Amarillo Electricity Rates & Plans

Last updated: October 18, 2026  ·  6 min read

Amarillo is the largest city in the Texas Panhandle — a major agricultural, energy, and transportation hub with a population of over 200,000. But unlike Houston, Dallas, or most of Texas, Amarillo residents cannot shop for competitive electricity plans. Amarillo is served by Xcel Energy's Southwestern Public Service Company (SPS) and operates on the Southwest Power Pool (SPP) grid, separate from ERCOT. This guide explains why, what your options are, and how to reduce your bill within the regulated system.

Why Is Amarillo Not Deregulated?

Texas's 1999 electricity deregulation law (Senate Bill 7) applied specifically to the ERCOT interconnect — the grid that covers roughly 90% of Texas's land area and population. ERCOT is intentionally isolated from other U.S. grids, which is why Texas can operate its own independent electricity market without federal jurisdiction.

The Texas Panhandle — including Amarillo — is physically connected to the Southwest Power Pool (SPP), a multistate regional grid that also serves Kansas, Oklahoma, Nebraska, and parts of several other states. SPP operates under Federal Energy Regulatory Commission (FERC) jurisdiction. Disconnecting Amarillo from SPP and reconnecting it to ERCOT would require massive new high-voltage transmission lines and decades of planning. There are no current plans to do so.

As a result, Amarillo residents have always paid Xcel Energy/SPS tariff rates and have never participated in retail competition. The same is true for El Paso (served by El Paso Electric on the Western Interconnect) and other Texas cities outside ERCOT.

Xcel Energy / SPS in Amarillo — How Your Rate Is Set

Xcel Energy's Southwestern Public Service Company is regulated by the PUCT in Texas. Unlike the deregulated market where prices are set by competition, SPS files a rate case with the PUCT when it wants to change rates. The PUCT reviews the utility's costs and approves a rate schedule. This process can take 12–18 months and happens every few years.

The approved SPS residential rate includes an energy charge (cents per kWh), a distribution charge, and several pass-through riders for fuel costs, transmission, and any approved capital investments. Contact Xcel Energy at 1-800-895-4999 or visit xcelenergy.com for the current rate schedule applicable to your service address.

What Amarillo Residents Can Do to Lower Bills

Since you cannot switch providers, reducing your bill means reducing your usage or participating in available programs:

Xcel Energy efficiency programs: SPS offers rebates on energy-efficient HVAC systems, programmable thermostats, insulation improvements, and appliances. Check xcelenergy.com/savings for current rebate availability in your area.

Time-of-use rates: Xcel Energy/SPS may offer time-of-use rate options that reward shifting usage to off-peak hours. Running dishwashers, laundry, and EV charging late at night or early morning can reduce bills under TOU pricing. Contact Xcel Energy to ask which rate options are available at your address.

Net metering for solar: Amarillo's Panhandle location means excellent solar irradiance — among the best in Texas. Xcel Energy/SPS has net metering interconnection rules that allow rooftop solar customers to receive bill credits for excess generation. The Panhandle is also one of the best wind resources in the U.S., which is why Xcel Energy itself has invested heavily in West Texas wind generation.

If You Recently Moved from a Deregulated Area

If you relocated to Amarillo from Houston, Dallas, or another ERCOT city, you may be accustomed to annual plan shopping. In Amarillo, that is not possible. Your rate is set by the PUCT-approved Xcel/SPS tariff. The only way to get a lower electricity cost is to reduce usage or participate in efficiency programs. The search tool on this site will not return results for Amarillo ZIP codes because no competitive plans exist there.

Key Takeaways

Amarillo residents pay Xcel Energy/SPS regulated tariff rates — there is no competitive plan market. The city is on the Southwest Power Pool (SPP) grid, not ERCOT. Bill reduction options include efficiency upgrades, time-of-use rate options, and rooftop solar with net metering. For competitive electricity plan comparison, this site's tools apply only to ERCOT territory.

Frequently Asked Questions

Can I shop for electricity plans in Amarillo, Texas?

No. Amarillo is served by Xcel Energy's Southwestern Public Service Company (SPS), which operates in the Southwest Power Pool (SPP) — not ERCOT. Amarillo is not part of the deregulated Texas electricity market. Residents pay Xcel Energy rates that are set and approved by the PUCT through a regulated cost-of-service process. There is no competitive retail market for Amarillo residential customers.

Who is the electric utility for Amarillo?

Xcel Energy, through its Southwestern Public Service Company (SPS) subsidiary, is the regulated electric utility serving Amarillo and most of the Texas Panhandle. SPS is an investor-owned utility regulated by the PUCT, but it operates as a vertically integrated utility — it owns generation, transmission, and distribution — rather than participating in ERCOT retail competition.

Why is Amarillo not deregulated like Houston or Dallas?

Texas electric deregulation applies to the ERCOT interconnect, which covers about 90% of the state's land mass and population. Amarillo and the Texas Panhandle are connected to the Southwest Power Pool (SPP), a separate regional grid serving parts of the Great Plains states. Disconnecting the Panhandle from SPP and connecting it to ERCOT would require massive transmission infrastructure investment. There are no current plans to bring Amarillo into the competitive market.

What are typical electricity rates in Amarillo?

Xcel Energy/SPS files rate schedules with the PUCT periodically. As of May 2026, Amarillo residential customers pay a fixed tariff rate that includes an energy charge, distribution charge, and various riders. The all-in effective rate typically falls in the 11.0–14.0¢/kWh range depending on usage level and which rate adjustors apply. Contact Xcel Energy or check the PUCT rate filings for the current approved rate schedule.

What can Amarillo residents do to lower their electricity bill?

Since Amarillo residents cannot switch REPs, the only levers available are usage reduction and program participation. Xcel Energy/SPS offers efficiency rebate programs, demand-response incentives, and time-of-use (TOU) options for eligible customers. Attic insulation, programmable thermostats, and HVAC maintenance are the highest-ROI starting points — reducing kWh is the equivalent of finding a cheaper plan in a deregulated market.

Is there any way for Amarillo residents to use solar or reduce bills?

Yes. Xcel Energy/SPS has net metering programs that allow Amarillo homeowners with rooftop solar to receive credits on their bill for excess generation. The Panhandle's high solar irradiance and wind exposure make both solar and energy efficiency investments more financially viable than in many other Texas regions. Contact Xcel Energy for current net metering interconnection rules and rates.

Learn More

For a full explanation of why some Texas cities are regulated and others are not, see the how Texas electricity deregulation works guide. For cities near the ERCOT boundary that are deregulated, see the Lubbock electricity rates guide — Lubbock joined ERCOT in 2021. The cheapest electricity by Texas city guide covers the full competitive market.