What happens when you switch electricity providers in Texas?
When you switch, your new company sends a switch request to ERCOT. ERCOT tells your old company, and your wires company reads your meter for the switch date. You don't cancel anything, and your power stays on.
- You sign upwith the new company, online or by phone.
- New companysends the switch request to ERCOT.
- ERCOTtells your old company and sends you a notice.
- Wires companyreads your meter for the switch date.
Based on PUCT rule 25.474, parts (k), (l) and (q), and ERCOT's switch process map (TX SET 5.0, Nov 2024). Checked Oct 10, 2026.
Texas splits your power into two jobs. A retail electric provider (REP) sells you electricity and sends the bill. A wires company owns the poles, lines and meter, and it fixes outages. In most choice areas, that's Oncor, CenterPoint, AEP Texas or TNMP. A switch only changes the first job.
ERCOT runs the power grid for most of Texas. It also keeps the list of which company serves each home. It handles switches for nearly 8 million homes and businesses. Under a rule from the Public Utility Commission of Texas (PUCT), your new company files the switch there. ERCOT then sends you a notice with both companies' names and phone numbers.
Sources: PUCT rule 25.474 and Oncor FAQs, checked Oct 10, 2026. Oncor delivery is $4.06 a month plus 6.8673¢ per kWh from Oct 4, 2026 (PUCT Docket 59249).
How do I switch electricity providers in Texas, step by step?
You can switch in six steps, and the new company does the hard part. Before you start, grab a recent bill. It shows how much power you use, and it usually lists your ESI ID too.
- 1Find your end date and your fee
Your plan's Electricity Facts Label (EFL) lists the early termination fee. Your bill or expiration notice shows the day your contract ends. Write both down.
- 2Get your real usage
Add up your last 12 bills, or log in to Smart Meter Texas. The PUCT endorses that site. It stores the daily, monthly and 15-minute readings from your smart meter.
- 3Compare plans at your usage
Search Power to Choose, the state's official site. Open each plan's EFL and look at the price at 500, 1,000 and 2,000 kWh. Our plan cost calculator does the math.
- 4Sign up as a switch
Staying in your home? Pick "switch," not "move-in." Only a switch comes with the 3-day right to cancel. If timing matters, ask for a start date, like a day in your last 14 days. Ask if that date adds a meter-read charge.
- 5Keep your papers
You'll get the terms of service, the EFL and a "Your Rights as a Customer" sheet. Save all three. Then note when your 3 business days to cancel run out.
- 6Watch your mail and your next bills
ERCOT sends a switch notice that names both companies. Your old company sends a final bill for its last days. Your new company bills you after that.
Need help choosing a company? Our scores for 25 Texas companies use a 100-point public-records formula. Champion Energy tops the list at 96 out of 100. Torn between the two biggest names? Read TXU vs Reliant. Our city lists show the companies selling in Houston, Dallas, Fort Worth and McAllen, with the state’s complaint ratings.
When is the best time to switch electricity providers?
The best time is your contract's last 14 days. The PUCT says you can switch then with no early termination fee. Switch on time, and you also skip the month-to-month price you'd get by doing nothing.
- Last third of your planWatch your mail and email. Your company must send you at least 3 notices about your end date in this stretch.
- Your company must give you its last notice by now. It must say you'll move to a month-to-month plan if you do nothing.
- Fee-free switching starts. Set your new plan to start on this day or later.
- Did nothing? You move to month-to-month, and that price can change each billing cycle.
Example: a 12-month plan that ends Dec 17, 2026. Day counts from PUCT rule 25.475(e), checked Oct 10, 2026.
The 14 days count back from the end date printed in your notice. Pick a start date in that window when you sign up. By then, you'll also have the facts label for the month-to-month plan. It shows what doing nothing would cost. Our contract ending guide explains each part of the notice.
Can you switch anytime?
Yes, but timing changes the cost. On a month-to-month plan, you can leave anytime with no fee, because the rules ban fees on those plans. On a fixed-rate contract, you'll owe any early termination fee your plan lists. The main exceptions are your last 14 days and a move. Not sure which plan type you have? See fixed vs variable rates.
- You're on a month-to-month plan.
- You're in your contract's last 14 days.
- Your savings over the months left beat the fee.
- Your plan's facts label shows no termination fee.
- You have a few months left and a flat fee.
- The new price is only low at 1,000 kWh.
- You owe on a deferred payment plan.
Run a small business? Your last notice can come as late as 14 days before the end date. For demand charges and other business rules, see our business electricity guide.
Should I switch now or wait until my contract ends?
Switch now if what you'd save over the months left is more than the early termination fee. If it isn't, wait for your last 14 days. Type in your numbers to see which one wins.
Use 0 months if you're month-to-month or in your last 14 days. For prices, use each plan's EFL average price at the usage closest to yours.
You'd save $31.56 a month. Over the 4 months left, that's $126.24. Leaving now means a $150.00 early termination fee.
It takes 5 months of savings to cover a $150.00 fee. In your last 14 days, the fee is $0.
Partner toolWe may earn a fee if you sign up. It never changes our scores.
The starting price, 15.88¢ per kWh, is the Texas home average for July 2026 from the U.S. Energy Information Administration. The 1,096 kWh is the average Texas home's monthly use in 2024. See how prices compare across the state in Texas electricity rates.
Bars start at zero. Oncor-area facts labels: Reliant Conservation SM 12 plan, "$150. Applies through the end of the contract term" (dated Oct 4, 2026). Rhythm Digital Choice 12, "$20 (twenty dollars) for each whole month remaining" (dated Oct 9, 2026). Rhythm's label also lets first-time customers cancel in their first 30 days with no fee.
See the pattern? A flat fee costs the same with 11 months left or 1. A fee per month left shrinks as you go. A flat fee only drops to $0 in your last 14 days. We score both companies with our public-records method. Rhythm scores 73 out of 100, and Reliant scores 62.
What are my rights when I switch electricity companies?
Texas rules give you three big protections. You get 3 federal business days to cancel a switch for free. A company can't charge you a fee just to switch. And if someone switches you without your OK, you're put back and paid back.
How the 3-day right to cancel works
The clock starts when you get the terms of service. Sign up online, and they come with your confirmation email. Weekends and federal holidays don't count. If the papers come by mail, the company can assume they reached you within 3 federal business days. For online sign-ups, the confirmation email must tell you how to cancel, such as by a toll-free number, email or website.
- Terms arriveThe clock starts
- Day 1
- Day 2
- ThanksgivingDoesn't count
- Day 3Last day to cancel free
Example. Rule 25.474(j) counts federal business days. 2026 federal holidays are from the U.S. Office of Personnel Management.
The one catch is a special switch date. Pick one, and your wires company may charge for an extra meter read, mostly at homes without a smart meter. Your new company can pass that charge on to you, so ask first. Backing out within your 3 days adds no wires company cancel costs.
What if you were switched without your OK?
The PUCT calls this slamming, an unauthorized switch of your electric service. Two state rules protect you.
- Ask for proof. The company must send proof that you agreed within 5 business days. If it can't, the switch is treated as unauthorized.
- You go back. You're returned to your old company. The company that switched you pays the wires charges to switch you back.
- You get your money back. It must refund what you paid it for that time within 5 business days after you're switched back.
- You never pay more. You can't be charged more than you'd have paid without the switch.
- Collection stops. While your PUCT complaint is open, the company must stop trying to collect for the switch.
Complain to your company first, by phone, email or letter. It must look into it and answer within 21 days. If you go to the PUCT, the company has 15 days to answer the PUCT in writing. While that complaint is open, the company can't start collection over the part of the bill you dispute. It can't cut off your power over it either. You still pay the rest.
PUCT complaint records also count for 25 of the 100 points in our company scores. Check a company's record before you switch to it, and you may never need that phone number.
What switching mistakes cost the most money?
Three mistakes can cost you the most. You pay an early termination fee you could have skipped. You pick a plan that's only cheap at 1,000 kWh. Or you do nothing when your contract ends.
The 1,000 kWh trap
Some plans give a bill credit only when you use a set amount. That can make a plan look cheap at 1,000 kWh, the middle of the three prices every EFL must show. Miss that mark by a little, and your bill jumps.
Bars start at zero. Our math from the Reliant Power Savings 12 plan's facts label (Oncor area, dated Oct 4, 2026): 14.3701¢ per kWh, a $75 credit at 1,000 kWh or more, and Oncor delivery of $4.06 plus 6.8673¢ per kWh. Before taxes.
A plan like this costs the least per kWh right at 1,000 kWh, where the credit starts. In a mild month at 900 kWh, though, you'd pay $195.20. That's about 21.7¢ per kWh, well above the Texas average of 15.88¢. Before you sign, run the three-price test in our Power to Choose guide. Plans with free nights can hide a similar catch, based on when you use power.
Doing nothing at the end
If you ignore your notices, your company moves you to a month-to-month plan. Its price can change every billing cycle. The good news: your company can't sign you up for a new contract without your OK. It can only move you to month-to-month.
- Asking your old company to stop service.
- Switching 20 days before your plan ends.
- Choosing by the 1,000 kWh price alone.
- Throwing out your expiration notice.
- Let the new company handle the switch.
- Start your new plan in your last 14 days.
- Price plans at your real use.
- Put your end date on your calendar.
What happens after I switch electricity providers?
Your old company sends a final bill for the days it served you. Any deposit it holds goes first to what you owe. The rest comes back to you, or it moves to your new company if you all agree.
- Energy charge: the part a switch changes$105.79
- Oncor delivery: the same with any company$79.33
- Base charge from the plan$5.00
Example from the Reliant Conservation SM 12 plan's facts label (dated Oct 4, 2026): $5.00 base, 9.4773¢ per kWh up to 1,000 kWh and 11.4773¢ above, plus Oncor's $4.06 and 6.8673¢ per kWh. Before taxes.
See the navy part? That delivery charge stays the same no matter who you pick. It's set for your wires company, not your seller. At 1,000 kWh, it's $72.73 for Oncor homes and $70.23 for CenterPoint homes. So a switch only moves the energy charge and any base charge or credits.
Mark the begining of your new plan on your calendar. Then set a reminder for 30 days before it ends. That leaves time to shop and switch in your last 14 days. Bill looks high after the switch? Our guide to why your electric bill is so high can help. For a yardstick, the average Texas home used 1,096 kWh a month in 2024. It paid $163.72, as our average bill guide shows.
Did you pay a deposit to your old company? If it kept the money more than 30 days, it owes you interest from the day you paid. Your new company may ask for its own deposit. Our no-deposit and prepaid guide shows ways around that. If a final bill looks wrong, use the steps in your rights above.
Switching questions, answered
Do I have to cancel my old electric company when I switch?
No. Your new company sends the switch to ERCOT, and ERCOT tells your old company. Your old plan ends on the switch date, and your old company sends a final bill. Asking your old company to stop service is for moving out, not switching. Just let the switch happen, and watch for that last bill.
How long does it take to switch electricity providers in Texas?
It depends on the date you pick and your meter. Your new company must tell you about when your service will start, and you can ask for a specific date. Smart meters are read from far away, so no one needs to visit. In Oncor's area, homes without a smart meter may wait up to 45 days.
Will my power go out if I switch electric companies?
No. Switching only changes the company that sells you power. Your wires company keeps the same wires and meter in place and reads the meter for the switch date. Your outage number stays the same too, because the wires company still fixes outages. You don't need to do anything on switch day.
Can I switch electric companies anytime?
Yes. On a month-to-month plan, you can leave anytime with no fee. On a fixed-rate contract, you can still switch. But you will owe the early termination fee, unless you are in your last 14 days or moving. If you are on a deferred payment plan, a switch-hold can block a switch until that balance is paid.
How much is an early termination fee in Texas?
Each plan sets its own. The fee must be listed on the Electricity Facts Label and the terms of service. Two October 2026 labels show how fees differ. A Reliant 12-month plan listed a flat $150. A Rhythm 12-month plan listed $20 for each whole month left. Month-to-month plans can't charge one at all.
Is there a fee to switch electricity providers in Texas?
Your new company can't charge a fee just to switch, though a special switch date can add a meter-read charge. The fee to watch is an early termination fee from your old contract. You won't owe it if you switch in the last 14 days before the end date in your notice. You also won't owe it if you move and give a forwarding address.
Can I cancel a new electricity plan after I sign up?
Yes, if you switched. You have 3 federal business days after you get the terms of service to cancel with no fee. Weekends and federal holidays don't count. This right does not apply to move-ins. After the 3 days, the plan's normal terms apply, and that includes any early termination fee.
What happens to my deposit when I switch?
Your old company puts the deposit toward what you still owe. The rest, plus interest, is refunded to you or moved to your new company, as you and both companies agree. If the company kept your deposit more than 30 days, it owes you interest from the day you paid it.
What if I was switched without my permission?
That is called slamming. Call the company that switched you and ask for proof that you agreed. It must send proof within 5 business days. If it can't, you go back to your old company. The switcher pays the costs to switch you back and refunds what you paid. You can also call the PUCT at 1-888-782-8477.
Do I need a new meter to switch electricity providers?
No. Your wires company, like Oncor or CenterPoint, reads your meter, and the meter stays in place. With a smart meter, the reading for your switch is done from far away. You can also see your past use on Smart Meter Texas, a site the PUCT endorses. That helps you price new plans at your real usage.
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Sources and updates
Sources (23)
- Public Utility Commission of Texas, 16 TAC §25.474, Selection of Retail Electric Provider (Cornell LII copy; last amended effective Mar 8, 2017): the new company submits the switch to the registration agent; 3 federal business days to cancel after receiving the terms of service, not for move-ins; no fee to switch or enroll except an out-of-cycle read without an advanced meter; the approximate start date; the switch notice naming both companies; proof of authorization within 5 business days. Checked Oct 10, 2026.
- Public Utility Commission of Texas, 16 TAC §25.475, General Retail Electric Provider Requirements and Information Disclosures (last amended effective Jan 6, 2022): no early termination fee for moving with a forwarding address; no fee on month-to-month plans; at least 3 expiration notices, the last one at least 30 days out; no termination penalty in the last 14 days; default month-to-month renewal; EFL prices at 500, 1,000 and 2,000 kWh.
- Public Utility Commission of Texas, 16 TAC §25.478, Credit Requirements and Deposits (amended effective May 13, 2018): deposits moved to the new company or refunded with interest when you switch; interest owed if kept more than 30 days.
- Public Utility Commission of Texas, 16 TAC §25.480, Bill Payment and Adjustments (amended effective May 13, 2018): switch-holds on deferred payment plans, removed after the deferred balance is paid.
- Public Utility Commission of Texas, 16 TAC §25.485, Customer Access and Complaint Handling (amended effective Apr 26, 2023): company answers within 21 days; 15 days to answer a PUCT complaint; no collection or disconnection over the disputed part; PUCT contact details.
- Public Utility Commission of Texas, 16 TAC §25.495, Unauthorized Change of Retail Electric Provider (amended effective Apr 26, 2023): return to your company, switching costs paid by the switcher, refund within 5 business days, no higher charges, collection stops during a complaint.
- Public Utility Commission of Texas, 16 TAC §25.5, Definitions: what a REP, a registration agent and an ESI ID are (accessed Oct. 10, 2026).
- Public Utility Commission of Texas, Choosing an Electric Plan: homes in ERCOT that aren't on a co-op or city utility can choose a provider; Power to Choose is the PUCT's plan site; customer line 1-888-782-8477 (accessed Oct. 11, 2026).
- Public Utility Commission of Texas, Consumer complaints page: contact your company first and let it try to fix the problem. Checked Oct 10, 2026.
- ERCOT, Company profile: runs the grid for about 90% of Texas load and handles retail switching for nearly 8 million premises. Checked Oct 10, 2026.
- ERCOT, Switch process map (TX SET 5.0, Nov 2024): the new retailer sends the switch request; ERCOT notifies the current retailer before the switch date.
- ERCOT, Grid Insights: Competitive Retail Market of Texas: only Nueces Electric Cooperative and Lubbock Power & Light have opted in to retail competition (November 2025).
- Oncor, FAQs: Smart Meter Texas stores daily, monthly and 15-minute usage and is endorsed by the PUCT; advanced meters are read remotely; non-standard meter customers may wait up to 45 days to switch; outage line 888-313-4747. Checked Oct 10, 2026.
- CenterPoint Energy, Smart Meter Texas launch release (Mar 23, 2010): portal launched by CenterPoint, Oncor and AEP; usage down to 15-minute intervals.
- Reliant Energy, Electricity Facts Label, Reliant Conservation SM 12 plan, Oncor (dated Oct 4, 2026): $150 termination fee through the end of the term, waived for moves; $5.00 base charge; 9.4773¢ and 11.4773¢ energy charges.
- Reliant Energy, Electricity Facts Label, Reliant Power Savings 12 plan, Oncor (dated Oct 4, 2026): 14.3701¢ energy charge; $75 usage credit at 1,000 kWh or more; average prices of 22.0¢, 14.1¢ and 17.7¢.
- Rhythm Energy, Electricity Facts Label, Digital Choice 12, Oncor (dated Oct 9, 2026): $20 early termination fee for each whole month left; first-time customers may cancel in their first 30 days with no fee.
- Reliant Energy, Electricity Facts Label, Reliant Power On 12 plan, CenterPoint (dated Sep 30, 2026): CenterPoint delivery of $4.90 a month plus 6.5333¢ per kWh ($70.23 at 1,000 kWh).
- Direct Energy, Terms of Service, Residential (version 12-2025): nothing else to do after you accept; deposit applied to your account, then refunded or moved to your new company; final bill.
- Green Mountain Energy, Terms of Service for Residential Customers (form 04-2022): the old company's duties end after the meter read date when it's no longer your provider.
- TXU Energy, Your Rights as a Customer (TXUEYRAC082023A): a company needs your verifiable authorization to switch you; after slamming, the companies, wires company and registration agent return you (accessed Oct. 10, 2026).
- U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A): Texas homes used 1,096 kWh a month and paid $163.72 on average. Also Electric Power Monthly Table 5.6.A: 15.88¢ per kWh for Texas homes, July 2026.
- U.S. Office of Personnel Management, Federal Holidays: Thanksgiving falls on Nov 26, 2026, used in the 3-day example.
Changelog · last updated October 16, 2026 · 2 updates
- October 16, 2026: Linked our new Houston, Dallas, Fort Worth and McAllen company lists and our Spanish guide to the cheapest electricity companies. Our company scores now cover 25 Texas companies, so the count says 25. No other figures changed. We also pointed old links straight at their current pages, so none goes through a redirect. We also added our new city guides, four new company reviews and the Smart Meter Texas guide to the guide map.
- October 11, 2026: Guide published: how a Texas switch works, the 6 steps, the fee-free last 14 days, your rights (3-day cancel, slamming, complaints), costly mistakes with real facts-label examples, what happens after you switch, and a free switch-now-or-wait calculator.
How to cite this page: The Day Company, "How to switch electricity providers in Texas without paying a fee", updated October 16, 2026, https://theday.company/tx/switch-electricity-provider.
Rules come from the Texas Administrative Code, Title 16, Chapter 25, checked Oct 10, 2026. Plan prices and fees come from each company's dated Electricity Facts Label and change often; the calculator's starting numbers are examples you can change. The Day Company is not affiliated with any electric company or utility named here, and no company pays to be listed, scored or ranked.