In most of Texas you pick your own retail electricity provider. This guide walks you through how it works, what to compare, and how to switch. Enter your ZIP to see the plans available at your address and enroll online.
Takes a minute. No account, no obligation. Need help? Call or text us.For most of the last century, one utility owned everything from the power plant to your meter, and you had no say in who sold you electricity. That changed at the turn of the century.
In 1999, Governor George W. Bush signed Senate Bill 7, the law that broke up the old monopoly and ordered Texas to open electricity to retail competition. On January 1, 2002, the market opened: for the first time, most Texas homes and businesses could choose their own retail electric provider, while the local wires company kept delivering the power.
The law split the business into three roles — the companies that generate power, the regulated utility (TDU) that delivers it, and the retail providers like Ambit that compete to sell it to you.
The Public Utility Commission of Texas (PUCT) named ERCOT the independent operator of the state grid, charged with keeping the lights on and running a fair, competitive market. Senate Bill 7 also locked in consumer protections every provider must honor:
Bottom line: deregulation moved the choice from the utility to you. The wires and outages stay with your local TDU, but the plan, price, and rewards are yours to shop. Enter your ZIP above to see what is available at your address.
Texas is the only state with its own self-contained power grid, and that independence is the reason it can run a competitive market the way it does.
When the federal government gained authority over interstate electricity sales under the Federal Power Act of 1935, Texas utilities made a deliberate choice: keep the power inside state lines. If electricity never crosses a state border, it is not interstate commerce, so the Texas grid largely sits outside federal (FERC) jurisdiction. Utilities linked their networks during World War II to power the war effort, formed the Texas Interconnected System, and in 1970 organized it as ERCOT.
The lower 48 states run on three grids: the Eastern Interconnection, the Western Interconnection, and ERCOT, which covers about 90% of Texas and ties to its neighbors only through a few small direct-current connections. That self-reliance is what lets Texas write its own market rules, including the retail competition that lets you choose your provider.
A bit of Texas lore: in the 1976 “Midnight Connection,” a utility briefly flipped power into Oklahoma to test federal authority over the grid. The independence held.
In most of Texas, two different companies touch your power. Knowing which does what is the whole game.
This is the part you control. Picking the right REP and plan is where the savings and the rewards come from.
Because the TDU is the same no matter who you buy from, your power stays on through a switch and outages are handled the same way.
The pieces that decide what you actually pay, in plain English.
Every provider asks for your ZIP first because the plans and prices they can offer change from place to place. A few reasons drive that:
Even neighboring cities like Dallas and Fort Worth can land on different rates depending on promotions, plan structure, and delivery fees. That is why a real comparison starts with your address, not a single statewide average.
The EFL is the nutrition label of any Texas electricity plan. It shows the real cost details, not just the headline number. Read these lines closely:
A plan can advertise a low rate that only appears at one very specific usage level. When in doubt, compare the 1,000 kWh number, the statewide benchmark for plan comparisons.
Setting up power in a deregulated part of Texas is quick and can often be done same day or next day. Have these ready:
You can start or switch service online in a few minutes. If you are renting, the office may suggest a provider, but in most deregulated areas you are free to choose any provider that serves your ZIP.
Smaller homes do best with plans built for lower usage:
If your usage is consistently under 700 kWh, be cautious with bill-credit and minimum-usage plans. They are often designed for larger homes and can cost an apartment more.
Your TDU handles outages and delivery, not your retail provider. Keep its emergency number handy.
| Utility (TDU) | Typical service area | Outage phone |
|---|---|---|
| CenterPoint Energy | Greater Houston metro area | 800-332-7143 |
| Oncor | Dallas–Fort Worth and much of North, Central, and West Texas (including Midland–Odessa) | 888-313-4747 |
| AEP Texas North | Abilene, San Angelo, and surrounding West and North Texas | 866-223-8508 |
| AEP Texas Central | Corpus Christi, Victoria, the Coastal Bend, and the Rio Grande Valley | 866-223-8508 |
| TNMP (Texas-New Mexico Power) | Scattered areas of the Gulf Coast, North, and West Texas | 888-866-7456 |
| LP&L (Lubbock Power & Light) | Lubbock — opened to retail competition in 2024 | 806-775-2509 |
Enter your ZIP to compare real Texas rates and enroll online.
If you are in cities like Houston, Dallas, Fort Worth, Corpus Christi, Lubbock, Midland, Odessa, Abilene, or many surrounding suburbs, you are likely in a deregulated area where you can choose your electricity provider.
No. Switching providers in deregulated Texas is designed to be seamless. As long as your account is in good standing, your power stays on while the switch is processed.
No. Your TDU is assigned based on your physical location. You choose the retail provider, like Ambit Energy, but the TDU that maintains the grid in your area stays the same.
Yes. TDU delivery charges are regulated by the state and are identical across all providers in that service area. Every provider passes through those same charges on your bill.
Many Texans choose a 12-month fixed plan for balance and predictability. When rates are favorable, longer terms like 24 or 36 months can lock in protection for a longer period.
In-depth guides to help you compare plans, switch providers, and understand your bill.