Texas has the most active retail electricity market in the United States, with over 100 licensed Retail Electric Providers competing for residential customers in the deregulated zones. Switching from one REP to another is a 10-minute online transaction. Doing it correctly is what separates the people who save $500 a year from the people who pay early termination fees and end up worse off.
Here is the full sequence, with the gotchas that are specific to Texas.
What Happens When You Switch (And What Doesn't)
The wires don't move. Your meter doesn't get swapped. No technician shows up. Your TDU — Oncor, CenterPoint, AEP Texas Central, AEP Texas North, or TNMP — owns the physical infrastructure and continues to deliver power regardless of which REP you've contracted with.
What changes is purely a transaction at the TDU level: your new REP submits an enrollment request with your ESI ID (Electric Service Identifier — a 17-digit number unique to your meter). The TDU schedules the switch at your next scheduled meter read. The new REP starts billing from that date forward. The old REP issues a final bill.
There is no service interruption. Your lights don't flicker. The bill changes hands silently.
Step 1: Find Your ESI ID
This is the Texas-specific part. Your ESI ID is the meter identifier the new REP needs to process the switch. Three ways to find it:
- On your current bill — usually labeled "ESI ID," "ESIID," or "Service ID." 17 digits starting with 10 (Oncor), 1008 (CenterPoint), 1014 (AEP), or 1023 (TNMP).
- Smart Meter Texas — log in with your address; ESI ID is on the account dashboard.
- Call your TDU — Oncor (888-313-4747), CenterPoint (713-207-2222), AEP Texas (877-373-4858), TNMP (888-866-7456). They can read it to you with address verification.
If you're moving in to a new address, the listing agent or property manager usually has the ESI ID. New construction homes have ESI IDs assigned at the time the meter is installed.
Step 2: Know What You're Replacing
Pull your most recent bill from the current REP. Find:
- Your current rate (cents per kWh, all-in including TDU charges).
- Annual kWh usage — sum 12 months, or use "average daily use × 365."
- Contract end date — if you're on a fixed plan.
- Early Termination Fee — disclosed in your Terms of Service.
If you're past your contract end date and on a holdover variable rate, you can switch any time with no ETF. If you're inside your contract term, switching costs you the ETF.
Step 3: Run the ETF Math
A $150 ETF is only worth paying if the savings from switching exceed it within a reasonable horizon. The formula:
Months saved × monthly savings > ETF amount + switching friction.
Concrete example. You're locked at 14 cents per kWh with 6 months left on contract and a $295 ETF. The new offer is 9.5 cents. You use 1,200 kWh per month.
- Monthly savings: (0.14 - 0.095) × 1,200 = $54
- 6-month savings if you switch now: $324
- Net after ETF: $324 - $295 = $29
Marginally worth it, but barely. If the new rate were 11 cents instead, the math flips negative. Wait until the last 14 days of your contract (most REPs waive ETFs in that window — confirm in writing) and switch then.
Step 4: Pick Your New Plan
Use Power to Choose (PUCT-mandated, comprehensive) or a private aggregator (Choose Energy, EnergyOgre, ComparePower, ElectricityRates.com) for filtering convenience. Confirm any aggregator-recommended plan against the source EFL on Power to Choose.
Filter for:
- Fixed-rate plans only (unless you have a specific reason for variable or indexed)
- Term length matching your tolerance
- All three usage-tier rates within 1 cent of each other (no usage gimmicks)
- Base monthly charge under $10
- ETF you can live with on the new plan
Read the EFL for any plan you're seriously considering. The EFL is the contract.
Step 5: Enroll
Most enrollments are online and take 5 minutes. You'll need: ESI ID; service address; your name and SSN (for credit screening — some plans waive this with a security deposit); a start date (you can request "next available meter read" or pick a specific future date); bank or card info for auto-pay setup.
The new REP submits the switch request to your TDU. The TDU schedules it for your next regular meter read — typically 1 to 21 days out. You'll get a confirmation email plus a "Welcome Letter" (also called Your Rights as a Customer / YRAC document) within 24 hours.
You have a 3-day right of rescission after enrollment under PUCT rules. You can cancel without penalty by contacting the new REP within 72 hours.
Step 6: Confirm the Switch Happens
About 30 days after enrollment, your first bill from the new REP arrives. Check that the effective start date matches what you signed up for; that rate per kWh matches the EFL; base monthly charge matches; TDU charges appear separately and are consistent with your TDU's published rates; and there is no double-billing for the same dates.
If anything looks wrong, call the REP first. If unresolved, file a complaint with the PUCT consumer protection division.
Texas-Specific Gotchas
The "Move In" enrollment versus the "Switch" enrollment. If you're moving to a new address, the REP processes a "move in" request, not a switch. Service starts when the TDU energizes the meter. If the prior tenant disconnected and the property is dark, expect a $20 to $50 reconnect fee from the TDU. Avoid this by enrolling at least 5 days before move-in and requesting "no service interruption."
Smart meter read timing. Texas TDUs run meter reads on a rotating schedule. Your billing cycle is determined by your meter route, not your enrollment date. The new REP starts billing at the next scheduled read, which could be 2 days or 28 days away. Plan for some overlap.
Deposit refunds from the old REP. If you paid a deposit when starting service with the previous REP, you're entitled to it back (plus interest) after your final bill is paid. PUC rule requires the deposit refund within 30 days of contract close. Track it.
Switch holds. A REP can place a "switch hold" on your account if you have an unpaid past-due balance. You can't switch to a new REP until the balance is paid. If you suspect a switch hold blocking your enrollment, log into Smart Meter Texas to verify status.
Co-op and municipal addresses. If you're in CPS Energy, Austin Energy, El Paso Electric, or a co-op service area, you cannot switch. Power to Choose will tell you "your area is not deregulated." There is no workaround.
The Common Mistakes Texans Make
Auto-renewing into a holdover variable rate. Your fixed plan ends on month 12, the REP flips you to a month-to-month variable, and your effective rate jumps 40 to 70%. This is where REPs make their margin on inattentive customers. Set a calendar reminder for 30 days before your contract end date — every time.
Falling for door-to-door pitches. Solicitors at your door, calls from "your current provider's billing department," texts about expiring credits — these are slamming attempts or aggressive sales for variable plans. Hang up, close the door, never enroll on a verbal pitch. The legitimate REPs all publish their rates online.
Skipping the EFL. Power to Choose's headline rate is the lure. The EFL is the contract. Five minutes reading the EFL beats five months of paying a rate you didn't understand.
Switching to the cheapest #1 result. The lowest-rate Power to Choose listings are almost always usage-band traps or introductory teasers. Look at results 6 through 15 for plans designed to actually be cheap across a real usage range.
Not unenrolling auto-pay. When your old plan ends, the old REP can still bill final charges to your card. Update auto-pay or manually verify the final bill.
How Often to Switch
Once every 12 to 24 months is the sweet spot for most Texas households. Switching more often than annually rarely pays off after factoring ETF risk and enrollment friction. Switching less often than every 24 months means you're probably on a hold-over rate at some point — which is where the REP wins.
Mark the date. Re-shop the supply contract. Switch. Repeat. That's the discipline.