Guide · Utilities & outages

Utility (TDU) vs retail electricity provider in Texas: who does what

Oct 8, 2026 · updated 2026-10-09
TexasHomeBills™ — Texas electricity plans ranked by what they really cost you.
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Utility (TDU) vs retail electricity provider in Texas: who does what
In most of Texas two companies serve your home: the utility (TDU), such as Oncor, CenterPoint, AEP Texas, TNMP or Lubbock Power & Light, owns the poles, wires and meter and restores power after outages; the retail electric provider sells you the plan and sends the bill. You choose the provider, but your address decides the utility, and its delivery charges pass through on your bill whichever provider you pick.

If you live in Dallas, Houston, Corpus Christi or Lubbock, your electricity involves two different companies. Knowing which one does what helps you shop, read your bill, and know who to call when the lights go out.

Two companies, two jobs

Utility (TDU) Retail electric provider (REP)
Examples Oncor, CenterPoint, AEP Texas, TNMP, Lubbock Power & Light The companies listed on Power to Choose
Owns Poles, wires, substations, your meter No physical grid
Does Delivers power, reads meters, fixes outages Sells plans, sets your price, bills you, handles customer service
Can you choose it? No, your address decides Yes, in competitive areas

TDU stands for transmission and distribution utility (you will also see "TDSP"). ERCOT describes it this way: retail providers buy electricity on the wholesale market and compete for customers, while the TDSPs maintain the power lines and meters that deliver it.

Why you can't choose the utility

The utility owns the physical lines on your street. Building a second set of lines would make no sense, so each area has one regulated utility. When you switch providers, the utility stays the same; it simply reads your meter on the switch date and sends the reading to the old and new providers.

That also means switching providers does not change your reliability. The same crews and the same lines serve you whichever provider you pick.

Who to call in an outage

Call your utility, not your provider, to report an outage or a downed line. The PUCT keeps a list of utility outage contacts, and the number is usually printed on your bill. Your provider can help with billing questions, but it does not send repair crews.

Delivery charges pass through

Your utility charges for delivery: usually a fixed monthly amount plus a per-kWh amount. Your provider passes these charges through on your bill. They are the same for every provider within the same utility area, and the average prices shown on an Electricity Facts Label usually already include them.

Under Texas rules, even a fixed-rate plan's price may change to reflect actual changes in the utility's delivery charges. So "fixed" means the provider's part is fixed; delivery charges, and a few other regulated fees, can still move.

Delivery charges are also one reason prices differ between areas. As of October 2026, the median 1,000 kWh price among plans in our data was about 12.1¢ per kWh in AEP Texas Central and about 15.2¢ in TNMP. Not all of that gap is delivery charges, but they are a large part of every bill. See how to read an EFL for where they appear.

Which utility serves which cities

Boundaries follow ZIP codes and can overlap, so use these as a rough guide and confirm with your ZIP code in our plan search.

Areas without a choice of provider

Not all of Texas can shop. According to ERCOT, about 85% of Texas electricity consumers can choose their provider. Most city-owned utilities and electric cooperatives have not opted in. That includes:

  • Austin Energy (Austin) and CPS Energy (San Antonio): you buy directly from the city utility.
  • Most electric cooperatives, which serve many rural and suburban areas.
  • Some regions served by utilities outside the competitive ERCOT retail market, such as parts of East Texas, the Panhandle and El Paso.

If your ZIP code shows no plans in our search, you are probably in one of these areas, and your utility sets your rate.

What this means when you shop

  • Compare plans within your utility, because delivery charges differ by area.
  • Judge providers on price, contract terms and service, not on reliability; the wires are the same.
  • Keep your utility's outage number handy.

You can browse all providers or see how we rank plans by estimated annual cost in your area.

Questions

Can I choose my utility (TDU) in Texas?

No. The utility is set by where you live because it owns the local poles and wires. In areas open to competition you choose only the retail electric provider.

Who do I call when the power goes out?

Your utility (TDU), such as Oncor or CenterPoint, handles outages and repairs. The PUCT publishes a list of utility outage numbers, and your bill usually lists one too.

Will switching providers change my power quality or reliability?

No. The same utility delivers the power over the same lines whichever provider you choose. Switching changes who bills you and the price you pay.

Can people in Austin or San Antonio choose a provider?

Generally no. Austin Energy and CPS Energy are city-owned utilities that have not opted into retail choice, so their customers buy directly from them.

Sources

General information as of Oct 9, 2026, not legal or financial advice. PUCT rules (16 TAC Chapter 25), your contract and the provider's Electricity Facts Label control; check the current rule text and your own documents.

Revision history
  • 2026-10-09 09:00 — Corrected: plans shorter than 12 months are now priced with a re-shop after their term, and a duplicate listing whose price contradicted its EFL was removed; rankings and costs updated.
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TexasHomeBills™ — Texas electricity plans ranked by what they really cost you.
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