How to Switch Electricity Providers in Texas: A Step-by-Step Guide for 2026

Ohio deregulated electricity market – shop and compare suppliers

Learning how to switch electricity providers in Texas is one of the easiest and most impactful things you can do to lower your monthly bills — but millions of Texans still haven’t done it. If you’re on your current provider’s default or renewal rate, there’s a strong chance you’re paying more than you need to. This step-by-step guide walks you through exactly how to switch your electricity provider in Texas, from understanding your options to completing your enrollment in minutes.

Who Can Switch Electricity Providers in Texas?

Most of Texas — the entire ERCOT (Electric Reliability Council of Texas) grid — is deregulated, meaning you can choose your own Retail Electric Provider (REP). This includes residents in:

• Houston (CenterPoint delivery area)
• Dallas and Fort Worth (Oncor delivery area)
• Corpus Christi and South Texas (AEP Texas Central)
• West Texas and the Panhandle (AEP Texas North and TNMP areas)
• Waco, Killeen, Abilene, and most mid-sized Texas cities

You cannot switch REPs if you live in a non-ERCOT area. This includes El Paso (served by Xcel Energy), Austin (served by Austin Energy, a city utility), San Antonio (served by CPS Energy), and parts of the Rio Grande Valley. If you’re unsure, check your current electric bill — it will identify your delivery utility.

Step 1: Know Your Current Rate and Contract Status

Before you switch, you need two pieces of information:

1. Your current rate per kWh — Find this on your electric bill under the “generation” or “energy charge” line. This is the rate you’re paying for the electricity itself (not the delivery charge, which doesn’t change when you switch).
2. Your contract end date and any early termination fee (ETF) — Check your most recent bill or log into your current REP’s account portal. If you’re on a month-to-month plan, you can switch any time. If you’re mid-contract, factor in the ETF against your potential savings.

Pro tip: Even if you have a 90-day window before your contract ends, you can shop now and select an enrollment date that aligns with your switch date, avoiding any ETF.

Step 2: Gather Your Account Information

To enroll with a new REP, you’ll typically need:

• Your service address (where the electricity is delivered)
• Your ESI ID (Electric Service Identifier) — a unique 17-digit number found on your electric bill. This is the account ID for your specific meter, not your current REP account number.
• Your name and contact information
• A payment method for the new account

Some REPs may also run a soft credit check to determine if a deposit is required. If you want to avoid credit checks entirely, look for prepaid electricity plans (available from providers like Payless Power and GridPlus) which don’t require a deposit or credit check.

Step 3: Compare Plans Using the Electricity Facts Label (EFL)

Every REP in Texas is required by the Public Utility Commission of Texas (PUCT) to provide an Electricity Facts Label (EFL) — a standardized document that shows the true cost of the plan at different usage levels. The EFL is the key to apples-to-apples comparison.

Focus on the “average price at 1,000 kWh” line — this represents a typical Texas household’s monthly usage and gives you the best single number to compare across plans. Be aware that plans with base charges or bill credits can have very different effective rates at different usage levels — the EFL shows you all of them.

Use a comparison marketplace to see EFL-verified rates from multiple REPs at your zip code side by side, so you don’t have to visit each REP’s website individually.

Step 4: Choose Your Plan Type

Texas REPs offer several types of plans:

• Fixed-rate plans: Your rate per kWh is locked for the contract term (typically 6, 12, or 24 months). Best for most households — predictable bills, no exposure to market price spikes.
• Variable-rate plans: Rate changes monthly with the wholesale market. No contract, but significant price risk — especially during extreme weather events.
• Indexed or pass-through plans: Rate tied to a specific wholesale price index. Lower in calm markets, high risk during price events.
• Prepaid plans: Pay-as-you-go with no deposit or credit check. Higher effective rates but maximum flexibility.
• Time-of-use / free nights/weekends: Lower rates during off-peak hours. Best for households that can shift usage (EV charging at night, running laundry late, etc.).

For most Texas households, a 12-month fixed-rate plan is the ideal starting point.

Step 5: Enroll Online (Takes About 5 Minutes)

Once you’ve selected a plan, enrollment is done entirely online (or by phone if you prefer). The process typically involves:

1. Enter your service address to confirm the plan is available at your location
2. Provide your ESI ID
3. Enter your name, contact info, and payment method
4. Select your start date — you can usually choose between “as soon as possible” or a specific future date
5. Review and accept the Terms of Service and EFL
6. Receive a confirmation email — save this for your records

Step 6: The Switch Happens Automatically

Here’s the part that surprises most people: you don’t have to contact your current REP to cancel. The new REP submits a switch request to your local delivery utility (Oncor, CenterPoint, AEP Texas, or TNMP), and the switch is processed automatically. Your service is never interrupted — electricity continues flowing without any change in delivery. Only the supply portion of your bill changes.

The switch typically takes 1–3 business days. You’ll receive a final bill from your old REP and your first bill from your new one within the next 1–2 billing cycles.

When Should You Switch?

The best time to shop for a new Texas electricity plan is during spring (March–May) or fall (October–November), when wholesale electricity prices are lower due to mild weather and moderate demand. Rates during these periods are typically 10–15% lower than at the summer peak. If your contract is expiring in June or July, consider enrolling in a new plan a few months early to lock in a favorable spring rate.

What About Internet and Home Security?

While you’re switching your electricity, it’s a perfect time to evaluate your other household services. In the major Texas metros, you can also compare:

• Internet providers: AT&T Fiber, Xfinity, Frontier, and T-Mobile Home Internet compete across Houston and DFW.
• Home security: Vivint and ADT both operate in Texas. A Vivint smart thermostat installation can help you optimize electricity usage and reduce consumption — maximizing the value of your new lower rate.

Bottom Line

Switching electricity providers in Texas takes about 5 minutes and can save the average household hundreds of dollars per year. The process is safe, simple, and never interrupts your service. The only question is how long you’ll wait before doing it.

Enter your Texas zip code at Utility Search Marketplace to see current rates from licensed REPs in your area — and start saving today.

For official information on Texas electricity providers, visit the Public Utility Commission of Texas (PUCT).