Key Takeaways
- We provide an overview of major utility companies in Texas: Oncor, CenterPoint Energy, AEP Texas.
- Understanding the role a Texas utility company plays in delivering electricity, maintaining infrastructure, managing outages.
- Explanation of the deregulated energy market in Texas and what it means for residents.
- How you can compare rates to find the best Texas utility companies in your area.
In Texas, four utility companies deliver electricity to the vast majority of the state AEP Texas, CenterPoint Energy, Oncor Electric Delivery, and Texas-New Mexico Power (TNMP). If you fall under the service area of any of these companies, you have the power to choose your electricity provider.
When you choose an electricity provider, it supplies the electricity you use, while the local utility company for your area distributes that electricity to your home.
Looking for electricity providers? Check out our list of the Best Electricity Providers in Texas.
Table of Contents
Shop Electricity Rates for Texas Utilities
| Plan | Rate Per kWh At 1000kWh avg. usage |
|---|---|
| 4Change Energy Maxx Saver Select 24 24 Months | 10.5¢ Select |
| 4Change Energy Maxx Saver Select 12 12 Months | 10.5¢ Select |
| Frontier Utilities Frontier Saver Plus 12 Plan 12 Months | 10.5¢ Select |
| APG&E True Classic 6 6 Months | 13.3¢ Select |
| Constellation 12Mo Usage Bill Credit + A/C Protection 12 Months | 13.9¢ Select |
- 100% Renewable Sources
- A/C Protection Included
Texas Utility Providers Service Area Map
List of Texas Utility Companies
AEP Texas
AEP Texas is a subsidiary of American Electric Power (AEP) and delivers electricity to over one million customers. AEP Texas is unique because the electricity plans available to you and how much you're charged for electric delivery depend on where you live within AEP Texas's service area.
- AEP Texas North – Service area runs throughout the northern and western parts of the state.
- AEP Texas Central – Despite its name, AEP Texas Central's service area predominantly serves the southern part of the state.
CenterPoint Energy
CenterPoint Energy delivers electricity to 2.2 million+ customers in the greater Houston area.
Oncor Electric Delivery
Oncor is the largest electric utility provider in Texas, serving over 10 million customers throughout the state. The bulk of its service area is in Dallas, Fort Worth and the surrounding areas. However, it also serves portions of western Texas.
Texas-New Mexico Power (TNMP)
Texas-New Mexico Power (TNMP) is the smallest utility provider out of the four, serving 260,000+ homes and businesses throughout the state. Its service area is sporadic, with larger areas in west Texas and south of Houston, and some service areas in the Dallas-Fort Worth metroplex.
Other Types of Utility Companies in Texas
The other utility companies in Texas don't offer Energy Choice as the utilities above do. There are two types:
- Municipal Utility These utilities are owned and operated by the city. An example would be Austin Energy.
- Cooperative Utility These utilities are owned by the people that they serve. These primarily serve rural areas of the state.
If you want to learn more about the electricity market in Texas, check out our page on comparing electricity rates in Texas. It will walk you through everything you need to know about Texas's competitive electricity market.
What Is a Utility Company?
An electric utility company delivers electricity to your home. It owns and maintains the electrical infrastructure (poles, wires, transformers, etc.) to ensure you have reliable electricity service.
There is only one utility provider for a designated area. For example, Houston's only electric utility company is CenterPoint Energy. If you live in Houston, you cannot change to another utility company like Oncor, because CenterPoint is the only company that delivers electricity to your area.
Utility companies in Texas are regulated by the Public Utility Commission of Texas (PUCT). To ensure utilities have the funds to maintain their electrical infrastructure, the PUCT approves delivery charges (aka "TDU Delivery Charges") for each utility. These charges are the same no matter who your electricity provider is.
Utilities also work with the Electric Reliability Council of Texas (ERCOT) to ensure grid stability across the state.
How is a Utility Different than an Electricity Provider?
While your local utility in Texas is responsible for the delivery of electricity to your home, your electricity provider is responsible for supplying the electricity you use.
In most states with Energy Choice, your utility company can also supply your electricity. But this is not the case in Texas. Utility providers only deliver electricity, and you must get your electricity supply from a retail electricity provider.
Here are a few other key differences between a utility and an electricity provider in Texas:
Local Utility
- Maintains infrastructure for transmission of electricity (poles, wires, etc.)
- Ensures safe & reliable delivery of electricity to your home
- Takes care of all emergencies including outages and downed power lines
Electricity Company
- Provides the supply of electricity that your utility then delivers to you
- Determines the electricity supply rate, contract length, and other terms of your service
- Sends your monthly electricity bill
TDU Delivery Charges for Utility Companies in Texas
Delivery charges above are in effect as of March 2024, and are set to change on September 2024.
- What is the difference between a utility and an electricity provider in Texas?
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In Texas, a utility company is responsible for the infrastructure and delivery of electricity, while an electricity provider sells the energy you use. Utility companies are location-based and cannot be chosen, but you can choose your electricity provider in deregulated areas.
- Which are the major utility companies in Texas?
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Major utility companies include Oncor, CenterPoint Energy, AEP Texas, and Texas-New Mexico Power. Each serves different regions across the state.
- How does the deregulated energy market in Texas work?
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Texas’ deregulated energy market allows consumers to choose their electricity provider from a competitive market. This means you can shop around for better rates and plans that suit your needs, though your utility company is determined by your location.
- How can I compare rates and find the best energy plan in Texas?
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You can compare rates and plans by entering your ZIP code on platforms that offer comparisons between different electricity providers in your area.
- What should I do if there's a power outage?
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Contact your utility company during a power outage. Utility companies are responsible for restoring service and maintaining the electrical infrastructure.