Deregulation in Texas

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Electricity deregulation in Texas is the result of Senate Bill 7 which went into effect on January 1, 2002. According to the law, deregulation is to be phased in over several years.

As a result, 85% of Texas power consumers (those served by a company not owned by a municipality or a utility cooperative) can choose their electricity service from a variety of "retail electric providers" (REPs), including the incumbent utility. The incumbent utility in the area still owns and maintains the local power lines (and is the company to call in the event of a power outage) and is not subject to deregulation. Customers served by cooperatives or municipal utilities can choose an alternate REP only if the utility has "opted in" to deregulation; to date, only the area served by the Nueces Electric Cooperative has chosen to opt in.

One desired effect of the competition is lower electricity rates. In the first few years after the deregulation in 2002, the residential rate for electricity increased seven times, with the price to beat at around 15 cents per kilowatt hour (as of July 26, 2006, www.powertochoose.org) in 2006. However, while prices to customers increased 43% from 2002 to 2004, the costs of inputs rose faster, by 63%, showing that not all increases have been borne by consumers. (See Competition and entry of new firms above for discussion on the relationship between retail prices, inputs, and investment.)

The deregulation permitted a few regions to retain regulated rates, such as in Austin. In these areas, the electricity rate has stayed closer to the average rate of about 10 cents per kilowatt-hour in the U.S. For those residents that have access to competitors (often more than a dozen), prices are only a little lower than the price to beat. For example, the lowest cost provider in central part of Texas was charging 6.8 cents per kilowatt (as of December 7, 2011).

 

Map of Energy Deregulated Cities in Texas

Payless Power does not service the entire deregulated area in Texas, but most of it. Please call us and we will help you get your power connected fast, easy and hassle free.

 

 

1-877-578-2977  Monday-Friday 9:00 AM – 8:00 PM and Saturdays 9:00 AM – 6:00 PM

 

 

Remember that Same Day Service is available.

Abilene

Carrizo Springs

Edinburg

Hurst

Mcallen

Rachel

Spring

Addison

Carrolton

Edna

Hutchins

Mckinney

Rainbow

Springtown

Alamo

Cedar Hill

Edom

Ingleside

Memphis

Rancho Viejo

Spur

Albany

Cedar Park

Edgypt

Iraan

Menard

Ranger

Stafford

Aledo

Centerville

El Campo

Irving

Mercedes

Rankin

Stamford

Alice

Channelview

El Dorado

Italy

Merkel

Raymondville

Stephenville

Allen

Childress

Electra

Jacksboro

Mesquite

Red Oak

Sugar Land

Alpine

Christoval

Elgin

Jersey Village

Midland

Refujio

Sulphur Springs

Alvarado

Cisco

Ennis

Jewett

Midlothian

Reklaw

Surfside Beach

Alvin

Clarendon

Escobares

Johnson City

Miland

Richardson

Sweetwater

Alvarod

Clarksville

Etoile

Jourdanton

Milford

Richland

Synder

Andrews

Cleburne

Euless

Junction

Mineral Wells

Richland Hills

Taft

Angleton

Clifton

Eustace

Karnes City

Mission

Richmond

Taylor

Anson

Clute

Falcon Heights

Katy

Monahans

Rio Grande City

Temple

Aransas Pass

Clyde

Falfurrias

Kaufman

Muenster

Rio Hondo

Terlingua

Archer City

Collinsville

Farmers Branch

Keene

Munday

Riviera

Terrel

Argyle

Colorado City

Flint

Keller

Nacogdoches

Riviera Beach

Texas City

Arlington

Columbus

Flo

Keham

Nassau Bay

Roanoke

The Colony

Arroyo City

Comanche

Forest Hill

Kenedy

Neches

Robert Lee

Three Rivers

Aspermont

Commerce

Forney

Kermit

Nocona

Rockdale

Throckmorton

Athens

Comstock

Fort Davis

Killeen

North Richland Hills

Rockport

Tivoli

Atlanta

Cooper

Fort Stockton

Kingvillage

Northlake

Rocksprings

Tomball

Aubrey

Coppell

Forth Worth

Knox City

Odem

Rockwall

Tuleta

Austwell

Copperas Cove

Freeport

La Feria

Odessa

Roma

Tyler

Azle

Corpus Christi

Freer

La Marque

Olney

Rosenberg

Uvalde

Bacliff

Corsicana

Frisco

La Porte

Orange Grove

Rotan

Van

Baird

Cotulla

Fulton

Lacy Lakeview

Ozona

Round Rock

Van Alstyne

Balch Springs

Crane

Gainesville

Ladonia

Paducah

Round Top

Vernon

Ballinger

Crockett

Galena Park

Laguna Park

Paint Rock

Rowlett

Victoria

Balmorhea

Crosby

Galveston

Lajitas

Palacios

Royse City

Waco

Barksdale

Cross Plains

Gatesville

Lake Jackson

Palestine

Ruidosa

Waxahachie

Bay City

Crossroads

George West

Lake Whitney

Palmer

Rule

Webster

Baytown

Crowell

Goliad

Lake Worth

Palmview

Sabinal

Wellington

Bedford

Crystal City

Graford

Lamesa

Paris

Saginaw

Weslaco

Beeville

Cypress

Graham

Lancaster

Pasadena

Saint Jo

West Columbia

Bellaire

Dallas

Grandburry

Laredo

Pearland

Salado

West Tawakoni

Bellmead

De Leon

Grand Prairie

League City

Pearsall

San Angelo

Westlake

Belton

De Soto

Grandview

Leakey

Pecos

San Benito

Wharton

Benbrook

Decatur

Grapevine

Leona

Penitas

San Juan

White Settlement

Big Lake

Deer Park

Gun Barrel City

Lewsville

Perryton

San Leon

Whitewright

Big Spring

Del Rio

Hallettsville

Lindale

Pharr

Sandia

Whitney

Bishop

Denison

Haltom City

Liverpool

Pilot Point

Santa Anna

Wichita Falls

Blooming Grove

Devine

Hamilton

Log Cabin

Plano

Sargent

Wills Point

Bonham

Diboll

Hamlin

Los Fresnos

Pleasanton

Seabrook

Wimberley

Booker

Dickens

Harker Heights

Lufkin

Port Arkansas

Seadrift

Winters

Brackettville

Disckinson

Harlingen

Lytle

Port Isabel

Seagoville

Wolfe City

Brazoria

Dilley

Haskell

Mabank

Port Lavaca

Sealy

Woodway

Breckenridge

Donna

Hebbronville

Magnolia

Port Mansfield

Seguin

Yantis

Bronte

Dublin

Henrietta

Malakoff

Port O Connor

Shamrock

Yorktown

Bookshire

Dumas

Hidalgo

Malone

Portland

Sheffield

Zapata

Brownwood

Duncanville

Hillsboro

Manor

Pottsboro

Sherman

Zavalla

Buffalo

Eagle Lake

Hitchcock

Mansfield

Prairie View

Sinton

 

Burkburnett

Eagle Pass

Houston

Marfa

Premont

Snyder

 

Burleson

Early

Hubbard

Mathis

Presidio

Sonora

 

Cameron

Eastland

Hudson

Mc Allen

Quanah

South Houston

 

Canton

Eden

Humble

Mc Gregor

Quinlan

South Padre Island

 
 

Edgewood

Huntington

Mc Kinney

Quintana

Spearman