How to Switch Electricity Providers in Texas: Step-by-Step Guide

To switch electricity providers in Texas, compare plans on Power to Choose, the official site run by the Public Utility Commission of Texas (PUCT), read the plan's Electricity Facts Label, check your current contract for an early termination fee, then enroll with the new retail electric provider. Your poles, wires and meter stay with your local delivery utility, and you have three federal business days after receiving the Terms of Service to cancel a switch without a fee.

Who regulates Texas electricity and where to compare plans

The Public Utility Commission of Texas regulates retail electric providers (REPs). The Electric Reliability Council of Texas (ERCOT), which runs most of the state's grid, says "the PUCT operates the official and unbiased electric choice website powertochoose.org" (ERCOT). The PUCT also points customers to www.powertochoose.org to search for providers (PUCT). Be careful with lookalike sites that use similar names; the official address is powertochoose.org.

Can you choose your provider where you live?

Most Texans can, but not all. ERCOT reports that roughly 85% of Texas electricity consumers can choose their retail provider, including Dallas, Fort Worth, Houston, Corpus Christi, Galveston and Waco. Areas served by "non-opt-in entities," including Austin and San Antonio and many smaller communities, do not have retail choice (ERCOT).

The PUCT explains that municipally owned utilities and electric cooperatives "have the right to choose whether to participate" in the retail market, and that "not all areas in the state of Texas are currently open to competition" (PUCT). If a city utility or co-op serves you, contact it directly. In competitive ERCOT areas, the EIA notes that choosing a provider is mandatory rather than optional (EIA).

How switching works in Texas: who does what

Role	Who	What they handle
Retail electric provider (REP)	The company you choose	Sells you the electricity plan, sets your price under the contract and sends your bill
Transmission and distribution utility (TDU/TDSP)	Your local wires company (cannot be changed)	Maintains power lines and meters, reads your meter, responds to outages and emergencies
ERCOT	Grid operator	Administers switching transactions between providers
PUCT	State regulator	Sets customer protection rules, runs Power to Choose, takes complaints

According to ERCOT, when you switch, ERCOT processes the enrollment with the delivery utility and notifies your old provider, and on the switch date the delivery utility takes a meter read that is sent to both providers (ERCOT). Nobody needs to visit your home to change wires, and the same lines keep delivering your power.

What stays the same when you switch

• Your meter, poles and wires.
• The company that restores power during outages (your delivery utility).
• Delivery charges set for your area, which your REP passes through on its bill.

What changes is your provider, your plan's price and terms, and who sends your bill.

The three documents to read before you sign

Texas rules require every REP to give you three documents for each plan (PUCT Rule 25.475):

• Electricity Facts Label (EFL): unique to each product. For residential plans, it must show the average price per kWh at 500, 1,000 and 2,000 kWh a month, and list the fees the REP may charge.
• Terms of Service (TOS): the contract details, including pricing, deposits, termination and renewal terms.
• Your Rights as a Customer (YRAC): a summary of your protections.

Look closely at the average prices at all three usage levels. A plan that looks cheap at exactly 1,000 kWh can cost more at the usage level your home actually hits. Compare against your own 12-month usage history.

Plan types in Texas

• Fixed rate: a term of at least three months. The price can still change to reflect actual changes in delivery utility charges and certain other pass-through or government charges (PUCT Rule 25.475).
• Variable price: for residential customers, "can be only a month-to-month contract" (PUCT Rule 25.475).
• Indexed: the price follows a pre-defined formula tied to public indices.

Our guide to fixed vs variable electricity plans explains the trade-offs in more detail.

Early termination fees, moving and contract renewals

• Early termination fees are disclosed in the Terms of Service and the Electricity Facts Label (PUCT). Check your current plan's fee before you switch mid-contract.
• Moving: PUCT rules say no early termination fee may be charged because you relocate, if you provide a forwarding address (and, when required, evidence that you no longer live at the location) (PUCT Rule 25.475).
• Contract expiration notice: your REP must send written notice at least 14 days and no more than 45 days before your contract expires (PUCT Rule 25.475).
• Switching near the end of a contract: you can switch without an early termination charge if the switch is no earlier than 14 days before the expiration date given in the notice (PUCT).
• If you do nothing: you move to a default month-to-month renewal product that can be cancelled at any time with no fee (PUCT Rule 25.475).

Your right to cancel a switch

Under PUCT Rule 25.475, a customer who switches may "rescind service without fee or penalty of any kind within three federal business days after receiving the TOS." The Terms of Service must explain how to rescind, including a phone number (PUCT Rule 25.475).

A quick way to compare plans

Because Texas has no single default price to beat, compare plans against each other at your own usage. Take each plan's average price from the EFL at the usage level closest to yours, then multiply by your monthly kWh to estimate the bill. Repeat for a high-use summer month. If one plan wins only at exactly 1,000 kWh and loses at your real usage, it is not the best plan for you.

Step-by-step checklist: switching electricity providers in Texas

1. Confirm you are in a competitive area. If your bill comes from a city utility or co-op, ask it whether it participates in retail choice.
2. Gather 12 months of usage. Your current REP's bills show kWh by month. Note your highest summer month.
3. Check your current contract. Find your end date and early termination fee in your TOS and EFL.
4. Compare plans on powertochoose.org. Filter by your ZIP code and plan type.
5. Open the EFL for each finalist. Compare average prices at 500, 1,000 and 2,000 kWh against your actual usage, and note every fee.
6. Read the TOS and YRAC. Confirm term length, renewal terms and deposit requirements.
7. Enroll with the new provider. Have your service address and ID ready. Your new REP handles the switch through ERCOT; you do not need to call your old provider to switch.
8. Save your documents. Keep copies of the EFL, TOS and YRAC, and note the three-federal-business-day rescission window.
9. Check your first bill. Make sure the price and fees match the EFL.
10. Set a renewal reminder about 45 days before the new contract ends.

Red flags

• Slamming: the PUCT defines this as "the unauthorized switch of your electric service." Cramming is "an unauthorized charge on your electric bill" (PUCT). If either happens, contact the PUCT's Consumer Protection Division at 1-888-782-8477.
• A plan that looks cheap only at exactly 1,000 kWh, with large fees or credits that change your price at other usage levels.
• A website that looks like Power to Choose but is not powertochoose.org.
• A salesperson who will not give you an EFL before you enroll.
• A variable plan offered with a long contract term, which Texas rules do not allow for residential customers.

Next steps

See current Texas averages on our Texas electricity rates page and compare with what other states pay on the average electric bill page. Then enter any plan's price into the electric bill calculator to estimate your monthly cost before you switch.