Texas Electric Utility Comparison

Texas has a deregulated electricity market, meaning you can choose your Retail Electric Provider (REP) while your local Transmission and Distribution Utility (TDU) handles delivery. Understanding both components helps you find the best rates.

How Texas Electricity Works

Your bill has two parts: Energy charges (from your chosen REP) and Delivery charges (from your TDU, which you can't choose). When comparing rates, make sure to include both components for accurate comparison.

Transmission & Distribution Utilities (TDUs)

Your TDU is determined by your address. These are the delivery charges you'll pay regardless of which REP you choose.

TDUService AreaBase ChargeDelivery RateAvg Total RateCustomers
LargestOncor
Dallas-Fort Worth, West Texas, Waco$5.25/month3.7¢/kWh16.1¢/kWh3.9 million
CenterPoint Energy
Greater Houston, Galveston, Coastal Texas$5.47/month4.1¢/kWh16.6¢/kWh2.8 million
AEP Texas North
Abilene, Lubbock, Midland-Odessa$10.53/month3.7¢/kWh17.9¢/kWh280,000
AEP Texas Central
Corpus Christi, South Texas, Rio Grande Valley$6.06/month3.8¢/kWh16.8¢/kWh1 million
Texas-New Mexico Power (TNMP)
Texas City, Galveston, scattered areas$7.85/month4.2¢/kWh17.2¢/kWh250,000

Popular Retail Electric Providers (REPs)

These are some of the most popular REPs in Texas. Rates shown are energy-only and don't include TDU delivery charges.

Frontier Utilities
8.5¢/kWh
energy only
Fixed Rate
  • No deposit options
  • Renewable plans available
  • Simple pricing
Gexa Energy
8.9¢/kWh
energy only
Fixed Rate
  • 100% renewable options
  • Cashback rewards
  • No hidden fees
TXU Energy
10.5¢/kWh
energy only
Fixed/Variable
  • Longest operating REP
  • Free nights/weekends plans
  • Bill credits
Reliant Energy
10.8¢/kWh
energy only
Fixed/Variable
  • NRG subsidiary
  • Truly free nights
  • Rewards program
Green Mountain Energy
11.2¢/kWh
energy only
Fixed Rate
  • 100% renewable
  • Carbon neutral options
  • Environmental focus

TDU Detailed Profiles

Oncor
Dallas-Fort Worth, West Texas, Waco
16.1¢/kWh
avg total
3.9 million
3.7¢/kWh delivery

Advantages

  • • Largest TDU in Texas with extensive infrastructure
  • • Competitive delivery rates
  • • Strong storm restoration capabilities
  • • Wide REP selection in service area

Considerations

  • • Some rural areas have limited REP options
  • • Delivery charges can vary by usage tier
  • • Smart meter rollout still ongoing in some areas
CenterPoint Energy
Greater Houston, Galveston, Coastal Texas
16.6¢/kWh
avg total
2.8 million
4.1¢/kWh delivery

Advantages

  • • Excellent infrastructure in Houston metro
  • • Advanced smart grid technology
  • • Strong hurricane preparedness
  • • Many REP options available

Considerations

  • • Slightly higher delivery rates than Oncor
  • • Hurricane-prone area may see outages
  • • Transmission charges can add up
AEP Texas North
Abilene, Lubbock, Midland-Odessa
17.9¢/kWh
avg total
280,000
3.7¢/kWh delivery

Advantages

  • • Reliable service in West Texas
  • • Lower per-kWh delivery rate
  • • Good for high-usage customers

Considerations

  • • Higher base charge than other TDUs
  • • Fewer REP options in rural areas
  • • Limited competition in some zones
AEP Texas Central
Corpus Christi, South Texas, Rio Grande Valley
16.8¢/kWh
avg total
1 million
3.8¢/kWh delivery

Advantages

  • • Moderate base charge
  • • Growing infrastructure investment
  • • Coastal wind energy integration

Considerations

  • • Hurricane exposure in coastal areas
  • • Some rural areas underserved
  • • Fewer REP choices than Houston/Dallas
Texas-New Mexico Power (TNMP)
Texas City, Galveston, scattered areas
17.2¢/kWh
avg total
250,000
4.2¢/kWh delivery

Advantages

  • • Focused service in specific communities
  • • Local customer service
  • • Moderate overall rates

Considerations

  • • Smallest TDU with limited coverage
  • • Fewer REP options
  • • Higher delivery rates

Understanding Your Texas Electric Bill

Energy Charges (from your REP)

This is the cost of the electricity itself, charged per kWh. This is the part you can shop for and compare between different REPs. Rates typically range from 8-15¢/kWh depending on your plan.

Delivery Charges (from your TDU)

These are the costs to deliver electricity to your home through the power lines. You can't choose your TDU—it's determined by your address. Delivery typically adds 3-5¢/kWh plus a base charge.

Taxes and Fees

Various state and local taxes, plus regulatory fees. These are typically a small portion of your total bill but should be factored into comparisons.

Verify Your Bill

Whether you're with any Texas utility, our verification service can check your bill for accuracy and ensure you're being charged correctly.