Guide

How to Switch Electricity Providers in Texas

Switching electricity providers in Texas takes 10-15 minutes and costs nothing if your contract has expired. Here's the 5-step process to switch and save.

Switching electricity providers in Texas takes 10–15 minutes online and costs nothing if your current plan is month-to-month or if your contract has expired. Here's the 5-step process:

  1. Find your ESI ID — the 17-22 digit number that identifies your meter. It's on your current bill, or your REP can look it up by address.
  2. Check if you have an Early Termination Fee (ETF) on your current plan. If yes and you're still in contract, the new plan needs to save you more than the ETF amount.
  3. Shop for a new plan that matches your actual usage (not a generic 1,000 kWh estimate).
  4. Sign up with the new provider — they'll handle the switch with your old REP automatically.
  5. Service transitions on your next meter-read date — typically 7-14 days, with no interruption to your power.

You do not need to call your old provider. The new REP files the switch with ERCOT automatically. You don't need to contact your TDU (Oncor, CenterPoint, AEP, TNMP) either.

Average Texas customer saves $500–900/year by switching from a default month-to-month rate to a competitive fixed plan. Upload your bill to see your exact projected savings.


Why people switch electricity providers in Texas

Texas has the most competitive residential electricity market in the United States — over 60 retail providers offering hundreds of plans across the deregulated TDU territories. The main reasons people switch:

  • Contract is expiring (or already expired and you're on a default month-to-month rate at 15–19¢/kWh instead of a competitive fixed at 8–12¢/kWh)
  • Bills went up and you want to find a cheaper plan
  • A new plan structure would fit better (free nights, fixed-rate, prepaid, green energy)
  • Bad service experience with the current REP
  • Moving to a new address (technically this is "starting new service", not switching)

Step 1: Find your ESI ID

Your Electric Service Identifier (ESI ID) is the 17-22 digit number ERCOT uses to identify the specific meter at your address. You need it to switch providers.

Where to find it:

  1. On your current bill — look for "ESI ID", "ESIID", or "Service ID" — usually near the top of page 1 or in the account-information block
  2. In your online account with your current REP
  3. From your TDU directly — call Oncor / CenterPoint / AEP / TNMP and ask for the ESI ID at your address

If you can't find it, the new REP can often look it up during signup using just your address — but having it ready saves time.


Step 2: Check your current plan for an ETF

An Early Termination Fee (ETF) is the penalty your current REP charges if you leave before your contract ends. ETFs in Texas are typically:

  • Tiered ETFs: $200 if you leave in months 1-12, $150 in months 13-24, etc.
  • Flat ETFs: $150–$300 regardless of when you leave
  • Per-month ETFs: $15–$20 × remaining months on the contract

Where to find your ETF amount:

  • On your Electricity Facts Label (EFL) — look for "Early Termination Fee" or "Cancellation Fee"
  • On your Terms of Service document
  • By calling your REP

You're exempt from the ETF if:

  • Your contract has already expired (you're on month-to-month) — no ETF to pay
  • You're within 14 days of your contract expiration date — Texas PUCT rules allow you to switch penalty-free starting 14 days before your contract ends
  • You're moving to a new address outside your current REP's service territory — Texas law requires REPs to waive the ETF if you provide proof of move (e.g., a new lease or closing documents)
  • The REP changed your terms in a way you didn't agree to (this is rare but happens)

The math: if your ETF is $200 and switching saves you $50/month, you break even in 4 months. If the new contract is 24 months, switching is still worth it as long as ETF < (new monthly savings × remaining months).


Step 3: Shop for a new plan

This is where most Texans get tripped up. The "lowest advertised rate" on Power To Choose or any other comparison site is based on a 1,000 kWh usage estimate. If your actual usage is different, the lowest-advertised plan might not be the cheapest plan for you.

Common gotchas to filter out:

  1. Bill credit plans where the credit only triggers above 1,000 or 2,000 kWh — if you use less, you don't get the advertised rate. See The Bill Credit Trap.
  2. Variable-rate or indexed plans disguised with attractive "intro rates" that jump after 3 months
  3. High base charges that hide in plans advertising super-low ¢/kWh
  4. Tiered rate structures where the rate differs at 500/1000/2000 kWh consumption

The best way to shop: use your actual usage history from the last 12 months, not an estimate. Upload your bill on Power My Casa and we'll model your actual annual cost on every available plan in your TDU — so you're comparing real numbers, not advertised rates at 1,000 kWh.

What to compare across plans:

FieldWhat to check
Energy charge (¢/kWh)At your actual usage, not 1,000 kWh
Monthly base chargeSome plans add $5–$15/month regardless of usage
Bill creditThreshold + amount; ask "what's my effective rate if I use 800 kWh?"
TDU pass-throughAlways included; varies by TDU
Contract length6, 12, 24, 36 months — longer often = lower rate but less flexibility
Early termination feeWhat you'd pay to leave
Renewal termsIs auto-renewal at the same rate? Or at the default rate?

Step 4: Sign up with the new provider

Once you've picked a plan, signup takes 5-10 minutes online:

  1. Go to the REP's website or use a comparison tool that links through
  2. Provide:
    • Your name, address, ESI ID
    • Your Social Security Number (for credit check; alternatives exist — see no-deposit options)
    • Payment method (bank account or credit card for auto-pay or one-time setup)
  3. Accept the plan terms — you'll review the EFL and Terms of Service, then confirm electronically
  4. Confirm your switch date — typically the next meter-read date (7-14 days out)

You do NOT need to:

  • Cancel your current plan first (the new REP files the switch with ERCOT, which automatically ends your old contract)
  • Call your TDU (they get the same notification automatically)
  • Schedule an installer visit (your meter doesn't change; only the billing changes)

Step 5: Service transitions seamlessly

On your switch date:

  • Your power doesn't go off. The same wires deliver the same electricity. Only the billing entity changes.
  • You get a final bill from your old REP — covering usage up to the switch date
  • You get a "welcome" notice from the new REP — confirming your new plan, rate, and first billing date

Watch for in the first 60 days:

  • A "slamming" attempt from your old REP (rare, but they sometimes try to retain customers by offering a "match" or "save" rate that may not actually be competitive)
  • Confirming the new plan is what you signed up for — compare the welcome notice against the EFL you reviewed
  • Setting up auto-pay with the new REP if desired

Special situations

Switching from a prepaid plan to standard

You can switch any time without an ETF. Get a Letter of Credit from your prepaid REP to qualify for no-deposit on the new standard plan. See Prepaid Electricity in Texas.

Switching during a contract because of moving

Texas law requires REPs to waive the ETF if you're moving out of their service territory (which usually means out of state, since most REPs serve all four Texas TDUs). Provide proof of move (lease, closing docs).

Switching but the new REP requires a deposit

Either accept the deposit (refundable after 12 months on-time), or pursue the no-deposit qualification paths.

Switching when you're on a budget-billing or level-payment plan

Switching closes out the budget-billing settlement. If you've been "ahead" on payments (paying more than actual usage), you'll get a refund. If you've been "behind", you'll owe the balance on the final bill. Check your account before switching.


Frequently asked questions

Q: How long does it take to switch electricity providers in Texas?

A: From signup to active service: typically 7-14 days, ending on your next meter-read date. The actual signup process is 5-10 minutes online.

Q: Can I switch electricity providers if I'm renting?

A: Yes, exactly the same process — you don't need landlord approval. The electricity account is in your name, and you have full authority to choose your provider.

Q: Will my power get turned off during the switch?

A: No. The switch is a billing change only. Your power flows uninterrupted through the same TDU lines.

Q: Do I need to tell my current provider I'm switching?

A: No. The new REP files the switch through ERCOT, which automatically notifies your old REP. You'll get a final bill from them shortly after.

Q: What if I switch but don't like the new provider?

A: You can switch again. There's a brief "rescission period" (typically 3 business days) where you can cancel a new contract with no penalty. After that, you'll need to pay any ETF on the new plan when you switch again.

Q: Can I switch back to my old provider?

A: Yes, but you'll be signing up as a new customer at whatever current rates they're offering — which may be different (often higher) than your previous plan.

Q: How often can I switch electricity providers?

A: As often as you want, in theory. In practice, switching more than once or twice a year creates administrative complexity (ETFs, final bills, new credit checks). Most people who switch effectively do so once at contract end.

Q: Are there fees from my TDU for switching?

A: No. Your TDU (Oncor, CenterPoint, AEP, TNMP) doesn't charge you for switching providers. The TDU is paid for by your delivery charges regardless of which REP you're on.


Last reviewed May 17, 2026. Rates and ETF amounts mentioned are general ranges; actual amounts vary by plan and provider.