Understanding Energy in Texas
Texas operates the largest deregulated electricity market in the US via ERCOT. Customers in deregulated zones can choose from dozens of retail electricity providers, driving competition and generally lower rates.
Texas operates a deregulated electricity market, meaning you can choose your electricity supplier and potentially save money by shopping for competitive rates. Your utility still delivers the electricity — they just don't set the supply price. Visit your state's official electricity shopping portal to compare offers.
The state's primary electric utilities include Oncor, CenterPoint Energy, AEP Texas, Texas New Mexico Power (TNMP). Natural gas distribution is handled by Atmos Energy, CenterPoint Energy, Texas Gas Service. Texas's climate — hot summers, mild winters, occasional severe cold — is one of the main drivers of annual energy consumption patterns for households.
Electric Utilities in Texas
The following utilities operate in Texas. Your specific provider depends on your address.
- Oncor
- CenterPoint Energy
- AEP Texas
- Texas New Mexico Power (TNMP)
Natural Gas Utilities in Texas
- Atmos Energy
- CenterPoint Energy
- Texas Gas Service
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Energy Assistance Programs in Texas
Low-income households and those facing energy emergencies may qualify for these programs:
- LITE-UP Texas
- Weatherization Assistance Program
- AMP (Average Monthly Payment)
- PUCT Assistance
Energy Saving Tips for Texas Residents
These tips are tailored to Texas's climate — hot summers, mild winters, occasional severe cold:
- Set your AC to 78°F when home and 85°F when away to reduce cooling costs.
- Use ceiling fans to feel 4°F cooler without lowering the thermostat.
- Plant shade trees on the west and south sides of your home to block afternoon sun.
- Have your HVAC system serviced every spring before the cooling season begins.
- Seal duct leaks — up to 30% of cooled air can escape in a leaky duct system.
- Install a smart thermostat for automated temperature management.
- Use blinds and curtains during the hottest part of the day (2-5 PM) to block heat gain.
Gas & Electricity Rates by City in Texas
Select a city to view local utility rates, providers, and energy programs.
All Cities & Towns in Texas
Gas and electricity information for all 12 cities and towns in Texas. Jump to a letter or browse the full list.
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Frequently Asked Questions — Texas Energy
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The average residential electricity rate in Texas is approximately 16.44¢/kWh, compared to the national average of around 16¢/kWh. The average monthly electricity bill is $163.
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The average residential natural gas rate in Texas is approximately $1.76/therm per therm. The typical monthly gas bill is $52, though this varies significantly by season.
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The primary electric utilities serving Texas include Oncor, CenterPoint Energy, AEP Texas. The right utility for you depends on your specific address.
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Yes — Texas is a deregulated electricity market, allowing you to shop for a competitive electricity supplier.
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Texas residents may qualify for several assistance programs including LITE-UP Texas, Weatherization Assistance Program. Contact your utility or the state energy office for eligibility details.
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To reduce your energy bills in Texas: schedule a free energy audit through your utility, check for state weatherization assistance, upgrade to LED lighting, and optimize your thermostat settings. You can also shop for a lower-cost electricity supplier.