Electric Utility Companies in Texas
Electricity utility companies in Texas are businesses that transmit and distribute electricity to customers in the state. These companies are regulated by the Texas Public Utility Commission, which is responsible for ensuring that electricity rates are reasonable and that the electricity provided to customers is reliable.
There are several major electricity utility companies in Texas, including:
- CenterPoint Energy: This company is based in Houston and serves more than 7 million customers in Texas. CenterPoint Energy is involved in the transmission and distribution of electricity, as well as the distribution of natural gas.
- Oncor Electric: Oncor is one of the largest electricity transmission and distribution companies in Texas, serving millions of customers. In addition to transmitting and distributing electricity, Oncor also provides other services, such as meter reading and line maintenance.
- AEP Texas: This company is a subsidiary of American Electric Power and serves customers in parts of Texas. AEP Texas is involved in the transmission and distribution of electricity.
- Texas-New Mexico Power Company (TNMP): TNMP serves customers in rural parts of Texas and is involved in the transmission and distribution of electricity to these rural areas.
Read more in detail about these companies below.
What is The Difference Between Utility Providers and Energy Providers?
A utility company, also known as an electricity distribution company, is responsible for transmitting and distributing electricity to customers. These companies are regulated and are typically responsible for maintaining the electricity infrastructure, such as power lines and transformers. Utility companies do not sell electricity to end customers directly but are there to ensure that electricity is able to flow from the generation sites all the way to your electric panel at home.
in Texas you cannot choose your utility company, it is determined based on your location.
On the other hand, a retail electricity company, also known as a retail energy provider or a competitive retail electric provider (REP), is a company that sells electricity to customers. Retail electricity companies do not own or operate the electricity infrastructure; rather, they purchase electricity from wholesale markets or directly from power generators and resell it to customers at a markup. Retail electricity companies offer different plans and pricing options to customers.
In some states, retail electricity companies are able to compete with each other and offer different plans to their customers. In other states, the utility company is the only provider of electricity. In Texas, an energy-deregulated state, customers have the option to choose their electricity provider and shop around for a plan that best fits their needs.