Texas Electricity Suppliers by TDU Territory: Oncor vs CenterPoint vs AEP Texas vs TNMP (2026)

Texas runs the most competitive retail electricity market in the country, but the offers you can sign up for depend on which Transmission and Distribution Utility (TDU) — sometimes called a TDSP — delivers power to your home. In the deregulated parts of Texas, served by the ERCOT grid, you choose a Retail Electric Provider (REP), while your TDU owns the poles and wires. Knowing your TDU territory is the key to shopping smart on Power to Choose or any comparison site.

How Texas Electricity Choice Works

Texas deregulated most of its electricity market in 2002. About 85% of the state’s electric load sits inside ERCOT (the Electric Reliability Council of Texas) and is open to competition. In those areas you don’t buy power from a utility at all — you buy it from a Retail Electric Provider (REP) like a competitive supplier. Your TDU delivers the electricity, maintains the lines, reads your meter, and restores power after outages. TDU delivery charges are regulated by the Public Utility Commission of Texas (PUCT) and are the same no matter which REP you pick.

Unlike most deregulated states, Texas has no “default utility rate” in competitive areas — you must choose a REP, and the entire bill (energy plus delivery, bundled) comes from that REP. The state’s official shopping site is Power to Choose, and the Electricity Facts Label (EFL) on every plan discloses the average price per kWh at 500, 1,000, and 2,000 kWh of usage.

Texas TDU (Utility) Delivery Territories

Five TDUs serve the deregulated ERCOT areas. Your territory determines the delivery charges baked into every plan and which REP offers are available.

Oncor Electric Delivery

Oncor is the largest TDU in Texas, delivering power to the Dallas–Fort Worth metroplex and much of north, central, and west Texas — more than 10 million people. The vast majority of competitive REP offers are available in Oncor territory, so DFW-area shoppers see the deepest, most competitive plan selection.

CenterPoint Energy

CenterPoint delivers electricity across the Houston metro area and much of the Gulf Coast. It’s the second-largest deregulated TDU, and like Oncor, its large population base attracts a wide range of REP plans. Houston shoppers should confirm CenterPoint as their TDU when comparing.

AEP Texas (Central and North)

AEP Texas serves south and west Texas, including the Corpus Christi area (AEP Texas Central) and the Abilene region (AEP Texas North). Delivery charges differ between the Central and North divisions, so two AEP Texas customers can see slightly different bundled prices.

Texas-New Mexico Power (TNMP)

TNMP delivers to several scattered pockets across Texas, including areas near the Gulf Coast, parts of west Texas, and communities around the DFW and Houston metros. Its delivery charges tend to run higher than Oncor’s or CenterPoint’s, which affects bundled REP pricing.

Lubbock Power & Light (LP&L)

Lubbock transitioned much of its load into ERCOT and opened to competition in recent years, making LP&L the newest deregulated TDU. Lubbock residents now choose a REP much like the rest of competitive Texas.

What’s NOT Deregulated in Texas

Not all of Texas can shop. Municipally owned utilities and electric cooperatives are generally outside competition. That includes Austin Energy (Austin), CPS Energy (San Antonio), El Paso Electric (El Paso), and many rural co-ops. If you live in those areas, you buy power from the local provider at regulated rates and can’t switch REPs.

Comparing REPs in Your Texas TDU Territory

Identify your TDU (it’s on your current bill, or determined by your ZIP), then compare plans using the Electricity Facts Label. The most useful number is the average price per kWh at the usage level closest to your monthly consumption — many cheap-looking plans are priced for exactly 1,000 or 2,000 kWh and cost much more at other usage levels because of bill credits or tiered pricing. Read the EFL, check the contract term, and note the early termination fee before enrolling.

Supply vs. Delivery: What You Actually Control

Every electricity bill in a deregulated market splits into two halves, and understanding the split is what makes shopping pay off. The delivery (or distribution) charge covers moving electricity over the poles and wires to your home, plus metering, billing, and storm restoration. In Texas that’s your TDU — Oncor, CenterPoint, AEP Texas, TNMP, or Lubbock Power & Light — and the delivery charge is bundled into your REP’s plan price. These charges are set by regulators and are identical whether you shop or not — no competitive supplier can lower them.

The supply (or generation) charge covers the actual electricity you consume. This is the only part of your bill open to competition. When you compare suppliers, you’re comparing this per-kWh generation price — typically the largest single line item on a bill in a high-usage month. Lowering it by even one or two cents per kWh adds up quickly for a household using 800–1,200 kWh a month, and the savings compound over a full contract term.

This is also why a flashy “X% off” claim can mislead: a discount only applies to the supply portion, not your whole bill. Always compare the actual price per kWh, not a headline percentage.

Who Benefits Most From Shopping

Not every household saves the same amount by switching, and being honest about that helps you set expectations. The biggest winners are typically:

High-usage homes. If you have electric heat, central air, a pool pump, an EV, or simply a large house, your supply charge is a big number — so a lower per-kWh rate produces real dollar savings every month.

Households currently on a variable or expired rate. If your introductory rate has rolled over to a variable “month-to-month” price, you may be paying well above market without realizing it. These are the customers who most often find double-digit monthly savings by locking a fixed rate.

Anyone who values budget certainty. Even if a fixed rate only matches your default price today, locking it shields you from the next seasonal spike. For people on fixed incomes or tight monthly budgets, that predictability is worth as much as the headline rate.

Lower-usage apartments and condos save less in absolute dollars, but the same shopping principles apply — and avoiding a runaway variable rate still matters.

Common Mistakes to Avoid

Chasing the lowest teaser rate. The cheapest rate on a comparison list is often an introductory price that converts to a much higher variable rate after one or two billing cycles. Read whether the rate is fixed for the full term.

Ignoring the early termination fee. If you might move or want flexibility, a contract with a steep cancellation fee can erase your savings. Match the term to how long you’ll realistically stay.

Auto-renewing without checking. Many contracts roll into a variable month-to-month rate when they end. Mark your contract’s expiration date and re-shop before it lapses.

Forgetting to compare against your real benchmark. Your savings are measured against your current supply rate — your default/standard price or your existing contract — not against some national average. Pull a recent bill and use your own number.

Frequently Asked Questions

What is a TDU or TDSP in Texas?

A Transmission and Distribution Utility (also called a TDSP) owns the poles, wires, and meters and delivers electricity in your area — Oncor, CenterPoint, AEP Texas, TNMP, or LP&L. You can’t choose your TDU; you choose a Retail Electric Provider (REP) that sells you the power the TDU delivers.

Does my TDU change if I switch electricity providers?

No. Your TDU is fixed by your location and handles delivery and outages regardless of which REP you sign up with. Switching REPs only changes who bills you for the energy.

Why don’t Texas plans have a default utility rate?

In competitive ERCOT areas, there’s no incumbent utility rate — everyone must choose a REP. That’s different from most deregulated states, which have a default ‘standard offer’ for non-shoppers.

What is the Electricity Facts Label (EFL)?

The EFL is a standardized disclosure every Texas REP must provide. It shows the average price per kWh at 500, 1,000, and 2,000 kWh, the contract term, and fees — making plans easier to compare apples-to-apples.

Can everyone in Texas choose their electricity provider?

No. Areas served by municipal utilities (like Austin Energy and CPS Energy), El Paso Electric, and many co-ops are not deregulated. Only ERCOT competitive areas — about 85% of the state — can shop.

How do I find my TDU?

Check your current electricity bill, which lists the delivery utility, or enter your ZIP code in a comparison tool. Your ZIP maps to Oncor, CenterPoint, AEP Texas, TNMP, or LP&L.

Bottom Line for Texas Shoppers

In competitive Texas, your TDU — Oncor, CenterPoint, AEP Texas, TNMP, or LP&L — sets the delivery charges built into every plan and shapes the REP offers you’ll see. Confirm your TDU, read the Electricity Facts Label at your real usage level, and choose a fixed-rate REP plan that fits how much power you actually use.