Texas Electricity Companies

Texas has a competitive deregulated energy market, with hundreds of light companies and more than 1,500 electricity plan options across the state. Texas deregulated its energy market in 2002, giving home and business owners the power to choose their electricity providers, instead of being limited to a single utility company.

Having so many electricity companies can be confusing, especially if you’re new to Texas. It also means you can save on power bills if you do your research and choose the right light company for your needs.

Using this guide, you can compare Texas electricity companies, learn more about your power to choose and potentially reduce your monthly energy costs.

Compare Top Texas Energy Companies

We believe the best electricity companies in Texas offer affordable fixed-rate plans, straightforward pricing structures and a strong track record of quality customer service. In our review, TXU Energy, Green Mountain Energy and TXU Energy earned our highest scores, with 4.9 out of 5 stars for each provider.

However, as of May 2025, the Public Utility Commission of Texas (PUCT) listed 140-plus retail electricity providers (REP) across the state. For any given ZIP code, you may find between 130 and 200 electricity plans from about 30 to 50 different providers. The best option for you may differ from our recommendations.

In February 2024, we surveyed 1,600 Texans living in deregulated areas to gather firsthand customer data. Using this data, we rate electric companies across categories that impact your experience directly, including customer service, online experience, customer satisfaction and retention.

Based on these results, we’ve reviewed nearly 100 electricity companies in Texas. In the table below, we compare 15 top-rated Texas electricity providers, reviewing their plan options and main benefits.

The Texas Electricity System

Texas operates a deregulated electricity market with three types of companies that perform complementary roles:

• Power generators: Produce electricity and sell it in bulk to large industrial users and retail electricity providers through a wholesale market
• Retail electricity providers (REPs): Purchase electricity from generators and resell it to homes and businesses through electricity plans
• Transmission and distribution utilities (TDUs): The “poles and wires” companies in charge of the power grid.

The two organizations below perform critical roles in the Texas electricity market:

• PUCT: This state agency publishes laws and regulations for the Texas electricity sector.
• Electric Reliability Council of Texas (ERCOT): This independent system operator coordinates all market participants to ensure a safe and reliable power supply.

Texas Utility Companies

Utilities are the “poles and wires” companies that operate and maintain the power grid in Texas. There are six major utility companies in the Lone Star State, each assigned to an exclusive service territory.

• AEP Texas Central: Corpus Christi, McAllen and cities in southern Texas
• AEP Texas North: Abilene, San Angelo and cities in northwestern Texas
• CenterPoint Energy: Houston and surrounding areas
• Lubbock Power & Light: Lubbock
• Oncor Electric Delivery: Serves Dallas, Fort Worth and most surrounding areas
• Texas-New Mexico Power: Angleton, Texas City, Fort Stockton and other pockets of Texas

While you can choose your electricity provider, you can’t pick your utility company. It’s determined by where you live in the state.

How To Choose an Energy Provider in Texas

Consider the following buying tips when comparing Texas electricity companies:

• Consider fixed-rate plans: Fixed rates help ensure price stability and predictable bills. A fixed-rate plan is especially helpful in summer, when rates tend to spike due to the high power consumption of air conditioners.
• Watch out for contract length: Fixed-rate plans often have contracts ranging from six months to 36 months. You may find savings with a long contract, but risk a higher cancellation charge.
• Check customer reviews: Read customer reviews on sites like Google Reviews and the Better Business Bureau (BBB) to get a feel for how providers treat customers. You should take reviews with a grain of salt, but note that trends of negative reviews may indicate red flags to be aware of.
• Watch out for early termination fees (ETFs). Electricity plans with contract terms normally charge a cancellation fee if you switch the plan early. ETFs can range from $99 to $395. It pays to take note of these charges, just in case.

Understanding Electricity Plan Types

Texas electricity plans offer various rate types and features, but most fall into six general categories:

• Fixed rate plans: Stable pricing during their entire contract term with ETFs
• Green energy plans: 100% clean electricity from renewable sources like solar panels and wind turbines
• Prepaid, no-deposit plans: No credit check, no deposit, high rates
• Time-of-use plans: Discounts or free energy during off-peak hours, high rates during peak times
• Variable rate plans: No cancellation fee or contract term, but rates change monthly
• Bill credit plans: Statement credits promise savings, but can lead to unpredictable bills

We recommend fixed-rate plans if you’re looking for stable pricing and predictable monthly bills. Many plans combine features from different types. Green energy and prepaid plans are viable options if they feature fixed rates.

We don’t recommend variable-rate plans due to their unpredictable costs.

Bill credit plans can help you save if your monthly consumption stays within the range required to earn the discount. Time-of-use plans can benefit homeowners who shift their usage towards their low-rate or free energy periods. However, both options can result in high monthly bills if you don’t meet the usage requirements.

The Electricity Facts Label (EFL)

The EFL is like a nutrition label for electricity plans, breaking down all the charges and contract terms. When electricity companies advertise their plans in Texas, they often highlight their best features while hiding their less favorable terms. However, the state requires all providers to publish an EFL for each plan. By reviewing the EFLs, you can rule out electricity plans with hidden fees or pricing gimmicks.

Tips for Comparing Electricity Rates

Here are some tips to help you make an informed decision when comparing electricity rates in Texas:

• Don’t choose an electricity plan based on its advertised rate: Instead of falling for advertising gimmicks, check the EFL. It shows the total rate you’ll pay, including delivery fees and other charges.
• Compare electricity rates at your consumption level: Texas energy providers list their rates for 500, 1,000 and 2,000 kWh per month. Shop at the usage tier closest to your actual consumption.
• Watch out for high base charges: Most electricity plans have base charges regardless of your consumption, but they’re usually below $10 per month. However, some plans advertise low rates while applying base charges of around $30 per month.
• Avoid variable, tiered and time-of-use rates. Variable rates change monthly, tiered rates change based on your consumption, and time-of-use rates change depending on the hour. All three rate types can lead to unpredictable bills.
• Skip perks that affect your rate. Some plans offer transparent benefits like 100% green energy or autopay discounts. However, features like bill credits and free energy periods often have high rates when you don’t meet certain conditions.
• Shop in spring or fall, when rates are typically lower: Electricity prices tend to drop during these seasons, thanks to the reduced power demand from air conditioners and space heaters.
• Beware short-term plans with promotional rates: Many providers offer short-term contracts of three to six months with deep discounts. However, these plans often end in summer, when rates skyrocket due to increased demand. Before signing up for short-term savings, check to make sure you won’t pay later.

Rates from Top Texas Energy Providers

Here, you can compare electricity plans from some of our top-rated energy providers in Texas. You can use Home Energy Club to compare rates specifically in your ZIP code for the most accurate pricing.

The rates above are accurate as of [plan_rate_last_update ZIP_code=“77077” providers=“Gexa”] for the ZIP code 77077. The rates are the same across all ZIP codes in the CenterPoint service area. Rates shown are for 1,000 kWh usage.

Green Energy Options in Texas

Texas generates around 50% of its electricity from natural gas and 13% from coal, according to the U.S. Energy Information Administration (EIA). Despite that, the average renewable energy content for the state sits at 33%, according to the EFLs from multiple providers.

However, if you’re looking for ways to reduce your home’s carbon footprint, many energy providers offer plans with 100% green electricity content.

Green Mountain Energy, Rhythm Energy, Gexa Energy and Energy Texas offer only 100% renewable energy plans. Other providers like TriEagle Energy, Reliant Energy and TXU Energy offer both traditional plans and green energy plans. And some companies like 4Change Energy and Just Energy allow you to upgrade any plan to 100% green energy for a small monthly fee, often $6.95 to $9.95.

Although Texas is known for its oil and gas industry, the Lone Star State is also a national leader in renewable power. Texas has the highest wind generation capacity of all U.S. states and is quickly rising as a solar power hub, with over 11,600 megawatts installed in 2024.

Switching Electricity Providers in Texas

To help you through the process of switching electricity providers, we’ve put together this step-by-step guide.

1. Visit a comparison site like Home Energy Club and input your ZIP code: You can compare electricity plans available in your neighborhood.
2. Focus on plans with your preferred features: You can filter the available plans by rate type, contract length or based on features like green energy content.
3. Review the contract lengths available: Most electricity plans in Texas range from 12 to 36 months, but you can also find contract terms of up to 60 months or shorter than 12 months.
4. Read the fine print: Before enrolling in any electricity plan, review its EFL to confirm your effective energy rate and rule out plans with hidden fees, pricing gimmicks or confusing rate structures.
5. Check your current plan for ETFs: Some providers charge a flexible ETF based on your remaining contract terms, while others charge flat fees of up to $395. You can avoid the ETF if you’re moving or have 14 days or less in your contract.
6. Sign up for your chosen electricity plan: After you’ve picked the best electric company and plan for your needs, the sign-up process takes just a few minutes. Providers simply need your contact information, address and service start date.

Frequently Asked Questions

Our Rating Methodology

The This Old House Reviews Team supports our energy provider ratings and recommendations with a transparent, research-backed provider review methodology. Our process includes surveying electricity customers in deregulated markets like Texas, analyzing customer review trends, conducting mystery shopping, and consulting with energy experts. Each provider is scored based on performance in customer satisfaction, loyalty, digital experience, and service quality to produce a final rating on a 5-point scale.