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What is a retail electric provider (REP) in Texas?

A REP sells you power and sends the bill, and your TDU owns the wires. Many licensed REPs may not sell to a home at all, so this page shows how to check one before you sign.

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Published 11 min readBy The Day Company review team · How we verify figures
141Certified REPs in the state's directory
90May sell to homes (the Option I type)
Short answer

A retail electric provider (REP) is the company that sells you power in Texas and sends your bill. It does not own the poles and wires. Your TDU, the delivery company, does that, and you cannot switch it. On October 24, 2026, the state listed 141 certified REPs, and 90 of them may sell to homes.

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141Certified REPs in the state's directory
90May sell to homes (the Option I type)
44Names with a plan on Power to Choose now
3 business daysTo cancel a new plan after you get the terms

The 4 things to know

  • Your REP sets the price you shop for. It sends the bill and answers plan questions.
  • Your TDU owns the poles, wires and meter. It fixes outages. The Commission approves its rates, and every REP passes them on to you.
  • Every REP needs a state certificate. The number must be on each Electricity Facts Label, so you can look it up.
  • Only some REPs may sell to homes. The state sorts them into three types, and just one type serves homes.

Built on public data from the Public Utility Commission of Texas (the PUCT, or "the Commission" below): its REP directory, its rules and its complaint scorecard. Also the Power to Choose plan list.

01 · Who is who

What does a REP do, and what does your TDU do?

Your REP sells you power and sends the bill. Your TDU owns the wires and keeps them working. In Texas you pick the REP, and you never pick the TDU.

Who does what, REP and TDU
JobYour REPYour TDU
Sells you powerYesNo
Sets the price per kWh in your planYesNo
Sends your billYesNo
Owns the poles, wires and meterNoYes
Fixes outagesNo, it passes your report onYes
Reads your meterNo, it gets the readingYes
Can you switch it?Yes, when your plan allowsNo
REPSells the power. You choose it, and it sends the bill.
TDUDelivers the power. The Commission sets its rates.
The PUCTCertifies REPs, sets the rules and takes complaints.

The big TDUs are Oncor, CenterPoint Energy Houston Electric, AEP Texas and TNMP. Lubbock's city system is another. Oncor is the TDU for much of North Texas. Not sure which one is yours? Use our utility finder.

Texas opened its power market to choice on January 1, 2002, for customers of the big investor-owned utilities. That is when the REP became a company you could pick. A city or a co-op can stay out.

You cannot pick a REP everywhere. The Commission says a city utility or a co-op "may choose to participate in customer choice at any time," and its board must vote to do so. If your power comes from one, you buy straight from it. Some cities are split: parts of Frisco and McKinney are on co-op lines, so two homes in one city can get different answers.

When something goes wrong, the hard part is knowing which of the two to call. The tool in the next section tells you.

02 · Who to call

Who do you call? Pick your problem

Call your TDU for an outage, a downed line or a broken meter. Call your REP about your bill, your plan or a payment. Call the Commission only when the company will not fix it. Pick your problem below to see the first call to make.

Who do you call first?Free. Nothing you pick leaves your device.

What is going on?

Pick the problem above. The answer names the company to call first.

This tool gives you the first call to make. It is not legal advice. Your bill names both of your companies, and the Commission's number is 1-888-782-8477.

03 · Check one

How do you check a REP in 60 seconds?

Find the certificate number on the plan's facts label, look it up in the state's REP directory, check the REP's complaint score and read the terms. Do it before you sign, not after the first bill.

  1. 1
    Find the certificate number.

    The rule says it must be on the Electricity Facts Label. Look near the company's contact box.

  2. 2
    Look it up in the state's REP directory.

    If the company is not there, do not sign. The directory lists REPs doing business in Texas now.

  3. 3
    Check its complaint score.

    The Commission scores REPs on complaints per 1,000 customers. Read the box below first.

  4. 4
    Read the facts label and the terms.

    Look at the price, the term, the fees and the cancel fee.

  5. 5
    Keep your three days.

    After you get the terms, you can cancel a new plan within three federal business days, with no fee.

The complaint score is easy to misread. The Commission sorts REPs into five groups of about equal size. So some company always lands in the bottom group. A one-circle REP is not a scam, and a five-circle REP is not a promise.

The Commission's complaint scorecard for October 2026
CirclesWhat they meanREP groups in this fifth
5Lowest rate of complaints8
4Lower than average8
3Average7
2Higher than average7
1Highest rate of complaints7

The scorecard covers April 1 through September 30, 2026. It counts every informal complaint, whether or not the REP was at fault. For a small REP, a few complaints can move its score a lot in one month. Use it as one clue. Our guide to complaints shows how to file one, and our best companies guide weighs complaints with fines, fees and contract terms.

04 · Your bill

Where does each line on your bill go?

The energy charge and any plan fees go to your REP. The delivery charges go to your TDU, and a city sales tax goes to the city. Shopping changes only the REP part.

Where each part of a Texas bill goes
Line on your billWho gets itCan you shop it?
Energy charge, in cents per kWhYour REPYes
Monthly base charge or plan feesYour REPYes
Delivery charges, fixed and per kWhYour TDUNo
Delivery add-ons the TDU may pass onYour TDUNo
Local sales tax on home power, where a city charges itThe cityNo

For a home on Oncor's lines, delivery can be about half of the bill. That is why the same plan has a different price in Dallas and in Houston. The TDUs charge different amounts. The average price on a plan's Electricity Facts Label counts both parts, before taxes.

So when you compare plans, compare the whole label price. Our guide to reading a facts label shows how. The cheapest flat-rate 12-month plan in the Oncor area was 12.0¢ per kWh at 1,000 kWh on October 24, 2026, with delivery counted. Our Oncor guide has the delivery part on its own.

05 · Certificates

Which REPs may sell to homes?

Only Option I REPs may sell to homes. The Commission gives each REP one of three certificate types, and the rule defines them this way:

  • Option I: sells to any customer class in an area, homes included.
  • Option II: sells only to named customers that each buy one megawatt or more. Think of a factory.
  • Option III: sells from an on-site power plant to a large customer, never to a home or a small business.
REPs in the Commission's directory, by type
Option I: may sell to homes
90
Option II: named big customers
49
Option III: on-site power
2

Commission directory, read October 24, 2026. It lists 141 REPs and 159 brand names in all.

So a long list of "licensed" companies includes many that cannot sell to you. Only Option I counts for a home, and not every Option I REP shows a plan on the state's plan site.

From the full list to the plans you can see
Certified REPs, all types
141
Option I, may sell to homes
90
Names with a plan on Power to Choose
44

Commission directory and Power to Choose export, both read October 24, 2026. A name is a brand, and a REP can have several.

Want every name in one place, and why some are missing from the plan site? That is the job of our list of Texas electricity companies. This page stays with what a REP is.

06 · The chain

How does power get from the plant to your plug?

Power plants make it, ERCOT runs the grid, your TDU carries it to your meter, and your REP buys it for you and bills you. Your REP is the one you pay.

  1. Power plantsThey make the electricity and sell it into the Texas grid.
  2. ERCOTIt runs the grid and the wholesale power market for most of Texas.
  3. Your TDUIt carries the power down your street and to your meter.
  4. Your REPIt buys power for its customers, sets your price and bills you.
  5. YouYou pay one bill. Part of it goes to the REP and part to the TDU.

A REP is a seller, and the power plants are separate companies. To get certified, a REP must show it can buy power and settle with ERCOT. The Commission's rule asks for a deal with a scheduling company, called a QSE, that handles those trades. If you want the grid side, read what ERCOT is.

A green plan uses the same chain. The REP pays for renewable power or credits equal to your use, and your TDU's wires still bring the power. Our guide to green energy plans shows what the 100% label means.

07 · Safety net

What keeps your money safe if a REP fails?

State rules make a REP that sells to homes keep money behind it and keep your deposit apart. If a REP fails anyway, the state moves its customers to a backup provider.

Money behind the REPThe rule

A home REP needs a guarantor, or a letter of credit of $750,000 (under 50,000 meters served) or $1,500,000 (50,000 or more).

Your depositKept apart

A REP that takes deposits must keep 100% of them in escrow, a separate cash account or a letter of credit. Prepayments of $50 or more get the same cover.

If a REP files for bankruptcy or becomes insolvent, it must tell the Commission within three working days. Its customers then go to the backup provider. Our company list explains who that is.

The three-day exit is a rule too. After you get the terms of service, you can cancel within three federal business days, without a penalty. Our guide to switching walks through it.

08 · Not a REP

Is a broker or a brand name a REP?

A brand name is a REP selling under another name, so it can sell to you through its REP. A broker or an aggregator is not a REP. It may help you shop, but only a REP can sell you power and send the bill.

Who is a REP and who is not
Name you seeWhat it isCan it sell you power?
A REPThe license holder that bills youYes
A brand name (DBA)Another name a REP sells underYes, through its REP
A brokerA middleman, listed in a separate Commission directoryNo
An aggregatorA group-buying agent, also listed apartNo
Your TDUThe wires companyNo
Power to ChooseThe state's plan websiteNo, it only lists plans

Brokers and aggregators sit in separate directories from REPs. On Oct. 24, 2026, the Commission's directory showed 1,673 active brokers. That is far more than the 141 REPs. Your contract and your bill always come from a REP. Our guide to Power to Choose shows how the state's own plan site works.

One license can carry several brands. The Commission's October 2026 scorecard groups a few of them under one certificate.

One license, more than one name
Names on the scorecardLicensed
Frontier Utilities and Retail Energy Solutions LLCOctober 8, 2008
Cirro Energy, US Retailers, Pennywise Energy and Compassion EnergyOctober 27, 2008
Payless Power and Young EnergyApril 25, 2005

That is why two offers with different names can come from the same REP. Check the certificate number, not the logo.

Your next step

Ready to choose a REP? Check its license and owner on the full list first, then compare the plans at your ZIP.

Compare plans at my ZIP

A partner runs the plan finder. If you sign up, it may pay us a fee, and that never moves a rating or a score.

Read nextEvery Texas electricity company, with owners and license checks Read it
09 · Quick answers

Questions, answered

What does Option I mean for a REP?

It is the REP type that sells to any customer class by area, so it is the only type that may sell to homes. Option II REPs serve named customers that each buy one megawatt or more. Option III REPs sell from an on-site plant to large customers, never to homes.

Does switching my REP change who fixes outages?

No. Your TDU owns the lines and fixes them, whichever REP you pick. Call your TDU first. If you call your REP, state rules say it must be able to pass your report to the TDU at any hour.

Can my REP raise the delivery part of my bill?

No. Delivery charges belong to your TDU, and the Commission approves them. Your REP passes them on at the TDU's rate. It sets only its own charges, such as your energy price.

Where do I find a REP's certification number?

It is on the Electricity Facts Label for the plan. The rule requires it. You can also find it in the Commission's REP directory by company name.

Are brokers and aggregators REPs?

No. The Commission lists them in their own directories. They may help you shop, but only a REP can sell you power and bill you.

What is the difference between a REP, a TDU and ERCOT?

A REP sells you power. A TDU delivers it on its own wires. ERCOT runs the grid and the wholesale market for most of Texas. The Commission oversees all three.

Is my deposit safe with a REP?

The rules guard it. A REP that takes deposits must keep 100% of them in escrow, in a separate cash account or behind a letter of credit. Prepayments of $50 or more get the same cover.

Can a REP be both cheap and a poor choice?

Yes. Price is one test. Check the complaint score, the fees and the cancel fee too. Our best companies guide scores companies on public records.

Where to next

What do you want to do next?

Sources

Sources and updates

Sources (10)
Changelog · last updated October 25, 2026 · 1 update
  • October 25, 2026: Guide published.

How to cite this page: The Day Company, "What is a retail electric provider (REP) in Texas?", updated October 25, 2026, https://theday.company/tx/retail-electric-provider-texas.

The Day Company is not affiliated with any retail electric provider, delivery company or agency named on this page. Counts come from the Commission's directory and the Power to Choose list, which can change between our daily reads. This guide is information, not legal advice.