Switch with EnerGenie
& Save on Electricity

EnerGenie Analyzes Hundreds of Electricity Rates from Dozens of Energy Providers

Questions? Call Us (713) 574-7669

Energy in Texas and How It Works

Energy and electricity are finicky topics that many people often confuse with one another. Energy in Texas can be incredibly confusing because of how the electrical grid and energy system works. In this article, we’ll go into detail about how energy works in Texas and how it affects you. We’ll also look at the different types of energy companies and how to find the best one for you.

How Does Energy Work in Texas?

The first thing we need to look at is distinguishing between electricity and energy. Energy is natural or renewable resources that are harnessed and converted into electricity. Gas, coal, fossil fuels, solar, wind, and water are all forms of energy converted into electricity. Texas isn’t unique in how it uses energy to create electricity, but it is somewhat unique in distributing electricity to the general public.

Texas has a deregulated energy market which means that companies produce and sell electricity on a private level. In many other areas of the United States, electricity is regulated by the government, and it’s not up to you who your electric provider is. Texas allows you the right to choose your energy provider and pick the best power plan based on your needs.

What is the Main Source of Energy in Texas?

Texas offers many energy options that power generating companies can convert into electricity. While traditional fossil fuels make up the bulk of electricity production in Texas, they’re also one of the leaders in renewable resources. Water, wind, and air make up nearly 15% of the energy in Texas, while fossil fuels make up the rest. Here’s a specific breakdown.

  • Wind turbines that create wind

A point of pride in Texas is that they produce the largest amount of wind power of any state in the country. There are over 150 wind farms in Texas that contribute 23% of the state’s electricity.

  • Solar power produced by solar power plants

Solar power isn’t as big of a producer in Texas as wind power is. However, there are 500 companies dedicated to creating and producing solar energy, and it contributes 2% of the total power in Texas, but that number is increasing.

  • Nuclear power plants

Nuclear power plants contribute 11% of the electrical power in Texas.

  • Coal

Coal is the second most popular fossil fuel used to create electricity. It’s second only to natural gas and accounts for 18% of the electricity in Texas.

  • Natural gas

Natural gas is far and away the number one source of electricity in Texas and most states around the country. Texas is the leading producer of natural gas in the country and produces nearly one-third of the total supply of petroleum in the country. Natural gas accounts for 43% of the electricity in Texas.

Hundreds of companies are dedicated to generating electricity from fossil fuels such as coal and gas. While other energy sources such as solar power and wind power are growing in popularity, they have a long way to go before they overtake gas and coal.

Signup with EnerGenie Today

You Could Save Hundreds on Electricity

What are the Different Energy Companies in Texas?

There are three basic types of energy companies in Texas. There are companies that create electricity from energy, those that sell electricity, and those that make sure electricity gets to your home. Let’s take a look at all three types of companies.

Power Generating Companies

Power generating companies are the various companies that harness different forms of energy and convert it to electricity. Solar power plants, nuclear power plants, wind farms, gas, coal, and oil companies are all considered power generating companies. They use various natural and renewable resources and create electricity out of them. They then sell the electricity they’ve created to REPs, which are next in line.


REPs, aka retail electricity providers, are the companies you buy electricity from. They provide electricity to your home and are the companies you deal with on a monthly basis. Because of deregulated energy in Texas, there are 150 different REPs that offer competitive electricity rates.

If you want to save money and find the best electricity plan for you, contact us, and we’ll take care of it for you. EnerGenie is an electricity shopping assistant that finds the perfect plan for you, signs you up for it, and manages the plan.


TDUs, also known as Transmission & Distribution Utilities, are energy companies that make sure electricity gets from the REP to your home. They own and manage the power lines, power poles, and electric meters on the side of your home. They also repair power outages and damage to the lines and cables that carry electricity.

What are the Best Energy Companies in Texas?

Because REPs are the only energy companies you work with and communicate with, you must choose the right one. However, it’s important to note that the best electricity company for someone else might not be the best company for you. There are hundreds of energy companies in Texas offering thousands of competitive plans. Picking the right company with the perfect plan is next to impossible on your own.

Everyone’s situation is different, which means that everyone’s power needs are different.

Signup with EnerGenie Today

You Could Save Hundreds on Electricity

How to Find the Best Energy Companies in Texas?

Rather than spending hours on end researching different energy companies and finding the best one for you, let EnerGenie handle it. We use a series of algorithms and innovative technology to find the best energy company in your area. All we need from you is your zip code, a few details about your energy usage, and we’ll take care of the rest.

EnerGenie will find a plan that fits your desires based on the type of energy you want to use. There are solar plans, wind plans, and fossil fuel plans to choose from, each one with different benefits and advantages. No matter what you’re looking for, we’ll find the best energy company with the best plan for you.

Signup with EnerGenie Today

You Could Save Hundreds on Electricity

Save on your electricity bill with EnerGenie

How EnerGenie Works

EnerGenie technology works behind the scenes to save you money and be your energy concierge, to give you, the homeowner, peace of mind.

We are currently comparing electricity rates of

1434 Plans from 49 Providers

EnerGenie Proudly Serves Texas

Our Office is in Texas

2900 Wilcrest Dr
Houston, TX 77042