"Shop and save" advice does not apply in Denton.
Most Texas energy guides assume you can comparison-shop on Power to Choose. About 85% of Texans can. Denton residents cannot.
When Texas opened its electricity market in 1999 under PURA Senate Bill 7, the law carved out an explicit exemption for municipally-owned utilities and electric cooperatives. Cities and co-ops could opt in to retail choice. Denton, Austin, San Antonio, Garland and many others chose not to. As a result, the entire DME service territory is closed to competitive REPs.
Plug a Denton ZIP into Power to Choose (76201, 76205, 76208, 76209, 76210) and you will see zero offers. Not a glitch , it is the law.
That changes who you negotiate with, what data sources matter, and what levers you actually have. The rest of this page maps it out.
How a DME bill is built: three layers, all set by City Council.
Unlike a deregulated Texas bill (which mixes a competitive supplier line with a regulated TDU line), every DME bill is locked top-to-bottom by one body: the Denton City Council.
Layer 1 , Fixed
Facility charge
$8.80/month on single-phase residential service. You pay it even at zero kWh. It funds the meter, the line to your house and customer service.
Layer 2 , Per kWh
Tiered energy
First 600 kWh: 6.94¢/kWh. Above 600 kWh: 6.94¢ in summer (May-Oct), 4.62¢ in winter (Nov-Apr). Inclining-block in shoulder season is gone; the summer tier rewards heavy use less than it looks.
Layer 3 , Adjustments
ECA + transmission
Energy Cost Adjustment (ECA): 4.62¢/kWh on every kWh. Transmission Recovery: 1.56¢/kWh. Combined: 6.18¢/kWh. This is the layer that moves when gas and ERCOT wholesale prices spike.
In a deregulated Texas zip code your bill would split between a competitive supplier and a TDU like Oncor or CenterPoint. In Denton, all five lines above belong to DME.
Every DME bill line, decoded.
The exact charges that appear on a single-phase residential bill under the FY25-26 rate ordinance.
| Line on your bill | FY25-26 rate | Applies to | Who sets it |
|---|---|---|---|
| Facility charge | $8.80 / month | Flat, single-phase | Denton City Council |
| Energy tier 1 | 6.94¢ / kWh | First 600 kWh | Denton City Council |
| Energy tier 2 , summer | 6.94¢ / kWh | > 600 kWh, May-Oct | Denton City Council |
| Energy tier 2 , winter | 4.62¢ / kWh | > 600 kWh, Nov-Apr | Denton City Council |
| Energy Cost Adjustment | 4.62¢ / kWh | All kWh | DME, indexed quarterly |
| Transmission Recovery | 1.56¢ / kWh | All kWh | Passes through ERCOT / FERC |
Source: City of Denton, FY2025-26 residential rate ordinance (cityofdenton.com/350). Rates verified May 2026.
DME runs ~7% above the average Texas retail-choice rate.
At 1,300 kWh in summer , close to a typical DME single-family bill , the blended rate works out to about 16.04¢/kWh all-in.
The published Texas residential average (which is dominated by retail-choice customers) is 14.92¢/kWh per the EIA. So DME runs roughly +7.5% above the state average and roughly -10% below the US average.
That is the trade you make in Denton: no shopping leverage, but stable City-Council-set pricing and 100% renewable on a net-annual basis. The number above moves with the ECA each quarter; the bill widget at the top of this page uses the published rate, not last month’s.
at FY25-26 DME rates, single-phase
How a DME rate change actually happens.
There is no PUCT rate case here. The process is municipal, on a fiscal-year cadence, and entirely in public meetings.
DME files a cost-of-service study
The utility’s general manager presents the rate-base, debt service, generation cost (Denton Energy Center + market purchases) and renewable-portfolio cost. Public budget workshop, usually in late spring.
Public Utilities Board reviews
A citizen advisory board scrutinises tier breakpoints, fixed charges and the ECA forecast. Recommends changes to Council. Meetings are open to the public.
City Council adopts the ordinance
Council votes on the annual budget , including the residential, commercial and industrial rate schedules. New rates take effect October 1, the start of the fiscal year.
ECA recalibrates quarterly
Between annual ordinances, the Energy Cost Adjustment moves to reflect actual fuel and wholesale costs. The Denton Energy Center (225 MW fast-start natural-gas peaker, commercial since July 1, 2018) buffers DME from the worst ERCOT scarcity spikes.
The leverage you have on a DME rate is the same leverage any citizen has: show up to a Public Utilities Board meeting, write Council, or run for it. There is no PUCT complaint to file, because DME is not under PUCT jurisdiction.
How DME households quietly overpay.
Five recurring patterns. Each costs real money. Each is fixable without leaving DME (because you cannot leave DME).
Power outage in Denton: who to call.
DME owns and operates its own distribution network, so outage dispatch goes through the City of Denton, not Oncor and not ERCOT. The City’s 24/7 outage line is (940) 349-7000. For a downed line or pole, call 911 first, then DME dispatch.
Live status is on the DME outage map (search by address or ZIP).
What to actually do as a DME customer.
Track usage in MyUsage
DME provides next-day kWh data via the MyUsage app. Watch the tier-2 line in summer; one heavy day moves your bill noticeably.
Apply for rebates
DME runs rebates for heat pumps, smart thermostats and attic insulation. Call (940) 349-7733 or visit the rebates page on cityofdenton.com.
Look up the solar program
DME runs its own interconnection and net-metering process. The solar desk is (940) 349-7595 , ask for the current export-credit value before signing.
Get bill help
If you fall behind, dial 211 or apply for CEAP (the Texas LIHEAP) through your local community action agency.
Speak at a board meeting
The Public Utilities Board takes public comment. It is the closest equivalent to a PUCT complaint , and the only way an individual customer ever moves a DME rate.
Moving out of Denton?
If you move to a deregulated address (most of DFW outside the city), you can shop on Power to Choose , compare apples-to-apples Electricity Facts Labels at your expected usage.
Denton is not the only Texas city that opted out.
DME is one of dozens of MOUs in Texas. They share the same statutory carve-out from PURA SB 7 (1999) and they all set rates through City Council ordinance, not the PUCT.
Investor-owned utilities (IOUs) like Oncor and CenterPoint sit on the other side of the line: they hand the supply portion to competitive REPs and bill only for delivery.
Common questions about Denton Municipal Electric.
No. Denton Municipal Electric is a city-owned utility that did not opt into Texas retail choice when the 1999 law (Senate Bill 7, PURA) opened the market. DME is your only retail option inside the City of Denton city limits. Outside the city , in places like Corinth, Lantana, Ponder, Krum, Sanger and Aubrey , CoServ Electric typically serves instead, and it is also not on Power to Choose because it is a co-op.
The ECA passes through actual wholesale fuel and energy cost to customers. The headline 6.94¢ tier rate covers the utility’s fixed and capital cost of serving you; the ECA (currently 4.62¢/kWh) tracks what DME actually paid for fuel and ERCOT market purchases. When natural gas spikes, the ECA rises , usually within a quarter.
On a net-annual basis, yes. DME has reported reaching 100% renewable supply (matched annually against load) in December 2020 under the Denton Renewable Resource Plan. Net-annual means total renewable generation purchased over a year equals total customer demand. It does not mean every kWh delivered at every instant is renewable , the Denton Energy Center (a 225 MW fast-start natural-gas peaker, commercial since July 1, 2018) still runs during scarcity. See cityofdenton.com/331 for the current Plan status.
Call (940) 349-7000. The line is staffed 24/7. For a downed pole or live wire, dial 911 first, then DME. Live status is on the DME outage map.
Customer service is (940) 349-8700, open Monday to Friday 8am to 5pm. Online payment is at the City of Denton Paymentus portal (free); in person at 601 E Hickory St, Denton TX 76205 (Ste F) during business hours, with a 24/7 self-service kiosk; drop boxes and mail to City of Denton, P.O. Box 660150, Dallas TX 75266-0150. Ask about “Pay As You Go” if you want to skip the deposit.
Not the PUCT , DME is exempt from PUCT rate jurisdiction. Start with DME customer service at (940) 349-8700. If unresolved, write the City Manager, attend a Public Utilities Board meeting (its recommendations go to Council), or contact your City Council representative. The Texas Office of Public Utility Counsel can advise but has no enforcement authority over a municipal utility.
More U.S. states with energy choice
Same playbook, different utility. Pick another deregulated state to compare utilities, suppliers and switching rules.
