How to Switch Electricity Providers in Texas: A Step-by-Step Guide
Watt Owl8 min read
Key Takeaways
- ★About 85–90% of Texans live in deregulated areas and can choose their electricity provider
- ★Switch during the 14-day penalty-free window before your contract expires to avoid early termination fees (PUCT §25.475)
- ★The switch takes about 7 business days, your power stays on, and you don’t need to call your old provider
- ★As of February 2026, competitive fixed-rate plans start around 8–9¢/kWh while holdover rates after contract expiration cost significantly more
- ★You have 3 federal business days to cancel a new enrollment without penalty (PUCT §25.474)
If you’ve been putting off shopping for a new electricity plan in Texas, you’re probably paying more than you need to. The deregulated Texas market gives most residents the power to choose their provider, but the process can feel overwhelming when there are hundreds of plans to compare.
This guide walks you through how to switch providers, when to time your switch for maximum savings, and what to watch out for along the way.
Can you switch electricity providers in Texas?
Yes, if you live in a deregulated area. About 85–90% of Texas residents can shop for their electricity provider, including those in Dallas, Houston, Fort Worth, Corpus Christi, Waco, and Lubbock.
A few major cities run their own municipal utilities. Most of Austin is served by Austin Energy, most of San Antonio by CPS Energy, and most of El Paso by El Paso Electric. If your address falls within a municipal utility’s territory, you can’t switch. But some ZIP codes on the edges of these metros are in deregulated territory and do have competitive options.
Your REP is the company that sells you electricity and sends your bill. Your TDU is the company that owns the power lines and delivers electricity to your home. When you switch providers, only your REP changes. Your TDU stays the same, and so do the wires running to your house.
Not sure if your address is in a deregulated area? Enter your ZIP code below and we’ll show you what’s available.
When is the best time to switch electricity providers?
The best time to switch depends on your current contract.
If you’re on a fixed-rate plan, your provider is required to send you a notice at least 30 days before your contract expires (PUCT §25.475). That notice is your signal to start shopping.
If you’re on a month-to-month or variable-rate plan, you can switch anytime without penalty. There’s no contract locking you in.
And if your contract already expired and you haven’t switched yet, you’re likely on a holdover rate. Keep reading for details on how much that could be costing you.
How do you switch electricity providers step by step?
The switch itself takes about 10 minutes of your time. Here’s what you need and how to do it.
| Item | Where to Find It |
|---|---|
| Your current plan’s contract end date | Your EFL, your provider’s website or app, or call them |
| Your ESIID (Electric Service Identification) | Your electricity bill (usually 17–22 digits) |
| Your average monthly usage (kWh) | Your bill history or Smart Meter Texas |
| Your current rate (¢/kWh) | Your EFL or latest bill |
| A valid ID and SSN | For credit check during enrollment |
Step 1: Check your current contract
Log into your provider’s website or app and find your contract end date, your current rate, and any early termination fee. If you have a copy of your EFL, that’s even better. It shows your plan’s pricing at 500, 1,000, and 2,000 kWh.
Step 2: Find your ESIID
Your Electric Service Identification is a 17–22 digit number on your electricity bill. You’ll need it when enrolling with a new provider.
Step 3: Compare plans
Enter your ZIP code on Watt Owl to see plans available at your address. Unlike most comparison sites, we calculate your estimated bill at your actual usage level, not just the 1,000 kWh rate that providers advertise. A plan that looks cheap at 1,000 kWh might cost more at 500 kWh if it has a usage credit baked in. Our guide on how to read your Electricity Facts Label explains what to look for.
Step 4: Enroll with your new provider
Once you’ve picked a plan, click the enrollment link on Watt Owl to go directly to the provider’s sign-up page. You’ll need your ESIID, a valid ID, and your SSN for the credit check. Enrollment takes about 10 minutes.
Step 5: Let ERCOT handle the rest
After you enroll, ERCOT processes the switch and notifies your old provider automatically. You don’t need to call anyone to cancel. Your new service begins within 7 business days, according to the Power to Choose FAQ.
What happens when your electricity contract expires?
When a fixed-rate contract expires, your provider doesn’t cut off your power. Instead, they roll you onto a month-to-month holdover rate, sometimes called a “default rate.”
These holdover rates are almost always significantly higher than what you’d find by shopping for a new plan. Your provider isn’t competing for your business at that point.
Under PUCT §25.475, your provider must send you a 30-day notice before your contract expires. If you missed that notice or let your plan roll over, you can still switch at any time. Month-to-month plans have no early termination fee.
For more on this topic, read our article on what happens when your contract expires. And if you’re choosing between plan types, our fixed vs. variable rate plans guide breaks down the tradeoffs.
Do you lose power when you switch providers?
No. Your electricity stays on the entire time.
The physical wires and delivery are handled by your TDU, companies like Oncor or CenterPoint, and that doesn’t change when you switch providers. Only your billing relationship changes.
According to the Power to Choose FAQ, the switch happens automatically within 7 business days. ERCOT processes the change and notifies your old provider. You won’t notice any interruption.
How much does it cost to switch electricity companies?
Switching itself is free. There’s no fee to enroll with a new provider and no charge from your TDU for the changeover.
The only cost you might face is an early termination fee if you switch before your contract ends. Among the 553 plans with ETFs in our database as of February 2026, fees range from $49 to $720, with a median of $180.
ETFs generally scale with contract length:
| Contract Term | Median ETF | Range |
|---|---|---|
| 3 months | $150 | $50–$179 |
| 12 months | $150 | $49–$300 |
| 24 months | $295 | $75–$480 |
| 36 months | $385 | $175–$720 |
Source: Watt Owl database, 553 plans with ETFs, February 2026.
If you’re within 14 days of your contract expiration, you won’t owe an ETF under PUCT §25.475. And for month-to-month or variable plans, there’s never an ETF.
Worth doing the math? Our early termination fee calculator can help you figure out whether breaking your current contract saves money in the long run.
What should you look for in your next electricity plan?
With hundreds of plans available, narrowing down your options helps. Here are the things that matter most.
Fixed vs. variable rates. Fixed-rate plans lock in your price for the contract term, typically 6, 12, or 24 months. Variable plans can change month to month. As of February 2026, the average fixed-rate plan among those we track costs 14.7¢/kWh at 1,000 kWh, while variable plans average 11.7¢/kWh. But variable rates shift with the market, and holdover rates tend to be much higher. For a full comparison, see our fixed vs. variable rate plans guide.
Your actual usage level. The rate on Power to Choose is calculated at 1,000 kWh. If you use more or less, your effective rate could be different, especially with plans that include bill credits at specific thresholds. Our guide on how to read your Electricity Facts Label explains how to check pricing at your usage.
Contract length and ETF. Longer contracts often come with lower rates, but higher ETFs if you leave early. Among plans we track, 12-month plans have a median ETF of $150, while 36-month plans have a median of $385.
TDU delivery charges. Every plan includes delivery charges from your TDU. These are regulated and identical across all providers in the same territory, but they affect your total cost. Learn more in our TDU delivery charges guide.
Plan features. Some plans offer free nights and weekends, bill credits at certain usage levels, or 100% renewable energy. Each has tradeoffs. Free nights plans work best if you can shift your heavy usage to off-peak hours.
See What You Could Save by Switching
Enter your current rate to see how the cheapest plans compare.
ZIP 75201 (Oncor Electric Delivery service area)
| Provider | Plan | Rate | Est. Bill | Term | |
|---|---|---|---|---|---|
 | GridPlus 12CHARIOT ENERGY• 100% Green | 8.3¢ | $83 | 12mo | Details |
 | The Lone Saver 12Energy Texas• 100% Green | 9.7¢ | $97 | 12mo | Details |
 | Rhythm Saver 12RHYTHM• 100% Green | 9.7¢ | $97 | 12mo | Details |
Estimates based on published rates and the usage you entered. Actual bills vary by usage pattern, fees, and provider terms. See our methodology.
Frequently Asked Questions
No. Your electricity stays on the entire time. The physical wires and delivery are handled by your TDU (like Oncor or CenterPoint), which doesn’t change when you switch providers. Only your billing relationship changes. The switch happens within 7 business days, and you won’t notice any interruption.
The switch to your new provider happens automatically within 7 business days after you enroll, according to the Power to Choose FAQ. The enrollment itself takes about 10 minutes online. ERCOT handles the switch between your old and new provider. You don’t need to contact your old provider to cancel.
Yes, but you may owe an early termination fee (ETF). As of February 2026, ETFs among plans tracked by Watt Owl range from $49 to $720, with a median of $180. If you switch within 14 days of your contract expiration date, you won’t owe any ETF under PUCT §25.475.
No. When you enroll with a new provider, ERCOT automatically notifies your old provider and processes the switch. You don’t need to call anyone to cancel your old plan. Your old provider will send you a final bill for usage through the switch date.
A holdover rate (also called a month-to-month or default rate) is what your provider charges after your fixed-rate contract expires if you haven’t chosen a new plan. Under PUCT §25.475, your provider must give you 30 days’ notice before this happens. Holdover rates are typically much higher than competitive shopping rates because your provider isn’t competing for your business.
Ready to switch?
Switching electricity providers in Texas takes about 10 minutes of your time and costs nothing. Your power stays on, your TDU doesn’t change, and you don’t need to call your old provider. The biggest risk isn’t switching. It’s staying on a holdover rate and overpaying for electricity you’d use anyway.
If your contract is ending soon, or already has, enter your ZIP code on Watt Owl to see what’s available in your area.
Ready to Switch? Find Plans in Your Area
Enter your ZIP code to see real rates based on your usage.
Watt Owl is a licensed electricity broker in Texas (PUCT License BR260022). We may earn a commission when you enroll through our links. Our recommendations are based on transparent rate calculations, not commission size.
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