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Shopping for electricity plans in Texas?

Get the best electricity rates with Texas electric companies verified by energy experts.

Deregulated Energy Market

Texans have the freedom to choose their energy provider thanks to energy deregulation.

Many parts of Texas have deregulated energy markets. 

What cities are deregulated in Texas?

Deregulated cities include Houston, Dallas, Fort Worth, Corpus Christi, Arlington, Galveston, Waco, and many more. The complete list below reflects all the cities and towns in Texas with deregulated electricity markets.

  • Abilene
  • Addison
  • Alamo
  • Albany
  • Aledo
  • Alice
  • Allen
  • Alpine
  • Alvarado
  • Alvin
  • Alvord
  • Andrews
  • Angleton
  • Anson
  • Aransas Pass
  • Archer City
  • Argyle
  • Arlington
  • Arroyo City
  • Aspermont
  • Athens
  • Atlanta
  • Aubrey
  • Austwell
  • Azle
  • Bacliff
  • Baird
  • Balch Springs
  • Ballinger
  • Balmorhea
  • Barksdale
  • Bay City
  • Baytown
  • Bedford
  • Beeville
  • Bellaire
  • Bellmead
  • Belton
  • Benbrook
  • Big Lake
  • Big Spring
  • Bishop
  • Blooming Grove
  • Bonham
  • Booker
  • Brackettville
  • Brazoria
  • Breckenridge
  • Bronte
  • Brookshire
  • Brownwood
  • Buffalo
  • Burk
  • Burnett
  • Burleson
  • Cameron
  • Canton
  • Carrizo Springs
  • Carrollton
  • Cedar Hill
  • Cedar Park
  • Centerville
  • Channelview
  • Childress
  • Christoval
  • Cisco
  • Clarendon
  • Clarksville
  • Cleburne
  • Clifton
  • Clute
  • Clyde
  • Collinsville
  • Columbus
  • Colorado City
  • Columbus
  • Comanche
  • Commerce
  • Comstock
  • Cooper
  • Coppell
  • Copperas Cove
  • Corpus Christi
  • Corsicana
  • Cotulla
  • Crane
  • Crockett
  • Crosby
  • Cross Plains
  • Crossroads
  • Crowell
  • Crystal City
  • Cypress
  • Dallas
  • De Leon
  • De Soto
  • Decatur
  • Deer Park
  • Del Rio
  • Denison
  • Denton
  • Devine
  • Diboll
  • Dickens
  • Dickinson
  • Dilley
  • Donna
  • Dublin
  • Dumas
  • Duncanville
  • Eagle Lake
  • Eagle Pass
  • Early
  • Eastland
  • Eden
  • Edgewood
  • Edinburg
  • Edna
  • Edom
  • Egypt
  • El Campo
  • Eldorado
  • Electra
  • Elgin
  • Ennis
  • Escobares
  • Etoile
  • Euless
  • Eustace
  • Falcon Heights
  • Falfurrias
  • Farmers Branch
  • Flint
  • Flo
  • Forest Hill
  • Forney
  • Fort Davis
  • Fort Stockton
  • Fort Worth
  • Freeport
  • Freer
  • Frisco
  • Fulton
  • Gainesville
  • Galena Park
  • Galveston
  • Gatesville
  • George West
  • Goliad
  • Graford
  • Graham
  • Granbury
  • Grand Prairie
  • Grandview
  • Grapevine
  • Gun Barrel City
  • Hallettsville
  • Haltom City
  • Hamilton
  • Hamlin
  • Harker Heights
  • Harlingen
  • Haskell
  • Hebbronville
  • Henrietta
  • Hidalgo
  • Hillsboro
  • Hitchcock
  • Houston
  • Hubbard
  • Hudson
  • Humble
  • Huntington
  • Hurst
  • Hutchins
  • Ingleside
  • Iraan
  • Irving
  • Italy
  • Jacksboro
  • Jersey Village
  • Jewett
  • Johnson City
  • Jourdanton
  • Junction
  • Karnes City
  • Katy
  • Kaufman
  • Keene
  • Keller
  • Kemah
  • Kenedy
  • Kermit
  • Killeen
  • Kingsville
  • Knox City
  • La Feria
  • La Marque
  • La Porte
  • Lacy Lakeview
  • Ladonia
  • Laguna Park
  • Lajitas
  • Lake Jackson
  • Lake Whitney
  • Lake Worth
  • Lamesa
  • Lancaster
  • Laredo
  • League City
  • Leakey
  • Leona
  • Lewisville
  • Lindale
  • Liverpool
  • Log Cabin
  • Los Fresnos
  • Lufkin
  • Lytle
  • Mabank
  • Magnolia
  • Malakoff
  • Malone
  • Manor
  • Mansfield
  • Marfa
  • Mathis
  • McAllen
  • McGregor
  • McKinney
  • Memphis
  • Menard
  • Mercedes
  • Merkel
  • Mesquite
  • Midland
  • Midlothian
  • Milano
  • Milford
  • Mineral Wells
  • Mission
  • Monahans
  • Muenster
  • Munday
  • Nacogdoches
  • Nassau Bay
  • Neches
  • Nocona
  • North Richland Hills
  • Northlake
  • Odem
  • Odessa
  • Olney
  • Orange Grove
  • Ozona
  • Paducah
  • Paint Rock
  • Palacios
  • Palestine
  • Palmer
  • Palmview
  • Paris
  • Pasadena
  • Pearland
  • Pearsall
  • Pecos
  • Penitas
  • Perryton
  • Pflugerville
  • Pharr
  • Pilot Point
  • Plano
  • Pleasanton
  • Port Aransas
  • Port Isabel
  • Port Lavaca
  • Port Mansfield
  • Port O’Connor
  • Portland
  • Pottsboro
  • Prairie View
  • Premont
  • Presidio
  • Quanah
  • Quinlan
  • Quintana
  • Rachel
  • Rainbow
  • Rancho Viejo
  • Ranger
  • Rankin
  • Raymondville
  • Red Oak
  • Refugio
  • Reklaw
  • Richardson
  • Richland
  • Richland Hills
  • Richmond
  • Rio Grande City
  • Rio Hondo
  • Riviera
  • Riviera Beach
  • Roanoke
  • Robert Lee
  • Rockdale
  • Rockport
  • Rocksprings
  • Rockwall
  • Roma
  • Rosenberg
  • Rotan
  • Round Rock
  • Round Top
  • Rowlett
  • Royse City
  • Ruidosa
  • Rule
  • Sabinal
  • Saginaw
  • Saint Jo
  • Salado
  • San Angelo
  • San Benito
  • San Juan
  • San Leon
  • Sandia
  • Santa Anna
  • Sargent
  • Seabrook
  • Seadrift
  • Seagoville
  • Sealy
  • Seguin
  • Shamrock
  • Sheffield
  • Sherman
  • Sinton
  • Snyder
  • Sonora
  • South Houston
  • South Padre Island
  • Spearman
  • Spring
  • Springtown
  • Spur
  • Stafford
  • Stamford
  • Stephenville
  • Sugar Land
  • Sulphur Springs
  • Surfside Beach
  • Sweetwater
  • Synder
  • Taft
  • Taylor
  • Temple
  • Terlingua
  • Terrell
  • Texas City
  • The Colony
  • Three Rivers
  • Throckmorton
  • Tivoli
  • Tomball
  • Tuleta
  • Tyler
  • Uvalde
  • Van
  • Van Alstyne
  • Vernon
  • Victoria
  • Waco
  • Waxahachie
  • Webster
  • Wellington
  • Weslaco
  • West Columbia
  • West Tawakoni
  • Westlake
  • Wharton
  • White Settlement
  • Whitewright
  • Whitney
  • Wichita Falls
  • Wills Point
  • Wimberley
  • Winters
  • Wolfe City
  • Woodway
  • Yantis
  • Yorktown
  • Zapata
  • Zavalla
Which Cities in Texas are Regulated?

While much of the state is deregulated, several areas are not. This is because deregulation was made mandatory for investor-owned utilities but optional for non-profit organizations like municipal utilities and electric cooperatives, and some of those organizations have not opted to participate.

The list below details some of the larger cities in Texas that remain regulated.

  • Austin
  • Brownsville
  • Bryan
  • Brenham
  • Burnet
  • College Station
  • Cuero
  • Denton
  • Fredericksburg
  • Garland
  • Georgetown
  • Greenville
  • Kerrville
  • New Braunfels
  • San Marcos
  • San Antonio

A deregulated electricity market means that customers have the ability to choose which energy provider they want to use. This allows customers to shop around for the best electricity rates and plans from different providers.

In a deregulated market, retail electric providers (REPs) are companies that purchase electricity and resell it to customers. They are the ones that offer plans and rates to customers, while transmission and distribution of energy remain regulated by the state and are the responsibility of the local utility.

Energy deregulation in Texas has led to increased competition and more options for customers, which can result in lower electricity rates and better energy plans.

Texas Electricity Companies

There are over 300 Retail Electricity Providers in Texas such as: Direct Energy, TXU energy or Champion Energy. Each has different types of energy plans, such as: fixed rate plans, prepaid or variable rate plans and incentives like bill credits, “free electricity” or “free nights”. The options for energy plans and rates are endless and can be overwhelming.

5 Digital Energy’s experts have implemented a thorough vetting process to carefully evaluate and pre-select the best energy companies with the most competitive rates and plans, making it easier to choose the best electricity plan for your needs.

Take a Few Minutes to compare rates and save on Your Electricity Bill

How Electricity Rates Work in Texas?

What goes into turning on the lights for your home or business? Something that may seem simple actually has many components and options. And, the way electricity prices are determined in Texas is different from California to Connecticut and everywhere in between.

Who’s who in the Texas energy market

To get power for your home or business, you’ll be interacting with different parties, depending on where you need the electric service. If you live in a regulated part of the state, your one-stop shop is the Co-op or utility for your designated region.

For areas of the state and country that are a deregulated energy market, you have a choice of retail electricity providers. That’s where we can help! We can connect you with the suppliers who provide energy services in that area.

Our pick for the best Electricity Rate in Texas

Spoiler: we don’t have one.

Better stated, we don’t have just one. The best electricity plan for you is going to be different than the best electricity plan for your neighbor. There are so many considerations that go into a retail electric supply agreement. Our mission is to arm you with the knowledge and confidence to make an informed decision about your energy. Yes, you can do this by yourself – but is it worth it?

There is no additional cost to you to have an award winning energy advisor sit on your side of the table and advocate for you. We get paid a commission from Texas electricity providers to evaluate all supplier offers that would otherwise be paid to an internal sales person at the individual energy provider. Our 850 years of combined energy experience has already helped thousands of clients just like you.

Switching electricity suppliers in the Texas market.

Energy providers generally make most of their profits when customers don’t understand the Electricity Facts Label (EFL) and forget to renew their contract and then roll to a pricey month-to-month holdover rate. While the term “switch” may insinuate that you move from one supplier to another, we really mean that you are switching to a new plan once your current plan has expired. The best way to stay on top of electricity rates and work with the best electricity provider for your needs is to partner with an advisor like 5 Digital Energy. Navigating electricity and natural gas markets are a full time job that many business owners do not have time to do.

It is important to note that switching suppliers will not affect the reliability or safety of your electricity service, as the transmission and distribution of electricity is still regulated by the Public Utility Commission of Texas (PUCT).

Here’s what 5 Digital Energy helps you consider when it’s time to switch energy providers:

Take advantage of market opportunities

The electricity and natural gas markets experience more volatility than any other commodity. Energy rates change every day, sometimes more than once per day. The market fluctuates based on supply and demand and is influenced heavily by weather and government regulations.

5 Digital Energy has a team of experts with over 850 years of combined energy experience. We help our clients navigate these power markets and empower people like you to make informed energy decisions.

Understand different types of energy plans

Texas electricity rates that you see online are measured in cents per kilowatt-hour (kWh). You can find your current kWh by looking at Supply portion of your energy bill. Knowing your electric usage can help narrow down the appropriate rates for your home or business. There are several types of electricity plans that customers can choose from, including:

  1. Fixed-rate plans: These plans offer a fixed price per unit of electricity for the entire duration of the contract. The customer’s rate is not affected by changes in the market price of electricity.
  2. Variable-rate plans: These plans offer a fluctuating price per unit of electricity that is based on the current market price. The customer’s rate can change from month to month, and is affected by changes in the market price of electricity.
  3. Time-of-use plans: These plans offer different prices for electricity at different times of the day, based on the time of use like “free nights”. The customer’s rate is higher during peak demand periods and lower during off-peak periods.
  4. Green energy plans: These plans provide electricity that is generated from renewable sources such as solar or wind power.
  5. Flat-rate plans: These plans have a fixed rate per month regardless of the amount of energy consumed.

When searching online for electricity rates, different websites can show a mix of these different plans without clearly defining the differences between contract terms.

Lowest electric rate does not always equal lowest electric bill.

There are many components of electric rate. The reason you see so many different rates online is because the retail electric providers can choose how to differently represent those rates. For example, if you see an offer that is much lower than it’s competitors, that may mean that the supplier has elected to pass a certain component through to the final invoice instead of lumping it into the rate.

Review early termination fees

An early termination fee (ETF) is a fee that is charged to customers who terminate their retail electricity agreement before the end of the contract term.

For most commercial contracts, the early termination fee is based on the amount of months remaining in the term of the agreement. When you sign an agreement with a new energy company, they estimate your monthly energy usage to determine how much electricity to purchase from the wholesale market. If you cancel your agreement early, the energy provider will be able to calculate the amount of damages they incurred due to the lost revenue and assess the customer that fee.

Alternatively, some energy providers may charge a fixed dollar amount for each month remaining in the contract. For example, if the ETF is $50 per month and the contract has 12 months remaining, the ETF would be $600.

It is important for small business owners to review the ETF calculation in the retail electricity agreement before signing the contract, to ensure that they understand the terms and the potential financial impact of early termination.

How to Switch Electricity Plans in Texas

Switching Texas electric providers in Houston is easy. By following a few simple steps, you can secure the best electricity rate.

Step 1: Compare Texas Energy Companies

Select your energy usage details and your zip code. We’ll analyze your energy habits and needs and match you with the most suitable and verified energy providers.

Step 2: Switch your energy company

5 Digital Energy has vetted reputable energy providers in Texas to ensure there are no hidden fees, “introductory rates” or unfavorable contract language . You won’t have to deal with any unpleasant terms and conditions.

Step 3: Leave it to us to handle everything else.

Once you have chosen your new energy rate, we will take care of all the paperwork and set up your new energy plan. We will keep you informed every step of the way and let you know when your electricity service is fully activated.

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