Many Texans can shop for an electricity company. Others cannot, because their power comes from a city-owned, or municipal, utility: CPS Energy in San Antonio, Austin Energy in Austin, Garland Power & Light in Garland. Those residents pay whatever the city's rate schedule says.
So how do those bills compare with what a household in a competitive, or deregulated, part of Texas pays? We priced a typical home in three city-owned systems and set each beside a competitive plan in a nearby delivery area: CPS against AEP Texas Central, Austin Energy against Oncor, and Garland against Oncor.
The short answer: at 1,000 kilowatt-hours a month, the city-owned bill was higher in all three pairings, by $4 to $21.
Municipal vs. deregulated electricity: the scoreboard
At 1,000 kWh, the city bill was higher in every pairing. Here is how each one played out.
The competitive plan in each pairing is the same: True Power's True Value 12, a 12-month fixed-rate plan with no bill credits. It had the lowest 1,000 kWh price among the credit-free plans we checked in both AEP Texas Central and Oncor, in the Power to Choose list downloaded on November 9.
CPS Energy vs. AEP Texas Central: a $5 gap in San Antonio
A home using 1,000 kWh pays $113.44 on CPS Energy, against $108.44 on the competitive plan in AEP Texas Central territory. The gap narrows as the house gets bigger: $5.63 at 500 kWh, $5.00 at 1,000 and $3.74 at 2,000.
Austin Energy vs. Oncor: the biggest gap, and it grows
Austin was the outlier: $140.32 for Austin Energy against $119.43 on the competitive plan in Oncor territory, a gap of $20.89 a month at 1,000 kWh.
The gap widens with usage. Austin Energy charges in steps, and the price per kWh climbs as you use more: 4.9¢ for the first 300 kWh, then 5.4¢, 7.9¢ and, above 2,000 kWh, 11.4¢. Layer on a $17.35 monthly charge and riders for power costs, regulation and community programs, and a 2,000 kWh month costs $287.41, against $234.81 in Oncor territory. That is $52.60 more.
Garland Power & Light vs. Oncor: a small gap that flips
Garland's bill was $123.72 at 1,000 kWh against $119.43, or $4.29 more. But its winter rates drop to 3.7¢ per kWh after the first 600 kWh, so a big user comes out ahead. At 2,000 kWh, Garland's bill ($232.62) is $2.19 lower than the Oncor plan's.
Why the pieces differ
A city bill is one bundle. The utility makes or buys the power and also runs the wires, so the rate has to cover both. A competitive bill is split: the retailer sets the energy price, and the local wires company adds a regulated delivery charge. In these pairings, that comes to $3.24 a month plus 5.7¢ per kWh in AEP Texas Central territory and $4.06 plus 6.9¢ in Oncor territory.
Fuel and power-cost adjustments also differ. CPS adjusts its fuel charge every month, and Austin Energy's power supply charge can change too. The competitive plan's energy price is fixed for 12 months, although delivery charges can change.
What this does not tell you
- City residents cannot switch. CPS, Austin Energy and Garland do not offer retail choice, so this is a comparison, not an option for those households. The competitive areas are examples of what a similar home would pay nearby, not guarantees. Your utility depends on your exact address.
- One plan, one month. We used November prices, outside summer, and a single plan. Other competitive plans may be cheaper or more expensive at 500 or 2,000 kWh. City summer rates differ, so this does not add up to a full-year comparison.
- Not in the monthly bill. The True Value 12 plan has a $300 early-termination fee. All bills exclude taxes and one-time charges.
- Cost is not reliability. We left out outage data because the available figures are not directly comparable.
If you are in a competitive area, the lesson is the usual one: compare plans at your own usage, and read the Electricity Facts Label. See our guides to delivery charges for AEP Texas Central and Oncor, our look at what Lubbock's plans actually cost, see how Power to Choose works and when switching makes sense, or compare plans for your address.
About this analysis
Bills are calculated from published rate components at 500, 1,000 and 2,000 kWh for a standard residential customer, with no solar, discounts, deposits or time-of-use plans. City rates come from the CPS residential rate schedule and its November 2026 fuel and regulatory adjustments, Austin Energy's FY2026-27 electric tariff, and Garland's rate announcements. Competitive rates come from the True Power Electricity Facts Labels for AEP Texas Central (Nov. 6, 2026) and Oncor (Nov. 4, 2026). We re-computed every bill from those components. Garland's base energy rates come from GP&L's residential rate page, which we could not reopen when we re-checked, so Garland's figures are the least certain of the three. Rates change, and each utility's tariff and each plan's label controls.
Sources
- CPS Energy residential electric rate schedule and November 2026 fuel and regulatory adjustment factors
- Austin Energy electric tariff, FY2026-27
- City of Garland: GP&L rate reduction announcement and Garland Power & Light residential rates
- True Power True Value 12 Electricity Facts Label, AEP Texas Central and Oncor
- Power to Choose, offer list downloaded Nov. 9, 2026
Power Hopper is not affiliated with or endorsed by the companies named above. This brief was prepared with AI assistance. Reviewed by Brent Ward on November 9, 2026. Power Hopper is a PUCT-registered Texas electricity broker and earns a commission when a customer enrolls through us. The plans shown come from Power to Choose and are not a ranking of partner offers.
BJW Ventures LLC d/b/a Power Hopper, PUCT Registered Electricity Broker BR260201