What Does Deregulation Mean, and How Does it Affect Me?
On January 1, 2002, the Texas State Legislature decided to deregulate the electricity industry. It opened up the supply of electricity to competition for the first time in state history.
Now, more than half of Texans can choose who to buy their electricity from as the list of retail electricity providers grows. In essence, deregulation means consumers can shop a competitive market, which has proven to benefit consumers via lower electricity costs.
Note: The Transmission/Distribution Service Providers (TDSP) in each area still owns and takes care of the local power lines. Consumers should call that company in the event of a power outage. Those entities are not subordinate to deregulation.
Deregulated Cities in Texas
The majority of Texas, roughly 85%, is deregulated and open to retail competition in the electricity market. Most electric cooperatives (“co-ops”) and municipally-owned utilities (“munis”) are exempt and remain regulated.
Note: Some deregulated cities in Texas, have portions that remain regulated and vice versa. Therefore, we have listed the zip codes that have deregulated meters. Although this does not necessarily indicate all meters in the area are deregulated.
For example, Houston is the largest city and also the biggest deregulated market in the state. It has over 2 million deregulated meters and nearly 800 regulated meters.
Conversely, Flower Mound has a population of close to 70,000, but it is largely regulated. However, there are still over 11,000 deregulated meters in the city.
In the chart below are zip codes that are deregulated. Therefore, if you live in one of these zip codes, you are most likely able to choose your electricity provider.
Unsure if you live in one of the deregulated cities in Texas? You should call the municipality or co-op that services your area to find out what options are available to you.
Some customers served by cooperatives can still choose an alternate retail provider only if the utility has “opted in” to deregulation.
Using our free savings calculator is the easiest way to learn if Energy Ogre can service your home! If so, we would be elated to assist in finding the right electric provider and plan for you.