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.
| Job | Your REP | Your TDU |
|---|---|---|
| Sells you power | Yes | No |
| Sets the price per kWh in your plan | Yes | No |
| Sends your bill | Yes | No |
| Owns the poles, wires and meter | No | Yes |
| Fixes outages | No, it passes your report on | Yes |
| Reads your meter | No, it gets the reading | Yes |
| Can you switch it? | Yes, when your plan allows | No |
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.
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.
Pick the problem above. The answer names the company to call first.
Partner toolWe get paid if you sign up. You don’t pay more, and it never changes our scores.
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.
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.
- 1Find the certificate number.
The rule says it must be on the Electricity Facts Label. Look near the company's contact box.
- 2Look 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.
- 3Check its complaint score.
The Commission scores REPs on complaints per 1,000 customers. Read the box below first.
- 4Read the facts label and the terms.
Look at the price, the term, the fees and the cancel fee.
- 5Keep 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.
| Circles | What they mean | REP groups in this fifth |
|---|---|---|
| 5 | Lowest rate of complaints | 8 |
| 4 | Lower than average | 8 |
| 3 | Average | 7 |
| 2 | Higher than average | 7 |
| 1 | Highest rate of complaints | 7 |
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.
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.
| Line on your bill | Who gets it | Can you shop it? |
|---|---|---|
| Energy charge, in cents per kWh | Your REP | Yes |
| Monthly base charge or plan fees | Your REP | Yes |
| Delivery charges, fixed and per kWh | Your TDU | No |
| Delivery add-ons the TDU may pass on | Your TDU | No |
| Local sales tax on home power, where a city charges it | The city | No |
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.
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.
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.
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.
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.
- Power plantsThey make the electricity and sell it into the Texas grid.
- ERCOTIt runs the grid and the wholesale power market for most of Texas.
- Your TDUIt carries the power down your street and to your meter.
- Your REPIt buys power for its customers, sets your price and bills you.
- 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.
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.
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).
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.
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.
| Name you see | What it is | Can it sell you power? |
|---|---|---|
| A REP | The license holder that bills you | Yes |
| A brand name (DBA) | Another name a REP sells under | Yes, through its REP |
| A broker | A middleman, listed in a separate Commission directory | No |
| An aggregator | A group-buying agent, also listed apart | No |
| Your TDU | The wires company | No |
| Power to Choose | The state's plan website | No, 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.
| Names on the scorecard | Licensed |
|---|---|
| Frontier Utilities and Retail Energy Solutions LLC | October 8, 2008 |
| Cirro Energy, US Retailers, Pennywise Energy and Compassion Energy | October 27, 2008 |
| Payless Power and Young Energy | April 25, 2005 |
That is why two offers with different names can come from the same REP. Check the certificate number, not the logo.
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 ZIPA partner runs the plan finder. If you sign up, it may pay us a fee, and that never moves a rating or a score.
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.
What do you want to do next?
Sources and updates
Sources (10)
- Public Utility Commission of Texas, Directory of Retail Electric Providers (alphabetical): The count of certified REPs and brand names, by Option I, II and III, read Oct. 24, 2026.
- Public Utility Commission of Texas, 16 TAC section 25.107, certification of retail electric providers: The three REP types, the financial rules and the deposit rules (the version in effect since April 26, 2023, read Oct. 24 and 25, 2026).
- Public Utility Commission of Texas, 16 TAC section 25.474, selection of retail electric provider: The three-business-day right to cancel without a penalty.
- Public Utility Commission of Texas, 16 TAC section 25.475, REP requirements and the Electricity Facts Label: The facts label, and the certification number it must show.
- Public Utility Commission of Texas, Retail Electric Provider Complaint Scorecard, October 2026: The five complaint groups, the six-month window and the shared licenses.
- Public Utility Commission of Texas, Alphabetical directory of brokers: The count of 1,673 active brokers on Oct. 24, 2026, and the separate directories.
- Public Utility Commission of Texas, Frequently asked questions about municipal utilities and co-ops: Cities and co-ops may choose to join customer choice at any time.
- Texas House Research Organization, Bill analysis of SB 7 (May 20, 1999): Customers of investor-owned utilities could choose a provider beginning January 1, 2002.
- Public Utility Commission of Texas, Power to Choose plan list: The names with a plan on the list, read Oct. 24, 2026.
- Public Utility Commission of Texas, Customer complaints: How to file a complaint about a REP.
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.