At Choose Texas Power, we aim to provide consistent, reliable information about energy plans. Our partners do not direct our editorial content, though we may reference their products in our posts. Read about how we make money to learn more.
A majority of the Texas energy market was deregulated in 2002, when Senate Bill 7 officially took effect and ended the monopoly utility companies held over most service areas. Instead of being forced to buy power from their local utility, residents and businesses could now shop for low rates from competing retail electric providers (REPs).
The goal was for competition among retailers to drive down prices for energy consumers. While it took some time, that idea has generally proven true in the long run. Additionally, deregulation has encouraged growth in the green energy sector. Today, the Lone Star State is one of the country’s leading producers of renewable power.
According to the U.S. Energy Information Administration, as of July 2025:
Despite the benefits of electricity deregulation, not every city has adopted electric deregulation in Texas. Austin and San Antonio are still regulated, and Lubbock energy deregulation only took effect in 2024. While many residents and businesses have benefited, some still argue that it has complicated the market and hasn’t always resulted in better prices for consumers.
Largely, however, the state has embraced this change. Today, more than 85% of cities in Texas are deregulated, which means most consumers and businesses need to know how to navigate this market landscape.
Under electric deregulation in Texas, retail electricity providers (REPs) sell electricity to customers, while utility companies deliver it to homes and businesses.
In Texas’ deregulated areas, residents and businesses must buy electricity from an REP, not directly from the local utility company. Having options can help you save, but it can be overwhelming to shop around and compare providers. That’s where Choose Texas Power comes in. Our marketplace was designed to make the process simple by helping you compare providers, review plan options, and choose the one that best fits your needs. Here’s how it works:
We partner with top providers. We have built strong relationships with REPs in Texas to allow customers to shop a variety of plans — all for free and all in one place. We vet each provider to ensure they deliver trustworthy, reliable service.
You can filter your plan options. With so many providers on the market, picking a plan can be confusing. When you enter your ZIP code on this page, you’ll be able to filter by home size, provider, rate type, green energy, and more. If you have questions, our team members are here to help.
We’ll coordinate the setup. You won’t bounce between multiple websites to complete your purchase — we’ll handle the entire process. We’ll send the information to your new provider, and they’ll coordinate setup with your utility without interruption to your service.
While you can choose your REP, you cannot choose your utility company. Your utility is assigned based on where you live and is responsible for delivering electricity to your home or business. The delivery charges you find on your bill are set by the Public Utility Commission of Texas (PUCT), not by your provider.
Everyone pays the same delivery fee to the utility in their area, regardless of which provider they choose. For more information on the charges you’ll have on your bill, please refer to our bill information resource. We can also help you find your utility company.
The Public Utility Commission of Texas was created in 1975 to regulate the electric utilities within the state. Today, the PUCT is responsible for regulating investor-owned utilities, which operate in deregulated cities in Texas. With a few exceptions, most of the state is under PUCT jurisdiction.
The PUCT does not oversee every type of utility. For instance, municipal or cooperative utilities are managed locally by a city council or board. The PUCT also does not set rates for REPs since their pricing is controlled by market competition. Instead, the PUCT’s role is to enforce rules and regulations for utilities and REPs operating in deregulated areas, ensuring the market runs fairly for consumers.
As a utility regulator, the Public Utility Commission of Texas is responsible for implementing energy industry legislation and resolving consumer complaints.
If you feel you have been wronged by your provider or utility, you can file a formal complaint with the PUCT. However, you should first contact your provider directly to attempt to resolve the issue. For more information on when and how to file a complaint, please check the PUCT’s website.
Let us put the power in your hands with a new electricity plan.
