All About the Deregulated Service Areas in Texas

Your Power, Your Choice: Discover how Ladybug Energy serves Texas’ deregulated cities and helps you find the perfect electricity plan. Enter your zip code below!

Texas Deregulated Energy Market

Electricity deregulation has brought about a wave of benefits for the vast majority of Texans. Firstly, the competition among electric providers leads to lower prices and a wider array of plans tailored to individual needs. This competitive landscape also drives innovation, encouraging companies to develop green energy alternatives and more efficient services.

Most major Texas cities, such as Dallas, Fort-Worth, Houston and McAllen are within deregulated zones. More than 400 cities and service areas covered by the state's six largest utilities: AEP Texas North, AEP Texas Central, Oncor, Centerpoint, Texas New Mexico Power and Lubbock Power & Light.

It should be noted that approximately 15% of Texans live in areas not yet deregulated where the traditional system continues to operate. In cities such as Austin, El Paso, San Antonio and Armadillo, electricity is still regulated and citizens cannot change their supplier.

But deregulation continues to make steady progress in the state. For example, Lubbock, a major northwest Texas city just entered the deregulated market in early 2024.

Deregulated Energy in Texas: A Brief History

In 2002, Texas took a monumental step by deregulating most of its energy market. Before this change, a single company would handle the generation, transmission, and distribution of electricity in an area.

With deregulation, these responsibilities got divided, allowing multiple Retail Electricity Providers (REPs) to compete for customers. This groundbreaking transition stemmed from the belief that competition spurs better services and pricing. Today, Texas remains a pioneer in the realm of deregulated energy, having inspired other states to follow suit.

Benefits of Deregulated Energy in Texas

  • Choice: Deregulation allows consumers to choose from a variety of electric companies and plans. This flexibility ensures that you can select a plan that fits your lifestyle and budget.
  • Competitive Prices: Lone Star State's competitive spirit is reflected in its energy market. With multiple companies vying for customers, prices are often more competitive, leading to lower electricity rates for the residents.
  • Innovation: Deregulation promotes innovation in the energy sector. Companies are incentivized to develop and introduce new and improved services, plans, and technology to stand out in the crowded market.
  • Improved Customer Service: With more competition, customer service quality improves. Companies strive to provide superior service to retain their existing customers and attract new ones.
  • Economic Growth: Texas, one of the largest economies in the U.S., gets a further boost through energy deregulation. It attracts new businesses, stimulating job creation and economic growth in the energy sector.

In summary, energy deregulation in Texas empowers customers by providing them with the freedom to select their preferred electricity provider. It promotes competitive pricing, encourages innovation, enhances customer service, and contributes to economic growth.

This customer-centric approach has made the Texan energy market one of the most dynamic and consumer-friendly in the country.

Let Us Find the Perfect Plan For You

If you reside in a deregulated area, Ladybug Energy can be your most valued ally in navigating the energy market. Our platform empowers you to compare various REPs and plans, saving you time and money.

We bring clarity to a complicated process by offering concise, transparent information and partnering only with trusted providers. At Ladybug Energy, we’re committed to helping you find the perfect match for your electricity needs.

Just enter your zip code in our search bar and we will show you all available options!

Map of Deregulated Cities in Texas

Explore the dynamic landscape of Texas, revealing its mix of regulated and deregulated electricity cities with Ladybug Energy's deregulation map.

Our interactive map illuminates the areas served by each utility - Oncor, Centerpoint, AEP Texas North, AEP Texas Central, TNMP and Lubbock Power & Light - and the regulation status for most major cities in the Lone Star State.

You can double-click on the dots representing deregulated cities to uncover the best electricity plans, providers, and options tailored for each location!

List of Deregulated Cities in Texas

Below is a list of some of the cities and deregulated service areas in Texas where Ladybug Energy can help you find your new electricity plan: