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Utilities in Texas

The 4 Largest Utilities in Texas: A Comprehensive Guide

 Utilities in Texas

Texas is a big state that takes a lot of energy to power its residents and businesses. The four largest utilities in the state are responsible for meeting most of that demand. In this comprehensive guide, we will take a look at each of those companies and explore what makes them stand out from the competition. So, if you’re interested in learning more about the largest utilities in Texas, keep reading!

The 4 Largest Utilities in Texas

The four largest utilities in Texas are Oncor, CenterPoint, AEP Texas, and Texas-New Mexico Power.  Let’s take a closer look at each of these companies and see what they have to offer.


Oncor is the largest utility in Texas, and it serves more than 10 million people in the state. The company has over $19 billion in total assets and operates more than 170,000 miles of power lines. Oncor is a subsidiary of Sempra Energy, a Fortune 500 company based in San Diego, California. It is a regulated utility and is responsible for delivering electricity to homes and businesses in its service area. The company, headquartered in Dallas, Texas, is a subsidiary of Berkshire Hathaway Energy, and it employs more than 4,000 people.  Oncor is committed to providing safe and reliable energy delivery to its customers and has a long history of success.


Headquartered in Houston, CenterPoint is the second largest utility in Texas, with over 4 million customers across the state. The company delivers electricity to retail and wholesale customers and also provides natural gas services. CenterPoint is a regulated monopoly, meaning it is the only electricity provider in many parts of Texas. As a result, the company has come under fire for its high prices and poor customer service. In recent years, however, CenterPoint has made strides to improve its service levels and customer satisfaction. The company has also been working on expanding its renewable energy portfolio and now offers a number of green energy options to its customers.

AEP Texas

AEP Texas is one of the four largest electric utilities in Texas, serving more than 500,000 customers in a 100-county service area. The company is a subsidiary of American Electric Power (AEP), one of the largest electric utilities in the United States. AEP Texas’s service territory includes parts of Austin, Corpus Christi, Houston, San Antonio, and Tyler. The company owns and operates a 5,500-mile transmission system and more than 30,000 miles of distribution lines. It also has three coal-fired power plants, nine natural gas-fired plants, and three renewable energy facilities. AEP Texas is committed to providing safe and reliable electricity at affordable rates. The company offers a variety of programs and services to help customers save energy and money. It also provides emergency assistance to customers during times of extreme weather or other emergencies.

Texas-New Mexico Power (TNMP)

Texas-New Mexico Power (TNMP) is the 4th largest utility in Texas serving just over 250,000 homes and business customers.  Headquartered in Lewisville, Texas, TNMP is a subsidiary of PNM Resources and employs over 400 people in more than 20 communities across the state of Texas.  TNMP is one of the more far-reaching utilities in Texas offering services in cities along the Gulf Coast like League City to North-Central Texas including Lewisville, and West Texas cities like Fort Stockton.  Texas-New Mexico Power has operated in Texas since 1981.

Electric Reliability Council of Texas (ERCOT):

Electric Reliability Council of Texas, or ERCOT, is the largest grid operator in Texas. It manages the flow of electricity for more than 26 million consumers and over 90% of the state’s electric load. ERCOT is a nonprofit organization that is overseen by the Public Utility Commission of Texas and the Texas Legislature. The Electric Reliability Council of Texas was created in 1970 to ensure that electric utilities in the state could operate together to provide reliable electric service to customers in the service area. Since then, ERCOT has expanded its role to include managing the electric market in addition to maintaining reliability.

As one of the largest grid operators in the United States, ERCOT is responsible for managing a large and complex electric system. In order to maintain reliability, ERCOT must constantly monitor conditions on the electric grid and make real-time adjustments as needed. This includes making sure there is enough generation capacity to meet customer demand, monitoring transmission lines for congestion, and managing reserves.  By managing both reliability and the electric market, ERCOT plays a vital role in ensuring that Texans have access to reliable and affordable electricity.

What Does the Future Hold?

The electric utility industry in Texas is changing rapidly with growing population and demand for electricity.  At the same time, renewable energy prices are falling, and more and more Texans are choosing to go solar. As a result, utilities are facing new challenges and opportunities.


To meet the state’s growing electricity demand, utilities are investing in new power plants and transmission lines. They are also working to improve efficiency and expand their renewable energy portfolios. In addition, utilities are facing pressure to keep prices affordable for customers while also complying with increasingly stringent environmental regulations. If you live in Texas, one of these four companies provides your electricity. Each company has its own rates, policies, and customer service. We’ve compiled a comprehensive guide to help you understand each utility and make the best decision for your home or business. Which of these providers is right for you?

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