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Signed up for a new electricity plan and then spotted “CenterPoint” or “Oncor” on your bill? You didn’t sign up twice. In deregulated Texas, your provider and your utility company are two different businesses. Here’s a quick guide to Texas utility companies, who they serve, and why they matter when you pick a plan.
Key takeaways
- You choose your retail electricity provider. Your utility company (TDU) is assigned by your address.
- TDUs maintain the poles and wires, read meters and restore power after outages.
- Each TDU has its own regulated delivery charges, so plan prices differ by region.
- Some Texas cities, including Austin, San Antonio and El Paso, are not open to retail choice.
Retail providers vs. utility companies
Retail electricity providers (REPs) compete for your business. They set the energy price, design the plans and send your bill.
Utility companies (TDUs) don’t compete. Each one owns the local grid in its area and charges regulated TDU delivery charges that your provider passes through to you.
What your utility company does
- Maintains power lines, poles and transformers
- Reads your meter and sends usage data to your provider
- Responds to outages and downed lines, no matter which provider you use
- Connects and disconnects service at your address
Texas utility companies by region
| Utility (TDU) | Main areas served |
|---|---|
| CenterPoint Energy | Houston and much of the surrounding Gulf Coast region |
| Oncor | Dallas-Fort Worth, plus Waco, Tyler, Killeen, Midland-Odessa and much of North, Central and West Texas |
| AEP Texas Central | Corpus Christi, Victoria, Laredo and the Rio Grande Valley |
| AEP Texas North | Abilene, San Angelo and parts of West Texas |
| Texas-New Mexico Power (TNMP) | Pockets including League City, Friendswood and Texas City, Lewisville and parts of Central and West Texas |
| Lubbock Power & Light | Lubbock (opened to retail choice in 2024) |
Exact boundaries follow addresses, not city limits, so neighbors in edge areas can have different TDUs. When in doubt, your bill or your ZIP code will tell us.
Areas without retail choice
Some Texans can’t pick a provider because their area is served by a city-owned utility, an electric cooperative or a regulated utility outside the competitive market. Examples include Austin (Austin Energy), San Antonio (CPS Energy), El Paso (El Paso Electric), many rural co-ops, and parts of East Texas and the Panhandle.
Why your utility company matters when choosing a plan
Delivery charges differ from TDU to TDU, which means the same provider’s plan can have a different price in Houston than in Dallas. That’s why you should always compare plans for your address using the EFL average price, which includes delivery.
Want the details for the big two? Read our CenterPoint guide or our Oncor guide.
The Watt Panda way
When we compare plans, we start with your address and your TDU, layer in your real usage, and calculate the true cost of each plan, delivery included. Then we handle the switch and keep an eye on your contract end date.
Helpful official resources: Public Utility Commission of Texas · Power to Choose (official PUCT site)
Stop overpaying. Send us one bill.
We read the fine print, compare plans from our network of Texas electricity providers, handle the switch, and keep an eye on your renewal date. It’s free to you.
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Frequently asked questions
Can I choose my utility company in Texas?
No. Your TDU is determined by your address. You can only choose your retail electricity provider, and only if you live in an area open to competition.
Who do I call when the power goes out?
Call your utility company (TDU), not your provider. They own the lines and handle outage restoration.
Is Austin or San Antonio deregulated?
No. Austin Energy and CPS Energy are city-owned utilities, so residents there buy power directly from them.
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