How Houston's Electricity Market Works
Houston is one of the largest deregulated electricity markets in the U.S. That means multiple retail electric providers compete to serve homes and businesses, and most customers can choose their supplier. The local wires and poles are still managed by CenterPoint Energy, which handles delivery, meter reading, and outage response no matter which provider you pick. Your bill typically has two parts: a supply charge from your chosen provider and a delivery charge from CenterPoint.
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Major Electricity Providers Serving Houston
The Houston area has dozens of active retail electric providers. Some of the better-known names operating in the region include Reliant, Direct Energy, Green Mountain Energy, TXU Energy, First Texas Energy, and Gexa Energy. Several smaller and regional providers also serve Houston, including Amigo Energy, Rhythm Energy, Payless Power, and Express Energy. Availability varies by exact address, so not every provider may appear on your list of options.
Types of Plans You Will See
Most Houston providers offer fixed-rate, variable-rate, and indexed plans. Fixed-rate plans lock in a price per kilowatt-hour for a contract term, usually 12, 24, or 36 months, which protects you from price spikes. Variable-rate plans float with the wholesale market, so your monthly bill can rise or fall with demand and weather. Indexed plans tie pricing to an outside index, such as the wholesale power price. Short-term and month-to-month options are common among no-deposit providers, which can appeal to renters or people building credit.
Renewable and Green Options
Several Houston providers offer green or renewable energy plans, often sourced from wind or solar. Green Mountain Energy has a long history in the Texas renewable market, and providers like Gexa Energy and Rhythm Energy also feature eco-focused plans. Some plans are 100% renewable, while others blend renewable and traditional supply. If sustainability matters to you, check the plan's renewable percentage and whether the provider holds relevant certifications or RECs.
What to Watch for When Choosing
Before you switch, check the Electricity Facts Label for each plan. That label shows the rate, contract length, early termination fee, and any recurring or one-time charges. Watch for low introductory rates that jump after the term ends, and confirm whether the provider charges a deposit or has a minimum usage requirement. Because CenterPoint handles delivery and outages, your choice of provider will not change who comes to restore power.
How to Switch Providers
Switching in Houston is straightforward. You can compare plans on provider websites or third-party comparison tools, then apply online or by phone. The new provider typically handles the enrollment and notifies CenterPoint, so there is usually no service interruption. You may need to provide your address, desired start date, and identification. Most switches take effect within a few billing cycles.