How to Switch Electricity Providers in Texas
If you live in deregulated Texas (about 85% of the state), you can switch your electricity provider any time. No power interruption. No fees in most cases. Same wires, same poles, just a different company billing you.
Here is the actual process.
Before you switch
Find your last bill. You will need your account number and your service address.
Check your contract end date. If you are mid-contract, switching may trigger an early termination fee. Most plans charge between $150 and $300 for early termination.
Know your monthly usage. Your bill shows your kWh per month. The Texas average is around 1,000 kWh, but your number is what matters.
Run our comparison. Enter your ZIP and usage. We show every plan ranked by your estimated bill.
When to switch
The best time to shop is when your current contract is ending. Texas providers must send you a notice before your contract expires. That notice usually arrives 30 to 45 days before the renewal date.
If you do not switch, your provider will roll you into a new plan automatically. That new plan is usually more expensive than what you could get if you shopped around.
How the switch happens
- Pick a plan from our ranking.
- Click Sign Up. You are taken directly to the provider’s enrollment page.
- Enter your service address, account number, and your start date.
- The new provider handles the switch on your chosen start date.
- Your old provider sends a final bill. The new provider takes over.
You never lose power during the switch. The lines and poles are owned by your local utility (Oncor, CenterPoint, AEP, or TNMP). Only the company billing you changes.
Texas’s 14-day rescission window
Under Texas law, you have 14 days from the date you signed up to cancel a new contract without penalty. If you change your mind, contact the new provider in writing within that window.
What to watch for
Teaser rates. A plan that advertises 8 cents per kWh might actually cost you 14 cents per kWh at your real usage. Check the math, not the headline.
Bill credits with cliffs. Some plans give a $100 credit only if you use exactly 1,000 to 2,000 kWh that month. Use 999 kWh and you get nothing. We flag these in our ranking.
Variable rate plans. These adjust monthly with the wholesale market. They are usually cheaper short term and more expensive when summer hits. Most Texans should pick a fixed rate plan.
Contract length. 12-month and 24-month plans are most common. Longer plans are usually slightly cheaper but lock you in longer.