How does choosing an electricity provider work in Houston?

By Century House Editors. Verified November 3, 2026 against 7 sources. 2-minute read.

Quick answer

How does choosing an electricity provider work in Houston?

In most of the Houston area, households pick a retail electric provider, which buys wholesale power and competes for customers. CenterPoint Energy maintains the power lines and meters and restores service after outages. Texas opened this market under Senate Bill 7 of 1999, with competition starting Jan. 1, 2002. The state's comparison site is powertochoose.org.

How did electricity choice start?

The Texas Legislature passed Senate Bill 7 in 1999. It opened retail electricity to competition on Jan. 1, 2002, for customers of investor-owned utilities. Each of those utilities split into a power generating company, a retail electric provider and a transmission and distribution utility. ERCOT reports that about 85 percent of Texas electricity consumers can now choose a provider.

Who does what?

Role What it does
Retail electric provider Buys wholesale power and competes for customers
CenterPoint Energy Houston Electric The transmission and distribution utility for the Houston area; maintains power lines and meters and restores power after outages
ERCOT Processes customer switches between providers
Public Utility Commission of Texas (PUCT) Oversees the retail market and enforces customer protections

CenterPoint states that it delivers electricity to more than 2.4 million customers in a 5,000-square-mile area.

How do I compare offers?

The PUCT runs powertochoose.org, the state’s official electric choice website. Every provider must give a copy of its Electricity Facts Label on request. The label lists prices and contract terms in a standard format.

The PUCT describes five common plan types:

  • Fixed. The price per kilowatt-hour does not change during the contract, with some exceptions for fees.
  • Variable. Month-to-month, with no contract or cancellation fee. The rate can change each month.
  • Indexed. The rate follows a formula tied to a public index.
  • Prepaid. Pay-as-you-go service, with usage tracked daily by a smart meter.
  • Time-of-use. Prices change by time of day.

How does switching work?

  1. The new provider notifies ERCOT.
  2. ERCOT sends the customer a verification letter.
  3. ERCOT requests enrollment from the wires utility and notifies the old provider.
  4. The wires utility reads the meter on the switch date.

Can everyone in Greater Houston choose?

No. Municipally owned utilities and electric cooperatives are mostly outside the choice market. In The Woodlands, Entergy Texas serves parts of the township as a regulated utility. Customers there cannot pick a provider. Homes in the township’s CenterPoint area can choose.

Who handles complaints?

The PUCT asks customers to contact their provider first. Unresolved complaints go to the PUCT Consumer Protection Division at 1-888-782-8477 or consumer@puc.texas.gov. The PUCT has no authority over municipal utility or cooperative rates or service.

Frequently asked questions

Can I buy electricity directly from CenterPoint?

No. CenterPoint is the wires utility in its area. It delivers electricity for retail electric providers, and customers choose one of those providers.

What is an Electricity Facts Label?

It is a standard document that lists a plan's prices and contract terms. The PUCT requires every retail electric provider to supply it on request.

When did electricity choice begin in Texas?

Retail competition began Jan. 1, 2002, under Senate Bill 7, passed in 1999.

Does every Houston-area home have electricity choice?

No. Customers of municipal utilities, most electric cooperatives and Entergy Texas, which serves parts of The Woodlands, cannot choose a provider.

Sources