If you're moving to or living in Texas, one of the most important questions to ask is whether your city offers electricity choice. Texas is known for having one of the most active deregulated energy markets in the U.S., but not all areas participate in it.
This guide explains the difference between regulated and deregulated energy markets, lists major cities in each, and helps you understand how the system works so you can make informed decisions.
Understanding Regulated vs. Deregulated Energy
Regulated Energy
In a regulated market, a single utility is responsible for supplying and delivering electricity. That utility sets rates with government oversight. Customers in regulated areas have no choice of provider. Prices tend to be stable, but there are fewer options.
Deregulated Energy
Deregulated markets allow competition among retail electric providers (REPs). Customers in these areas can choose from a wide range of providers and plans. The utility still delivers the electricity and maintains the lines, but the supply is sold by competitive companies.
Benefits of Deregulated Electricity Markets
- Choice: Pick the provider, plan type, rate structure, and contract length that fits your needs.
- Pricing Power: Competitive pressure can lead to better rates and promotional offers.
- Renewable Options: Many REPs offer plans with 100 percent renewable energy.
- Innovation: Providers compete on features, tools, and rewards, giving you more than just a basic rate.
Challenges in Deregulated Markets
- Rate Volatility: Prices may fluctuate more than in regulated areas.
- Information Overload: Comparing offers can be complex due to hidden fees or unclear terms.
- Contract Traps: Some plans come with cancellation fees or teaser rates that rise later.
Regulated Cities and Areas in Texas
Most regulated areas are served by city-owned or cooperative utilities. Customers in these areas cannot choose their electricity provider.
Major Regulated Cities:
- Austin: Served by Austin Energy
- San Antonio: Powered by CPS Energy
- El Paso: Covered by El Paso Electric
- Garland: Served by Garland Power & Light
- Brownsville: Managed by Brownsville Public Utilities Board
Other regulated areas include many rural electric cooperatives and municipal utilities across the state.
Deregulated Cities and Areas in Texas
Over 85 percent of Texas is deregulated. Residents in these areas can compare providers, shop for plans, and switch if they find a better offer.
Major Deregulated Cities:
- Houston
- Dallas
- Fort Worth
- Arlington
- Plano
- Irving
- Corpus Christi
- Sugar Land
- Katy
- Pasadena
- Laredo
- Midland
- Odessa
- Abilene
- Waco
- Killeen
- Lubbock
To confirm your area, check the Public Utility Commission of Texas or use Power to Choose.
How to Know If You Live in a Deregulated Market
- Look at your electricity bill. If you see the name of a retail provider (not just the utility), you’re likely in a deregulated area.
- Visit the Public Utility Commission of Texas (PUCT) or the Power to Choose website.
- Ask your local utility or landlord if electricity choice is available.
Most of Texas offers electricity choice, but some cities remain regulated. Knowing where your home falls is the first step in understanding your energy options. If you’re in a deregulated area, comparing providers can help you find a plan that fits your household's needs and budget.
For the competitive rates and transparent service, NextVolt Energy helps Texans shop smart. No surprises. Just solid power.
FAQs About Electricity Choice in Texas
- When did electricity deregulation begin in Texas?
Deregulation began in 2002 following the passage of Senate Bill 7 in 1999. - Does deregulation affect reliability?
No. Utilities still manage the delivery infrastructure. Reliability does not change based on the supplier. - Can I switch providers?
Yes, if you live in a deregulated area. Be sure to check contract terms first. - Are rates lower in deregulated markets?
Rates vary. You may find better deals by shopping, but it depends on your usage, timing, and plan selection. - Can I return to the utility default rate?
Some REPs offer month-to-month plans without cancellation fees. Others may return you to a default provider. - Are there tools to compare providers?
Yes. The Power to Choose site lets you view plans, prices, and provider details by ZIP code.