Texas has a deregulated electricity market, allowing homeowners and businesses in most ZIP codes to choose their electricity provider. According to the Public Utility Commission of Texas (PUCT), there are 140 retail electricity providers available, offering more than 1,500 electricity plans as of December 2024. By comparing energy providers, you may be able to secure lower electricity rates for your Texas home.
Compare the Top Electricity Companies in Texas
The table below has our top 10 recommended Texas energy providers. According to our analysis, the best electric companies are Reliant Energy, Green Mountain Energy and TriEagle Energy. These providers earned high scores for having strong plan features, excellent customer service and stable bill predictability.
Our top plans feature straightforward, affordable rates that are free of gimmicks like time-of-use rates or bill credits.
| Provider | Provider Rating | Best for | Top Plan |
| Reliant Energy | 4.7 | Personalized Plans | Reliant Secure Advantage 12 |
| Green Mountain Energy | 4.7 | Green energy plans | Pollution Free e-Plus 12 |
| TriEagle Energy | 4.7 | Bill credit plans | Simple Savings 12 |
| Rhythm Energy | 4.5 | Predictable green energy costs | TX Breeze 12 |
| Pulse Power | 4.5 | Avoiding bill surprises | Classic Choice 12 |
| TXU Energy | 4.4 | Time of use plans | Simple Rate 12 |
| Champion Energy | 4.3 | Customer satisfaction | Champ Saver-12 |
| Direct Energy | 4.3 | Extra plan perks | Live Brighter 12 |
| Cirro Energy | 4.2 | Term length variety | Smart Lock Saver 12 |
How To Choose the Best Power Company in Texas
The ability to choose your electricity provider comes with both opportunities and challenges. For example, you can find fixed-rate electricity plans with contract terms ranging from three to 60 months, which offer stable energy prices even when market rates increase. However, other electricity providers advertise low rates but apply hidden fees and other “pricing gimmicks” once you sign up for their plans. Picking the right energy provider can have a big impact on your total energy costs and your overall satisfaction.
Here are a few pro tips to help you choose the best company for your personal energy needs.
- Identify energy providers available in your area: Some major electricity providers in Texas cover the entire deregulated market, but others only operate in a few areas. Make sure you’re comparing providers that operate in your area.
- Know the type of electricity plan you want: Electricity providers offer multiple plans per ZIP code. Signing up for an electricity plan that doesn’t align with your home’s energy needs can lead to high bills — even if the plan is from a top-rated provider. Make sure you compare electricity providers that offer the specific plan type you’re looking for.
- Research the electric company before signing up: You’ll want to know the brand’s reputation, how long it’s been in business and the quality of its customer service. We’ve reviewed many of the best energy providers in Texas, scoring them on key factors such as plan features, customer satisfaction, cost and bill predictability, all to help you determine which company may meet your needs. Check out our review methodology to learn more. Additionally, you can check customer reviews on Google Reviews or the Better Business Bureau (BBB).
Selecting the right plan is a big part of picking the right company. Here are our recommendations for selecting a plan.
- Choose a straightforward fixed-rate plan to guarantee predictable power bills.
- Consider signing up for a 12-month plan in the spring or fall when rates tend to be low—and you can re-enroll in the same season, securing low rates annually.
- Read the electricity facts label (EFL) before signing up so you are aware of the plan’s rates, delivery fees, discounts and other charges.
- Consider a prepaid energy plan if your top plan options requires that you pay a deposit. We recommend Payless Power’s 12-month prepaid plan.
Electricity Plans By City
The availability of energy providers and electricity plans in Texas varies by city. Find your city below to see rates near you.
Deregulated Cities | ||
|---|---|---|
Houston | Dallas | Fort Worth |
Katy | Laredo | Waco |
Midland | Corpus Christi | Frisco |
McAllen | Galveston | Irving |
Difference Between Utilities and Providers
In deregulated areas in Texas, you work with a retail electricity provider (REP) and a transmission and distribution utility (TDU). Your electric company (REP) sells you electricity plans and manages billing. Meanwhile, the TDU, sometimes called the “poles and wires” company, manages the local power grid and delivers electricity to your home. While you have the power to choose your electricity provider, your utility company is predetermined based on where you live.
On your electricity bill and EFL, you’ll notice fees from your TDU for delivering power to your home. The fees might include a flat charge and a cost per kWh, which help pay for the TDU to manage electrical infrastructure upkeep and restores power during an outage.
To manage the competitive, deregulated energy market more effectively, Texas has divided its statewide power grid into six service territories, each with a single utility company. These utilities deliver electricity from all competing providers in their service areas through a single power grid. Below are the TDUs currently operating in Texas:
- AEP Texas Central: Corpus Christi, McAllen, Victoria, Laredo, Harlingen
- AEP Texas North: Abilene, San Angelo, Alpine, Vernon
CenterPoint Energy: Houston, Katy, Beaumont - Lubbock Power & Light (LP&L): Lubbock
- Oncor Electric Delivery: Dallas, Fort Worth, Irving, Waco, Arlington,
- Temple, Round Rock, Midland, Odessa
- Texas-New Mexico Power (TNMP): League City, Glen Rose, Pecos, Angleton
Coordinating 140 electricity providers and six utility companies to serve over 27 million customers is no simple task. The Electric Reliability Council of Texas (ERCOT) serves as the independent system operator that coordinates electricity flow in the state, balancing generation and consumption. ERCOT is neither an electricity provider nor a utility company — it manages the grid as a whole to ensure reliable operation, with oversight from the PUCT.
How To Switch To a New Energy Provider in Texas
For many Texan homes and businesses, a lower kilowatt-hour price is a key reason to switch electricity providers. In our July 2024 survey of more than 1,000 Texans, 50% of energy shoppers switched providers because they were surprised by their bill, their provider raised its rates or because they found a better deal from a new energy company. Over time, even a small price difference between energy plans can result in major savings.
Some respondents stated that they changed providers because they were hoping for better customer service. No matter why you’re considering switching, you can follow the steps below to pick your new electric company.
- Enter your ZIP code below
- Compare plans and providers: We’ll display a list of electricity plans and providers specifically for your location, showing key features like their kilowatt-hour price and contract length.
- Filter your electricity plan options: Our website offers filtering tools that can help you find specific features, such as 100% renewable energy plan offerings, a specific contract length or savings options. You can also filter plans by electricity provider or display estimated rates based on your home size.
- Compare energy rates and plan features: After filtering the electricity plans in your ZIP code, you can rank them from lowest to highest rate. If a specific plan interests you, make sure you read its EFL to understand its charges and features.
- Sign up for your chosen electricity plan: Once you select a plan, you can sign upll in less than five minutes on Home Energy Club. We only need your contact info and address. Your new provider will handle the transfer, and you’ll keep your lights turned on.
How To Cancel an Existing Energy Plan
You can cancel your existing plan by contacting customer service. Most energy company customer service teams are available via online chat, email or phone call. Ask the agent about potential early termination fees (ETFs) or final bills to avoid any surprises. Expect a cancellation confirmation notice after it’s processed.
Will My Plan Get Auto-Renewed?
No, you must renew or sign up for a new plan before your current plan expires. We recommend setting a renewal reminder for the end of your contract. Not choosing a new plan or renewing your current one means your account will switch to a month-to-month plan, which might cause your bills to spike. Your provider sends at least three reminders about your contract expiring, so it shouldn’t be a surprise. You can typically renew your plan online or contact customer service for assistance.
Frequently Asked Questions about Texas Electricity Companies
What Company has the Cheapest Rates in Texas?
The cheapest provider and plan for your home will depend on your TDU and contract length selected. Considering only fixed-rate plans with 12-month contracts and predictable bills, Reliant Energy, Frontier Utilities and TriEagle Energy offer some of the most affordable rates.
When choosing a plan, keep in mind that the lowest advertised rates typically are bill credit plans, meaning your effective rate can change significantly depending on your monthly electricity usage. If you don’t qualify for the bill credits in these plans, your energy rate may be upwards of 20 cents per kWh, compared to 10-12 cents if you’re within the bill credit range.
How Quickly Can I Start Service?
Some energy companies in Texas offer same-day electricity where you can sign up and have power within 24 hours. Most providers have a cut-off time, meaning you must call before the time for same-day power, but it usually ranges between 2 p.m. and 6:30 p.m. Generally, the earlier in the day you call, the better. You can schedule your electric service up to 90 days in advance if you don’t need same-day service.
How Many Electricity Companies Are In Texas?
As of December 2024, the Public Utility Commission of Texas (PUCT) has an official list of 140 retail electricity providers (REP). However, these providers operate under 167 “Doing Business As” (DBA) names or aliases. When considering all energy providers and their alternative names, homeowners have 300-plus options to choose from in the electricity market. Note that some electricity providers offer other services, including natural gas services, solar buyback services and more.
Do Energy Companies Run Background Checks?
Texas energy suppliers don’t run background checks for customers but typically run a soft credit check during the sign up process to review your credit score and payment history. The check won’t impact your credit, but a low score may result in you owing an electricity deposit. This charge helps suppliers manage risks, but you typically get a refund after 12 months of consecutive payments.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:
- Plan features (33%)
- Customer satisfaction and brand trust (27%)
- Plan rates and pricing (20%)
- Energy bill predictability (20%)
