What Is Deregulation?
Most states have a single utility company that generates, transmits, and delivers electricity to your home — and you have no choice but to use them. Texas is different. In 2002, Texas deregulated its electricity market, separating the delivery of power from the sale of it.
This means that in most of Texas, you can choose your own electricity provider — called a Retail Electric Provider (REP) — and shop for the best rate. Competition between REPs is what drives prices down and gives Texans more options than nearly any other state in the country.
Quick Distinction
Your TDU (Transmission and Distribution Utility) owns the power lines and delivers electricity to your home. You cannot choose your TDU — it's determined by where you live. Your REP (Retail Electric Provider) is the company that sells you the electricity flowing through those lines. This is what you can shop and switch.
The 6 Deregulated Service Areas
There are six TDU territories in the deregulated Texas market. Your TDU is determined by your zip code:
AEP Texas Central
Corpus Christi, Laredo, Victoria, and surrounding South Texas areas
AEP Texas North
Abilene, San Angelo, Wichita Falls, and surrounding West Texas areas
CenterPoint Energy
Houston metro area and surrounding communities in Southeast Texas
Oncor Electric
Dallas–Fort Worth metro, North Texas, and parts of West Texas
Texas-New Mexico Power
Selected communities across North, West, and Gulf Coast Texas
Lubbock Power & Light
Lubbock and surrounding areas (joined deregulation in 2021)
Not sure which TDU you're in? Enter your zip code in the Texas Power Guru plan finder and we'll identify your service area automatically.
What Is a Fixed-Rate Plan?
A fixed-rate electricity plan locks in your energy charge for the length of your contract — typically 3 to 36 months. Your rate per kilowatt-hour won't change regardless of what happens in the energy market.
This is what Texas Power Guru focuses on exclusively. We filter out variable-rate, prepaid, and time-of-use plans — all of which introduce complexity and unpredictability into your bill.
Why Fixed-Rate?
Variable-rate plans can look attractive in the short term but expose you to price spikes — including the extreme rate increases some customers saw during Winter Storm Uri in 2021. Fixed-rate plans trade flexibility for predictability, which is usually the right call for most Texas households.
Understanding Bill Credits
Many electricity plans advertise very low rates — sometimes as low as 5¢/kWh — but include a catch: the low rate only applies if you use exactly 1,000 or 2,000 kWh in a month. Use more or less, and you lose the bill credit, causing your effective rate to spike.
Texas Power Guru filters these plans out entirely. Every plan you see is a straightforward fixed rate — what you see is what you pay.
The average Texas household uses 1,000–1,400 kWh per month in summer and as little as 600–700 kWh in mild months. Bill credit plans are specifically designed around these usage thresholds — so always compare the effective rate at your actual usage, not just at 1,000 kWh.
What Is an EFL?
Every electricity plan in Texas is required by law to publish an Electricity Facts Label (EFL) — a standardized one-page document that discloses your rate at 500, 1,000, and 2,000 kWh, all fees, your contract length, and your early termination fee (ETF).
Always read the EFL before enrolling in a plan. Texas Power Guru links to the EFL for every plan we show — you'll find the button on each plan card in the plan finder.
Tips for Choosing a Plan
Know your actual usage. Pull 12 months of bills and enter your kWh usage into the plan finder. Usage-based ranking gives you a far more accurate cost comparison than the generic 1,000 kWh benchmark most sites use.
Consider your contract length. Longer contracts (24–36 months) lock in rates for longer — useful if you think rates will rise. Shorter contracts give you flexibility but expose you to re-shopping more often.
Check the ETF. Early termination fees typically range from $0 to $250+ for fixed-rate plans. If there's any chance you'll move or switch before the contract ends, pay attention to the ETF.
Don't over-index on renewable %. 100% renewable plans often cost only slightly more than standard plans — but not always. Compare the total annual cost first, then decide if the premium is worth it to you.
Ready to Find Your Best Plan?
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