferred payment plans on request. Disconnection rules: PUCT Substantive Rule 25.483 caps disconnection during declared extreme weather and on weekends adjacent to public holidays. Full assistance guide.

18 deregulated jurisdictions

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