Business electricity and natural gas suppliers in Texas
How commercial and industrial companies in Texas buy electricity and gas: which utilities deliver it, what happens if you do not choose a supplier, how ERCOT sets the costs behind the price, and how to run a competitive purchase.
In the competitive areas of ERCOT, every business buys electricity from a retail electric provider (REP); there is no utility supply to fall back on, only a provider of last resort. The wires company (transmission and distribution utility, or TDU) delivers the power and bills delivery through the REP. Discovery Energy Utility Audits buys electricity and natural gas for multi-site companies with sites in Texas: it inventories every account, invites every active supplier to one RFP, compares offers line for line, tracks each contract to renewal in TaraBase and audits the utility bills behind it. Its procurement fee is disclosed in advance.
01 / 07
Who delivers electricity in Texas
The utility in each territory owns the wires and bills delivery under a tariff the Public Utility Commission of Texas (PUCT) approves, whoever supplies the energy. Municipal utilities and cooperatives usually sit outside retail choice. Every utility in the state is listed in Discovery's Texas electric utility directory.
| Utility | Area | Grid |
|---|---|---|
| Oncor | Dallas-Fort Worth and much of north, central and west Texas | ERCOT |
| CenterPoint Energy Houston Electric | Houston | ERCOT |
| AEP Texas | South and west Texas, including Corpus Christi | ERCOT |
| TNMP (Texas-New Mexico Power) | Scattered areas of north, central and Gulf Coast Texas | ERCOT |
02 / 07
What happens if a business does not choose a supplier
There is no default service in competitive Texas. If a REP leaves the market, its customers move to a provider of last resort (POLR) under PUCT rule 16 TAC §25.43, which is designed as a backstop, not a price to sit on. A business whose contract expires usually rolls onto the REP's month-to-month rate, so tracking expirations matters more in Texas than almost anywhere. Municipal utilities and electric cooperatives, such as Austin Energy and CPS Energy in San Antonio, have not opted into competition, so businesses there cannot choose a REP.
03 / 07
Capacity, transmission and why prices moved
ERCOT has no capacity market. New demand shows up in wholesale prices during high-demand hours and in transmission costs, which are charged to larger customers through their demand in the four 15-minute summer peak intervals (4CP); see ERCOT 4CP transmission charges. Texas commercial prices averaged 8.62 cents per kWh over the 12 months to July 2026, second lowest in the country. Senate Bill 6 (2025) requires interconnection standards for new loads of 75 MW or more, and the PUCT's draft rule of March 2026 would require study fees and financial security of $50,000 per MW of requested load.
How a contract treats these charges, fixed or passed through, matters more than the headline rate. See charges by market.
04 / 07
Natural gas for businesses in Texas
Texas gas for commercial sites is delivered by Atmos Energy, CenterPoint Energy, Texas Gas Service and other utilities; larger industrial customers typically buy gas from a marketer under transportation service. Houston's winter capacity is rated in Discovery's Houston outlook, and the pipeline map shows the intrastate network and the Waha and Katy hubs.
Discovery's natural gas procurement page explains transport eligibility, NYMEX and basis, balancing, and firm versus interruptible service.
05 / 07
Brokers, suppliers and licensing in Texas
Texas requires anyone providing electricity brokerage services for compensation to register with the PUCT (16 TAC §25.112). Ask any broker for its registration number. Discovery Energy acts as an energy broker in its procurement work; its energy broker licenses and registrations are held by Energy Auction Exchange, LLC. Ask Discovery for the license or registration that covers your Texas sites. Suppliers serving Texas customers are licensed by the Public Utility Commission of Texas (PUCT), which keeps the list of active suppliers. A broker can only bid your Texas sites to suppliers active in each utility territory, and only if it is licensed or registered where the state requires it. How brokers are paid, and what to ask, is covered in energy broker fees.
06 / 07
How Discovery buys electricity and gas in Texas
Inventory
Every Texas account: utility, rate class, default or supplier service, contract end date, usage and 4CP or peak data.
Check the bills
Rate class, riders, demand and meter setup are tested against the tariff before a contract locks in the baseline. See utility bill audits.
Time and bid
One RFP to every active supplier, timed with the monthly Energy Risk Report, with Texas sites bid alongside the rest of the portfolio. See the multi-state RFP.
Compare and sign
Offers side by side on the same terms, in each structure that fits: fixed, fixed with pass-throughs, index, block and index or layered. No contract is signed without your written approval.
Track
Every contract in TaraBase, with renewals flagged well in advance so nothing rolls onto default or month-to-month pricing.
How far back utility overcharges can be refunded in Texas is on the Texas refunds page.
07 / 07
Questions about buying energy in Texas
Can businesses choose their electricity supplier in Texas?
In the competitive areas of ERCOT, every business buys electricity from a retail electric provider (REP); there is no utility supply to fall back on, only a provider of last resort. The wires company (transmission and distribution utility, or TDU) delivers the power and bills delivery through the REP.
Who are the retail energy providers in Texas?
Suppliers are licensed by the Public Utility Commission of Texas (PUCT), which keeps the list of active suppliers. Discovery invites every supplier active in each utility territory to its RFPs rather than a short list.
Which electric companies serve businesses in Texas?
Oncor; CenterPoint Energy Houston Electric; AEP Texas; TNMP (Texas-New Mexico Power). They deliver the power; the supply can come from a competitive supplier.
How do I compare commercial electricity offers in Texas?
Put every offer on the same product, term and treatment of capacity, transmission and other pass-through charges, then compare price. Check usage tolerance, auto-renewal and early termination terms before signing.
Sources
- 16 Tex. Admin. Code §25.43, Provider of Last Resort
- PUCT, Broker registration and reporting, 16 TAC §25.112.
- Greenberg Traurig, Texas Senate Bill 6 update (March 2026), draft 16 TAC §25.194 for loads of 75 MW or more.
- EIA data compiled by StartBusinessByState, Texas commercial prices at 8.62 cents per kWh in the 12 months to July 2026.
Find out what your bills should have cost.
Send one recent bill per site, or a list of accounts. We tell you where we expect findings before you sign anything. No upfront audit fee.