Use Your Power to Choose a Texas Electricity Provider
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What Does Power to Choose Mean in Texas?
Texas restructured its electricity market in 2002 so that about 85% of the state's power customers could shop for their own provider. In those deregulated service areas, dozens of retail electric providers (REPs) compete for your business by offering different rates, contract lengths and plan features. You are free to compare them and enroll with whichever one fits your usage and budget.
It helps to separate two things that share the same name. The broad idea of “power to choose” is the consumer right and the shopping process itself. PowerToChoose.org is one specific website the state's official plan listing and it is only part of that process. Having the power to choose does not require using that particular site.
Choice is not universal. Homes served by a municipal utility (such as Austin Energy or CPS Energy in San Antonio) or an electric cooperative generally cannot switch providers, because those areas were not deregulated. Your address, not your city name, determines whether you can choose.
Can You Choose Your Electricity Provider?
The simplest way to confirm is to enter your ZIP code and check which providers appear. Because eligibility is set at the utility-territory level, two nearby ZIP codes can have different answers.
Check Your Address
Enter your ZIP to see whether you can choose and which plans are available.
Deregulated areas. Most of the DallasFort Worth, Houston, Corpus Christi and Rio Grande Valley regions are open to competition. Providers there compete on price and plan features, and switching does not interrupt your service.
Municipal utilities and cooperatives. Cities like Austin and San Antonio, along with many rural co-op territories, kept their traditional single-provider model. Customers there pay the rate set by their utility and cannot shop for a retail plan, though they can still lower bills through usage and efficiency.
For the specifics in your area, see our Texas city electricity guides and utility (TDU) resources.
How Does the Texas Electricity Market Work?
| Role | Who it is (examples) | What they do |
|---|---|---|
| You (the customer) | Texas residents & businesses in deregulated areas | Choose the retail provider and plan that best fit your usage and budget. |
| Retail Electric Provider (REP) | TXU Energy, Reliant Energy, Gexa, Rhythm Energy, 4Change, Constellation | Sells you the electricity plan and handles billing, enrollment and customer service. This is what you shop for. |
| Transmission & Distribution Utility (TDU) | Oncor, CenterPoint, AEP Texas, TNMP | Owns the poles and wires, delivers the power and restores outages. You do not choose this it is set by your address. |
| ERCOT | Electric Reliability Council of Texas | Operates the Texas power grid and the wholesale market that balances supply and demand. |
| PUCT | Public Utility Commission of Texas | Regulates the market, sets consumer-protection rules and operates PowerToChoose.org. |
TDU delivery charges are the same for every provider in a given territory, so the plan you choose not the utility is where you can actually save.
For deeper background, see our guides to Texas deregulation, ERCOT and the grid, and the role of your TDU.
How Do You Compare Texas Electricity Plans Correctly?
The advertised “cents per kWh” number is only useful if it reflects how much power you actually use. The steps below turn a headline rate into a realistic annual cost.
- Review several months of actual usage. Pull the kWh totals from recent bills so you know your real high- and low-usage months.Use the bill calculator ?
- Compare estimated bills at more than one usage level. Look at 500, 1,000 and 2,000 kWh, not just the 1,000 kWh headline.
- Open the Electricity Facts Label (EFL). Every plan has one; it lists the real pricing terms.How to read an EFL ?
- Identify bill credits, minimum-use conditions and base charges. These can swing your bill by tens of dollars depending on usage.Bill-credit plans explained ?
- Include TDU delivery charges. Confirm whether the quoted rate already bundles delivery or adds it separately.
- Compare contract terms and cancellation fees. Match the term to how long you'll stay, and note the early termination fee.
- Consider how costs change across the seasons. A plan that's cheap at 1,000 kWh can be costly during a 2,000 kWh summer.
- Evaluate the provider's reviews and rating history. Billing and service quality vary widely between companies.See provider ratings & reviews ?
- Compare expected annual cost, not just the advertised rate. The lowest headline number is often not the lowest yearly bill.
Why the Advertised Rate May Not Be Your Actual Rate
Several common plan structures make the headline rate misleading:
| Pricing feature | Why it changes your real cost |
|---|---|
| Bill credits | A flat credit (e.g., $85) applies only in a narrow usage band, dropping your rate at 1,000 kWh but not at 500 or 2,000. |
| Narrow usage thresholds | Credits often require, say, 1,0002,000 kWh; fall short and you lose the entire credit. |
| Minimum-use fees | A penalty (often ~$10) when usage falls below a set level, common in low-usage months. |
| Base / monthly charges | A fixed monthly fee raises your effective rate most when you use less power. |
| Free nights & weekends | “Free” hours are offset by higher daytime rates; savings depend on your schedule. |
| Tiered pricing | The per-kWh price changes above or below a usage tier. |
| TDU delivery charges | Delivery costs may be bundled or added separately, changing the true all-in rate. |
Worked example: same headline rate, different real cost
Both plans below advertise close to 1314¢ per kWh. Plan A uses a $85 bill credit centered on 1,000 kWh; Plan B is a simple flat rate. Watch how the effective rate changes with usage.
| Monthly usage | Plan A Bill-Credit Saver 12 $85 credit at 1,0001,999 kWh | Plan B Simple Flat 12 14.5¢ flat, no credits | Lower bill |
|---|---|---|---|
| 500 kWh (mild month) | 21.5¢/kWh · $107 | 14.5¢/kWh · $73 | Plan B |
| 1,000 kWh (advertised) | 12.9¢/kWh · $129 | 14.5¢/kWh · $145 | Plan A |
| 2,000 kWh (summer) | 14.8¢/kWh · $296 | 14.5¢/kWh · $290 | Plan B |
| Est. annual cost typical mixed-usage home | $2,310 | $2,190 | Plan B |
Illustrative sample figures for demonstration; effective rate includes TDU delivery and the bill credit where earned. The plan with the lower advertised rate (Plan A) is not the cheaper plan for this household once real usage is considered.
Current Texas Electricity Choice Snapshot
Updated August 10, 2026 · 9:00 AM CT
The plans below are selected 12-month fixed-rate plans in the Oncor (DallasFort Worth) service area, shown at 1,000 kWh. This is an illustrative sample of screened plans, not every plan available and not necessarily the lowest advertised rate.
| Provider | Plan | Term | Type | Rate @1,000 kWh | Est. bill | Key condition |
|---|---|---|---|---|---|---|
| 4Change Energy | Maxx Saver Select 12 | 12 mo | Fixed | 13.9¢ | $139 | $100 bill credit at 1,0002,000 kWh |
| Gexa Energy | Eco Saver Plus 12 | 12 mo | Fixed | 14.1¢ | $141 | Bill credit centered at 1,000 kWh |
| Constellation | 12 Month Usage Bill Credit | 12 mo | Fixed | 14.5¢ | $145 | $35 credit at 1,0002,000 kWh |
| Rhythm Energy | Simply Green 12 | 12 mo | Fixed | 15.2¢ | $152 | 100% renewable, no bill credit |
| Green Mountain | Pollution Free e-Plus 12 | 12 mo | Fixed | 16.1¢ | $161 | 100% renewable, flat rate |
| TXU Energy | Clear Deal 12 | 12 mo | Fixed | 16.8¢ | $168 | No bill credit, price-lock |
Illustrative sample data for the Oncor territory at 1,000 kWh, including TDU delivery charges. Rates change frequently; enter your ZIP for current plans at your address.
Power to Choose market snapshot
A proprietary look at the plans Texas Electricity Ratings tracks across deregulated Texas the kind of data a shopper, journalist or AI assistant can cite.
Sample snapshot · Observed August 2026 · Geography: deregulated Texas (ERCOT) · Method: TER plan database · Illustrative figures for demonstration. See methodology.
Choosing a Provider Is Different From Choosing a Plan
Two plans with identical rates can lead to very different years depending on the company behind them. That is why first-party customer reviews and an independent expert score belong in the decision. Below are illustrative provider snapshots that pair Texas Electricity Ratings' Expert score with its Customer rating.
Illustrative sample ratings and review counts. Customer ratings reflect verified first-party reviews; the TER Expert score is an editorial evaluation the two are kept distinct on purpose.
What Is PowerToChoose.org?
Shoppers use PowerToChoose.org to browse the plans available in their area and read each plan's Electricity Facts Label. What it does not do is help you judge the company behind the plan or model your real cost across a full year which is where an independent comparison adds the missing decision factors.
| PowerToChoose.org | Texas Electricity Ratings | |
|---|---|---|
| Operated by | Public Utility Commission of Texas (official) | Independent comparison company |
| What it shows | Plans in the official marketplace | Plans plus provider ratings, reviews & tools |
| Provider reviews | None | 41,000+ first-party customer reviews |
| Editorial ratings | None | TER Expert scores with published methodology |
| Usage-based cost | Basic 500 / 1,000 / 2,000 kWh display | Usage-based estimated bills & calculators |
| Bill-credit & fee guidance | Shown on the EFL only | Explained and flagged in comparisons |
| Cost to use | Free | Free |
Every comparison here is meant to be factually supportable and updated when either experience changes. The goal is not to compete on being “official,” but to help you interpret the plans and choose well.
How TER Evaluates Plans and Providers
In short: we screen plans for transparency and value, we develop an expert score from an editorial review of pricing and terms, and we incorporate verified customer reviews as a separate signal. “Recommended” means a plan clears our screening for clear pricing, fair terms and a competitive usage-based cost not that it paid for placement.
We keep editorial ratings and customer ratings visually and methodologically distinct so you can weigh each on its own. For the full details, see our rating methodology and review methodology.
Power to Choose Questions
What does Power to Choose mean in Texas?
Is Power to Choose the same as PowerToChoose.org?
Can everyone in Texas choose an electricity provider?
How do I know whether my address is deregulated?
What is the difference between a provider and a utility?
How should I compare Texas electricity plans?
Does the advertised electricity rate include TDU charges?
Is the cheapest rate always the cheapest plan?
Can I switch providers without losing electricity?
What should I check before selecting a provider?
How do customer reviews help me choose?
Where can I compare current electricity plans?
Ready to Use Your Power to Choose?
Compare plans by real cost and provider rating for your exact address.
Use Your Power to Choose by Texas City
Choice availability, your local TDU and current rate context vary by area. Explore the guide for your city:
