Texas has one of the most robust deregulated energy markets in North America, allowing businesses to shop for electricity and natural gas supply. Since the state opened its electricity market to competition in 2002, companies can choose a retail energy provider and secure a fixed kWh rate while the local transmission and distribution utility (TDU) continues to deliver power.
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Major TDUs and service areas:
- Oncor – serves the Dallas–Fort Worth metroplex and surrounding communities.
- CenterPoint Energy – delivers electricity in the Houston metropolitan area.
- AEP Texas North and AEP Texas Central – cover the West Texas and Rio Grande Valley regions.
- Texas-New Mexico Power (TNMP) – serves portions of West Texas and the Gulf Coast.
For natural gas, Texas’s market is also deregulated. Commercial customers can purchase gas from competitive suppliers while gas delivery remains regulated by utilities like Atmos Energy and CenterPoint Energy.
Choosing a supplier allows Texas businesses to lock in long-term fixed rates, reduce exposure to volatile wholesale markets and lower their utility bills. When comparing offers, be sure to evaluate contract length, termination fees and any additional services.
