Texas deregulated most of the state's electricity markets in 2002, a move aimed at lowering electricity costs by letting consumers choose their own electric power providers and their own plans. Some parts of Texas continued to be regulated, including those whose power is proved by municipally-owned utilities, electric cooperatives and investor-owned utilities that operate outside the state's primary power grid.
Texas deregulation began in early 2002 with the approval of Texas Senate Bill Number 7. Now, the majority of the state, including Houston, has the power to select their own provider. Previously, consumers were only given one option for an energy supplier. Deregulation has allowed competition in the energy market and has given residents the power to choose which energy provider sells them energy and bills them each month.
Electricity or Gas Supplier License/Order #s: CA 1359, CTA0006, CTA0032; CT 01-06, 06-07-11, 06-02-17; DE 00-162; DC GA2012-12, GA06-2, EA01-5, GA 11-5, EA 06-5-4, GA03-5; GA GM-46; IL 02-0489, 03-0320, 16-0205,17-0330, 07-0498; IA G-0010; ME 2000-989, 2002-64; MD IR-3645, IR-655, IR-311, IR-500, IR-3644, IR-228; MA GS-053, GS-030, CS-015, CS-045; MI U-14066, U-14867, U-13660, U-13245; NE NG-0043; NH DM 17-024; NJ GSL-0074, GSL-0101, ESL-0016, ESL-0066, GSL-0132, GSL-0099, GSL-0150, ESL-0171; OH, 09-153G, 00-003E, 00-013E; OR ES4 (12-162); PA A-2016-2542899, A-125095, A-110036, A-2016-2547424, A-110110; RI 2379(Z1), D-96-6(E); TX 10014; VA G-26, G-34, G-36, G-51, E-11A

REPs sell electricity rates to Houston energy consumers, but transmission and distribution service providers (TDSPs) deliver the supply of electricity. In Houston, CenterPoint Energy serves as the area's TDSP and works with about 85 REPs. If your power goes out, immediately report the issue to CenterPoint Energy, not your REP. Use the following phone numbers to get in touch with your Houston TDSP.

Even though customers in deregulated Texas markets routinely pay more for electricity, there is a bright spot. The gap between the average price paid for electricity between deregulated and regulated market has shrunk to 8.8 percent. In 2006, customers in deregulated cities were paying nearly 47 percent more for electricity than their counterparts in regulated cities.

Prepaid electricity plans are yet another option available to Texas customers. Prepaid plans let you avoid credit checks and deposits by pre-paying for your electricity. Prepaid electricity plans typically do not have a fixed duration and operate on a pay-as-you-go basis. Shopping for prepaid electricity can often yield relatively cheap electricity with no deposit. See Prepaid Electricity: Is It Right For Me? for more.
Energy sellers must provide collateral to ERCOT to cover expected future costs of buying wholesale electricity and if the companies don’t have enough capital, they get shut down. Breeze Energy, a Dallas-based electricity retailer that sold wind-energy plans to 9,800 customers including many in the Houston area, got caught in that financial squeeze when it defaulted on its collateral obligations.
In deregulated states, electricity providers simply can't do business like that because consumers like you are demanding energy from renewable sources. Threats of global warming are too terrible to be irresponsible with our energy sources anymore. As a result, each electric company is pushing forward to find renewable energy sources that are cheaper, cleaner, and more reliable than older forms of energy.
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If you’re looking for a new electricity deal, you’re not alone: 319,000 electricity customers switched energy supplier during January 2018, according to OFGEM*. Shopping around for the best electricity deal is simpler than you might think – but there are bound to be a few questions. Here’s everything you ever wanted to know about comparing electricity deals.
When you use our rate comparison process, providers know that they are competing to win your business. Consequently, they offer cheap electric rates in hopes of becoming your new Texas electricity company. This benefits both you and the provider you select. You receive a cheap electric rate and the plan of your choice, and the provider adds another satisfied customer.
On the other hand, month-to-month variable rate (no-contract) plans don’t have cancellation fees. You won’t be penalized if you find a better deal elsewhere and want to make another switch.  And, you won’t be stuck paying more than you should be if the market rate for electricity trends down.  But, if it goes up, you’ll be paying more than your in-contract neighbors, and you’ll likely want to shop around again for a better deal.
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