Texas electricity deregulation
Short answer. In most of ERCOT, you buy electricity from a retail electric provider and a separate transmission and distribution utility delivers it. Power to Choose lists offers by ZIP code. Municipal utilities, electric cooperatives, Entergy Texas, and Southwestern Public Service (Xcel) are outside that shopping model.
What you can shop for in Texas
Retail choice, where it exists, splits the bill. Supply is the electricity or the generation service. Delivery is the poles, wires, metering, and outage response. Shopping can change the supply price. It does not move you to a different set of wires, and it does not change who you call when the power is out.
Texas sits in ERCOT. Wholesale prices in that region influence what suppliers offer, but the offer you sign is a retail contract with its own term, fees, and renewal rule. A low introductory supply rate can lose to a higher flat rate once a monthly fee, a usage credit, or an early termination fee is included.
Who regulates it, and where to compare
The regulator is the Public Utility Commission of Texas. The public comparison starting point is Power to Choose. Use that site or your own bill for the price to compare or default-service price. This page does not rank suppliers and it does not publish a live rate, because those numbers change and depend on the utility account.
- Read the utility name printed on the bill before you shop. Offers are filed by delivery territory.
- Compare the supply price at your typical monthly kWh, not at an advertised teaser tier.
- Write down the contract length, the early termination fee, and what happens when the term ends.
- Confirm the supplier is licensed before you enroll. A door-to-door pitch is not proof of a license.
What this guide does not cover
Natural gas choice, where the state allows it, is a separate enrollment with a different price unit (often a therm or Ccf). Municipal aggregation or community power, where a town buys supply for residents unless they opt out, is also separate from picking a supplier yourself. If your bill is from a municipal utility or a cooperative, assume you cannot use the investor-owned shopping site until the bill shows otherwise.
Questions people ask
Can I choose an electricity supplier in Texas?
In most of ERCOT, you buy electricity from a retail electric provider and a separate transmission and distribution utility delivers it. Power to Choose lists offers by ZIP code. Municipal utilities, electric cooperatives, Entergy Texas, and Southwestern Public Service (Xcel) are outside that shopping model.
Will my power stay on if I switch?
Yes. The delivery utility still owns the lines and responds to outages. A supply switch changes the generation charge on the bill, usually on a future meter-read cycle, not the same day.
Where do I see the number I need to beat?
Look for the price to compare, standard offer, basic service, or default supply price on the bill or on Power to Choose. Beat that supply price after fees, not the all-in cents on a national EIA average.
Next, use the state directory to open a city page only after this page confirms you are in a choice territory. Then read how a switch is timed and how early termination fees work.
Use the bill, not a stale screenshot
Texas electricity deregulation comes down to documents you can keep: the utility name on the bill, the supply price or default price, the kWh or demand that drove the charges, and the term and fees in any contract. National average prices from the Energy Information Administration are context. For 2024, EIA put average residential use at 865 kWh a month and the average residential price at 16.5 cents per kWh. For June 2026, EIA reported 18.34 cents per kWh of residential revenue. Those figures mix supply and delivery for the whole country. They are not a price to compare, and they are not an offer in this territory.
If a salesperson’s number and the bill disagree, keep the bill. Shop Energy Prices does not rank suppliers and does not publish a live rate table. Re-check the official shopping site or the utility tariff on the day you enroll, because offers and default prices change.
Going further on Texas electricity deregulation
Texas electricity deregulation is a contract or bill-literacy question. The document that controls is the one you can download for your account, not a summary on a comparison site.
Supply is the part a choice customer can shop. Delivery is the utility’s wires, metering, and outage response. Fees, credits, and the end-of-term rule decide whether a low cents figure is actually low at your usage.
A fixed price holds the contracted supply rate for the term. A variable price follows the supplier’s posted rule. An early termination fee is the cost of leaving a fixed term early. Rescission is a short window at the start, where state rules give you one. They are not the same right.
Switches take effect on a meter read, not the hour you click. Until the utility confirms the date, the old arrangement remains. Keep paying undisputed delivery charges. Two supply charges for the same dates are a billing dispute with the utility.
An illustration, not an offer: 820 kilowatt-hours times a 1 cent gap is 8 dollars before any monthly fee. If the fee is larger, the gap is not a reason to switch.
When the term ends, many contracts roll to a price you did not re-shop. Put a reminder 30 to 60 days ahead. Default service is a legitimate choice if the new offers are worse.
What to verify before you act
Write down the utility name, the account name, the supply price or default price, and a typical month of use. Texas electricity deregulation does not change those four facts. If a contractor, a supplier, or a city page disagrees with the bill, the bill wins. Shop Energy Prices does not sell electricity and does not keep a live rate table.
Use one official source for the benchmark: the price to compare or default service on the bill, the state shopping site if your state publishes one, or the commission docket that sets the default. EIA’s national averages are context for scale. They are the wrong number to beat.
Keep the contract PDF. Circle the term, the fee to leave, the renewal rule, and any pass-through that is not fixed. A verbal match to a competitor is not the product. If you are inside a cancellation window, follow the written notice method the same day and keep a copy.
Re-read the contract or tariff section that mentions Texas electricity deregulation and copy the defined term into your notes. If the defined term does not match the way a salesperson used the words, the defined term controls. Ask the supplier or the utility, in writing, which line on the next bill will change and which lines will not.
Re-read the contract or tariff section that mentions Texas electricity deregulation and copy the defined term into your notes. If the defined term does not match the way a salesperson used the words, the defined term controls. Ask the supplier or the utility, in writing, which line on the next bill will change and which lines will not.