Many Texans shopping for energy plans on the power to choose platform get confused when they see multiple company names on their electricity documents. For example, you might sign up for a green energy plan with a top-tier retail provider like Gexa Energy, but when your power goes out or your smart meter needs servicing, an Oncor or CenterPoint truck rolls up to your house. Why is that? Understanding the clear distinction between your Retail Electric Provider (REP) and your Transmission and Distribution Service Provider (TDSP)—also known as a utility—is key to navigating the Lone Star State’s unique deregulated energy market.
REP vs. TDSP: Who Does What?
To make sense of your monthly statement, you must first answer the fundamental question: what is a transmission and distribution service provider? In simple terms, your TDSP is the utility company that owns and maintains the physical infrastructure—the poles, wires, transformers, and smart meters. They are responsible for physically delivering electricity to your home, regardless of which company you buy your power from.
On the other hand, a Retail Electric Provider (REP) like Gexa Energy is the company that sells you the electricity. They purchase wholesale energy, package it into retail plans, handle your billing, and manage your customer service. When you shop for electricity Houston or look up rates for electricity dallas, you are shopping for a REP.
The Six Major Texas Utilities and Their Territories
While you have the power to choose your retail provider, you cannot choose your TDSP. Your utility is determined strictly by your physical geographic location. There are six major regulated utilities operating within the ERCOT grid:
- Oncor Electric Delivery: The largest TDSP in Texas, serving Dallas-Fort Worth, Waco, Wichita Falls, and parts of West Texas.
- CenterPoint Energy: Serving the Houston metropolitan area and surrounding communities.
- AEP Texas Central: Covering southern Texas, including Corpus Christi, McAllen, and Laredo.
- AEP Texas North: Serving northern and western regions like Abilene and San Angelo.
- Texas New-Mexico Power (TNMP): Serving various pockets across the state, including areas near Houston, Dallas-Fort Worth, and West Texas.
- Lubbock Power & Light (LP&L): The newest addition to the deregulated market, transitioning its customers to competitive choice.
Whether you are looking for residential options or specialized business electricity plans, your physical connection remains tied to one of these six utilities.
How Green Energy Plans Fit into the Grid
If you choose an eco-friendly plan like the Gexa Eco Saver Plus 12 Plan, Gexa Energy offsets 100% of your electricity usage with renewable energy credits (RECs) for a full year. However, it is important to remember that the physical electricity flowing into your home is still delivered by your regional TDSP.
The physical grid is a giant pool where all generated electricity—whether from wind, solar, natural gas, or coal—is mixed together. Your local TDSP is the physical entity moving those electrons over the physical wire grid to your home. By choosing a green plan, you are ensuring that renewable energy is added to the grid on your behalf, while your utility ensures that physical power safely reaches your outlets.
Simplifying Your Texas Energy Search with ElectricityOne
At ElectricityOne, we believe that shopping for electricity should be transparent, straightforward, and stress-free. Whether you are looking for a traditional fixed-rate plan or a flexible prepaid electric service, we help you find the perfect match for your specific utility delivery area.
Here is how we bring value to Texas residents and businesses:
- Over 20 Years of Experience: Providing reliable, quick, and courteous electric service for Texas homes and businesses.
- Meticulous Provider Selection: Partnering only with top-tier REPs like Gexa Energy that offer substantial cost savings and long-term satisfaction.
- Complete Fee Transparency: Ensuring you understand all costs, including the regulated TDSP delivery charges passed through directly on your bill.
- Expert Support: Helping you distinguish between utility-related issues and retail billing questions so you always know who to contact.
Understanding the distinct roles of your REP and your TDSP empowers you to make smarter energy choices and better read your monthly statements. While Gexa Energy handles your supply and renewable energy credits, your local utility remains your steadfast partner for grid maintenance and emergency response.
Ready to find the best energy plan for your specific utility delivery area? Call 1.844.567.2863 today to speak with our Texas energy experts.
What is the difference between an REP and a TDSP?
A Retail Electric Provider (REP) sells you electricity plans, manages your billing, and handles customer service. A Transmission and Distribution Service Provider (TDSP) is the utility company that maintains the physical poles, wires, and meters, and delivers the physical electricity to your home.
Why do I see TDSP charges on my Gexa Energy bill?
TDSP delivery charges are regulated fees approved by the Public Utility Commission of Texas (PUCT). These charges cover the cost of maintaining the physical grid and are passed through directly to the consumer, regardless of which retail provider or plan you choose.
Who do I call if my power goes out?
In the event of an outage or downed power line, you should contact your local TDSP (such as Oncor, CenterPoint, or AEP), not your retail provider. Your utility is responsible for physical repairs and restoring power to your area.







