What has stayed the same in electric service?
Your current Transmission and Distribution Utility, or "local wires company," continues to deliver electricity to your home. Your local wires company still responds to service interruptions and continues to maintain the poles and wires. You will continue to receive the same reliable service you are used to with your local wires company, regardless of which Retail Electric Provider you receive service from.
What has changed in electric service? You can now choose to buy your electricity from a different electric provider than the original provider for your area. These companies are called Retail Electric Providers (R.E.P.). Additionally, your bill now looks different than bills you have received in the past, but each Retail Electric Provider provides the same standard information.
Do all Texans have the power to choose their electric provider?
No. City-owned utilities and member-owned electric cooperatives have the option of giving their customers a choice of providers, or keeping things the way they are today.
What are the benefits of choosing?
Texas' electric rates are average compared to rates across the rest of the country, but our usage is among the highest in the nation due to demand for air conditioning during the long, hot summer season. Competition in other industries has often brought lower prices and innovative, new products and services. Having more control over your buying decision should make it easier to determine what matters most to you, whether it is prices, renewable or green energy sources, customer service or simply a name you know.
Electric competition also should help the environment because Retail Electric Providers may offer electricity from environmentally-clean energy sources. Generating electricity from renewable sources such as wind produces less air pollution than generation that relies on burning coal or natural gas. Natural gas is considered a "clean" fuel source in Texas, since it produces fewer emissions than coal.
With competition, will the reliability of my electric service change?
No. No matter which Retail Electric Provider you choose, your electricity will continue to be delivered safely and reliably by the local wires company, a company still regulated by the PUC.
How does the new competition law protect the environment?
Encourages upgrade or retirement of older power plants to meet emissions standards by allowing utilities to recoup the costs of retrofitting or retiring certain older power plants. Provides incentives for energy efficiency programs that will result in less demand for the production of electricity. Requires retail electric providers to buy additional megawatts of Texas renewable electric generation capacity statewide from sources that include wind, solar, hydroelectric, biomass or geothermal. Texas has routinely exceeded its renewable generation targets and is the largest wind power generator in the U.S.
Agents and Brokers
Many Retail Electric Providers use agents or brokers to support their marketing and sales efforts. These individuals and companies are paid a commission or other compensation by the REP for getting customers to sign up for electric service. Agents and brokers are subject to the same customer protection rules as the REPs they are marketing.
Door-to-Door Sales Personnel
Many REPs employ door-to-door sales personnel or agents to market their electric services. The PUC has specific rules for door-to-door sales to protect customers from misleading or unscrupulous sales tactics. Any salesperson or agent soliciting door-to door must wear a shirt that has the name of the REP he or she works for, and must also wear a badge with the REP's name, PUC certificate number, and a toll-free phone number you can call to verify that the salesperson or agent is an authorized representative of that company. If you live in an area or complex that has a no-solicitation policy prohibiting door-to-door sales, a REP salesperson or agent may not solicit your business. The PUC recommends that you never sign a contract or agreement with any door-to-door salesperson or agent before shopping around with other providers or verifying that the person actually works for the company he/she says they represent. If you do sign up, you still have three days to cancel your order, and after that you still have to verify your choice by phone with an independent third-party. The salesperson cannot be on that verification call. If you believe a door-to-door salesperson or agent is not following the PUC's rules, you should file a complaint by calling the PUC toll-free at (888) 782-8477.
Billing
Will my bill look different?
Yes. Your Retail Electric Provider is responsible for customer service functions such as billing. The Public Utility Commission of Texas (PUC) has established rules requiring Retail Electric Providers to provide you with a bill that is easy to read. For example, your bill will be issued monthly, you will receive a paper bill via U.S. Mail, and you have the choice of receiving your bill electronically, if both you and your Retail Electric Provider agree. It is up to Retail Electric Providers to design their bills; however, there are many bill components they are required to include.
Will my bill be itemized?
It is up to Retail Electric Providers to design their bills. How they decide to itemize charges is up to them.
Whom do I call with a billing question?
You should contact your Retail Electric Provider.
How are billing disputes resolved?
Billing disputes should be directed to your Retail Electric Provider. If disputes cannot be resolved, please contact the Public Utility Commission of Texas customer hotline toll-free at 1-888-PUC-TIPS (1-888-782-8477).
What portion of my electric bill am I shopping for?
The portion you are shopping for is the total price per kilowatt-hour (kWh), which will help you compare offers from Retail Electric Providers. Each Retail Electric Provider must provide an "Electricity Fact Label," which is designed to show the cost of electricity at various levels of consumption, taking into account all of the costs of producing and delivering electricity.
Changing Providers Is there a penalty for changing providers?
No. There is no switching fee unless you request a special meter reading at a time other than your regularly scheduled meter reading. There may also be penalties if you break an existing contract with your current Retail Electric Provider. Review your Terms of Service agreement for details.
If I sign up with a new Retail Electric Provider, when will the switch to that company happen?
Customers can choose a Retail Electric Provider at any time; after switching to a new provider, you will begin to receive service within seven business days. Before you are switched, you will receive written confirmation in the mail. You will receive your first electric bill from your new Retail Electric Provider on the following billing cycle.
Do I have a right to cancel?
Yes. You may cancel within three days from when you receive your Terms of Service agreement by contacting the Retail Electric Provider. If you are hand-delivered a terms of service agreement or you sign up for service using the Internet, there is a three-day cancellation period. The confirmation that will be mailed to you will also provide a way to cancel your switch.
What happens if my Retail Electric Provider stops serving customers?
You will not be without electricity. In most cases, your Retail Electric Provider will give you 30 days' advance notice to give you time to select a new provider. If your provider goes out of business suddenly, your electric service will be switched automatically to the "Provider of Last Resort" (POLR). POLR service is meant to be a temporary fix until you switch to another electric provider, and POLR service typically has very high rates compared to standard market offers.
Do I have to tell my current Retail Electric Provider that I'm switching providers?
To switch your electric service to a new provider, contact the Retail Electric Provider of your choice. Your new Retail Electric Provider will send you a "Terms of Service" agreement that provides details of the service offerings and terms as well as a standardized Electricity Fact Label (EFL) that you can use to compare to other providers' offers. You do not need to contact your current Retail Electric Provider.
Your Rights
What are my rights as an electric customer?
You have the right to choose an electric provider. No matter which electric provider you choose, the Public Utility Commission (PUC) will continue to protect your rights. If you feel that your rights have been violated, call the PUC's toll-free Customer Hotline at 1-888-PUC-TIPS (1-888-782-8477). Your rights include: Non-Discrimination: In addition to standard discrimination prohibitions, a Retail Electric Provider may not deny service or discriminate in the marketing of electric service based on a customer's income level, location in an economically distressed area, or qualification for low-income or energy efficiency services.
Slamming & Cramming
What is Slamming?
Slamming is the illegal practice of switching your electric service without your permission.
What is Cramming?
Cramming is the illegal practice of adding charges to your electric bill for additional services without your permission.
How can I make sure I am not slammed or crammed?
Preventive measures may be taken to prevent slamming and cramming. First, do not give any provider any account information unless you want to switch to that provider. Second, if a provider change is requested, a Terms of Service agreement will be provided to you. You have three days from the date you receive the Terms of Service agreement to cancel your switch request. The Public Utility Commission of Texas will enforce this law. If you think you've been slammed or crammed, call the PUC Consumer Hotline toll-free at 1-888-PUC-TIPS (1-888-782-8477).
I received a letter from a provider thanking me for choosing them, but I did not choose them. What do I do?
If this occurs, you should call the Retail Electric Provider immediately to discuss the situation. If the provider insists they were chosen, you should ask them to send you a copy of the authorization. If the provider cannot provide it and you think you have been slammed, call the PUC Consumer Hotline toll-free at 1-888-PUC-TIPS (1-888-782-8477).