The Texas electricity market is mostly deregulated, which means many households can choose a retail electric provider that supplies their power while the local utility still delivers it through the poles and wires. You shop plans, compare rates, review terms, and switch when it makes sense. Delivery, outages, and meter work stay with the local utility.
How Texas electricity choice works
Texas separated power generation, delivery, and retail supply. Retail electric providers sell electricity plans and handle billing. Transmission and Distribution Service Providers own and maintain the lines, restore service during outages, and read meters. The Electric Reliability Council of Texas balances supply and demand on most of the state grid, while the Public Utility Commission of Texas regulates rules and consumer protections.
Where choice is available
Most areas served by investor owned utilities are open to choice. Some municipal utilities and co-ops are not. If you enter your service address and see plans available in your area, you are in a choice area.
What stays the same when you switch
Your lights are delivered over the same lines. Your meter and outage support do not change. Storm response, safety, and delivery charges are set by the local utility. When you pick a new plan, you are changing the company that supplies the electricity and manages your contract, not the delivery company.
Common plan types
- Fixed rate plans keep the price per kilowatt hour the same for the length of the contract.
- Variable rate plans can change month to month.
- Time of use plans offer lower prices at certain times and higher prices at others.
- Prepaid plans let you add funds up front and pay as you go.
How to read plan details with confidence
- Check the Electricity Facts Label for the rate at 500, 1000, and 2000 kWh.
- Look for monthly base charges, bill credits, or usage thresholds.
- Confirm the contract term, renewal process, and any early termination fee.
- Review the price components for energy, delivery, and other fees.
- Save a copy of the plan documents and note your contract end date.
Fixed rate vs other options
Fixed rate plans fit households that want price stability for a clear monthly budget. Variable and indexed plans can work for customers who track the market and accept risk that prices may rise. Time of use plans fit homes that can shift usage to off peak hours. Pick the structure that matches how and when you use power.
Delivery charges and your total bill
Your bill has two main parts. Energy supply charges come from your retail electric provider. Delivery charges come from the local utility and apply to every customer in the same service area, no matter which provider you choose. Comparing plans means looking at both pieces to understand your total cost.
What affects prices in Texas
Seasonal demand, weather, fuel costs, and grid conditions can move prices. Summers are hot and winters can bring spikes during cold snaps. Shopping before peak seasons and choosing the right term length can help you lock a price that fits your needs.
Helpful steps before you enroll
- Review 12 months of your usage if available to match a plan to real patterns.
- Decide how long you want to commit, such as 12 to 24 months for stability.
- Compare at the usage level closest to your home’s monthly average.
- Confirm fees for payment methods, paper billing, or late payments.
- Check for any move out rules and whether fees are waived if you move.
Your rights as a Texas customer
You have the right to clear pricing information, written disclosures, and a rescission period on most new enrollments. You can file a complaint with the Public Utility Commission if an issue is not resolved with your provider. Outages are always reported to the local utility.
Future trends to watch
Texas continues to add renewable generation and grid batteries. More smart meters and flexible rate designs may reward shifting usage to lower cost times. As the grid evolves, plans that pair fixed energy with tools that help you manage when you use power may offer added value.
FAQ about Texas Electricity Choice
What if I do not choose a provider in a choice area
You may be served by a default option until you select a plan. Default service can cost more than market offers, so shopping is often better.
Can I switch before my contract ends
Yes, but early termination fees may apply. You can switch within 14 days of your contract end date without an early termination fee. Confirm the exact date in your agreement.
Who do I call for an outage
Always call your local utility. Your retail electric provider handles billing and plan questions, but the utility restores power.
Why did my bill change even though my energy rate is the same
Delivery charges from the utility can change during your term. These are separate from your energy rate and appear on every customer’s bill in your service area.